PUBLISHER: KBV Research | PRODUCT CODE: 1261292
PUBLISHER: KBV Research | PRODUCT CODE: 1261292
The Global Digital Clothing Market size is expected to reach $2.5 billion by 2028, rising at a market growth of 26.6% CAGR during the forecast period.
Digital clothing is made of no tangible things, including fabric, and is a computer-generated image designed to closely imitate original real-world clothing. These garments use 3D modeling software and computer technology rather than materials. To produce, displaying, and assess the qualities of clothing in a virtual environment are the objectives of digital fashion designers.
In addition to using specific software and tools, digital fashion design requires understanding materials science, ergonomics, production technology, and anthropometric measurements. The field of digital fashion has recently emerged from obscurity to become one that is expanding quickly. 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.
For people who tend to wear an outfit only once for a social media platform, digital clothing offers an alternative. A digital wardrobe might be more environmentally friendly than purchasing an outfit and supporting the fast fashion obsession.
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. Social media culture heavily emphasizes maintaining one's appearance, but it's important to consider how this may affect e-commerce and the environment.
COVID-19 Impact Analysis
Even anything as straightforward as moving from paper to digital or starting an online store might be considered a digital transformation. COVID-19 substantially expedited this change in the fashion sector by ten times while also normalizing and democratizing the concept of becoming digital. Additionally, businesses might employ this digital clothing to create gaming consoles and online fashion weeks, opening up the lucrative potential for developing the digital clothing market. Thus, the outbreak of COVID-19 has benefited the digital clothing market.
Market Growth Factors
Advancements in metaverse platforms
The metaverse will be the finest place for digital fashion to leave its mark. One of the technologies that will be a foundational element of the metaverse is digital fashion, which has numerous positive environmental effects. Moreover, developing digital clothing in the form of NFT wearables will promote true ownership. 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. Therefore, the expansion of the digital clothing market is fueled by such metaverse platform advancements.
Increased concern of carbon emission by fashion industry
The fashion industry contributes significantly to annual worldwide carbon emissions and is extremely environmentally harmful. The pollution caused by such astonishing figures is equivalent to all emissions from international airplanes and maritime shipping. Moreover, until now, the production of all textiles has had a significant negative influence on the environment because many of them are discarded each year and either burnt or dumped in landfills. These aspects are leading to market growth in the upcoming years.
Market Restraining Factors
Concerns regarding security
Cyber-physical attacks are among the greatest security issues in the Metaverse. This is where an adversary could take control of physical systems using cyber methods. This could involve taking control of a player's avatar to hurt or modify their environment. The denial of service (DoS) attack is a key security and privacy concern for the Metaverse. It's an attack that aims to render a service or network inaccessible by overwhelming traffic or resource demands. DoS assaults often target servers or high-profile targets.
Based on technology, the digital clothing market is segmented into 3D software, blockchain, artificial intelligence and others. The 3D software segment covered a considerable revenue share in the digital clothing market in 2021. Professional fashion designers find 3D to be quite fascinating. Designers must utilize 3D modeling software to develop the clothing and accessories they wish to prototype or produce to take full advantage of this technology. Due to the rendering and visualization capabilities of these 3D programs, the fashion industry is particularly interested in these topics.
On the basis of transaction, the digital clothing market is divided into on chain and off chain. In 2021, the on-chain segment witnessed the largest revenue share in the digital clothing market. The transactions updating the worldwide blockchain network are considered on-chain transactions because they've been legally validated or authenticated. Furthermore, since they are timestamped and replicated throughout the blockchain network, on-chain transactions are visible and safe.
By application, the digital clothing market is classified into digital content creation, fashion design & technology, gaming and others. In 2021, the digital content creation segment dominated the digital clothing market with the maximum revenue share. Digital content creation involves generating ideas and collecting information from mainstream media for specialized purposes. Audio or video files, text, pictures, and graphics are examples of digital content creation. In addition, it allows the company to connect with website visitors, which promotes the brand's scalability and increases the need for content creation.
Region-wise, the digital clothing market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2021, the North America region registered the maximum revenue share in the digital clothing market. The region is among the most highly advanced in the world. The region is comprised of countries with robust and stable economies, allowing for substantial investments in R&D activities that facilitate the development of new technologies such as 3D-modeled pixel clothing, or digital clothing.
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; LVMH SE are the forerunners in the Digital Clothing Market. Companies such as Nike, Inc., Guccio Gucci S.p.A. (Kering Group), Adidas AG are some of the key innovators in Digital Clothing Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Adidas AG, Guccio Gucci S.p.A. (Kering Group), Nike, Inc., LVMH SE, H&M Group, The Fabricant Agency B.V., Auroboros Ltd., More Dash, Inc. (DressX), Dolce & Gabbana S.r.l., and Replicant, Inc.
