Digital avatars are moving from profile decoration to a major layer of online identity, entertainment, shopping, and communication. The available market estimates range widely, but they consistently point to rapid expansion. User behavior data from Roblox, Meta, Bitmoji, and Ready Player Me also shows that people use avatars to experiment with appearance, identity, mood, and style.
Contents
- Digital avatar market size and growth
- Market segments and geography
- Avatar platforms and adoption
- How people use avatars for identity
- Digital fashion and customization
- Avatars, beauty, and inclusive design
Digital avatar market size and growth
Grand View Research estimated the global digital avatar market at $18.19 billion in 2023. Its estimate for 2024 was $23.93 billion, and the same report projected the market to reach $270.61 billion by 2030. That forecast corresponds to a 49.8% compound annual growth rate (CAGR) from 2024 to 2030.
Market.us published a substantially larger long-range estimate. It projected the digital avatar market to reach $745.1 billion by 2033, with a 46.2% CAGR from 2024 to 2033. The difference between these forecasts reflects different market definitions, data models, and forecast periods; the figures should not be combined into one estimate.
The AI avatar segment is also expanding. Grand View Research valued the global AI avatars market at $5.9 billion in 2023 and forecast it to reach $57.9 billion by 2032, with growth of more than 30% CAGR from 2024 to 2032. AI-generated characters, virtual agents, and synthetic presenters are therefore an important part of the broader avatar landscape, but the AI avatar figures describe a narrower segment than the overall digital avatar market.
| Market measure | Reported figure | Period or geography |
|---|---|---|
| Digital avatar market | $18.19 billion | Global, 2023; Grand View Research |
| Digital avatar market | $23.93 billion | Global, 2024; Grand View Research |
| Digital avatar market forecast | $270.61 billion | Global, 2030; Grand View Research |
| Digital avatar market forecast | $745.1 billion | Global, 2033; Market.us |
| AI avatars market | $5.9 billion | Global, 2023; Grand View Research |
| AI avatars market forecast | $57.9 billion | Global, 2032; Grand View Research |
Market segments and geography
The reports describe different leading segments. Grand View Research found that non-interactive digital avatars held 58% of revenue in 2023, while Market.us reported that interactive avatars held 64.9% in the same year. These results are not directly interchangeable because the reports use different market frameworks.
Market.us identified virtual agents and assistants as about 37.1% of the 2023 market and gaming and entertainment as about 22.3%. Grand View Research also named virtual agents and assistants the largest category and gaming and entertainment the largest industry vertical in 2023. Together, these figures show the importance of both conversational avatars and entertainment-led avatar experiences.
Geographic estimates also vary by source. Grand View Research reported that North America represented around 44% of digital avatar revenue in 2023, with the United States accounting for more than 82% of North American revenue in that report. Market.us estimated North America’s share at about 34.0% of global revenue in 2023.
The U.S.-specific data from Mordor Intelligence provides more detail. In 2024, non-interactive avatars represented 57.69% of the U.S. digital avatar market, while 3D avatars represented 51.32%. Gaming and entertainment accounted for 42.31% of the U.S. market, and media and entertainment captured 38.63%.
Several U.S. segments were forecast to grow quickly through 2030. Interactive avatars were projected to grow at a 22.14% CAGR, AI-generated realistic avatars at 21.91%, healthcare and telehealth at 21.63%, and healthcare providers at 21.69%. Regionally, the South held 34.71% of the U.S. market in 2024, while the West was projected to grow at a 21.77% CAGR over the forecast period.
Avatar platforms and adoption
The scale of established platforms provides another view of avatar adoption. Snap Newsroom reported that Bitmoji was used by more than 320 million people worldwide every day in its comic announcement. Meta reported that more than one billion avatars had been created across its technologies. Meta also launched an Avatars Store featuring digital outfits from Balenciaga, Prada, and Thom Browne, connecting avatar design with recognizable fashion brands.
Ready Player Me reported several milestones at different points in its history. Its August 2022 update said the platform was used by more than 3,000 developers. Its May 2021 Series B announcement described more than 3,000 customers across the metaverse, while a 2022 CryptoPunks avatars post said it worked with over 1,300 companies integrating its avatars. These are historical company-reported figures from different dates and should not be treated as one current total.
The same historical announcements reported a 51-person team in 2021 and 10,000 unique 3D avatars created for CryptoPunks owners. In May 2025, Ready Player Me said more than 23 million unique avatars had been created and used across games. The figures indicate broad developer and user reach, while also showing that platform metrics measure different things: customers, developers, integrated companies, created avatars, and active use are separate measures.
