AI in Fashion Market Report 2025

The AI in fashion market size has grown exponentially in recent years. It will grow from $1.26 billion in 2024 to $1.77 billion in 2025 at a compound annual growth rate (CAGR) of 40.4%. The growth in the historic period can be attributed to visual search and recognition, supply chain optimization, virtual try-on solutions, fraud detection, sustainable practices.

The AI in fashion market size is expected to see exponential growth in the next few years. It will grow to $6.99 billion in 2029 at a compound annual growth rate (CAGR) of 41%. The growth in the forecast period can be attributed to voice-activated shopping, predictive trend analysis, dynamic pricing strategies. Major trends in the forecast period include virtual try-on experience, personalized recommendations, computer vision for style recognition, supply chain optimization, chatbots and virtual assistants.

The burgeoning impact of social media within the fashion industry stands as a catalyst for the expansion of AI in the fashion market. Social media has evolved into a crucial information hub for the fashion sector, offering a plethora of opinions and global insights. Present-day fashion heavily relies on brand promotion and endorsements by fashion influencers who leverage social media platforms to communicate their perspectives on trends. For instance, data from influencer marketing hub indicates a substantial growth in the influencer marketing market, soaring from $9.7 billion in 2020 to $13.8 billion in 2021. The rise in popularity of short video formats on platforms such as TikTok, Facebook, and YouTube, coupled with the pandemic-induced surge in social media consumption, has significantly contributed to this trend. Additionally, marketers' increased utilization of data collection for social media advertising optimization further fuels this growth. The escalating influence of social media thus continues to propel the advancement of AI in the fashion market.

The burgeoning penetration of e-commerce is a significant driver behind the growth of the AI in the fashion market. E-commerce, or electronic commerce, involves the online buying and selling of goods and services. The expanding landscape of e-commerce has propelled the necessity for artificial intelligence (AI) in the fashion industry. Online retailers utilize AI algorithms to deliver personalized shopping experiences, optimize product search results, and elevate customer engagement and loyalty. For example, data from The United States Census Bureau in November 2023 indicates a 7.6% increase (±1.2%) in e-commerce estimates for Q3 2023 compared to Q3 2022, with e-commerce sales accounting for 15.6% of total sales in the third quarter of 2023. Hence, the escalating penetration of e-commerce serves as a driving force behind the growth of AI adoption within the fashion market.

Major companies in the AI fashion market are concentrating on developing machine learning technologies, such as AI platforms, to enhance personalization, optimize inventory, and streamline supply chains. These advancements aim to improve customer experience and promote sustainability within the industry. An AI platform serves as a comprehensive environment that offers tools and resources for the development, deployment, and management of artificial intelligence applications. It generally includes development frameworks, data management, computational resources, and deployment services. For example, in October 2023, Mango, a Spain-based outlet store company, launched Lisa, its conversational generative AI platform. This platform streamlines processes and enhances user experience by providing instant support for design, trend analysis, and customer service. It acts as a co-pilot for employees, fostering efficiency and innovation as part of the company's digital transformation strategy.

Major players in the AI in fashion sector are actively engaged in pioneering technologies, particularly virtual try-on tools. These digital innovations enable users to virtually experience or try on products, primarily within the realm of online shopping. For example, in June 2023, Google LLC, a leading technology company headquartered in the USA, unveiled the 'AI Try-On' platform. This platform allows customers to engage with products marked with a 'Try On' badge, offering the ability to virtually visualize how tops from renowned brands such as H&M, Loft, Everlane, and Anthropologie would appear on different models. This cutting-edge technology serves as a visual aid for consumers, facilitating the envisioning of clothing on individuals with diverse characteristics, encompassing various sizes (ranging from XXS to 4XL), skin tones, body shapes, and hair types.

In July 2024, Hi-Tech Apparel, a manufacturing company based in Thailand, acquired Unmade for an undisclosed amount. Through this acquisition, Hi-Tech Apparel intends to establish a digital-first, sustainable manufacturing model that improves customization and responsiveness to market demands. Unmade, a software company located in the UK, utilizes AI to transform the design and production processes of clothing.

Major companies operating in the AI in fashion market include Alphabet Inc., Microsoft Corporation, Meta Platforms Inc, Huawei Technologies Co. Ltd., Amazon Web Services Inc., International Business Machines Corporation, Oracle Corporation, SAP SE, Adobe Inc., Stitch Fix Inc., Optitex Ltd., Syte Visual Conception Ltd., True Fit Corporation, Nextail Labs S.L., Lily AI inc., AiFi Technologies Inc., Revieve Oy, Heuritech SAS, Dressformer, StyleSage Inc., Donde Search Ltd., Wide Eyes Technologies S.L., Vue.ai, ZyloTech Inc., FINDMINE Inc., Mode.ai, Intelistyle, Catchoom Technologies S.L., Pttrns.ai, Fashwell AG, Wide Eyes Technologies S.L., H&M Group's Ivyrevel AB, Choosy Inc., SnapFashion Limited, ELSE Corp Srl, Farfetch Limited.

North America was the largest region in the AI in fashion market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the ai in fashion market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ai in fashion market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

AI in fashion operates as an advisor, utilizing data related to a customer's height, weight, body shape, and current size to provide tailored clothing recommendations. Its application spans various aspects within the fashion industry, including product recommendation, search and discovery, supply chain management, demand planning, creative design, trend forecasting, customer relationship management, virtual assistance, and other relevant functions.

The primary categories of AI in fashion encompass apparels, accessories, footwear, beauty and cosmetics, and jewelry. Apparels specifically pertain to clothing or outer garments and are employed across cloud-based or on-premise setups utilizing solution-based components and services. These AI applications span diverse functions such as customer relationship management, virtual assistants, product recommendations, search and discovery, supply chain management, demand forecasting, creative design, and trend forecasting. These applications find utility across various industries including fashion designers and retail fashion stores.

The AI in fashion market research report is one of a series of new reports that provides AI in fashion market statistics, including AI in fashion industry global market size, regional shares, competitors with the AI in fashion market share, detailed AI in fashion market segments, market trends and opportunities, and any further data you may need to thrive in the AI in fashion industry. This AI in fashion market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The AI-in fashion market includes revenues earned by entities by providing services such as trend forecasting, creating better fit, and authenticating items to prevent knockoffs, streamlining, and manufacturing, reducing returns. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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