Report Linker’s new ‘Global Digital Clothing Market‘ report analyses the current state of the digital clothing market and forecasts its growth trajectory through 2026. The report shows significant growth in the digital clothing market which is expected to reach a staggering $25 billion by 2028, a market growth of 26.6% compound annual growth rate (CAGR).
Digital fashion has expanded thanks to the speed at which human technology is advancing. “The rise in the metaverse’s development and the rising demand for eco-friendly clothes are predicted to contribute to the digital clothing market’s significant growth over the forecast period,” according to the report.
The increasing adoption of online shopping and the ease of access to a wider range of clothing options have driven the growth of e-commerce in the market, making it the go-to transaction type for digital shopping. Additionally, the report highlights the role of mobile commerce in the digital clothing market, with the rise of mobile devices and the increasing trend of using mobile apps for shopping.
“The fact that social media has created an online atmosphere that promotes the display of clothing and fashion from perhaps immoral companies speaks volumes about what a particular culture values today.”
Prioritising the metaverse
The report states that, “The metaverse will be the finest place for digital fashion to leave its mark.” Adding that the metaverse digital fashion is one of the technologies that will be a foundational element of the metaverse.
While developing digital clothing in the form of NFT wearables will also promote true ownership as we delve into Web3, the report finds that, “The metaverse is more than just a setting for video games and wandering. It is a virtual reality environment where actual physical events can take place.”
Security remains a major concern in the metaverse and the report was quick to note that, “Cyber-physical attacks are among the greatest security issues in the metaverse.” The report adds that a wrongdoer could take control of another player’s avatar to hurt or even modify their environment.
Leveraging new technology
The report emphasises how the digital clothing market is segmented into 3D software, blockchain, artificial intelligence and others. After professional fashion designers found 3D to be quite fascinating, designers must now utilise 3D modelling software to develop the clothing and accessories they wish to prototype or produce.
Transaction-wise, the on-chain segment of the digital clothing market witnessed the largest revenue share in the digital clothing market. As the report says, “The transactions updating the worldwide blockchain network are considered on-chain transactions because they’ve been legally validated or authenticated.” Adding that since on-chain transactions are timestamped and replicated on the blockchain network, they are visible and safe.
The report also provides a regional outlook of the digital clothing market, with North America expected to dominate the market during the forecast period. The increasing adoption of digital technologies and the presence of major players in the region are key factors driving the growth of the market in North America, Europe, Asia Pacific and LAMEA.
The report concludes with a list of the major players in the digital clothing market, including Gucci, Adidas, DressX, Dolce & Gabbana, The Fabricant, LVMH, H&M, Nike and others. These companies are investing heavily in digital technologies to improve their customer experience and gain a competitive advantage in the market.
Overall, the report finds that the increasing adoption of digital technologies and the growing demand for personalised and immersive shopping experiences are expected to drive the growth of the market as we enter a new phase of the internet.