Artificial Intelligence (AI) In Fashion Market Size, Share, Opportunities, And Trends By Application (Design, Trend Forecasting, Inventory Management, Return Processing, Customer Support, Others), By Offering (Software, Services), By Technology (Machine Learning, Robotic Process Automation, Computer Vision, Others), And By Geography - Forecasts From 2024 To 2029

Artificial intelligence (AI) in the fashion market is expected to grow at a CAGR of 41.46% from US$1,752.205 million in 2024 to US$9,925.913 million by 2029.

The incorporation of AI is one of the significant factors influencing the growth of several segments of the fashion business. AI technology boosts client satisfaction and loyalty via personalized shopping experiences using data analysis. AR & AI Virtual Try-On and Fitting Room solutions enhance the customer shopping experience, reducing returns times and ensuring a high level of certainty. The industry will continue to benefit from supply chain optimization, dynamic pricing, fraud detection, trend research, and new product innovation, focusing on sustainability. These initiatives will help address rapidly changing customer expectations by improving secure transactions and operational efficiency. The fashion market is a fluid environment that also improves standards, although the introduction of AI has a broader impact on driving this industry.

Furthermore, according to the USCC data of April 2023, it is anticipated that more people will be shopping online and being influenced in their buying decisions by social media. By 2022, the fast fashion business was expected to account for $106.4 billion in revenue. Using a centralized and fast-moving supply chain and leveraging the search histories of consumers on its app, Shein is taking major market share in the United States, competing with rivals such as Zara and H&M, according to the same source. Other fashion-related Chinese businesses are taking an interest in this AI business model.

What are the artificial intelligence (AI) in fashion market growth drivers?

• The increasing popularity of AI in the fashion industry is presumed to aid in market growth.

The adoption of AI is expected in fashion, with more picky customers seeking unique style preferences and experiences. AI-led recommendations, influencer inspiration, and customizable products are driving a growing proportion of this shift. Rather than thinking about a one-size-fits-all, current times focus more on the individual. As such, consumer demands lean towards personalization, and brands respond by adopting innovative technologies. It demonstrates a significant shift in how people connect with the industry they engage with and also deeply offers their input for advancements through data insights.

AI will largely facilitate these aims, and the white paper will ensure that the UK is positioning itself as the world's leading location for developing, testing, and using AI technology. As per the UK government's updated data of 3 August 2023, about the recent announcements of £110 million for our AI Tech Missions Fund, £900 million to create a new AI Research Resource, and £8 million to establish an exascale supercomputer that can run large AI models. This is all backed by a further £117 million of funding and an £8 million AI Global Talent Network, which would be utilized to award AI researchers hundreds of new PhDs.

In addition, Mango, one of Europe's top fashion companies, is pushing the boundaries for its digital transformation with the introduction of Lisa. Lisa is an in-house conversational generative AI platform that was introduced in October 2023. In under nine months since, the fashion company developed its conversational generative AI platform that uses a spectrum of models Lisa works with, some proprietary and others open-source. This new platform is built off the backbone of Mango's tailored interface, similar to ChatGPT, and intended for use by its partners and workforce.

What are the key geographical trends shaping the artificial intelligence (AI) in fashion market?

• The North American region is expected to hold a substantial AI in fashion market share.

Recently, owing to the increasing number of AI companies in the country, like IBM and Microsoft Corporation, the market for AI in fashion is flourishing tremendously, especially in North America, where the fashion industry has witnessed exponential growth. Moreover, the increasing penetration of social media and the adoption of local businesses in the country are contributing towards market spillover for the envisaged time frame. Additionally, there is a more prevalent focus on ensuring that companies are increasingly AI-ready across all sectors of the area, with fashion being one of the fastest-growing divisions covering the market.

Introduction of new products in the market of AI in the fashion industry. For example, in June 2023, Google announced a new AI shopping feature that allows one to try on clothes virtually. This is a new generative AI model that can take one image of a dress and show how it will be draped, folded, clung to skin, stretched, and wrinkled on different real models in different poses. In June, this was only available for shoppers in the USA, and women shoppers could try women’s tops across Google, including brands such as Anthropologie, Everlane, H&M, and LOFT. Hence, as the brands are releasing the real importance of AI in the fashion industry coupled with the increasing focus of companies, it is anticipated to provide an edge for market growth in the projected period.

Additionally, investments in the AI industry are increasing in the country. For instance, in May 2023, the U.S. National Science Foundation, in collaboration with other federal agencies, higher education institutes, and other stakeholders, announced an investment of US$140 million. This investment will establish seven new National Artificial Intelligence Research Institutes (AI Institutes) in the country.

