US Virtual Dressing Room Market Research Report: By Component (Solutions, Services) and By End Users (E-Commerce, Physical Stores) - Forecast to 2035

US Virtual Dressing Room Market Overview:

As per MRFR analysis, the US Virtual Dressing Room Market Size was estimated at 1.74 (USD Billion) in 2023. The US Virtual Dressing Room Market Industry is expected to grow from 2(USD Billion) in 2024 to 8 (USD Billion) by 2035. The US Virtual Dressing Room Market CAGR (growth rate) is expected to be around 13.431% during the forecast period (2025 - 2035).

Key US Virtual Dressing Room Market Trends Highlighted

The US virtual dressing room market is experiencing several important trends driven by the growing adoption of technology in retail. The increase in online shopping, especially accelerated by the COVID-19 pandemic, has pushed retailers to enhance consumer experience through virtual try-on solutions. This technology allows customers to visualize how clothing fits and looks on them before making a purchase. With a substantial percentage of Americans preferring online shopping, virtual dressing rooms are becoming a crucial tool for reducing return rates and increasing customer satisfaction. Additionally, advancements in augmented reality (AR) and artificial intelligence (AI) are enabling more realistic and personalized fitting experiences.

Retailers are increasingly focusing on integrating these technologies to cater to consumer demands for more interactive and engaging shopping experiences. The younger demographic, particularly Gen Z and Millennials, are driving this trend with their preference for digital solutions in the shopping process, making it essential for brands to invest in such technologies. The US virtual dressing room market also presents numerous opportunities for growth and innovation. As brands seek to differentiate themselves, there is potential for new entrants offering specialized solutions tailored to unique customer needs, such as size recommendation algorithms or enhanced virtual fitting experiences.

Moreover, collaborating with social media platforms could further extend the reach and engagement with potential customers, creating a hybrid shopping journey that merges social interactions with retail. Recently, the market has seen significant interest from both startups and established companies exploring partnerships and technology innovations. Retailers are looking at unique solutions such as avatar creation and custom fitting recommendations, which align with a trend toward personalization in the consumer landscape. The ongoing investment by retailers in creating seamless omnichannel experiences indicates that the virtual dressing room market in the US is set for continuous growth and evolution.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Virtual Dressing Room Market Drivers

Increasing Consumer Demand for Online Shopping

The shift in consumer behavior towards online shopping has significantly impacted the US Virtual Dressing Room Market Industry. According to the U.S. Department of Commerce, e-commerce sales in the United States reached approximately 20.5% of total retail sales in the second quarter of 2022, highlighting a considerable trend towards online shopping. This statistic indicates that more consumers are looking for convenient ways to try on clothing virtually, rather than visiting physical stores.Established organizations like Amazon and Walmart are investing heavily in technology that enhances online shopping experiences, including virtual dressing rooms. As these companies integrate more augmented reality (AR) solutions into their platforms, the demand for virtual dressing rooms is set to rise steeply. Furthermore, the projection of continued e-commerce growth underscores the necessity for retailers to adopt virtual dressing room technologies to meet consumer expectations for convenience and an engaging shopping experience.

Advancements in Augmented Reality Technology

The rapid advancements in Augmented Reality (AR) technology significantly contribute to the growth of the US Virtual Dressing Room Market Industry. The AR technology used in virtual dressing rooms allows customers to visualize clothing on their own avatars or live video feeds, enhancing the shopping experience. A report from the Federal Trade Commission notes that the AR market is expected to grow from USD 2.6 billion in 2020 to over USD 61.39 billion by 2023.Major tech companies like Apple and Microsoft are continuously innovating AR devices and applications, ensuring that the quality and usability of virtual dressing rooms improve, which in turn drives consumer adoption and retailer integration.

Rising Integration of Artificial Intelligence

Artificial Intelligence (AI) plays a pivotal role in enhancing the functionality of virtual dressing rooms within the US Virtual Dressing Room Market Industry. AI algorithms can analyze customers' preferences, body types, and previous purchasing behavior to provide personalized recommendations and size suggestions. Research conducted by McKinsey & Company has shown that personalization can lead to a 10 to 30% increase in conversion rates. Retailers like Nordstrom and Gap are leveraging AI technologies to create tailored virtual experiences for their customers, further reinforcing the market's growth potential.As businesses increasingly rely on data analytics to drive sales, the trend towards adopting AI in virtual dressing rooms will likely continue.

