Metaverse in Fashion Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Canada, China, Japan, Germany - Size and Forecast 2024-2028

Metaverse in Fashion Market Forecast 2024-2028 

The metaverse in fashion market size is forecast to increase by USD 12.65 billion, at a CAGR of 36.72% between 2023 and 2028. The market's growth rate is influenced by several key factors. One of these is the entry of numerous fashion brands into the metaverse platform, indicating a growing trend toward digital presence and engagement. Another factor is the escalating consumer demand for personalized and immersive shopping experiences, emphasizing the importance of virtual environments in modern retail. Additionally, the rising popularity of virtual tokens and nonfungible tokens (NFTs) plays a crucial role, showcasing a shift towards digital assets and transactions within the metaverse. Together, these trends underscore a significant transformation in how consumers interact, shop, and invest within virtual spaces, shaping the trajectory of the market's expansion and evolution.

Moreover, the market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 10 market companies, including Alibaba Group Holding Ltd., ByteDance Ltd., Fashable, Kering SA, Magic Leap Inc., Meta Platforms Inc., Microsoft Corp., NetEase Inc., NexTech AR Solutions Corp., Nike Inc., NVIDIA Corp., Queppelin, Roblox Corp., Tencent Holdings Ltd., and Mobiloitte Technologies. Additionally, Accenture Plc offers metaverse platforms such as Balenciaga online fashion show which offers multi-faceted digital fashion work.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics 

The market is driven by the convergence of AR (Augmented Reality) and VR (Virtual Reality) technologies, offering immersive shopping experiences. This trend is fueled by NFTs (Non-Fungible Tokens), enhancing digital ownership of virtual fashion items. Challenges include ensuring Natural User Interfaces for seamless interaction, addressing privacy concerns in the Digital Experience, and navigating the evolving Geographic Landscape of virtual fashion markets. Industry influencers and startups play a crucial role in shaping trends, while innovations in MR (Mixed Reality) and Blockchain technology drive further advancements. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market  Driver

A growing number of fashion brands entering metaverse platform is notably driving the market. Metaverse platforms have the potential to revolutionize the online shopping experience. In addition, fashion brands, especially clothing apparel brands, are largely dependent on attractive labels and branding for sales. Therefore, with 3D platforms such as Metaverse, fashion brands can strengthen their online shopping experience by providing virtual experiences to the customers.

Moreover, big brands such as Nike Inc. (Nike), Adidas AG., and Guccio Gucci S.p.A are showing interest in the market. In addition, clothing apparel brands are using metaverse platforms to enhance brand awareness. For instance, in December 2021, Nike announced its acquisition of RTFKT Inc. (a company that makes digital sneakers) to expand its market base through the metaverse. Hence, such factors are driving the market during the forecast period.

Significant Market Trends

Highly personalized digital experience is an emerging trend in the market. In the e-commerce landscape, the metaverse has offered a completely advanced virtual reality. In addition, online shoppers will be able to engage with the clothing apparel of their choice in real-time using their own virtual avatars. Furthermore, if an e-commerce company uses the metaverse to build a digital shop, customers will be able to enter, explore, and check out the items they want to buy.

Moreover, they will also be able to communicate with other users. As a result, people's perceptions of virtual and physical stores drastically changed. In addition, metaverse will introduce the customers to a whole new shopping experience in the clothing industry. Furthermore, it will also have an impact on consumer behavior trends in the coming years. Hence, such factors are driving the market during the forecast period.

Major Market Restrain

Privacy and security concerns over the metaverse are a major challenge hindering the market. Even though companies and organizations are transforming their IT security systems, data privacy, and security have been significant concerns for the users of the metaverse. In addition, the metaverse collects and processes vast amounts of information about users and their environment. Furthermore, privacy concerns, therefore, are a major challenge to the global metaverse in the fashion market.

Moreover, the metaverse can access the personal data of users and may pose a threat to their privacy. In addition, it can collect a lot of information from the user's social networking accounts. Furthermore, user privacy can also be threatened if hackers gain access to the user's device. In addition, there are many privacy-related concerns associated with smart gears, such as VR and AR metaverse devices, including Sony PlayStation VR, HTC Vive Series, HP Reverb G2, Microsoft HoloLens, Epson Moverio, and MagicLeap. Hence, such factors are hindering the market during the forecast period.

Market Segmentation 

The Metaverse is reshaping the fashion industry and transforming lifestyles by introducing innovative trends and digital experiences. Within this virtual realm, clothing and fashion items are not just pieces of fabric; they become NFTs (Non-Fungible Tokens), representing unique digital assets. AR (Augmented Reality) and VR (Virtual Reality) technologies further enhance the geographic landscape within the Metaverse, offering immersive digital experiences to users. This dynamic environment is also fostering the growth of start-ups focused on data synthesis and leveraging industry influencers to drive engagement. The entertainment and gaming industry is a significant player in this space, integrating MR (Mixed Reality), VR headsets, and MR headsets to create captivating experiences for users. Technological advancements like HUD (Heads-Up Display), HMD (Head-Mounted Display), smart glasses, and smart helmets facilitate natural user interfaces and enrich the gaming experience within the Metaverse. Digital technology players are at the forefront of developing solutions for virtual wellness, promoting fitness, and addressing mental health concerns through immersive experiences.

