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Virtual Fitting Room Market Size, Share and COVID-19 Impact Analysis, By Component (Hardware, Software, and Services), By Application (Apparel, Eyewear, Beauty & Cosmetic Products, Jewelry & Watches, and Others), By End-use (Physical Stores and Virtual Store), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI100322

 

KEY MARKET INSIGHTS

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The global virtual fitting room market size was USD 2.97 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with virtual fitting rooms witnessing a significant impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 17.3% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 3.50 billion in 2021 to USD 12.97 billion in 2028 at a CAGR of 20.6% in the 2021-2028 period. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


The virtual fitting room offers customers the benefit of virtually trying products on themselves without touching them. Many physical and online store retailers are implementing the technology to reduce product returns and exchanges owing to the size and fitting issues. For instance, as per eShoppers, it witnessed 70% apparels return owing to size issues. It is also a good opportunity for sellers to offer a personalized, immersive, and inclusive shopping experience. The application of virtual and augmented reality and artificial intelligence is further expected to drive market opportunities. For instance, Perfect Corp. introduced its AR-based virtual try-on platform for its online eyewear portfolio.


COVID Impact


Rising Online Shopping amid COVID-19 Pandemic to Drive Market Growth


The outbreak of the novel coronavirus has propelled the virtual technology application across various industries. The lockdown, social distancing, and threat of contracting this virus have significantly boosted non-touch shopping and remote purchasing trends. As per the NielsenIQ report, the online shopping trend has gained traction during COVID-19 owing to improvements in the online infrastructure, trust, and transparency of these platforms. This has remarkably boosted the demand for virtual room fitting technology for in-store and virtual shopping. For instance, to engage the customer during the temporary shutdown of the store, a Toronto-based company, Knix launched a new virtual fitting program. Through the platform, Knix’s customers were able to video chat, consult, purchase the right size, and buy suitable products.


Similarly, considering safety and hygiene, beauty retailers such as Sephora and Ulta discontinued the physical product testing services. Ulta introduced GLAMlab beauty tools to virtually try-on cosmetics. The demand for the product has surged since the outbreak of the coronavirus, and the company was able to sell over 50 million shades of the foundation during COVID-19. Similarly, various physical store retailers have implemented the virtual fitting room environment to boost sales. Initially, the supply of hardware and services was hampered, but the adoption of VFR software has gained rapid traction during the pandemic. The market is expected to gain rapid growth post-pandemic.


LATEST TRENDS


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Integration of Augmented Reality to Redefine Market Opportunities


The application of augmented reality (AR) technology is gaining traction in virtual fitting room solutions. Integration has become an essential technology for retailers to enhance the consumer experience. Apparel brands such as Louis Vuitton, Levi’s, Ralph Lauren, Bloomingdales, Burberry, and Gucci, among others, have shifted towards augmented reality to upgrade their virtual fitting tools and solutions. With the implementation of AR, the VFR technology offers an augmented environment, content, product information, gamification, and more such customer interacting advanced features. As per the recent report of Shopify, solutions with interactive AR features are expected to showcase a conversion rate of 94%.  For instance, in September 2020, Levi’s launched its AR tool Squad to co-watch and shop with friends from different remote locations. This is expected to grow the company sales and offer socializing experiences during the lockdown.


Similarly, Kohl introduced AR Virtual Closet, where customers can try and shop through. They can use AR technology to step inside the store and virtually try the outfits with mix and match features. As per the 2019 report of Neilson Global, more than 50% of respondents were ready to use this technology for retail assistance. Thus, the integration of AR is expected to fuel the virtual fitting room market growth.


DRIVING FACTORS


Rapid Expansion of Online Shopping to Drive Market Growth


Online shopping is a dominant and effective alternative to traditional shopping. Today, the popularity of online shopping is evidenced by the global growth of e-commerce, as well as m-commerce. Various online retailers are offering video chatting, screen sharing, looks comparison, and more such features to attract online shopping customers. However, the size issue and doubt about the actual appearance of the customer are likely to challenge online sales. Thus, to offer confidence and boost platform sales, online retailers are offering virtual try-on. The platform provides various features to the online buyer to analyze the product virtually.


For instance, in March 2021, Snapchat acquired a Berlin-based virtual apparels fitting company, Fit Analytics, for its online shoppers. The company is aiming to build its own AR platform for its 265 million online users. Thus, the rapid growth in online shopping is set to drive the market for virtual fitting rooms.


RESTRAINING FACTORS


Inability to Touch and Feel Products Physically May Hinder Market Growth


During in-store shopping, the customer touches and physically feels the product’s texture, material, fabric, elasticity, strength, and other such things. During the virtual fitting trials, customers cannot physically touch the product. As per the PushOn report, 82% of shoppers need to touch the product before purchasing it. Similarly, the exact fitting of the product in the virtual trial might not be 100% accurate. Thus, this physical limitation in shopping might initially hamper the demand for virtual fitting rooms.