How people use avatars for identity
Roblox user research shows that avatars are closely tied to experimentation and self-presentation. In the 2025 Roblox Replay survey, 47% of surveyed Gen Z users said they changed avatars to express creativity. 38% changed avatars to try a new identity, another 38% changed them to stand out, and 37% changed them to match their mood.
Style experimentation also extends beyond the virtual environment. 76% said experimenting with style in immersive spaces was highly important, and 87% said that experimenting with style in immersive spaces helped them feel more comfortable expressing themselves offline. In the same 2025 research, 84% said their physical style was influenced by their digital self.
Earlier Roblox research found a similar relationship between digital and physical presentation. In 2023, 56% of surveyed Gen Z Roblox users said styling their avatar was more important than styling themselves in the physical world. Among older Gen Z respondents aged 22 to 26, the share was 64%. In addition, 84% said digital fashion was at least somewhat important, while 85% said its importance had grown at least somewhat over the prior year and 53% said it had grown a lot.
Avatar updates illustrate how often these choices happen. Roblox recorded 165 billion avatar updates during the first three quarters of 2023. In 2025, users updated their avatars an average of 274 million times per day, according to Roblox’s Safety Snapshot: January. These measures come from different reporting periods, but both describe a high frequency of appearance changes.
Digital fashion and customization
Digital fashion is a major part of avatar design. Roblox reported that users bought nearly 1.6 billion digital fashion items and accessories in the first three quarters of 2023. More than 139 million hairstyles were purchased in 2023, up 20% year over year. More than 7.3 million people bought five or more hairstyles, and 9.8 million users bought emotes; emote purchases were up 64% year over year.
The Roblox Marketplace averaged 18.8 million daily visitors in the first half of 2025, representing 17% year-over-year growth in daily visitors. Among surveyed Gen Z users, 70% had worn branded digital fashion, and 60% said it was very or extremely important for their avatar to wear clothes from recognized brands. 69% agreed that branded avatar items helped them try new styles and express themselves, while 54% said trying a brand’s avatar items made them feel more positive about that brand.
Spending levels varied among digital fashion spenders. 31% typically spent up to $5 per month, 30% typically spent $10 to $20 per month, and nearly 12% spent $50 to $100 per month on avatar fashion. More than 25% said they had spent anywhere from $20 to over $100 on a single virtual item. Roblox also reported that total purchases of Y2K-labeled items surpassed 188 million from January to September 2022.
Avatar customization is often connected with mood and context. 53% said their style changed based on mood or feelings on a particular day, 37% changed clothing based on where they were going and what they were doing in the metaverse, and 42% said they would change clothing to immediately try on a new purchase. 70% said their avatars dressed at least somewhat like their real-world style, and 70% said they got physical style inspiration from dressing their avatars.
Avatars, beauty, and inclusive design
Customization expectations include representation. In Roblox’s Metaverse Fashion Trends research, 70% said a full range of skin tones was important for avatar customization, while 64% said a full range of body sizes was important. Another 70% said a full range of hair colors, textures, and styles was important, and 70% said inclusivity in digital clothing designs was very or extremely important. More than 157 million users had acquired free or paid Layered Clothing items by the end of 2022.
The research also measured attitudes toward avatar creation as a design discipline. 58% said being a digital fashion designer was just as impressive or more impressive than being a physical fashion designer. Among people spending up to $100 per month on avatar fashion, 54% said digital fashion designer was more impressive.
Beauty customization is another growing layer. Roblox launched Makeup with more than 100 makeup items. In the associated survey, 58% of Gen Z Roblox users had worn makeup in the previous three months; among those makeup users, 84% used makeup a few times a week. Approximately 87% said they were willing to purchase makeup on Roblox monthly, and 85% said customizing avatar makeup made them more excited about playing games.
Among Gen Z makeup users, 83% were interested in putting a favorite brand’s makeup on their avatar. 76% of surveyed makeup users and 71% of all surveyed Gen Z Roblox users said brand makeup on an avatar made them more likely to consider that brand in real life. Makeup was also linked to self-expression and community: 82% said wearing makeup was an important part of self-expression, 77% said they felt more like themselves when wearing makeup, 52% said makeup made it easier to find people with similar styles, and 49% said it helped them belong to a group or community.