UAE Virtual Try On Market

UAE Virtual Try On Market Overview

• The UAE Virtual Try On Market is valued at USD 900 million, based on a five-year historical analysis and its share within the broader global virtual try-on and beauty tech markets. This growth is primarily driven by the increasing adoption of augmented reality (AR) and artificial intelligence (AI) technologies in retail, which enhance customer engagement, support data-driven personalization, and improve conversion rates. The rise in e-commerce, particularly in fashion and beauty, along with higher smartphone penetration and social commerce integration, has further fueled the market's expansion in the UAE.
• Dubai and Abu Dhabi are the dominant cities in the UAE Virtual Try On Market due to their status as major retail and tourism hubs and their high concentration of luxury brands, malls, and flagship stores. The presence of a tech-savvy population, strong penetration of online fashion and beauty platforms, and a large influx of international tourists to destinations such as Dubai Mall, Mall of the Emirates, and Yas Mall contribute to the market's growth in these cities, making them key players in the virtual try-on landscape.
• In 2023, the UAE government strengthened the broader digital commerce and data framework that underpins the use of AR technologies in retail, aiming to enhance customer experiences and drive innovation. For instance, the Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data, issued by the UAE Cabinet, sets requirements for consent, data minimization, and security when processing biometric and image data commonly used in virtual try-on solutions, impacting how retailers and technology providers deploy these tools. In parallel, national initiatives under the UAE Digital Economy Strategy and programs led by entities such as Dubai Future Foundation and Abu Dhabi’s Hub71 provide funding, accelerator programs, and incentives for tech startups and retailers to adopt immersive technologies, thereby fostering a more competitive and technologically advanced retail environment.

UAE Virtual Try On Market Segmentation

By Product Category:The product category segmentation of the UAE Virtual Try On Market includes various segments such as Apparel & Fashion, Footwear, Eyewear, Beauty & Cosmetics, Jewelry & Watches, Furniture & Home Décor, and Others. Among these, the Apparel & Fashion segment is leading due to the increasing demand for online shopping and the need for consumers to visualize clothing and fit before purchase, supported by global advances in virtual fitting room and virtual try-on technologies. The rise of social media influencers, fashion e-commerce platforms, and live-shopping formats in the UAE, along with AR-enabled apparel and footwear try-on features offered by leading online fashion platforms, has also significantly contributed to the growth of this segment.

By End-User Segment:The end-user segment of the UAE Virtual Try On Market includes E-commerce & Online Marketplaces, Brick-and-Mortar Retailers, Luxury & Department Stores, Shopping Malls & Retail Destinations, Brands’ Direct-to-Consumer Channels, and Others. The E-commerce & Online Marketplaces segment is currently the most significant due to the rapid growth of online shopping, strong penetration of fashion and beauty e-commerce in the UAE, and the increasing preference for virtual try-on solutions to reduce product return rates and increase conversion. This trend is driven by the convenience of online and omnichannel shopping, the integration of AR try-on tools into mobile apps and web stores, and the need for enhanced, personalized customer experiences across beauty, eyewear, and fashion categories.

UAE Virtual Try On Market Competitive Landscape

The UAE Virtual Try On Market is characterized by a dynamic mix of regional and international players. Leading participants such as Perfect Corp., ModiFace Inc. (L'Oréal Group), Snapchat / Snap Inc. (Lens Studio & AR Try-on), 3DLOOK Inc., FittingBox, Vue.ai (Mad Street Den Inc.), Zero10, Wanna Fashion (Wanna Kicks), Avataar.ai, Obsess, Amazon.com Inc. (Amazon AR View & Virtual Try-On), L'Oréal Middle East (including NYX, Maybelline virtual try-on), Majid Al Futtaim Holding LLC (VOX, Mall-based VTO & Retail Innovation), Noon.com, Namshi contribute to innovation, geographic expansion, and service delivery in this space.

UAE Virtual Try On Market Industry Analysis

Growth Drivers

• Increasing Demand for Online Shopping:The UAE's e-commerce sector is projected to reach AED 27 billion (approximately USD 7.35 billion) in future, driven by a 20% annual growth rate. This surge in online shopping is fueled by a tech-savvy population, with 99% of UAE residents using the internet. The convenience of online shopping, coupled with the pandemic's impact, has significantly increased the demand for virtual try-on solutions, allowing consumers to visualize products before purchase.
• Advancements in AR and VR Technology:The UAE is investing heavily in AR and VR technologies, with the market expected to reach AED 1.5 billion (approximately USD 408 million) in future. This growth is supported by government initiatives like the Dubai 10X project, which aims to position Dubai as a global leader in innovation. Enhanced AR/VR capabilities are enabling more realistic and immersive virtual try-on experiences, attracting both consumers and retailers to adopt these technologies.
• Rising Consumer Preference for Personalized Experiences:A study by PwC indicates that 73% of consumers in the UAE prefer personalized shopping experiences. This trend is driving retailers to adopt virtual try-on solutions that offer tailored recommendations based on individual preferences. The increasing use of AI in these solutions is enhancing personalization, with the UAE's AI market projected to reach AED 7.5 billion (approximately USD 2 billion) in future, further supporting this growth driver.

Market Challenges

• High Initial Investment Costs:Implementing virtual try-on technology requires significant upfront investment, often exceeding AED 1 million (approximately USD 272,000) for retailers. This financial barrier can deter smaller businesses from adopting these solutions, limiting market growth. Additionally, ongoing maintenance and updates to AR/VR systems can further strain budgets, especially in a competitive retail environment where cost efficiency is crucial.
• Consumer Skepticism Towards Virtual Solutions:Despite the growing interest in virtual try-on technologies, approximately 40% of consumers in the UAE express skepticism about their effectiveness. Concerns about the accuracy of virtual representations and the overall user experience can hinder adoption rates. Retailers must invest in educating consumers about the benefits and reliability of these technologies to overcome this challenge and build trust in virtual shopping experiences.

UAE Virtual Try On Market Future Outlook

The UAE virtual try-on market is poised for significant growth, driven by technological advancements and changing consumer behaviors. As retailers increasingly integrate AR and VR solutions into their platforms, the demand for personalized shopping experiences will continue to rise. Additionally, the expansion of e-commerce and omnichannel strategies will further enhance the market landscape. By future, the focus on sustainability and ethical practices in fashion will also shape consumer preferences, creating new avenues for innovation and engagement in the virtual try-on space.

Market Opportunities

• Integration with Social Media Platforms:Collaborating with social media platforms can enhance user engagement, as 90% of UAE residents are active on social media. By integrating virtual try-on features into these platforms, brands can reach a wider audience, driving traffic and sales. This strategy can leverage the popularity of influencer marketing, which is expected to grow by AED 1 billion (approximately USD 272 million) in future.
• Development of Mobile Applications:With over 90% smartphone penetration in the UAE, developing mobile applications for virtual try-on solutions presents a lucrative opportunity. These apps can provide seamless user experiences, allowing consumers to try on products anytime, anywhere. The mobile app market in the UAE is projected to grow to AED 3 billion (approximately USD 816 million) in future, indicating strong potential for virtual try-on applications.