Focus on Sustainability and Eco-Friendly Practices

The growing consumer awareness of sustainability and eco-friendly practices is another prominent driver for the US Virtual Dressing Room Market Industry. A survey by Nielsen indicated that 73% of millennials are willing to pay more for sustainable offerings. Virtual dressing rooms reduce the need for consumers to return products that do not fit or suit their preferences, minimizing waste and carbon footprint associated with shipping. Retailers such as Patagonia and Levi's are adopting virtual dressing room technologies as part of their commitment to sustainability, aiming to reduce returns and promote responsible consumption.This shift not only appeals to eco-conscious consumers but also aligns with broader industry trends aimed at promoting sustainability.

US Virtual Dressing Room Market Segment Insights:

Virtual Dressing Room Market Component Insights

The Component segment of the US Virtual Dressing Room Market plays a pivotal role in the overall growth and expansion of this innovative industry, which has seen increasing consumer demand driven by the rise of digital shopping experiences. Within this segment, the main classifications include Solutions and Services. Solutions encompass the software and technology required to create immersive dressing room experiences that emulate physical try-ons. 

This is crucial, as it allows retailers to enhance customer engagement and satisfaction by providing realistic previews of clothing on customers’ virtual avatars. By utilizing augmented reality (AR) and virtual reality (VR) technologies, companies can connect with the tech-savvy consumer base in the US, which is adapting to online shopping trends influenced by the hustle of daily life and the convenience of e-Commerce platforms.Services consist of the support, integration, and maintenance needed for the successful implementation of Virtual Dressing Room technologies. 

Given that the retail landscape is increasingly competitive, services that offer seamless integration with existing platforms and provide continuous updates are vital for sustaining market relevance. The significant growth of online shopping amidst the ongoing digital transformation has underscored the importance of these Services, as retailers require dependable partnerships to ensure they can meet tech demands and pave the way for enhanced customer experiences. Market trends reveal that retailers are increasingly investing in Virtual Dressing Room solutions to reduce return rates and combat challenges related to sizing discrepancies, which traditionally plague online apparel shopping. 

By addressing these pain points, retailers not only improve customer satisfaction but also see a positive impact on their financials. This makes the Component segment significant in driving the adaptation of Virtual Dressing Rooms in US retail settings. Engaging in partnerships that promote innovation within these segments not only enhances operational efficiency but also offers opportunities for growth and differentiation in a saturated market. Hence, the Component segment remains a cornerstone of the evolving US Virtual Dressing Room Market, enabling businesses to leverage advanced technologies and align with consumer preferences effectively.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Virtual Dressing Room Market End Users Insights

The US Virtual Dressing Room Market has exhibited significant growth potential, particularly within the End Users segment, which consists of E-Commerce and Physical Stores. As consumer preferences shift towards online shopping, the E-Commerce sector plays a crucial role in driving market advancements, enabling retailers to offer immersive shopping experiences that reduce return rates through accurate fit and styling options. Furthermore, the Physical Stores segment integrates virtual dressing solutions to enhance in-store experiences, allowing customers to visualize products better and optimize their shopping journey.

This integration addresses the challenge of size discrepancies and boosts customer satisfaction, leading to increased sales. With the growing importance of innovative technology in retail, both segments are exploring unique opportunities to meet consumer demands, ultimately contributing to the overall growth of the US Virtual Dressing Room Market. As per market trends, the rising adoption of augmented reality (AR) and artificial intelligence (AI) in these segments is expected to transform how brands engage with customers. In addition, the ongoing investments in Research and Development are likely to further enhance personalization and interaction levels in both E-Commerce and Physical Stores, solidifying their roles as pivotal players in the market.