By Platform

The computer segment is estimated to witness significant growth during the forecast period. The computer segment comprises the largest market share in the global market in 2023 owing to the growing internet penetration. In addition, personal computers (PCs) are small, multipurpose devices intended for use by individuals for designing prototypes, sketches, and several other uses.

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The computer segment was the largest segment and was valued at USD 436.17 million in 2018. Moreover, even though a majority of users across the world have mobile access, the total time spent on websites is majorly dominated by the computer segment. For example, as of 2021, the average time spent on websites is maximum on a desktop/PC, representing 53.3% in the US, whereas globally, it was 46.4% of the average time spent on websites by desktop/PC. Furthermore, many websites are built with desktops in mind, and the majority of their functionality may be accessed that way. In addition, people with a better internet connection will still want to use their desktops instead of other devices, such as smartphones, as a broadband connection is faster than a mobile connection by quite a margin. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Market Segmentation By Device

The enhancement of the online buying experience by the VR or AR devices segment which in turn will increase the market growth. AR technology, including smart glasses and mobile applications, provides consumers with immersive experiences by superimposing virtual fashion items onto the actual world, enabling them to try on clothes virtually before making a purchase.  In addition, these AR and VR technologies enable fashion designers and retailers to connect customers in new ways, improve the online buying experience, and bridge the gap between physical and digital retail. Furthermore, as technology advances, AR and VR devices are likely to play an increasingly important part in the global metaverse of the fashion sector, delivering immersive and individualized experiences to fashion consumers worldwide. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Regional Overview

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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Several factors including the presence of key vendors such as Meta Platforms, Inc. and NVIDIA Corp., growing investments in AR technology from key market players, rise in the adoption of technologically advanced applications, and strong research activities to increase the application of metaverse are driving the growth of the market in the region.

In addition, the US and Canada are the leading contributors to the market in the region. Moreover, the growing number of internet-savvy shoppers in North America is one of the crucial factors increasing market penetration.  Furthermore, the growing presence of major vendors, such as Nike Inc., Adidas AG., and Guccio Gucci S.p.A, on the metaverse platform is positively impacting the growth of the regional market. Hence, such factors are driving the market in North America during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

Global Market Customer Landscape

Market Companies

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Adidas AG: The company offers a metaverse platform that comprises virtual wearables that buyers can purchase in online platforms. They also offer Adidas Virtual Gear, the first-ever collection of digital apparel from the Three Stripes.

Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.

• Platform Outlook
  • Computer
  • Mobile
  • Headset
• Device Outlook
  • VR or AR devices
  • Computing devices
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is an innovative convergence of technologies and lifestyles, shaping a new digital landscape for consumers and businesses alike. With the rise of NFTs (Non-Fungible Tokens), AR (Augmented Reality), and VR (Virtual Reality), the fashion sector is experiencing a paradigm shift towards immersive experiences and interactive shopping environments. Start-ups and industry influencers are leveraging data synthesis to create engaging virtual platforms, catering to the evolving preferences of modern consumers. Entertainment and gaming industries play a pivotal role in driving Metaverse adoption, as MR (Mixed Reality), VR headsets, MR headsets, HUD (Heads-Up Display), and HMD (Head-Mounted Display) technologies enhance gaming experiences and digital interactions. Smart helmets and natural user interfaces further bridge the gap between physical and digital realms, offering unique opportunities for virtual wellness, fitness, and mental health experiences.

Moreover, in the medical sector, Metaverse applications extend to doctor-patient interactions, surgeries, and medical simulations powered by Blockchain, AI (Artificial Intelligence), and ML (Machine Learning). The aerospace and defense sectors utilize Metaverse technologies for training, simulations, pre-flight checks, and weapon training, enhancing operational efficiency and safety. However, challenges such as health concerns, cybersecurity, platform selection, hardware/software requirements, and content creation tools must be addressed. The Metaverse's potential in the fashion market hinges on seamless integration with IT infrastructure, 3D modeling software, game engines, and social media platforms, promising a dynamic future for digital experiences across tablets, laptops, TV sets, DigiLens, and holographic waveguides, expanding FoV (Field of View) and immersive possibilities.

Furthermore, the Metaverse is revolutionizing the fashion industry by integrating various elements like lifestyle, geographic landscapes, and digital technologies. It offers immersive experiences that transcend traditional boundaries, attracting both consumers and players in the entertainment and gaming industry. With the utilization of Blockchain technology, the Metaverse ensures secure transactions and authentic virtual experiences. Digital technology players are actively involved in developing platforms that cater to fashion enthusiasts, providing a blend of real-world and virtual interactions. Programming skills are crucial for creating captivating virtual environments and engaging simulations. However, any negligence in design or implementation can lead to subpar experiences.

Market Scope
Report Coverage	Details
Page number	171
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 36.72%
Market Growth 2024-2028	USD 12.65 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	33.95
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 41%
Key countries	US, Canada, China, Japan, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Accenture Plc, Adidas AG, Alibaba Group Holding Ltd., ByteDance Ltd., Fashable, Kering SA, Magic Leap Inc., Meta Platforms Inc., Microsoft Corp., NetEase Inc., NexTech AR Solutions Corp., Nike Inc., NVIDIA Corp., Queppelin, Roblox Corp., Tencent Holdings Ltd., and Mobiloitte Technologies
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2023 and 2028
• Precise estimation of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, APAC, Europe, South America, and the Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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