Virtual Fitting Room Market Size, Share & COVID-19 Impact Analysis, By Type (In-store Virtual Mirrors, App-based Body Scanners, and Sizing Surveys Backed by 3D Body Data), By Application (Apparel, Eyewear, Cosmetic & Beauty Products, Jewelry & Watches, and Others), By End-use (Brick-and-Mortar Stores and Virtual/E-commerce Stores), and Regional Forecast, 2023-2030

The global virtual fitting room market size was valued at USD 4.03 billion in 2022 and is projected to grow from USD 4.79 billion in 2023 to USD 18.31 billion by 2030, exhibiting a CAGR of 21.1% during the forecast period. North America accounted for a market value of USD 1.59 billion in 2022. 

Customers can virtually try on items without touching them in the virtual fitting room. With the assistance of augmented reality, virtual reality, and artificial intelligence technology, this solution enables users to determine the ideal size, fit, and style of an item prior to purchasing it. Customers access a live video feed of themselves from their mobile devices to use this software. 

• In March 2023, Savage X Fenty formed a partnership with FIT:MATCH, in alliance with Intel, to release the next version of its body shape technology together. Customers can get scanned in an in-store fitting room with Fit Xperience, which uses Intel Distribution of OpenVINO toolkit and Intel's RealSense technology.

COVID-19 IMPACT

Customers Shifting to Virtual Dressing Room Tool amid the Pandemic Boosted Market Opportunity

In the early 2020s, this market witnessed a decline in its growth owing to the closure of retail shops, non-delivery of items, and imposed trade restrictions. Also, the supply chain and logistics faced a significant setback during the pandemic. However, global e-commerce sales surged as more consumers adopted digital and virtual methods of payments and other activities. For instance,

• As per a Morgan Stanley report, e-commerce sales in retail rose from 15 percent in 2019 to 21 percent in 2021 on a global level.


• Also, the e-commerce market is estimated to increase over the long term from USD 3.3 trillion to USD 5.4 trillion in 2026.

Companies across the world are reshaping their off-store retail business with governments implementing relaxations over imposed pandemic restrictions. For instance,

• In October 2021, H&M launched a virtual dressing room in Germany to promote and showcase its new collection. H&M Germany collaborated with NeXR Technologies to implement the Fusion III body scanner. The partnership aided customers with NeXR’s AvatarCloud Fashion app and gave them a virtual try-on experience.

This factor is expected to boost the virtual fitting room market growth post-pandemic crisis.

LATEST TRENDS

Rise in the Number of Online Shoppers to Fuel the Growth of Virtual Try-on Software

App based body scanning technology has a transformative and influential impact on sizes of businesses. Businesses can use just two customer photos to collect body measurements remotely with the help of solutions such as Mobile Tailor. Similarly, the YourFit solution helps fashion e-commerce sizing issues and matches customers with their ideal fit. A photo-realistic try-on experience, powered by highly accurate body measuring technology, is made possible by this YourFit, which brings the fitting room online.

Around 71% of consumers shop more with brands that integrate Augmented Reality (AR) into the customer’s purchase journey. Magic mirrors are gaining popularity and becoming the new normal on shop floors, allowing customers digital visualization. There is a growing shift toward the adoption of mobile e-commerce, which is expected to expand the market share in the coming years.

VIRTUAL FITTING ROOM MARKET GROWTH FACTORS

Growing Adoption of Mobile Commerce to Augment the Demand for Virtual Fitting Room Tool

With consumer attention constantly centered on mobile devices, businesses, including fashion retailers are grabbing opportunities to reach a mass audience. Many online retailers have developed applications, which display their company products to consumers quickly and interactively. Retailers such as Shopify, Walmart, Amazon, and more provide their customers with app-based virtual dressing rooms to facilitate them with a virtual trial of outfits.

Virtual fitting apps on mobile are based on augmented reality and artificial intelligence. They provide customers with personalized avatars and 3D visualization to enhance their shopping experience. Thus, mobile-commerce augments the growth of virtual try-on software.

