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While artificial intelligence continues to capture all the hype, augmented reality (AR) has landed on several lists of predictions of retail technologies expected to break out in 2025 due to its potential to bridge the gap between physical and digital shopping experiences.
Shopify listed “Augmented reality to become mainstream” among its predictions for online selling for 2025.
“Once a futuristic-sounding concept used only by gamers and young Snapchat users, AR is now the key to helping consumers visualize products they may not be able to see in person, making it easier for them to make a decision,” said Shopify in a blog entry. “Due to its ease of use, augmented reality seems set to grow in popularity.”
The commerce platform noted that AR is particularly effective in industries like fashion and home décor that enable online shoppers to virtually bring fitting rooms or showrooms to their homes. Shopify added, “Social media is also a key driver of AR usage. People often first experience AR when they try a filter or lens on Snapchat, Instagram, or TikTok. These filters allow people to try on makeup or clothing before they buy online.”
In a blog entry, Scott Lundstrom, senior industry strategist at OpenText, cited “immersive augmented and virtual reality experiences” among his five trends set to transform the retail and CPG space in 2025.
“In 2025, these technologies are no longer novelties but integral components of retail and CPG marketing strategies,” wrote Lundstrom. “AR-enabled mobile applications allow consumers to virtually ‘try on’ clothing, visualize furniture in their homes, or see how cosmetic products might look on their skin. CPG brands are using AR to provide interactive product packaging, enabling consumers to access detailed product information, ingredient sourcing, and sustainability credentials with a simple smartphone scan.”
Lundstrom added, “Virtual reality experiences are creating immersive brand storytelling platforms. Consumers can now take virtual factory tours, understand product manufacturing processes, and connect with brands on a deeper, more experiential level.”
In its “The Future of E-Commerce: Trends to Watch in 2025” report, London-based digital agency Appetite Creative likewise called out the “try before they buy” benefit of AR tools, whether testing how a piece of furniture looks in an online shopper’s living room or how a pair of glasses fits their face. The agency stated, “Brands leveraging AR are seeing increased conversion rates and reduced return rates, as customers gain greater confidence in their purchases. Interactive solutions like these are set to redefine the future of e-commerce.”
AR’s usage as an e-commerce tool has been slower than many expected given the technology’s promise to integrate digital and physical realms to create a new dimension of interaction. Tim Cook, Apple’s CEO, predicted in 2016 that AR would become the next major computing platform after the smartphone and be more relevant than virtual reality. He said at the time, “I do think that a significant portion of the population of developed countries, and eventually all countries, will have AR experiences every day, almost like eating three meals a day. It will become that much a part of you. A lot of us live on our smartphones.”
A 2021 survey of 100 technology executives from CGS found the biggest challenge they faced in implementing AR technology was financial constraints, cited by 33%. Other hurdles were C-level buy-in, cited by 11% as the largest concern around AR implementation; subpar staff skills and generational learning curves, cited by 10%; and data privacy and regulatory concerns, 5%.
Only 8% cited concerns around ROI, with 25% citing the potential for employee training as one of the most important uses of AR technology.