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  • AI in Fashion Market Growth Analysis | 2023-2029

    AI in Fashion Market Growth Analysis | 2023-2029

    AI in Fashion Market Growth Analysis | 2023-2029
    Report code - SR2461 Delivery - 2 Weeks
    AI in Fashion Market Size, Share, Trends, Forecast, and Growth Analysis - 2023-2029
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    Market Insights

    The AI in fashion market was estimated at USD 0.54 billion in 2022 and is likely to grow at a CAGR of 29% during 2023-2029 to reach USD 3.20 billion in 2029.

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    What is AI in fashion?

    AI in fashion refers to the use of artificial intelligence technology in various aspects of the fashion industry, including design, manufacturing, marketing, and sales. AI algorithms can analyze data on fashion trends, customer preferences, and production processes to provide insights that can inform the design of new collections, optimize manufacturing, and personalize customer experiences.

    In design, AI can assist with tasks such as color selection, pattern matching, and style recommendations. In production, AI can optimize the manufacturing process, improve inventory management, and reduce waste. In marketing and sales, AI can help to personalize recommendations, improve customer service, and increase sales. Overall, AI in fashion is revolutionizing the industry by making it more efficient, sustainable, and customer-focused.

    AI in Fashion Market Report Highlights

    Market Size in 2022

    USD 0.54 billion

    Market Size in 2029

    USD 3.20 billion

    Market Growth (2023-2029)

    29% CAGR

    Base Year of Study

    2022

    Trend Period

    2017-2021

    Forecast Period

    2023-2029

    Market Dynamics

    The market's main drivers of growth are the rising desire among customers for personalized experiences, the growing necessity for inventory management, and the escalating impact of social media on the fashion industry. Additionally, the analysis of customers' purchasing behavior to forecast future fashion trends and the rapid expansion of fast fashion retail present numerous opportunities for AI fashion solution providers to enhance their marketing efforts.

    The fashion industry has undergone a transformation in business strategies due to the adoption of Artificial Intelligence (AI). Numerous methods have been employed by the fashion industry to leverage AI, such as predictive analytics and computer vision for product feature recognition. The increasing use of AI in the fashion industry is primarily focused on analyzing search behaviors and offering product recommendations based on consumer preferences.

    By analyzing and recording the user's frequent search results based on brand, color, size, fashion trend, and price, AI can provide more relevant search results during subsequent searches. The growth of AI in the fashion market is driven by factors such as the growing influence of social media in the fashion industry, the rising demand for personalized experiences, and the increasing need for inventory management in the fashion industry. However, the market's growth is hindered by challenges such as integration with legacy systems.

    Nevertheless, the market is expected to experience significant growth due to the increasing preference for identifying upcoming fashion trends by analyzing consumers' purchasing behavior and the growth of the fashion retail market. These factors are expected to fuel the adoption of AI in the fashion industry.

    Market Restraints

    There are several factors that may restrain the growth of the AI in fashion market, including integration with legacy systems, data privacy and security concerns, high implementation costs, limited availability of skilled professionals, and lack of awareness and understanding. The integration of AI technology with existing legacy systems may pose significant challenges, which may hinder the adoption of AI solutions in the fashion industry.

    The use of AI requires the collection and analysis of vast amounts of data, raising concerns about data privacy and security. This can be a significant barrier to adoption, particularly for companies operating in regions with strict data protection regulations.

    The implementation of AI-based solutions can be costly due to the need for specialized hardware, software, and skilled professionals. This can be a significant barrier for small and medium-sized fashion enterprises. The adoption of AI-based solutions requires a skilled workforce, which is currently in short supply. This can limit the speed and scale of the adoption of AI solutions in the fashion industry. Many fashion enterprises may lack awareness or understanding of the potential benefits of AI solutions, which can limit their adoption.

    AI-in-Fashion-Market-Dynamics

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    Segment Analysis

    By Component Type

    The AI in fashion market comprises two key components: solutions and services. Solution segment to hold a larger market size over the forecast period. The solution segment has outperformed the services segment and is expected to record higher growth in the future due to its higher adoption rate. Fashion retailers are increasingly turning to advanced technologies to streamline their business processes and acquire new customers.

    Additionally, identifying current fashion trends through various social media platforms and catering to the needs of customers has become a significant challenge for organizations. As a result, fashion retailers and brands are progressively adopting AI-based solutions such as platform and software tools like SDKs, APIs, and ML models.

    By Deployment Mode

    The market can be segmented by deployment mode into two categories: cloud-based deployment, and on-premises deployment. Cloud-based deployment model to account for the largest share over the forecast period. Cloud-based deployment is becoming increasingly popular due to its flexibility and scalability. Cloud-based solutions offer several advantages, including ease of deployment, cost-effectiveness, and the ability to scale up or down as needed.

    On-premises deployment involves the installation of AI solutions within an enterprise's own infrastructure. This mode of deployment is preferred by enterprises with specific data security requirements or those that have existing on-premises infrastructure.

    Currently, cloud-based deployment is the dominant trend in the market. This is because cloud-based solutions offer several benefits over on-premises solutions, including cost-effectiveness, flexibility, and scalability. However, on-premises deployment is still popular among enterprises with specific data security requirements or those that have existing on-premises infrastructure.

