A new report by Technavio has suggested that the global metaverse in fashion market size is expected to grow by 6.61 billion dollars from 2021 to 2026, accelerating at a compound annual growth rate (CAGR) of 36.47 percent.
The market research firm said that the rise comes as growing numbers of fashion brands enter metaverse platforms, alongside a rising popularity in non-fungible tokens (NFTs) and an increase in augmented reality (AR) and virtual reality (VR) initiatives.
Technavio added that its growth will be further bolstered by the demand for highly personalised digital experiences, with the metaverse building on this concept by enabling users to explore and communicate within platforms.
Further related incentives, such as the creation of customised goods, are additionally enhancing the presence of the market.
However, the report noted that, currently, the market is fragmented, with several players occupying much of the market share, such as Adidas and Alibaba.
It also highlighted that concerns surrounding privacy and security within the sector, as well as legal challenges and limited market penetration in adult consumers, could hinder its initial growth.
In terms of geographical markets, the report stated that North America will account for 38 percent of the sector’s growth during the forecast period, with the US being a key player in the region.
Technovia said this growth is attributable to the presence of key vendors and investors and the adoption of applications, among other elements.