In addition, consumers turning to social platforms in search of guidance and support have increased their reliance on the internet. Influencers on platforms, such as TikTok, Snapchat, Pinterest, and Instagram, aid consumers in seeking advice and analyzing outfits through user-curated boards. By creating personal avatars on social media platforms, consumers can gain a virtual dressing experience. Thus, a growing shift toward adoption of mobile-commerce is expected to drive the market growth.

RESTRAINING FACTORS

High Cost of Implementation of Virtual Try-on to Curb Market Growth

Virtual reality technology has been popular among retailers for over a decade. Retailers, such as ASOS, Macy’s, and Adidas, are implementing virtual fitting rooms on e-commerce platforms as well as in their stores. However, virtual dressing rooms would be an expensive investment for smaller companies.

There are various factors due to which virtual dressing room solutions are expensive, such as incorporating/applying augmented reality, artificial intelligence, and virtual reality technology, creating 3D assets, purchasing hardware such as smart mirrors, and training staff on how to use the software. Further, without relevant experience working with AI, VR, and AR, the retailer might find it challenging to integrate the technology seamlessly. These factors are expected to hamper the market growth.

SEGMENTATION

By Type Analysis

Growing Adoption of App-based Body Scanners to Drive Service Demand

Based on type, the market is divided into in-store virtual mirrors, app-based body scanners, and sizing surveys backed by 3D body data.

App-based body scanner holds the largest revenue share and it is expected to grow at the highest CAGR during the forecast period. Shoppers can scan their bodies using smartphones to find their perfect size and fitting match. Multiple luxury fashion brands provide this solution to attract a large number of customers. For instance, H&M has developed a body scanner through which H&M customers can create their own virtual avatar and it can be transferred to the AvatarCloud app to try-on correct clothing sizes virtually. Further, it provides a photorealistic try-on experience to each customer by generating an exclusive 3D avatar from a quick scan on a customer’s mobile device.

The in-store virtual mirror segment is anticipated to grow at a prominent CAGR during the forecast period, as global fashion brands, such as Ralph Lauren, Neiman Marcus, and Mango, allow shoppers to try-on products through their in-store virtual mirrors. According to a well-established brand Ralph Lauren, its virtual mirrors have 90% interaction rate. This huge amount of data from its online fitting room software helps to enhance its retail strategy and improve business performance. These factors are likely to drive market growth.

By Application Analysis

Extensive Rise in the Use of Virtual Try-on Tool in Apparel Sector to Fuel Market Growth

Based on application, the market is categorized into apparel, eyewear, cosmetic & beauty products, jewelry & watches, and others (footwear).

Apparel segment holds the largest market share owing to the significant use of virtual try-on software in the clothing industry. This software helps shoppers to try-on multiple clothes virtually, without even touching them. For instance, in September 2022, Walmart launched a new virtual try-on to improve the customer experience in the U.S. by acquiring Zeekit, a virtual try-on start-up company.

The eyewear segment is likely to gain significant growth during the forecast period as virtual dressing room solution is significantly used in the eyewear industry. It enables the user a 360-degree view of him/herself in the selected frames virtually, due to which this solution is expected to become popular among customers. For instance, Dubai-based specsaddict.com is giving an option for shoppers to try glasses and sunglasses in the UAE by using a virtual mirror tool before buying the item. The shoppers can try-on brands, including Christian Dior, Ray-Ban, and others by using their mobile device.

By End-use Analysis

Significant Rise in Online Shopping Among Customers Propels Market Growth

Based on end-use, the market is bifurcated into brick-and-mortar stores and virtual/e-commerce stores.

The virtual/e-commerce stores segment is expected to gain maximum revenue share in the market as well as it is anticipated to grow at a highest CAGR during the forecast period, owing to an extensively growing customer base. Along with digital transformation, many people across the globe prefer online shopping. Owing to this, multiple e-commerce websites have adopted virtual dressing room solutions that enable shoppers to find out perfect size and fitting match by virtually trying the product. For instance, according to NielsenIQ, 66% of customers say that Augmented Reality (AR) technology helps them to trust the quality of the item they are browsing.

