Artificial intelligence (AI) in the fashion market is expected to grow at a CAGR of 41.46% from US$1.75 billion in 2024 to US$9.92 billion 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 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.
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.
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.
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.
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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Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive IntelligenceReport 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
- North America
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. AI IN FASHION MARKET BY APPLICATION
6. AI IN FASHION MARKET BY OFFERING
7. AI IN FASHION MARKET BY TECHNOLOGY
8. AI IN FASHION MARKET BY GEOGRAPHY
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
10. COMPANY PROFILES
Companies Mentioned
Some of the key companies profiled in this Artificial Intelligence (AI) in Fashion Market report include:- 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
Methodology
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 155 |
Published | September 2024 |
Forecast Period | 2024 - 2029 |
Estimated Market Value ( USD | $ 1.75 Billion |
Forecasted Market Value ( USD | $ 9.92 Billion |
Compound Annual Growth Rate | 41.4% |
Regions Covered | Global |
No. of Companies Mentioned | 10 |