Rapid Expansion of Virtual Try-On Market Registers Impressive 25.8% Rate
In the ever-evolving world of retail, a significant shift is underway. The virtual try-on market, particularly in North America, is experiencing rapid growth, impacting the economy and job market in profound ways.
This burgeoning sector, holding over 38% of the global share with revenues of around USD 4.17 billion in 2024, is expanding at a robust rate. Projections suggest a CAGR of approximately 10.2-25.8% over the next decade[1][3]. This growth contributes to the larger retail and e-commerce sectors, enabling more immersive and convenient shopping experiences through AI and augmented reality technologies.
Economically, this market growth leads to increased online consumer spending, supporting the overall retail market growth projected in the US from $5.52 trillion in 2025 to $6.89 trillion by 2034[5]. Retailers, including brick-and-mortar stores, are investing heavily in virtual try-on solutions and partnerships with tech firms to reduce returns, personalize shopping, and enhance customer loyalty[1][4].
The job market is also undergoing a transformation, as part of a broader AI-driven labor transformation. While automation and AI can displace certain routine retail and manufacturing jobs, they simultaneously create demand for new high-skill roles such as AI engineers, software developers, data analysts, and specialized compliance managers involved in the deployment and maintenance of virtual try-on systems[2]. Companies are increasingly adopting AI-enabled "copilots" and training programs to reskill workers, mitigating displacement and creating new employment pathways in tech-driven retail innovation[2].
In North America, this growth is more software and experience-driven rather than hardware-based, emphasizing roles in AI-enhanced avatar personalization, SaaS platform development, and integration with social commerce platforms[3]. This signals a shift toward higher-tech jobs supporting the digital retail ecosystem.
The virtual try-ons market is segmented based on product type, technology, and deployment. The product type segment includes Fashion (Clothing, Accessories), Beauty (Cosmetics, Skincare), Eyewear, Footwear, and Jewelry. The market's CAGR is expected to be 25.8% during the forecast period from 2025 to 2034[6].
AI-driven virtual try-on technologies have been introduced by leading tech companies, and key players in the market include Zakeke, Wannaby Inc., DeepAR (I Love Ice Cream Ltd.), Kling AI, Banuba Limited, Onix, metadome.ai (Formerly Adloid), 3DLOOK Inc., AUGLIO, Quy Technology Pvt. Ltd. (QUYTECH), WEARFITS, MySize Inc., Zugara, Inc., Queppelin, and others[7].
The growth of virtual try-ons is reshaping business operations, particularly in sectors like fashion, beauty, and eyewear. The rise of immersive digital shopping experiences is reshaping consumer behavior. The Europe market in the virtual try-ons sector is driven by strong e-commerce growth and consumer interest in innovative retail experiences[8]. The technology segment includes Augmented Reality (AR), Artificial Intelligence (AI), and Mixed Reality (MR)[9].
The global virtual try-ons market is projected to reach USD 108.5 billion by 2034[6]. The market is competitive, with numerous players offering a range of AR/AI-based solutions for e-commerce and physical retail environments[8]. The Asia-Pacific region is expected to see rapid growth in the virtual try-ons market, fueled by the growing middle-class population and increasing demand for tech-driven retail solutions[10].
In summary, the virtual try-ons market is a key driver of economic expansion and labor market evolution in North America, reflecting broader AI-driven industrial transformation. This market boosts retail and e-commerce growth by improving consumer convenience, reducing returns, and increasing sales through immersive AR/AI experiences. Simultaneously, it drives strong demand for highly skilled tech roles and reskills workers, creating new employment pathways in tech-driven retail innovation.
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