Recent Strategies Deployed in Digital Clothing Market
Partnerships, Collaborations & Agreements:
Mar-2023: Gucci signed a partnership with YUGA LABS, the Web3 company behind NFT collections like Narrative NFT Project 10KTF and Bored Ape Yacht Club. Through this partnership, companies would bring digital fashion into the metaverse. Moreover, The partnership with Yuga Lab would aim of exploring opportunities together across entertainment and Web3 fashion.
Dec-2022: Adidas collaborated with Snapchat, an American multimedia instant messaging app. With this collaboration companies would introduce a new series of the latest Bitmoji clothing which, for the first time, would be bought through tokens acquired in the app.
Sep-2022: DressX partnered with Zepeto, an Asia-based metaverse platform. Following this partnership, DreesX would introduce a collection of digital-only wearables. Additionally, the collection offers an insight into the future of fashion in which ideas are born and brought to life authentically and completely in the digital world.
Jun-2022: Dolce & Gabbana partnered with SKNUPS. a Digital fashion platform. Following this partnership, Dolce & Gabbana would bring their Italian signature style into games.
Jun-2022: The Fabricant came into partnership with World of Women, the blue-chip NFT brand behind WoW & WoW Galaxy collections. Following this partnership, both companies would aim to develop a digital fashion collection.
Jan-2022: Adidas Originals came into collaboration with Prada, an Italian luxury fashion company. Under this collaboration, both companies would bring unique nonfungible tokens which would feature user-generated art. The project would aim to bring together participants in the design, crypto, and fashion industry for the joint development of digital artwork.
Aug-2021: DressX partnered with Crypto.com, a Non-Fungible token marketplace. With this partnership, DressX would open up the latest value and new life for NFTs and a distribution medium for AR fashion.
Aug-2021: Replicant collaborated with in3D, an online developer. The collaboration would provide shoppers with a sustainable virtual fitting room experience through the TRAI app. Additionally, this partnership enables consumers to live out their fast fashion fantasies in an environment that is much more sustainable given the traditional industry's existence of over-consumption and overproduction.
Jun-2021: Replicant Fashion joined hands with CYBR, a cybersecurity community with training resources. Under this alliance, companies are to release digital fashion collections out of this world. The products are created from liquid metal and have edging that emits light adorned with brushed metal hardware.
Apr-2021: LVMH teamed up with Prada and Cartier, part of Richemont. The collaboration would develop Aura Blockchain Consortium, a global luxury blockchain. With this alliance, companies would aim to offer a high level of traceability and transparency across the lifecycle of a product.
Product Launches and Product Expansions:
Jan-2023: H&M unveiled Loooptopia, a riveting digital fashion experience, on the Robolux platform, a global online game and game creation system. The Looptopia serves both older and young customers through which they would play with materials and patterns for building virtual garments for their new look.
Nov-2022: Nike rolled out Swoosh, a Web-3-enabled platform for the brand's virtual designs and digital community. The Swoosh has its domain for users to develop, and create ad potentially earn royalties from communicable digital objects including virtual shoes and others.
Nov-2022: Adidas announced the launch of virtual gear, the 16-piece set consisting of hoodies and outerwear. The digital NFT wearables would ensure customers can use them in various online environments, such as on avatars in the virtual world or as a profile picture.
Jan-2022: H&M announced the launch of a Virtual fashion collection. The collection launched fulfils the company's aim to lead the transformation in the fashion industry by creating virtual fashion available to its customers.
Nov-2021: The Fabricant introduced The Fabricant Studio, an online design studio platform. The launched product was designed to make virtual fashion design available to anyone across the world.
Jun-2021: Auroboros unveiled the 'Biomimicry' collection, a digital ready-to-wear collection. The 14-piece collection combines nature technology to "wear the future and create your sci-fi-fantasy''. Moreover, the collection draws influence from a 21st-century experience, building the latest cultural identity created for the metaverse.
Mergers and Agreements:
Dec-2021: Nike completed the acquisition of RTFKT, a brand that leverages cutting-edge innovation to provide modern collectibles that join gaming and culture. This acquisition would boost Nike's digital transformation that enables Nike to serve athletes and creators at the merger of gaming, creativity, culture, and sport.
Jan-2021: LVMH Moet Hennessy Louis Vuitton SE took over Tiffany & Co., the global luxury jeweller company. This acquisition would transform LVMH's Watches & Jewellery segment and align with LVMH's 75 distinguished Maison.
Sep-2022: Adidas announced geographical expansion by opening a new facility in Bengaluru, India. The new facility would aim to set a new benchmark in street style and sneaker fashion, the latest store aims to become a cultural and fashion hotspot for the community across the city.
Market Segments covered in the Report:
Unique Offerings from KBV Research
List of Figures