Virtual Fitting Room Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Application (Apparel, Beauty & Cosmetic), By End-use, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global virtual fitting room market size was valued at USD 2.73 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 25.2% from 2021 to 2028. The intervention of Augmented Reality (AR) and Virtual Reality (VR) in virtual fitting room solutions to articulate realistic impressions is expected to majorly fuel the market growth. Furthermore, the rising popularity of the e-commerce sector, growing concerns of online fashion retailers about delivering products that fit appropriately, and the need to cater to the customized demands of customers to survive in an increasingly competitive market are also expected to create promising growth opportunities for the market over the forecast period.

A virtual fitting room, an online replica of an in-store changing space, was introduced in the form of 2D overlays and witnessed a slow start in the fashion retail industry. Nonetheless, the market has observed a robust demand with the emergence of 3D technologies that make use of a mannequin to determine the size of the user. A virtual 3D fitting room represents a collaborative platform between the customer and the fashion brand that attempts to boost customer confidence and minimize the instances where a customer may want to return/exchange a product due to sizing and fitting issues. The ubiquity of intelligent technologies, such as high-quality integrated smartphone cameras, smart mirrors, and high-definition lenses, is expected to drive the adoption of virtual changing room technology over the forecast period.

The rise in the number of fashion brands globally has led to numerous sets of options for customers to choose from. This, combined with the decreasing switching costs, has led to fierce competition among retailers. Virtual fitting rooms provide multisensory stimulations to retailers and offer an immersive user experience to consumers to select the appropriate product for purchase. The potential benefits of virtual fitting rooms in attracting online customers to their web and mobile applications are encouraging fashion retailers to invest significantly in deploying the latest virtual dressing room technologies.

One of the key factors limiting the growth prospects of this market is the technology’s inability to detect the entire human body structure at a glance as it identifies only separate body parts. Moreover, inconsistent internet speeds can reduce tracking accuracy in real-time. To overcome this, the key participants are coming up with technology upgrades related to posing estimations with the help of key points in the frame. This may result in the improved accuracy of the technology and help enhance the precision in the appropriate visualization of human structure.

In recent months, the COVID-19 pandemic and the consecutive stay-at-home regulations, as a way of curbing mass gatherings to reduce the spread of the virus, have restructured the virtual fitting room technology’s capabilities. During the initial period, the market for virtual fitting rooms observed a sharp dip as brick and mortar stores across the globe were shut down temporarily and online deliveries of non-essential items were also prohibited. However, the market is slowly recovering and physical stores are opening with necessary precautions. Brick and mortar retailers are increasingly switching to online services as the web and mobile applications are more ideal in the current time since they operate with minimum human interaction. As a result, the utilization of virtual changing rooms is anticipated to witness an increase in the demand for online purchases.

Component Insights

The software segment accounted for the largest revenue share of over 45.0% in 2020 and is expected to maintain its lead in the market from 2021 to 2028. The segment is also expected to register an impressive growth rate over the forecast period. Software is the core of the virtual dressing room technology and market participants aim to attract their clients through high-tech innovations. With the help of advanced fitting room technology, retailers have witnessed a notable spike in their revenues, substantiating the increasing need for personalized “try-before-you-buy” software.

Significant developments in software solutions, such as precise data annotations, 360-degree visualizations, Artificial Intelligence (AI) algorithms, and 3D simulation, are expected to help create growth opportunities for the software segment over the forecast period. The segment is further bifurcated into on-premise and cloud software. The cloud software segment is expected to witness the fastest growth over the forecast period. The ability of cloud software to offer an animated virtual fitting experience as well as static rendering anywhere and on any device is expected to fuel the growth of the segment from 2021 to 2028.

The services segment accounted for a significant share in 2020. The segment is further divided into installation, support & maintenance, and consulting. The consulting segment is expected to register the highest CAGR over the forecast period. Market participants emphasize delivering consulting services that ensure the effective operation of their complex offerings. Since the technology is still in the early stages of development, solution providers are offering 24*7 consultation services to assist clients in the effective utilization of the software for their retail businesses.

End-use Insights

The virtual store segment held the largest revenue share of over 50.0% in 2020 and is expected to register the fastest CAGR over the forecast period. The e-commerce sector has gradually established itself as one of the most prominent players in the global economic landscape and is expected to overtake the brick-and-mortar shopping model for some products, in terms of sales, in the near future. Users are attracted to the essence of e-commerce websites owing to the wide portfolios, hassle-free purchases, and product comparison in a few clicks. However, the inability to appropriately visualize the desired product is a major drawback of the online purchasing model, resulting in high return rates and customer dissatisfaction. The virtual fitting room technology successfully assists users in making better purchasing decisions and has become one of the leading revenue-generating platforms for online retailers.

The easiest way to attract customers toward online sales is to cater to their personalized needs and improve the quality of their shopping experiences. The major concern of customers while shopping online has always been improper fitting of apparel, which is a key challenge affecting sales. Retailers are also making the best use of chronological interactions through effective navigation structure, content, and graphic styles of the websites or applications that could influence the users' purchase decisions. The utilization of state-of-the-art virtual dressing room software with multiple solutions for reinforcing users' purchasing intentions is expected to create enormous opportunities for the technology in the near future.