SEGMENTATION


By Component Analysis


Increasing Focus on High Measurement Accuracy to Boost Hardware Segment


Based on the component, the market is segmented into hardware, software, and services. The hardware segment is expected to gain the maximum share during the forecast period. The high-resolution cameras, digital screen, 3D & 2D apparel model creation, and customized kiosk, among others, are required for the in-store experience. The highly effective hardware component empowers the virtual experience of users. Thus, to offer more accurate product fitting, physical stores and virtual stores are implementing advanced components.


The software of VFR is remarkably gaining traction owing to the increasing virtual shopping trends. Similarly, the services segment is likely to gain steady growth to offer the implementation of kiosks, remote support, software setup, and operations, among others.


By Application Analysis


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Rising Usage of Digital Fitting Rooms to Bolster Growth of Apparel Segment


Based on application, the market for virtual fitting rooms is categorized into apparel, eyewear, cosmetics & beauty products, jewelry & watches, and others. The apparel segment is expected to dominate in terms of revenue share. The early adoption of online apparel shopping amongst consumers is likely to drive the adoption of digital fitting rooms. Different companies in the fashion industry are implementing virtual try-on services to expand their apparels section sales. For instance, fashion brands such as ASOS, Adidas, Bloomingdales, and Burberry, among others, implemented Zeekit VFR for their apparel.


The eyewear segment is likely to gain rapid growth during the forecast period. After apparel, the eyewear industry players are implementing the technology to expand their sales. These players are collaborating with technology providers to develop virtual try-on for eyeglasses and contact lenses. For instance, TopPlus, a computer vision startup, implemented the virtual solution as a try-on experience for eyewear shoppers through e-commerce platforms and mobile applications. Similarly, the demand for a digital platform for testing make-up and beauty products is growing significantly. Beauty & cosmetic brands such as GlamLab, Sephora, and Ulta adopted virtual fitting solutions to assist customers. Thus, the growing application of the technology across various sectors is likely to surge the market opportunities.


By End-use Analysis


Surging Confidence in Online Shopping to Boost Virtual Store Segment


Based on end-use, the market for virtual fitting rooms is bifurcated into physical store and virtual store. The physical store segment is expected to gain maximum share during the forecast period. The implementation of digital fitting rooms is growing in the retail industry as it offers capabilities of a salesperson and in-depth detail of the product. The adoption of the technology is similar to a marketing strategy to boost in-personal shopping experiences. Retailers such as Walmart, Ralph Lauren, Charlotte Tilbury, and Gucci implemented the technology for the in-store customer experience.


The virtual stores segment is set to showcase remarkable growth owing to the rising confidence in online shopping. E-commerce players are offering a high VFR experience to reduce the return and exchange of the product. Also, with the implementation of the technology, sellers are witnessing a significant rise in virtual shopping. For instance, as per the Fits.me data, the conversion rate as compared to the traditional size chart improved by 62% in virtual fitting solutions. Also, the company witnessed a 77% reduction in exchange or return of product owing to the wrong size issue. Thus, the growing trend of online shopping is anticipated to drive market opportunities.


REGIONAL INSIGHTS


North America Virtual Fitting Room Market Size, 2020 (USD Billion)

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Geographically, the market for virtual fitting rooms is fragmented into five major regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.


North America is set to dominate in terms of revenue share during the forecast period. The presence of leading retailers, fashion industry players, e-commerce companies, and others are likely to drive market growth. According to the 2020 U.S. Retail Index report by IBM Corporation, the COVID-19 pandemic boosted digital shopping by five years. This is likely to drive the market growth opportunity in the future. The U.S. is likely to gain the maximum revenue share owing to the offline and online shopping trends. As per McKinsey’s report, The State of Fashion 2020, the U.S. has the largest fashion market with 80% of online and offline shoppers.


Europe is likely to stand second in terms of the virtual fitting room market share. The exponentially growing fashion and apparel industry in the region is expected to boost the market opportunities. Further, as per the report of Ecorsy, European countries are witnessing a remarkable rise in online shopping. Also, countries such as France, Italy, and the U.K. are significantly contributing to the fashion industry and its future opportunities. As per the 2019 report of MuleSoft, 4% of U.K. consumers have experienced virtual and augmented technology in the fashion industry.


Asia Pacific is expected to witness rapid growth during the forecast period owing to the increasing adoption of smart and advanced technologies such as virtual and augmented reality, artificial intelligence, and more. China is estimated to gain the maximum share owing to the lucrative opportunities for international and local fashion industry players. India is expected to witness a rapid growth rate. The growing competition in the online fashion industry of India is likely to boost the adoption of the technology. For instance, in December 2018, India’s ethnic fashion brand, Biba, collaborated with AstraFit to provide a real-life dressing room experience.