Recent developments in the artificial intelligence (AI) in fashion market

• September 2023- with the growing interest in AI-powered consumer technologies, Humane Inc. unveiled the complete form factor of its first product, the Humane Ai Pin. Before its official release on November 9, the Ai Pin was showcased at Paris Design Week in 2024 as part of a partnership with the design label Coperni. It is a screen-less, stand-alone device, and software platform made just for AI called the Humane AI Pin. Incorporating a considerable range of sensors, the wearable made up of intelligent clothing is designed to integrate with users' daily routines, thereby allowing for more natural and intuitive computer interactions.
• April 2023- The first beta of a fashion assistant powered by ChatGPT, made available on the app and website of Europe's leading online clothing and leisure goods retailer, Zalando. With this, Zalando carved out a niche by adopting generative AI to enhance the online clothes shopping experience. Despite having one of the widest selections available, clients occasionally need extra assistance provided by Zalando to choose the ideal item.
• June 2022- Pinterest announced that it had finalized the acquisition of THE YES, an AI-powered fashion purchasing platform that lets users browse a customized feed based on their active input regarding brand, style, and size. The YES team has developed a thorough taxonomy of fashion that utilizes human experience and machine learning to fuel an algorithm encompassing hundreds of brand merchants on its platform.

Artificial Intelligence (AI) in Fashion Market Scope:

Report Metric	Details
AI in Fashion Market Size in 2024	US$1,752.205 million
AI in Fashion Market Size in 2029	US$9,925.913 million
Growth Rate	CAGR of 41.46%
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Million
Segmentation	Application Offering Technology Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in AI in Fashion Market	Microsoft Corporation Amazon Web Services Inc. IBM Corporation Koninklijke Philips N.V. Stitch Fix, Inc.
Customization Scope	Free report customization with purchase

 

Market Segmentation:

The AI In Fashion Market is segmented and analyzed as below:

• By Application
  • Deep Design
  • Trend Forecasting
  • Inventory Management
  • Return Processing
  • Customer Support
  • Others
• By Offering
  • Software
  • Services
• By Technology
  • Machine Learning
  • Robotic Process Automation
  • Computer Vision
  • Others
• By Geography
  • North America
    • USA
    • Canada          
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Indonesia
    • Taiwan
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. AI IN FASHION MARKET BY APPLICATION

5.1. Introduction

5.2. Design

5.3. Trend Forecasting

5.4. Inventory Management

5.5. Return Processing

5.6. Customer Support

5.7. Others

6. AI IN FASHION MARKET BY OFFERING

6.1. Introduction

6.2. Software

6.3. Services

7. AI IN FASHION MARKET BY TECHNOLOGY

7.1. Introduction

7.2. Machine Learning

7.3. Robotic Process Automation

7.4. Computer Vision

7.5. Others

8. AI IN FASHION MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Application

8.2.2. By Offering

8.2.3. By Technology

8.2.4. By Country

8.2.4.1. USA

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Application

8.3.2. By Offering

8.3.3. By Technology

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Application

8.4.2. By Offering

8.4.3. By Technology

8.4.4. By Country

8.4.4.1. United Kingdom

8.4.4.2. Germany

8.4.4.3. France

8.4.4.4. Spain

8.4.4.5. Others

8.5. Middle East and Africa

8.5.1. By Application

8.5.2. By Offering

8.5.3. By Technology

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. UAE

8.5.4.3. Israel

8.5.4.4. Others

8.6. Asia Pacific

8.6.1. By Application

8.6.2. By Offering

8.6.3. By Technology

8.6.4. By Country

8.6.4.1. China

8.6.4.2. Japan

8.6.4.3. India

8.6.4.4. South Korea

8.6.4.5. Indonesia

8.6.4.6. Taiwan

8.6.4.7. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Microsoft Corporation

10.2. Amazon Web Services Inc.

10.3. IBM Corporation

10.4. Koninklijke Philips N.V

10.5. Stylumia Intelligence Technology Pvt. Ltd.

10.6. LALALAND

10.7. True Fit Corporation

10.8. Stitch Fix, Inc.

10.9. ZMO.AI

10.10. Zalando SE

Microsoft Corporation

Amazon Web Services Inc.

IBM Corporation

Koninklijke Philips N.V.

Stylumia Intelligence Technology Pvt. Ltd.

LALALAND

True Fit Corporation

Stitch Fix, Inc.

ZMO.AI

Zalando SE