As the metaverse continues to develop and the demand for sustainable consumption grows, the intrigue surrounding digital clothing is surging ahead, with a new report stating that the sector is set to become a highly lucrative market in the near future.
According to Allied Market Research, the global digital clothing industry is estimated to reach 4.8 billion dollars by 2031, a significant step up from the 498.7 million dollars it generated in 2021.
In its latest report, ‘Digital Clothing Market by Technology, by Transaction, by Application Area: Global Opportunity Analysis and Industry Forecast 2021-31’, the firm outlined an analysis of various market trends, segments, investment areas and the competitive landscape.
It noted that much of the industry’s past rise could be attributed to the restrictions the pandemic presented, which resulted in the acceleration of the market and the normalisation of democratised digital fashion.
Other growth areas, including the advancement of augmented reality (AR) and virtual reality (VR) in gaming, as well as non-fungible tokens (NFTs), presented further opportunities, possibly counteracting the current high costs of digital garments that are said to be hindering the market’s growth.
In terms of segments, while blockchain boasted the largest market in 2021, the report found that the 3D software segment is projected to witness the fastest CAGR of 27.29 percent from 2022 to 2031, led by the likes of Adidas, Nike and H&M.
Meanwhile, North America is set to maintain its leadership position in terms of revenue by 2031, after it captured nearly two-fifths of the global digital clothing market share in 2021, mostly down to the rapid growth of various technologies in the region.
Asia-Pacific however is expected to see the fastest CAGR of 27.84 percent during the forecast period due to urbanisation and an increase in digital content creation.