Physical stores are expected to significantly deploy virtual fitting room technology to boost their sales. The availability of advanced interactive screens, smart mirrors, and multi-sensor body scanners has increased the applications of the technology in physical stores. Furthermore, various attributes such as self-service and selection of full outfits based on the customer's desired brands are factors contributing to the earnings from physical stores.

Application Insights

The apparel application segment accounted for the largest revenue share of close to 40.0% in 2020 and is projected to maintain its lead over the forecast period. Additionally, the rising deployment of VR and AR to offer an immersive experience is expected to create growth opportunities for this segment. Apparel sales are one of the highest-grossing for both brick and mortar and online purchasing modes. However, the return/exchange rates are also the highest when it comes to buying clothes with improper fits.

Not all consumers have a body structure that matches standard fits. Virtual dressing room technologies help overcome this challenge and enhance the customer’s shopping experience by assisting retailers in delivering clothes with the right fit. Online apparel retailers are deploying fitting room solutions with artificial intelligence to recommend the customer sizes, designs, and styles based on their past searches and purchases. Physical apparel stores and independent fashion houses are making use of the technology to strengthen their brand image.

The beauty and cosmetic application segment is expected to register the highest growth rate over the forecast period. The rising popularity of e-marketplace is encouraging famous beauty and cosmetic brands to shift to online product deliveries. Virtual try-on technology, which struggled to attain mainstream adoption, has lately gained traction as it allows consumers to virtually test different looks as well as gather meaningful data of the retail brands. The cutting-edge fitting solutions detect the facial landmarks with 180-degree visualization, skin tones, and various other facial characteristics. Beauty and cosmetic retail stores are increasingly incorporating these solutions to suggest suitable cosmetics in physical shops with the help of digital screens and interactive mirrors.

Regional Insights

The European market captured the largest revenue share of over 35.0% in 2020 and is expected to maintain its lead throughout the forecast period, owing to the presence of several notable fashion brands in the region. The region has played a significant role in introducing new trends, styles, and designs, which are then followed by other fashion enthusiasts globally. The presence of an extensive retailer base is encouraging the setting up of multiple startups in this region. Furthermore, the rising competitiveness among retailers is offering growth prospects to the regional market, as retailers are increasingly adopting innovative digital technologies to increase footfall as well as engagement levels.

With the U.S. at the forefront, the North American market accounted for a significant revenue share in 2020. The early adoption of simulation technologies is expected to influence the regional market growth over the forecast period. Major participants in the industry such as True Fit Corporation; Zugara, Inc.; SenseMi Smart Solutions; and Perfitly are headquartered in the U.S. Marketers in the region are subsequently favoring advanced 3D visualization solutions to build their company’s image and reduce their operational expenditures.

Asia Pacific is expected to witness significant growth over the forecast period. The soaring demand for advanced solutions that can help customers make prompt buying decisions is likely to contribute to the regional market growth. The region also leads the e-commerce sector, with the presence of China, India, Japan, and South Korea outpacing all other regions. A similar trend is expected to continue over the forecast period. Top e-commerce portals in these countries are adopting fitting room solutions as the region also features an end-user base with the highest number of smartphone users. The benefits of virtual dressing rooms in offering a collaborative online buying experience are expected to trigger the demand in the Asia Pacific region over the forecast period.

Key Companies & Market Share Insights

The market is dominated by various global and regional players striving to gain a competitive edge in the market. The virtual fitting room technology simplifies trying and buying. This is encouraging companies to expand their core capabilities in the virtual fitting room business. Furthermore, market participants are significantly investing in R&D activities to offer state-of-art solutions that can accurately sense the user’s body structure. AstraFit, the leading player in the market, creates a 2D model of the customer’s body structure and determines the fitting size, and underlines the suitable length of the apparel. Furthermore, the company’s superfast garment digitization system measures only one size manually, after which it automatically establishes other sizes.

The upsurge in the adoption of smart technologies to create a simulated environment for service designing is adding to the immense competition between online retailers. To retain their positions in the fashion retail market, online vendors are collaborating with AR technology providers to improve customer satisfaction and attract a more extensive consumer base. For instance, Gap Inc., a prominent global fashion retailer, collaborated with Avametric, a U.S.-based cloth simulation technology provider, to introduce The DressingRoom, a new application. The application is featured with five body types. It utilizes AR technology and an interactive mannequin to determine the consumer’s fit, allowing customers to choose the appropriate outfit. Some prominent players in the global virtual fitting room market include:

• AstraFit

• Else Corp Srl

• Fision AG

• Fit Analytics

• FXGear Inc.

• Magic Mirror

• MemoMi Labs Inc.

• Metail

• Perfitly

Virtual Fitting Room Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. Grand View Research has segmented the global virtual fitting room market report on the basis of component, application, end-use, and region:

• Component Outlook (Revenue, USD Billion, 2016 - 2028)

  • Hardware

  • Software

    • On-premise

    • Cloud

  • Services

    • Installation

    • Support & Maintenance

    • Consulting

• Application Outlook (Revenue, USD Billion, 2016 - 2028)

  • Apparel

  • Beauty and Cosmetic

  • Eyewear

  • Footwear

  • Others

• End-use Outlook (Revenue, USD Billion, 2016 - 2028)

  • Physical Store

  • Virtual Store

• Regional Outlook (Revenue, USD Billion, 2016 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

    • Russia

  • Asia Pacific

    • China

    • Australia

    • Japan

    • South Korea

  • Latin America

  • Middle East & Africa