United States Virtual Fitting Room (VFR) Market Share, By Application, 2020

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Similarly, the Middle East and Africa is likely to witness significant growth owing to the surging annual spending on fashion and apparel per person. Similarly, Latin America is set to witness steady growth in terms of CAGR. Brazil is anticipated to gain traction owing to the significantly growing economy. As per the 2019 Global Sentiment Survey of McKinsey, the rising economy is increasing consumers’ confidence. This is likely to drive market growth.


KEY INDUSTRY PLAYERS


New Launches and Collaborations to Expand Business Opportunities of Key Players


Key players are offering new platforms, applications, and services in the market to serve the customer online and in offline stores. These players are launching their solutions across the globe owing to the growing demand. Also, they are collaborating with retailers, fashion and lifestyle providers, and other apparel industry players to expand their presence. The implementation of this technology is helping in reducing product returns and exchanges, along with surging customer satisfaction.


May 2021 – Israel-based company, MySize announced its expansion in the French market by launching its new MySizeID app for France-based fashion company La Caserne.  The fashion company is offering 25 different brands, and the implementation of this application is aimed to reduce returns and ensure sizing accuracy.


February 2020 – NeXR Technologies SE, in collaboration with H&Mbeyond, is working on developing a virtual fitting solution as a digital fitting room. With digital technology, H&Mbeyond is aiming for a better customer experience and customer retention.


LIST OF KEY COMPANIES PROFILED:



  • AstraFit (Kyiv, Ukraine)

  • Else Corp Srl (Milan, Italy)

  • FXGear Inc. (Seoul, South Korea)

  • Fit Analytics (Snapchat) (Berlin, Germany)

  • Fision AG (Zürich, Switzerland)

  • Magic Mirror LLC (New York, United States)

  • MemoMi Labs Inc. (California, United States)

  • Zugara Inc. (California, United States)

  • NeXR Technologies SE (Berlin, Germany)

  • Sizebay (Coimbra, Portugal)

  • My Size Inc. (Israel)

  • SenseMi ViuBox (Dubai)

  • Shandong Yashe Information Technology Co., Ltd. (Shandong)

  • Reactive Reality AG (Graz, Austria)

  • True Fit Corporation (Boston, United States)


KEY INDUSTRY DEVELOPMENTS:



  • May 2021 – Walmart announced its plans to acquire a virtual fitting room player, Zeekit. As per the company, the technology will be used to showcase its personal labels and other brands.

  • June 2020 – MySize Inc. launched Sweet Fit, an interactive virtual mirror. It is integrated with augmented reality technology to offer body scans and to display virtual outfits. It is based on real-time body measurement.


REPORT COVERAGE


An Infographic Representation of Virtual Fitting Room (VFR) Market

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The global virtual fitting room market research report highlights leading regions across the world to offer a better understanding of the user. Furthermore, it provides insights into the competitive landscapes, latest industry, and market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating key factors and restraints, helping the reader gain in-depth knowledge about the market.


REPORT SCOPE & SEGMENTATION


















































  ATTRIBUTE



  DETAILS



Study Period



  2017-2028



Base Year



  2020



Forecast Period



  2021-2028



Historical Period



  2017-2019



Unit



  Value (USD Billion)



Segmentation



  Component; Application; End-use; and Geography



By Component




  • Hardware

  • Software

  • Services



By Application




  • Apparel

  • Eyewear

  • Cosmetics & Beauty Products

  • Jewelry & Watches

  • Others



By End-use




  • Physical Store

  • Virtual Store



By Region




  • North America (By Component, By Application, By End Use, and By Country)

    • United States (By Application)

    • Canada (By Application)





  • Europe (By Component, By Application, By End Use, and By Country)

    • UK (By Application)

    • Germany (By Application)

    • France (By Application)

    • Italy (By Application)

    • Rest of Europe





  • Asia Pacific (By Component, By Application, By End Use, and By Country)


    • China (By Application)

    • Japan (By Application)

    • India (By Application)

    • Singapore (By Application)

    • Russia (By Application)

    • Rest of Asia Pacific




  • The Middle East & Africa (By Service, By Type, By Platform, and By Country)

    • GCC (By Application)

    • South Africa (By Application)

    • Rest of the Middle East & Africa





  • Latin America (By Component, By Application, By End Use, and By Country)

    • Brazil (By Application)

    • Mexico (By Application)

    • Rest of Latin America





Frequently Asked Questions

The market is projected to reach USD 12.97 billion by 2028.

In 2020, the market stood at USD 2.97 billion.

The market is projected to grow at a CAGR of 20.6%.

The hardware segment is likely to dominate the market.

The rapid shift towards online shopping is set to drive the market.

AstraFit, FXGear Inc., Fit Analytics, Fision AG, Magic Mirror, MemoMi Labs Inc., Zugara Inc., NeXR Technologies SE, Sizebay, and My size Inc. are the top players in the market.

North America is expected to hold the highest market share.

The eyewear application segment is expected to showcase significant CAGR.

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Virtual Fitting Room (VFR) Market Size, Share and Global Industry Trend Forecast till 2026
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