Further, the virtual fitting room solution is prominently used in brick-and-mortar stores, as it allows users to buy items virtually with the swipe gesture of their hands. For instance, in March 2021, Burberry opened a virtual store in Japan. In this, virtual store customers will be able to navigate themselves around the store and they can purchase any product by selecting digital icons.

REGIONAL INSIGHTS

North America to Hold Largest Market due to Expanding E-Commerce Sector

The global market scope is classified across five regions, North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

The North America Virtual Fitting Room Market size was valued at USD 1.59 Billion in 2022 and is growing at a CAGR of 20% from 2023 to 2030. North America dominated the global market with a share of 39.45% in 2022. The North America market share is driven by increasing adoption of Augmented Reality (AR), Virtual Reality (VR), and Artificial Intelligence (AI) technology in the retail sector and e-commerce stores. These technologies help customers to try on different products with virtual try-on and fitting rooms to increase customer engagement and conversion rate.

Further, many well-established retailers in the region are engaged in the acquisition of small-scale e-commerce platforms to increase their customer base as well as brand building. For instance, in August 2021, GAP, a U.S.-based apparel retailer, acquired e-commerce startup Drapr, which uses virtual fitting technology. This technology helps shoppers to generate 3D avatars of themselves to try clothing. This technology is available for online as well as in-store shopping experience.

Asia Pacific is anticipated to witness a significant CAGR during the forecast period, as market players in the region focus on expanding their geographical presence by offering advanced virtual dressing room solutions across developing nations. In addition, China is the largest exporter worldwide of clothing. Over the past few years, China contributed to 38% of growth of the global fashion industry across segments, which plays a vital role in the growth of the market. According to the International Monetary Fund (IMF), India is projected to be the fastest-growing major economy.

The major players and startups across the region are significantly focusing on adoption of novel technologies such as AR, VR, and AI technologies in their virtual try-on software to enhance performance and make it easy to use for the customers. This plays an important role in driving the market in the region.

In Europe, the market has been significantly boosted as multiple retailers and well-established brands across the region are engaged in the adoption of technologically advanced virtual fitting room solutions in their stores. For instance, in September 2022, Snap Inc. and Vogue World collaborated on fashion try-on and augmented reality filters. For Vogue World's New York Fashion Week runway show, Snap created a number of unique location-based augmented reality lenses. Two additional lenses and an in-app AR try-on will be available worldwide. Moreover, H&M, a Sweden clothing company, tested the first virtual fitting in its two flagship stores in Hamburg and Berlin. Primary results obtained in a customer survey were encouraging. According to a survey, 60% of customers found the virtual dressing room solution is helpful in finding out the perfect size and fitting of clothes. In addition, 64% of customers say this solution will be the future of shopping.

Similarly, the growing digitalization in the Middle East & Africa and people's growing interest in online shopping have created a lucrative opportunity for virtual try-on solutions in the region. Further, luxury customers in emerging key African markets such as Nigeria are keen to purchase luxury products. Thus, they prefer online shopping and availability of virtual dressing features on e-commerce platforms provides them with an additional edge to buy the product according to their size and fitting measurements. Latin America is expected to gain steady growth owing to the strong presence of the middle-class population in Brazil and Nigeria. Further, luxury brands in the market are now looking at Brazil as an opportunity for expansion of their business and attracting mass customers.

KEY INDUSTRY PLAYERS

Strategic Acquisitions by Key Players to Boost Market Expansion

The key virtual fitting room players have been investing in innovative virtual try-on solutions across all business segments. Major players operating in the market are reinventing their existing products as well as launching new products to expand their market presence.

Also, through integrations and partnerships, the companies are gaining expertise and expanding their business by reaching a mass customer base. The key players adopt this strategy to improve their customer experience and offerings. Through strategic partnerships and acquisitions, the key players are focusing on market share expansion and increasing customer reach.

