AI (ARTIFICIAL INTELLIGENCE) IN FASHION MARKET

Artificial Intelligence (AI) in Fashion Market size reached USD 319 million in 2023 and is estimated to reach USD 4,344 million in 2031 and the market is estimated to grow at a very high CAGR of 38.6% from 2024-2031 driven by rising demand for personalized fashion styles and the growing ecommerce industry.

Major Market Drivers and Trends

The thriving fashion industry and the rising demand for custom clothing trends are fueling the AI in fashion market growth. AI enhances the customer experience by offering the ability to customize their clothing while letting consumers choose their desired brands and styles. The surge in interest in experiencing personalized fashion particularly among the younger generation is accelerating the adoption of AI in the market. The growing younger demographic with their keen interest in the latest trends coupled with their increasing reliance on technology is fueling market growth. The growing presence on social media by influencers to promote the newest fashion trends is also significantly contributing to the fashion industry growth.

The fashion industry also relies on personalized marketing with AI being a crucial driver in making it successful. With the ability to analyze massive datasets, AI systems examine customer purchase history and demographic factors to enhance marketing strategies. AI utilizes this customer data to design personalized marketing strategies while adapting product recommendations and content that match individual customer preferences.

The other factor supporting the AI in fashion market size growth is the rising ecommerce sector which is increasing the need for AI solutions to streamline customer query handling which results in improved customer satisfaction and greater accuracy. AI algorithms analyze browsing and purchase patterns to recommend items tailored to individual preferences to boost the shopping experience in fashion ecommerce. Personalized product suggestions not only enhance the chances of a purchase but also build customer loyalty by showing recognition of the shopper’s personal tastes and preferences.

The AI technologies like AR and VR further enhances the online shopping experience by helping customers visualize how garments look and fit which drives market growth as more people shop online. AI-driven search engines also play a key role in online retail by improving search result accuracy and streamlining the product discovery process. Technologies like NLP and visual search enable customers to find products through images or textual descriptions which enhance the ease and convenience of the shopping experience.

Outstanding customer service is also crucial for ecommerce success and AI technologies like virtual assistants or chatbots are integral in providing support and answering questions around the clock. AI chatbots can address common questions or help customers navigate the purchasing process which leads to faster response times and improved customer satisfaction.

Component Insights: Solutions segment dominated the largest market share

The solution category is outpacing the services segment and is projected to experience stronger growth in the coming years driven by increased adoption rates. There is a growing trend among fashion retailers to embrace innovative technologies that improve efficiency and support customer acquisition. Additionally, tracking current trends across social media channels and meeting customer needs has become increasingly difficult for businesses. AI leverages tools like predictive analytics to study consumer habits based on search history or purchase patterns and then provides personalized recommendations.

Deployment Mode Insights: Cloud segment registered the largest revenue share

The segment is expanding as cloud technology becomes more prevalent in the fashion industry owing to its ability and flexibility to adapt to changing needs. The growing emphasis on digital transformation is fostering the demand for robust data security which leads many fashion brands to adopt cloud technology for its ease of compliance with government regulations. It enables more economical operations than traditional systems while optimizing the management of data and services that support market growth.

Application Insights: Product recommendation segment accounted for the largest market share

The segment is experiencing growth due to the growing presence of ecommerce platforms which are propelling its growth. Customized product recommendations are vital in fashion ecommerce for improving the overall shopping journey. AI utilizes browsing history and purchase patterns to recommend products that resonate with their unique style which increases purchase probability while cultivating customer loyalty by valuing their preferences.

The product search and discovery segment are also projected to see significant market growth fueled by innovations like automated tagging and personalized rankings. By automating product tagging, AI reduces processing time and ensures consistency while eliminating human bias. Optimized product search and discovery are key to enhancing customer satisfaction and are accelerating market growth.

In the creative designing & trend forecasting segment, AI tools are being increasingly incorporated to enhance the product design and development. AI tools generate ideas and optimize material use through pattern efficiency. They can also produce virtual prototypes of fashion items.

Category Insights: Apparel segment registered the largest market share

The increasing population is driving higher demand for apparel. AI supports the growing demand in the apparel industry by enhancing material grading and improving asset management while reducing errors during final quality checks. AI analyzes historical purchase data to predict customer preferences for new items which helps reduce clothing return rates. Smart mirrors with AI technology are also gaining traction as it enables customers to see how clothes look in various colors and styles without changing outfits.

End User Insights: Fashion designers segment dominated the market revenues

AI will enable designers to blend images of diverse apparel items which leads to the creation of unique and creative fashion concepts. Using AI design tools, fashion designers can foresee customer trends and develop imaginative solutions to meet evolving demand. AI empowers fashion designers to tap into the latest opportunities and design customized products based on individual customer preferences. With AI tools designers can simplify their operations along with designing stylish and innovative pieces. By incorporating AI into their processes, fashion designers can adapt to evolving consumer preferences and capitalize on emerging opportunities.

