Virtual Fitting Rooms Market (By Component: Hardware, Software, Services; By Application: Apparel, Beauty and Cosmetic, Eyewear, Footwear, Others; By End-use: Physical Store, Virtual Store) - Global Industry Analysis, Market Size, Opportunities and Forecast 2020 - 2027

The global virtual fitting room market is expected to grow at a CAGR of around 20.2% from 2020 to 2027 and expected to reach the market value of around US$ 11.5 Bn by 2027.

A virtual fitting room is a simulation of trying on clothes similar to a video game dressing room, but with the possibility of purchasing real clothing at the end. This high-tech internet marketing strategy, like the mobile phone or any interactive kiosk, has the potential to transform the retail experience, with particular relevance for apparel and fashion.

Market Driver

Technological advancements bolster the growth of global virtual fitting rooms market

Virtual fitting rooms (VFRs) have already begun to transform the state of affairs in both the retail and e-tail industries by allowing customers to try on apparel and mix-and-match accessories without physically being present in retail stores. On the hardware front, multi-sensor bars such as “Microsoft Kinect” and “ASUS Xtion” have made depth scanning accessible to the general public by enabling accurate full-body depth maps and gesture recognition via supporting frameworks. Furthermore, VFRs rely heavily on Augmented Reality (AR) that also uses specialized software and hardware to merge the digital and physical worlds by immersing digital information into real-time video to generate convincing-looking scenes. Modern VFRs combine depth and color data with AR technologies to provide robust body recognition functionality and successfully address the fit and suit aspects of shopping. Furthermore, promising platforms offer real-time video simulations that allow customers to visualize products as part of their existing outfits and view them from various angles.

Market Insider

Virtual try-on replacing fitting rooms during the pandemic

The COVID-19 pandemic has prompted customers to replace fitting rooms with augmented reality (AR) apps on their smartphones and computers. According to ACM data, jewellery brand Kendra Scott is allowing customers to virtually try on earnings using their iPhone browsers. In addition, augmented reality provider Zeekit is about to launch the world's largest virtual fitting room, allowing customers to drag hundreds of thousands of clothing items onto photos of themselves. Customers who use the company's artificial intelligence to virtually try on clothing are five times more likely to buy and keep the items. But apart from that, some retailers are pursuing contactless fittings in stores, with mall operators Brookfield Properties recently announcing that it will instal three-dimensional body scanners that will guide customers to the best-fitting clothing brands and sizes.

Key Market Trend

Rising competition among online retailers is driving up demand for advanced technologies to provide customers with a better shopping experience. Because of the significant growth in online shopping, stores and businesses are being pushed to implement such solutions. This interactive online platform allows customers to virtually try on selected products so that they can choose the best product for their needs. A virtual interactive purchasing platform can also help stores reduce poor fitting experiences, increase customized demand, and improve overall purchasing process efficiency. The ability to boost online apparel sales by increasing customer satisfaction and engagement via websites will complement the deployment of virtual fitting solutions. VFR solutions are used by e-commerce websites such as CaratLane, Lenskart, Metail, Model my outfit, 3D-a-porter, and others to cater to their customers.

Market Restraint

Lack of awareness and high cost to curb adoption

Virtual fitting technology is evolving and reshaping the fashion industry; however, some medium and small retailers are unaware of the technology's benefits. Furthermore, retailers with less knowledge of VRF solution deployment result in lower adoption of this solution. Because of insufficient publicity, the general public is less aware of this solution. This has become one of the major impediments to the global virtual fitting room market's growth. Furthermore, due to the much higher implementation cost, small and medium-sized retailers are unable to afford the solution. These are some of the major restraints weighing heavily on the global virtual fitting room market.

Market Segmentation

The global virtual fitting room market is segmented based on component, application, and end-user. By component, the market is segmented as hardware, software, and services. By application, the market is segmented as apparel, beauty and cosmetic, eyewear, footwear, and others. By end-user, the market is bifurcated into physical stores and virtual stores.

According to component, the software segment will have a dominant market share and is expected to maintain its strong lead in the overall market in the coming years. The core of virtual dressing room technology is software, and market participants strive to attract clients through high-tech innovations. Retailers have seen a significant increase in revenue as a result of advanced fitting room technology, substantiating the growing demand for personalized “try-before-you-buy” software.

The apparel segment is expected to account for the largest market share during the forecast period. The increasing use of VR and AR to provide an immersive experience is expected to open up new opportunities for this segment. Apparel sales are among the highest-grossing for both in-store and online purchases. However, when it comes to buying clothes that do not fit properly, the return/exchange rates are the highest. The beauty and cosmetic application segment is expected to grow at the fastest rate during the forecast period. The growing popularity of e-commerce is encouraging well-known beauty and cosmetic brands to switch to online product delivery.

Regional Overview

The global virtual room fitting market is dominated by North America. One of the major factors driving the growth of the global virtual fitting room market is the increasing adoption of AR/VR technologies. In the United States, a large number of retailers have adopted VFR-based technologies and solutions to improve the customer experience while lowering operational costs. The trend of 3D visualisation of “Avtar” has become popular among fashion consultants in the United States, resulting in regional market growth. Europe is expected to grow at a healthy rate, with an increasing number of emerging prominent players across the continent. The European VR market has taken the lead in the global market, with specific countries such as the United Kingdom, Germany, France, and Spain driving the market. Asia Pacific, on the other hand, will have the fastest growing CAGR in the global virtual fitting room market.

Competitive Landscape

The prominent players of the global virtual fitting room market involve AstraFit, Else Corp Srl, Fision AG, Fit Analytics, FXGear Inc., Magic Mirror, MemoMi Labs Inc., Metail, Perfitly, and among others

Market Segmentation

Market By Component

Hardware
Software
Services

Market By Application

Apparel
Beauty and Cosmetic
Eyewear
Footwear
Others

Market By End-use

Physical Store
Virtual Store

Market By Geography

North America
•    U.S.
•    Canada

Europe
•    U.K.
•    Germany
•    France
•    Spain
•    Rest of Europe

Asia-Pacific
•    China
•    Japan
•    India
•    Australia
•    South Korea
•    Rest of Asia-Pacific

Latin America
•    Brazil 
•    Mexico
•    Rest of Latin America

Middle East & Africa
•    GCC
•    South Africa
•    Rest of Middle East & Africa