AI in Fashion Global Market Report 2024

The AI in fashion market size has grown exponentially in recent years. It will grow from $0.91 billion in 2023 to $1.28 billion in 2024 at a compound annual growth rate (CAGR) of 41.6%. The past growth can be ascribed to advancements such as visual search and recognition, optimization of supply chains, implementation of virtual try-on solutions, enhancement of fraud detection systems, and the adoption of sustainable practices.

The AI in fashion market size is expected to see exponential growth in the next few years. It will grow to $4.95 billion in 2028 at a compound annual growth rate (CAGR) of 40.2%. Anticipated growth in the upcoming period is expected to be driven by innovations such as voice-activated shopping, predictive trend analysis, and dynamic pricing strategies. Key trends foreseen during this period encompass the virtual try-on experience, personalized recommendations, computer vision for style recognition, supply chain optimization, as well as the integration of 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.

Machine learning stands at the forefront of shaping the AI in the fashion market. It constitutes a subset of artificial intelligence that empowers machines to imitate human behaviors. Through machine learning, machines acquire the ability to comprehend, visualize, and execute actions, thereby enhancing the delivery of more informed information and recommendations to customers based on their behaviors. For instance, in April 2021, the renowned fashion brand Tommy Hilfiger employed machine-learning tools to analyze product images, 600,000 publicly available runway images, and nearly 100,000 fabric patterns. This application of AI yielded insights into trending colors, patterns, and silhouettes, enriching the essence of Tommy Hilfiger’s style.

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 September 2021, Syte, an Israel-based software development firm, completed the acquisition of Slyce for an undisclosed sum. This strategic move is geared towards Syte's expansion in the North American market and reinforces its commitment to serving both existing and prospective clients. Slyce, a US-based visual search company, has established technology integration across apps and websites for over 60 retailers, contributing to its acquisition by Syte.

Major companies operating in the AI in fashion market report are 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., Boxfish Inc., Fashion3K, H&M Group's Ivyrevel AB, Choosy Inc., SnapFashion Limited, ELSE Corp Srl, Keypoint Technologies Limited, Farfetch Limited.

North America was the largest region in the AI in fashion market in 2023. 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.

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.