• May 2022: Snapchat collaborated with Gucci and American Eagle to introduce new augmented reality shopping tools. The additions include Snap's 3D Resource Administrator, Camera Pack for AR Shopping, Snap's AR Shopping Layouts, and Spruce Up apparatus.


• March 2022: 3DLook launched a virtual try-on solution, YourFit 2.0, to help fashion brands and retailers. YourFit 2.0 is an omnichannel fashion engagement and personalization platform powered by AI technology to enhance the customer shopping experience.

List of Key Companies Profiled in Virtual Fitting Room Market:

• Else Corp (Italy)


• Fit Analytics (Snapchat) (Germany)


• FX Gear Inc. (South Korea)


• Magic Mirror (U.K.)


• MeMo Labs Inc. (U.S.)


• 3DLOOK Inc. (U.S.)


• Zugara, Inc. (U.S.)


• Visual Look (Spain)


• triMirror (U.S.)


• Sensemi DMCC (UAE)

KEY INDUSTRY DEVELOPMENTS

• September 2022 – NeXR Technologies SE and H&M Thailand collaborated on the implementation of a virtual fitting solution. With this alliance, H&M Thailand and NeXR are taking retail business to a novel, creative level and offering clients a special shopping experience using their singular body estimations.


• July 2022 – Hugo Boss launched 3D digital dressing room technology on its website through a partnership with Reactive Reality, a virtual try-on platform. This collaboration, according to both businesses, represents a significant advancement in the fashion industry and demonstrates how the new and creative ways customers can interact with online stores will heavily influence the retail industry's future.


• June 2022 – U.K./Germany-based To Act Brand, a women's apparel brand that caters to sizes 42 – 54, partnered with Perfitly, an AR/VR powered virtual fitting room solution provider. Through this, To Act Brand aims to engage customers better while simultaneously increasing conversion and reducing return rates by incorporating Perfitly's virtual fitting platform, which includes size visualizations and recommendations, into its e-commerce channel.


• November 2021 – Snapchat entered into a partnership with brands on several Augmented Reality (AR) led shopping initiatives, to expand its e-commerce credentials. The biggest was ‘Snap Holiday Market,’ which involved immersive AR shopping capabilities from Amazon, Coca-Cola, Verizon, Hollister, Walmart, and Under Armour.


• June 2021 – Vuemodel's "Dressing Room" was launched on Vue.ai. Customers can use the product as a tool to visualize items on models that are most appropriate for their body types. In the retail sector, Vue.ai serves more than 100 global clients, including Mercado Libre, ThredUp, and El Corte Ingles.

REPORT COVERAGE

The global virtual fitting room market research report provides a comprehensive analysis of the market. It focuses on key aspects such as prominent companies and leading applications of the product. Besides this, the report highlights key industry developments and offers insights into the market trends. Additionally, the report also consists of several factors that have significantly contributed toward the growth of the market in recent years.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019–2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023–2030
Historical Period	2019–2021
Growth Rate	CAGR of 21.1% from 2023 to 2030
Unit	Value (USD billion)
Segmentation	By Type, Application, End-use, and Region
By Type	In-store Virtual Mirrors App-based Body Scanners Sizing Surveys Backed by 3D Body Data
By Application	Apparel Eyewear Cosmetic & Beauty Products Jewelry & Watches Others (Footwear)
By End-use	Brick-and-Mortar Stores Virtual/E-commerce Stores
By Region	North America (By Type, By Application, By End-use, and By Country) U.S. (By Application) Canada (By Application) Europe (By Type, By Application, By End-use, and By Country) U.K. (By Application) Germany (By Application) France (By Application) Italy (By Application) Rest of Europe Asia Pacific (By Type, By Application, By End-use, and By Country) China (By Application) Japan (By Application) India (By Application) Singapore (By Application) Rest of Asia Pacific Middle East & Africa (By Type, By Application, By End-use, and By Country) GCC (By Application) South Africa (By Application) Rest of Middle East & Africa Latin America (By Type, By Application, By End-use, and By Country) Brazil (By Application) Mexico (By Application) Rest of Latin America