    By Application Type

    The market can be segmented by application into several categories: product recommendation, product search and discovery, supply chain management and demand planning, creative designing and trend forecasting, customer relationship management, and virtual assistant. Currently, product recommendation and supply chain optimization are the dominant trends in the market. However, virtual assistants and creative designing and trend analysis applications are expected to gain significant traction in the near future.

    Regional Insights

    The AI in fashion market encompasses five major geographic regions: North America, Europe, Asia Pacific, Middle East and Africa, and South America. North America is projected to hold the largest market share during the forecast period. The Asia Pacific region is showing rapid growth in the market due to several reasons, including the increasing adoption of social media, the expansion of local enterprises, and government initiatives focused on advancing AI technology. Additionally, investments by tech giants are expected to fuel the growth of AI-based solutions across the region.

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    Critical Questions Answered in the Report

    • What are the key trends in the market?
    • How the market (and its various sub-segments) has grown in the last five years and what would be the growth rate in the next five years?
    • What is the impact of COVID-19 on the market?
    • What are the key strategies adopted by the major vendors to lead in the market?
    • What is the market share of the top vendors?

    Market Segmentation

    This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

    The AI in fashion market is segmented into the following categories.

    By Deployment Mode Type

    • Cloud
    • On-Premises

    By Application Type

    • Product Recommendation
    • Product Search and Discovery
    • Supply Chain Management and Demand Planning
    • Creative Designing and Trend Forecasting
    • Customer Relationship Management
    • Virtual Assistant

    By Category Type

    • Apparel
    • Accessories
    • Footwear
    • Beauty and Cosmetics
    • Jewelry and Watches

    By End-User Type

    • Fashion Designers
    • Fashion Stores

    By Region

    • North America (Country Analysis: The USA, Canada, and Mexico)
    • Europe (Country Analysis: Germany, France, The UK, Italy, and The Rest of Europe)
    • Asia-Pacific (Country Analysis: Japan, China, India, and The Rest of Asia-Pacific)
    • Rest of the World (Country Analysis: Latin America, The Middle East, and Others)

    AI-in-Fashion-Market-Segmentation

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    Key Players

    The major players operating in the global market are:

    • IBM
    • Microsoft
    • Google
    • SAP
    • AWS
    • Facebook
    • Oracle
    • Adobe
    • Catchoom
    • Huawei
    • Vue.AI
    • Heuritech
    • Wide Eyes
    • Findmine
    • Pttrns.AI
    • Intelistyle
    • Lily AI
    • Syte
    • Stitch Fix
    • Mode.AI

    Recent Developments

    • In January 2023, SymphonyAI, a vendor of high-value enterprise AI SaaS for strategic industries, teamed up with Oracle to offer SymphonyAI solutions on Oracle Cloud Infrastructure (OCI) using important services such as Oracle Exadata Database Service, GPU-accelerated compute, and performance monitoring. Using SymphonyAI's retail and CPG vertical solutions, customers are able to transition to the cloud to shorten technology deployment time and receive improved real-time services with easy scalability and reduced costs.
    • In June 2022, Google entered into a new partnership with global fashion retailer, H&M Group. The partnership allows H&M leverage Google Cloud's extensive data analytics capabilities and secure, sustainable global infrastructure to further improve its customer experience and supply chain enablement.

    Research Methodology

    This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

    More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

    We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

    Report Features

    This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

    What Deliverables Will You Get in this Report?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth Analysis of the AI in Fashion Market

    How lucrative is the future?

    Market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional, and country-level historical data and forecasts

    Which are the most attractive market segments?

    Market Segment Analysis and Forecast

    Which are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirements?

    10% free customization

    Customization Options

    With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

    Company Profiling

    • Detailed profiling of additional market players (up to three players)
    • SWOT analysis of key players (up to three players)

    Competitive Benchmarking

    • Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances.

    Custom Research: Stratview Research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com.

    Frequently Asked Questions (FAQs)

    AI in fashion refers to the use of artificial intelligence technology in various aspects of the fashion industry, including design, manufacturing, marketing, and sales. AI algorithms can analyze data on fashion trends, customer preferences, and production processes to provide insights that can inform the design of new collections, optimize manufacturing, and personalize customer experiences.

    The AI in fashion market was estimated at USD 0.54 billion in 2022.

    The AI in fashion market is likely to reach USD 3.20 billion in 2029.

    The AI in fashion market is expected to grow at a CAGR of 29.0% during 2023-2029.

    The major players operating in the global market are IBM, Microsoft, Google, SAP, AWS, Facebook, Oracle, Adobe, Catchoom, Huawei, Vue.AI, Heuritech, Wide Eyes.

    North America is projected to hold the largest market share during the forecast period.

    The market's main drivers of growth are the rising desire among customers for personalized experiences, the growing necessity for inventory management, and the escalating impact of social media on the fashion industry. Additionally, the analysis of customers' purchasing behavior to forecast future fashion trends and the rapid expansion of fast fashion retail present numerous opportunities for AI fashion solution providers to enhance their marketing efforts.

    The study period of the market is 2017-2029.