Augmented Reality (AR) and Virtual Reality (VR) are revolutionizing industries, or at least that’s what the people selling headsets would like us to believe. The global AR and VR market is expected to balloon to $96.32 billion by 2029, which means that sometime in the near future, we will all be expected to conduct our daily lives wearing an oversized pair of futuristic goggles. Businesses are eagerly investing in these immersive technologies, hoping that if they make their products spin, glow, or appear life-sized in your living room, you will finally commit to buying that overpriced couch.
Despite all the enthusiasm, AR and VR marketing remain surprisingly underused, with only 14% of marketers actually incorporating them into their strategies. Perhaps it’s the lingering trauma of watching someone flail around in a VR headset like they’re being attacked by an invisible swarm of bees. Or maybe it’s the reality that, while exciting, these technologies are mostly being used to let people see what they’d look like in sunglasses or test out a new shade of lipstick without leaving their couch. But consumers are warming up to the idea—57% say they’re more likely to buy from brands that offer AR experiences, which suggests that if you make shopping feel like a game, people will open their wallets just to see what happens next.
This article takes a deep dive into the latest AR and VR trends, unpacking how these technologies are reshaping marketing, customer engagement, and product visualization. Whether they’re revolutionizing eCommerce, making virtual real estate tours slightly less awkward, or ensuring we all look ridiculous in our living rooms trying to “interact” with digital objects, one thing is certain—AR and VR are pushing the limits of how far companies will go to keep us entertained just long enough to hit “add to cart.”
- Global AR & VR Market Size: The combined AR and VR market generates approximately $32.1 billion annually, with projections to nearly double by 2028, reaching $58.1 billion. explodingtopics.com
- Consumer Purchase Likelihood with AR: 57% of customers are more likely to buy from brands offering AR experiences. reydar.com
- Marketers Utilizing AR/VR: 14% of marketers currently incorporate AR and VR into their strategies, with 49% planning to increase their investment in these technologies. learn.g2.com
- Mobile AR Market Growth: The mobile AR market is expected to grow from $12.45 billion in 2021 to $39.81 billion by 2027. explodingtopics.com
- Projected AR/VR Market Expansion: The AR and VR market is anticipated to grow from $22.12 billion in 2024 to $96.32 billion by 2029, at a CAGR of 34.2%. marketsandmarkets.com
- Consumer Interest in AR for Fitness: 78% of consumers are interested in using AR for wellness or fitness activities. learn.g2.com
- AR Product Visualization Growth: AR product visualization is projected to increase from $2.13 billion to $30.2 billion by 2024. learn.g2.com
- North America’s AR Market Share: In 2023, North America held the largest revenue share of the AR market at 36.14%. learn.g2.com
- AR and VR in Marketing Market Size: The AR and VR in marketing market is expected to reach $24.2 billion by 2033, with a CAGR of 18.3% during the forecast period. scoop.market.us
- Meta’s Reality Labs Sales Growth: Meta’s Reality Labs division achieved a 40% growth in sales in 2024, driven by demand for Quest VR headsets and the Horizon app. businessinsider.com
- AR User Base in the U.S.: In 2020, 83.1 million U.S. consumers used AR monthly, accounting for 15% of the population. threekit.com
- Global VR Market Insights: The global VR market encompasses various applications, including gaming, education, and healthcare, with significant growth observed in recent years. statista.com
- AR in Commerce: AR is increasingly used to integrate print and video marketing, enhancing product previews and customer engagement. en.wikipedia.org
- VR in Digital Marketing: VR presents an alternative channel for digital marketing, offering immersive experiences that can increase consumer engagement and product knowledge. en.wikipedia.org
- AR in Retail: Retailers like IKEA and Wayfair use AR to allow consumers to visualize products in their homes before purchasing, enhancing the shopping experience. en.wikipedia.org
- AR in Beauty Industry: Brands such as L’Oreal and Sephora have developed AR apps that let consumers virtually try on makeup, increasing customer engagement and satisfaction. en.wikipedia.org
- AR in Fashion: Neiman Marcus offers consumers the ability to see outfits in a 360-degree view with their “memory mirror,” enhancing the shopping experience. en.wikipedia.org
- AR in Automotive Marketing: In 2014, Nissan used AR to market their Juke at the Paris Motor Show, allowing users to experience a virtual city run alongside a Juke driving. en.wikipedia.org
- AR in Financial Services: Wells Fargo utilized VR in a three-year campaign to promote their brand at public events in the U.S., enhancing consumer perception. en.wikipedia.org
- AR in Real Estate: Architectural firms use AR to allow clients to tour virtual models of proposed or existing buildings, replacing scale models or floor plans. en.wikipedia.org
- AR in Education: Educational apps like Twinkl’s AR classroom application let pupils see historical settings, enhancing learning through immersive experiences. en.wikipedia.org
- AR in Publishing: Traditional print publications are using AR to connect different types of media, enhancing reader engagement. en.wikipedia.org
- AR in Packaging: AR can enhance product previews, allowing customers to view what’s inside a product’s packaging without opening it. en.wikipedia.org
- AR in Social Media: Platforms like Snapchat and Instagram have integrated AR features, allowing users to apply filters and effects, increasing user engagement. en.wikipedia.org
- AR in Event Marketing: Companies have used AR to create immersive experiences at events, increasing attendee engagement and brand awareness. en.wikipedia.org
As AR and VR continue their relentless march toward becoming everyday marketing tools, businesses that embrace these innovations will be better positioned to create immersive experiences that are equal parts fascinating and slightly disorienting. With the market projected to grow at an eyebrow-raising CAGR of 34.2%, the opportunities to make consumers gasp in wonder—or at the very least, tilt their heads in mild curiosity—are expanding at a dizzying rate. Virtual product try-ons, interactive event marketing, and a thousand other ways to make people stare at their phones in public are reshaping industries and redefining what it means to engage with a brand.
Of course, this isn’t just about keeping up with technology—it’s about keeping up with consumer expectations, which, at this point, demand nothing less than sorcery. Brands that invest in AR and VR solutions will need to ensure they’re not just chasing trends but actually creating experiences people want, rather than gimmicks they’ll play with once and forget immediately. As these tools become more widely available and more companies jump on the bandwagon, AR and VR will inevitably move from being “the future” to just another thing marketers have to figure out before their competitors do.
In the end, we may not know exactly where this technology will take us, but one thing’s for certain—whether it’s virtual fitting rooms, AI-powered real estate tours, or the ability to see what a new couch looks like in your apartment before committing, AR and VR are ushering in a bold new era of digital interaction. And if that means fewer awkward in-store encounters with overly enthusiastic salespeople, well, maybe the future isn’t so bad after all.
Written by: Andy Halko, CEO & Founder
I started Insivia in 2002 and for over 22 years I have had the chance to work directly with hundreds of companies and founders to redefine or reinvent their businesses.