Market size of tech companies selling to fashion retailers

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US Market Size Fashion Retail Tech

After conducting in-depth research through industry reports such as IBISWorld, Technavio, credible media sites like Apparel Magazine, corporate reports, and Academic databases, no information was found regarding the US market size for tech companies selling to fashion retailers. Upon researching tech companies that sell to the fashion industry in the US, such as PTC, Siemens PLM Software, and Centric Software, we found no figures specific to the fashion industry. However, the PTC website provided some information regarding the US market size for tech companies selling to fashion retailers in specific. After triangulating available sources, we estimate that the US market size for tech companies selling to fashion retailers is approximately €114,684,291,150. Below, I will outline the sources and calculations behind this figure.

ABOUT PTC
American company PTC Technology is one of the many tech companies offering single-platform solutions for the many challenges faced by fashion retailers. PTC's "Retail Innovation Platform" is described as an "end-to-end technology platform designed to enable retailers and brand owners to "overcome today’s market pressures". These pressures include consumer demand for "fast fashion", reaching digital consumers, lowering costs, and managing complex supply chains efficiently. PTC's platform aims to streamline these processes for fashion retailers.

CALCULATING MARKET SIZE
According to their website, PTC's 2017 revenues totaled $1.16 billion USD, or approximately €950 million, with 43% of this revenue from the United States and 37% from Europe. PTC names 6 market segments on its website: Computer Aided Design (CAD), Product Life Management (PLM), Smart Manufacturing, Service Lifecycle Management (SLM), Internet of Things (IoT), and Augmented Reality (AR). According to PTC's annual report, retail PLM software accounts for approximately €372,204,899.20 or $454,299,000USD of the company's total revenues. By dividing PLC's revenues for its PLM segment by its total revenue (€372,204,899.20/€950,173,400), we can calculate that PLM accounts for 39% of PTC's total revenue.

Given that the US portion of PTC's total revenue is 43%, we can calculate the United States' share of the PLM segment using the aforementioned figure. After multiplying 0.43x€372,204,899.20, we can conclude that the United States' share of the PLM segment is €160,048,107.

We can assume that if tech companies such as PTC are selling to fashion retailers, then they are targeting the revenues of the fashion industry. According to Statista, the US apparel market is approximately $359 billion, or €294 billion (€294,062,285,000). To estimate the market size of tech companies selling to fashion retailers, we can multiple the total value of the US apparel market (€294 billion) with the percentage of PTC's PLM segment revenue (39%). The resultant value is €114,684,291,150, which provides a rough estimate for the US market size for tech companies selling to fashion retailers.

CONCLUSION
Although exact figures for the US market size for tech companies selling to fashion retailers are unavailable, and many tech companies do not provide revenue breakdowns, we can tentatively estimate the size of the market using PTC's annual report. PTC's revenue for it's retail PLM software (€372,204,899.20) is 39%. If we estimate that approximately 39% of the US Apparel Market ($359 billion) is allocated to tech companies selling to fashion retailers, we can calculate that the size of the US market for these tech companies is roughly €114,684,291,150. However, we can more accurately calculate the United States' share of the PLM segment with PTC's figures, placing it at €160,048,107.


Sources
Sources