Regional Insights: North America dominated the market share

North America leads the market driven by the presence of major players like Microsoft and IBM who are consistently investing in research and development to drive innovation in the fashion sector. In addition, leading companies are leveraging AI technologies in the fashion industry to manage clothing and fashion accessories while promoting sustainability. The rising fashion trends in Canada and the US are fueling a surge in the need for AI technologies to support innovation in the industry. AI and other technologies are essential to improve productivity and optimize sales performance. With the fashion sector continuously evolving to meet changing consumer demands, AI technologies are important to foster innovation while enhancing industry competitiveness.

The Asia Pacific region is also expected to experience rapid growth due to the booming ecommerce industry along with government initiatives promoting AI advancements. Investments from major tech companies are expected to accelerate market growth in the region as it offers benefits like personalized product recommendations and virtual assistants on ecommerce platforms. The growing fashion trends along with increasing availability of discounted clothing and accessories are driving market growth in China. The low labor costs and manufacturing expenses in China driven by favorable tax and duty rates along with a supportive business environment contributes to the country’s competitive edge in clothing production.

Top Market Players

Several notable players within the market include Google, SAP, Microsoft, Huawei, among others. To maintain a competitive edge and strengthen their market position, these companies often adopt strategies including mergers and collaborations with other firms.

Key Developments

• • In 2024, Christian Cowan in collaboration with Adobe Inc debuted a wearable garment that can be electronically reconfigured at the New York Fashion Week. It utilized Adobe Primrose innovative technology to bring his visionary designs to life.
  • In 2024, Amazon has enhanced the apparel online shopping experience by integrating AI. It offers innovations including AI-driven highlights from customer fit reviews and a Fit Insights feature to help sellers improve their offerings.
  • In 2023, a prominent European lifestyle and fashion ecommerce site Zalando has integrated a ChatGPT-driven virtual assistant into its platform. This enables customers to discover or select items tailored to their personal needs and tastes.

Top Market Players

Various notable players operating in the global AI in Fashion market include Microsoft Corporation, IBM Corporation, Google, AWS, SAP, Facebook, Adobe, Oracle, Catchoom, Huawei, Vue.AI, Heuritech, Wide Eyes and Findmine among others.

Segments covered in the Report:

The global AI in Fashion market has been segmented on the basis of component, deployment mode, application, category, end user, and key geographies. The component segment market is segmented into Services and Solutions. Based on deployment mode, the market is segmented into On-Premises and Cloud. The application segment market is categorized into Product Search & Discovery, Creative Designing & Trend Forecasting, Product Recommendation, Supply Chain Management & Demand Planning, Virtual Assistant, Customer Relationship Management, and Others. The category segment market is categorized into Beauty & Cosmetics, Apparel, Jewellery & Watches, Footwear, Accessories and Others. The end user, the market is segmented into Fashion Stores and Fashion Designers.

Market Segmentation

Global AI in Fashion Market by Component

• • Services
  • Solutions

Global AI in Fashion Market by Deployment Mode

• • On-Premises
  • Cloud

Global AI in Fashion Market by Application

• • Product Search & Discovery
  • Creative Designing & Trend Forecasting
  • Product Recommendation
  • Supply Chain Management & Demand Planning
  • Virtual Assistant
  • Customer Relationship Management
  • Others

Global AI in Fashion Market by Category

• • Beauty Cosmetics
  • Apparel
  • Jewelry & Watches
  • Footwear
  • Accessories
  • Others

Global AI in Fashion Market by End User

• • Fashion Stores
  • Fashion Designers

Global AI in Fashion Market by Region

• • North America Global AI in Fashion Market (Option 1: As a part of the free 25% customization)

    • By Component
    • By Deployment Mode
    • By Application
    • By Category
    • By End User
    • US Market All-Up
    • Canada Market All-Up

  • Europe Global AI in Fashion Market (Option 2: As a part of the free 25% customization)

    • By Component
    • By Deployment Mode
    • By Application
    • By Category
    • By End User
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Global AI in Fashion Market (Option 3: As a part of the free 25% customization)

    • By Component
    • By Deployment Mode
    • By Application
    • By Category
    • By End User
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Global AI in Fashion Market (Option 4: As a part of the free 25% customization)

    • By Component
    • By Deployment Mode
    • By Application
    • By Category
    • By End User
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

AI in Fashion Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Microsoft Corporation
  • IBM Corporation
  • Google
  • AWS
  • SAP
  • Facebook
  • Adobe
  • Oracle
  • Catchoom
  • Huawei
  • AI
  • Heuritech
  • Wide Eyes
  • Findmine