US Virtual Dressing Room Market Key Players and Competitive Insights:

The US Virtual Dressing Room Market has emerged as a pivotal segment in the retail and fashion technology landscape, characterized by rapid innovation and competitive dynamics among key players. This market enables consumers to interactively try on clothing and accessories virtually, thereby enriching the shopping experience and reducing return rates. As online shopping continues to gain traction, the demand for virtual dressing solutions has intensified, facilitating a race among firms to offer cutting-edge technologies and unique consumer experiences. Companies are leveraging advanced technologies such as augmented reality (AR) and artificial intelligence (AI) to create realistic virtual fittings, enhancing customer satisfaction while also addressing inventory challenges faced by retailers. Understanding competitive landscapes in this market is essential for stakeholders looking to navigate the complexities of consumer behavior and technology adoption.Vue.ai stands out in the US Virtual Dressing Room Market due to its innovative approach to visual commerce and AI-driven solutions. 

The company provides powerful tools that enable retail brands to create personalized visual experiences for customers. One of Vue.ai's key strengths lies in its ability to integrate seamlessly with existing e-commerce platforms, enhancing retailers' online presence without requiring significant overhauls. Additionally, the company focuses on sophisticated algorithms that aid in size recommendations, fitting suggestions, and styling features, which are particularly crucial for minimizing return rates in the fashion sector. This synergy of technology and user experience establishes Vue.ai as a prominent player, driving competitive differentiation and providing brands with robust capabilities to foster customer engagement.Snap has also carved a niche for itself in the US Virtual Dressing Room Market through the incorporation of augmented reality into its product offerings, specifically with features such as virtual try-ons that enhance user interaction. 

The company’s strengths include its established presence in social media and significant user base, which provides ample opportunities for brands to reach broader audiences seamlessly. Snap’s focus on immersive experiences, along with collaborations and partnerships in the retail industry, enhances its competitive positioning. Furthermore, Snap has engaged in strategic mergers and acquisitions to bolster its technology and expand its service portfolio, allowing for the integration of advanced AR features that resonate well with the growing market demand. As such, Snap continues to evolve its virtual dressing room capabilities tailored for the US consumer market, reinforcing its role as a formidable competitor in this rapidly expanding industry.

Key Companies in the US Virtual Dressing Room Market Include:

• Vue.ai


• Snap


• Facebook


• Walmart


• Stylitics


• Zalando


• Fit Analytics


• Nedap


• Threedium


• Hexa


• Google


• ModiFace


• Virtuality


• Amazon


• Aisle411

US Virtual Dressing Room Market Industry Developments

Recent developments in the US Virtual Dressing Room Market have showcased significant growth and innovation, primarily driven by advancements from key players such as Vue.ai, Snap, Facebook, and Walmart. In August 2023, Snap launched enhancements to its virtual try-on feature, expanding partnerships with various retailers to improve user experience. Facebook has focused on integrating augmented reality solutions for its e-commerce platform, offering users engaging shopping experiences. Meanwhile, Walmart is reportedly increasing its investment in virtual dressing room technology to streamline the customer journey, reflecting the heightened consumer demand for personalized shopping experiences.

In terms of mergers and acquisitions, the acquisition of Fit Analytics by the global retail giant Zalando in July 2022 exemplifies the increasing consolidation in the sector, combining data analytics with fashion technology to enhance customer personalization. Additionally, Nedap's strengthening partnerships with multiple retail platforms signify efforts to leverage technology in fitting room solutions.The overall market landscape continues to evolve, with major players like Amazon and Google developing their own virtual dressing technologies aimed at enhancing customer engagement and increasing conversion rates, reflecting the robust market dynamics shaped by technological advancements and consumer preferences.

US Virtual Dressing Room Market Segmentation Insights

Virtual Dressing Room Market Component Outlook

• Solutions


• Services

Virtual Dressing Room Market End Users Outlook

• E-Commerce


• Physical Stores

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	1.74(USD Billion)
MARKET SIZE 2024	2.0(USD Billion)
MARKET SIZE 2035	8.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	13.431% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Vue.ai, Snap, Facebook, Walmart, Stylitics, Zalando, Fit Analytics, Nedap, Threedium, Hexa, Google, ModiFace, Virtuality, Amazon, Aisle411
SEGMENTS COVERED	Component, End Users
KEY MARKET OPPORTUNITIES	Increased online shopping demand, Enhanced AR technology integration, Personalized fitting experiences, Expansion into social media platforms, Collaboration with fashion retailers
KEY MARKET DYNAMICS	increasing demand for online shopping, advancements in AR technology, consumer preference for personalization, rising focus on sustainability, competitive retail landscape
COUNTRIES COVERED	US