AI and augmented reality (AR) subscriptions of Perfect Corp. boost revenue expansion
In the ever-evolving world of technology, Perfect Corp. stands out as a trailblazer, offering virtual try-on technology across various sectors, including skin care, makeup, clothing, and more. The mobile app and web subscription business of Perfect Corp. has shown remarkable growth, outpacing its enterprise segment significantly.
The surge in revenue is primarily driven by the popularity of the company's B2C subscriptions, fueled by the sustained demand for its photo- and video-based generative AI features. This growth comes at a time when the AI and augmented reality (AR) technology markets are experiencing unprecedented expansion.
According to industry forecasts, the generative AI in AR market is expected to grow from approximately $3.33 billion in 2024 to about $4.67 billion in 2025, representing a CAGR of around 40%. By 2029, this market is projected to reach nearly $12 billion, thanks to enhanced personalization, improved visualization, and real-time data integration.
The broader augmented reality market, including hardware and software, is even more substantial, valued at over $43 billion in 2023. By 2032, this market is forecasted to surpass $600 billion, growing at a CAGR of over 34%. This growth is driven by innovations in AR devices like smart glasses and head-mounted displays, which improve usability and drive adoption across sectors such as healthcare, education, manufacturing, and gaming.
Perfect Corp., renowned for its AI-powered AR solutions in the beauty and retail sectors, is well-positioned in this expanding market. The company leverages AR for virtual try-ons and personalized consumer experiences, aligning with the trend in the extended reality platform market, where AR comprises over 63% of the market share.
However, the growth of Perfect Corp. is not without challenges. Consumer trust in AI shopping agents, powered by AR and AI, is a complex issue. While these technologies offer convenience by personalizing product recommendations and enabling virtual trials, concerns about data privacy and security remain key barriers to full consumer trust.
To address these challenges, companies like Perfect Corp. emphasize secure AI-driven personalization and transparent data practices to build trust. Despite these efforts, AI hesitancy persists among consumers, particularly in the current macroeconomic uncertainty.
In Q2, Perfect Corp.'s subscription revenue for AI and augmented reality tech amounted to $14.9 million, representing a 15.6% growth. The company maintains a "prudent near-term outlook" for its business-to-business operations.
To further expand its presence in the virtual try-on space, Perfect Corp. recently acquired Wannaby from Farfetch. With over 800 fashion and beauty brands already using its digital experiences, Perfect Corp. continues to lead the way in immersive and personalized shopping experiences.
A recent survey conducted by Perfect Corp. found that virtual try-on helps produce a 2.5 times increase in sales conversion. However, over 2 in 5 Americans express no trust in AI shopping agents, according to a YouGov survey, indicating that sustained growth depends on enhancing consumer trust by addressing privacy and security challenges inherent to AI shopping agents in AR environments.
References:
[1] MarketandMarkets
[2] Statista
[3] PwC
[4] Newzoo
- Perfect Corp., with its focus on AI-powered AR solutions, is strategically placed in the expanding generative AI in AR market, expected to reach nearly $12 billion by 2029.
- The company's AI-driven personalization and transparent data practices aim to build consumer trust amidst concerns about data privacy and security in AI shopping agents.
- As the broader augmented reality market surpasses $600 billion by 2032, Perfect Corp., which recently acquired Wannaby, continues to lead in the virtual try-on space, offering immersive and personalized shopping experiences.
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