Artificial Intelligence In Fashion Market Growth and Forecast by 2031

The artificial intelligence in fashion market size is projected to reach US$ 17.41 billion by 2031 from US$ 1.09 billion in 2023. The market is expected to register a CAGR of 41.4% in 2023–2031. The growing adoption of AI technology among fashion brands for analyzing consumer buying behavior is likely to remain a key artificial intelligence in fashion market trends.

Artificial Intelligence In Fashion Market Analysis

Artificial intelligence in the fashion market is growing at a rapid pace due to the increasing demand for AI in product design and development and the high customer demand for a personalized experience. The market is expanding steadily, driven by the growing demand for AI for inventory management. Moreover, the growing demand for fashion sustainability and the growth of fast fashion retail are providing lucrative opportunities for market growth.   

Artificial Intelligence In Fashion Market Overview

Artificial intelligence is transforming the fashion industry by improving many areas of the product lifecycle and redefining how apparel is produced, sold, and worn. The cutting-edge technology provides transformative capabilities for designers, retailers, and consumers. Fashion designers use artificial intelligence to maximize their creative potential and drive design innovation. Designers may produce new and innovative ideas by using AI algorithms to examine massive amounts of historical fashion data and identify potential trends in the fashion industry.

AI-powered recommendation systems improve the customer purchasing experience by providing individualized product suggestions based on individual interests. AI supports fashion brands in evaluating user data such as browsing history, purchase behavior, and style preferences and creates personalized suggestions based on consumers' tastes and interests. This customization improves customer engagement, builds brand loyalty, and increases sales conversions.

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Artificial Intelligence In Fashion Market: Strategic Insights

Artificial Intelligence In Fashion Market Drivers and Opportunities

Increasing Demand for AI in Product Designing and Development is Driving the Market

AI plays an important part in product design and development in the fashion industry. The industry thoroughly integrated AI-powered tools into the creative processes to streamline and improve many design aspects, increasing efficiency and encouraging innovation throughout the product's lifecycle. AI is significantly used for pattern optimization in product designing and maximizing material efficiency is driving the market. AI algorithms examine design criteria and material qualities to develop optimum patterns that reduce waste while maximizing resource utilization. The technology also assists designers in meeting cost savings and environmental sustainability objectives while keeping design integrity. These factors are anticipated to fuel the market during the forecast period.

Growing Demand for Fashion Sustainability – An Opportunity in the Artificial Intelligence In Fashion Market

The fashion industry is increasingly focusing on sustainable methods and ethical material sourcing. AI plays an important role in facilitating the selection of sustainable materials for products, providing vital insights and assistance to fashion companies. AI algorithms help examine many elements while evaluating materials for sustainability. These elements include ethical sourcing procedures, cost-effectiveness considerations, and environmental impact studies. By evaluating large datasets and complex factors, AI allows fashion companies to make informed decisions about the materials used in their products and balance sustainability aspirations with business objectives.

Furthermore, rising consumer awareness and environmental concerns increase the adoption of AI algorithms to meet the growing need for sustainable fashion. Increasing concern among consumers related to the environmental impact of clothes encourages fashion brands to implement sustainable practices throughout their manufacturing and supply chains. These factors are generating significant growth opportunities for the market.

Artificial Intelligence In Fashion Market Report Segmentation Analysis

Key segments that contributed to the derivation of the artificial intelligence in fashion market analysis are offerings, deployment, application, and end-user industry.

• Based on offerings, the artificial intelligence in fashion market is divided into solutions and services. The solutions segment held a larger market share in 2023.
• On the basis of deployment, the market is bifurcated into on-premise and cloud-based. The cloud-based segment held a larger market share in 2023.
• Based on application, the artificial intelligence in fashion market is divided into product recommendation, virtual assistant, product search and discovery, creative designing and trend forecasting, customer relationship management, and others. The product recommendation segment held a larger market share in 2023.
• In terms of end-user industry, the artificial intelligence in fashion market is categorized as apparel, accessories, cosmetics, and others. The apparel segment held a larger market share in 2023.

Artificial Intelligence In Fashion Market Share Analysis by Geography

The geographic scope of the artificial intelligence in fashion market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.

In terms of revenue, the North America market accounted for the largest artificial intelligence in fashion market share, due to the growing adoption of AI technology in the fashion industry. Technological improvements and the early use of artificial intelligence in fashion applications are driving the market. Similarly, emerging fashion trends in countries such as the US and Canada are surging demand for AI technology for productivity enhancement, sales optimization, and sustainability. Additionally, the dynamic nature of the fashion industry and constant changes in consumer demand increase the demand for AI to drive innovation and competition.

The regional trends and factors influencing the Artificial Intelligence In Fashion Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Artificial Intelligence In Fashion Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Artificial Intelligence In Fashion Market Report Scope

Artificial Intelligence In Fashion Market Players Density: Understanding Its Impact on Business Dynamics

The Artificial Intelligence In Fashion Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Artificial Intelligence In Fashion Market News and Recent Developments

The artificial intelligence in fashion market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for artificial intelligence in fashion and strategies:

• In March 2023, LS&Co. announced a partnership with Lalaland.ai, a digital fashion studio that builds customized AI-generated models. Both companies are planning to test and use AI-generated models to supplement human models, increasing the number and diversity of models for products in a sustainable way. (Source: LS&Co., Press Release, 2023)

Artificial Intelligence In Fashion Market Report Coverage and Deliverables

The “Artificial Intelligence In Fashion Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles