📊Market Analysis
Last updated
Last updated
The fashion industry has large-scale global significance in economic, social, environmental, and other fields. Fashion industry statistics show that the apparel and textile industry is the 4th largest industry globally. The fashion industry employs professionals ranging from the highest technical level and education to the lowest level of education. According to McKinsey, the fashion industry, which is one of the largest industries in the world, generates a global annual revenue of 2.5 trillion dollars [2]. According to Statista, the global apparel market alone will have USD 1.5 trillion in 2020 [3]. New companies are entering the market every day to cater to the textile and apparel industry in fashion. Most of these companies remain little known to the consumer audience, while the individual brands that make up these global fashion companies are better known.
The fashion industry is undergoing change and transformation in digitalization, ecommerce, social media, value chain, sustainability, diversity, and inclusion. Although the digital transformation of the fashion industry began years ago, the last year has taken this change to the highest level, bringing new, innovative solutions to longstanding challenges. The fashion industry is in an era of digital transformation as more and more digital innovations are made available to fashion companies. According to Morgan Stanley, digital demand for fashion and luxury brands is expected to reach 50 billion U.S dollars by 2030 [4]. McKinsey states that the deepening digital divide in fashion creates a multifaceted effect from sales channels to cost structures [5].
High value-added business models are emerging with disruptive technologies such as artificial intelligence, blockchain, and augmented reality in the fashion field. It is predicted that disruptive technologies will offer more efficient and practical tools to the fashion market in the future. The global augmented reality (AR), virtual reality (VR), and mixed reality (MR) market is estimated by Statista to reach 30.7 billion U.S. dollars in 2021 and approach 300 billion U.S dollars by 2024 [6]. Statista has stated that the global artificial intelligence (AI) software market is worth 34.87 billion U.S. dollars in 2021 and predicts that it will overgrow in the coming years and reach approximately 126 billion U.S. dollars by 2025 [7]. Statista states that global artificial intelligence in the fashion market reached 636.6 million U.S. dollars in 2021 and is expected to reach 4.4 billion U.S. dollars by 2027, with a CAGR of 36.9 percent [8]. At the same time, Statista estimates that the worldwide blockchain market was valued at 6.92 billion U.S dollars in 2021 and will grow more than a hundredfold to reach 163 billion U.S dollars by 2027 [9].
Constructing the Metaverse with the focus on fashion with the use of destructive technologies together offers a large-scale and integrated fashion structure. The fashion industry, where human tastes are the main driving force, is in rapid change and transformation with the concept of Metaverse. NFTs are accelerating this transition, while the Metaverse offers significant opportunities for the fashion industry. DappRadar stated that the NFT market size had reached 23 billion dollars [10]. JPMorgan stated that the NFT market size had reached 7 billion dollars. According to the global metaverse market analysis based on Newzoo, IDC, PWC, Statista, and Two Circles data, it is targeted to reach 478.7 billion U.S. dollars in 2020 and 783.3 billion U.S. dollars in 2024 with a compound annual growth rate of 13.1% [11]. According to PwC, a global consulting firm, the market outlook for the Metaverse, including AR and VR, is expected to grow steadily and reach approximately 1,500 billion U.S. dollars by 2030 [12].
