Artificial Intelligence (AI) in Fashion Market - Forecasts from 2024 to 2029

Artificial Intelligence (AI) in Fashion Market - 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.

AI IN FASHION MARKET 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.

AI In Fashion Market Geographical Outlook
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.

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Report Coverage:

Historical data & forecasts from 2022 to 2029
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

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