Artificial Intelligence in Fashion Design Market Size 2031

Report Description

The global artificial intelligence in fashion design market size was valued at USD 70 Million in 2022 and is likely to reach USD 1.4 Billion by 2031, expanding at a CAGR of 36% during the forecast period, 2023–2031. The market is driven by the growing influence of social media in the fashion industry, and the demand for personalized experiences.

Increasing demand for personalized customer experience is driving the AI in fashion design market. It enables fashion brands to offer personalized shopping experiences by analyzing customer data and suggesting products tailored to individual preferences and characteristics.

Get Free Sample Report

AI applications extend to design customization and various processes where they assist in creating unique designs based on customer input, helping designers iterate more quickly, reduce time-to-market, and respond to changing trends faster. Such multilateral advantages of AI in fashion design are likely to fuel the market.

AI algorithms are propelling the fashion industry by analyzing a wide range of data sources, including runway shows, social media, and historical sales data. This insight helps designers identify emerging fashion trends to stay ahead and create collections that resonate with current consumer preferences.

The fashion industry generates vast amounts of data through various online platforms. AI tools analyze this data to gain insights into consumer preferences, trends, and buying behavior, aiding designers in creating more targeted and appealing collections. For instance,

• On June 29, 2023, Stitch Fix, an online personal styling service that uses AI algorithms to curate personalized clothing recommendations, started personalized styling with Generative AI, for its customers. The company took the support of OpenAI’s ChatGPT-3 to support their experts with text generation.

The market report finds that the COVID-19 pandemic boosted the market. During the pandemic, disruptions to supply chains and changing consumer behavior posed challenges to the market, along with that the increased reliance on e-commerce, virtual solutions, and data-driven insights opened up new avenues for AI adoption in the industry. The adoption of digital services was observed which resulted in online shopping.

Artificial Intelligence in Fashion Design Market Dynamics

Get Free Sample Report

Major Drivers

AI-enabled personalized shopping experiences are driving the AI in fashion design market. Various AI tools effectively analyze vast customer data and customer preferences, which leads to increased customer engagement and loyalty. AI tools serve as creative aids, suggesting new design combinations, styles, and patterns that designers might not have considered otherwise. This personalized experience enabled by AI is likely to be a major propelling factor in the market.

Virtual try-on and fitting solutions powered by AI are other key aspects fueling AI in the fashion design market. This technology enhances the online shopping experience, reducing returns and improving customer satisfaction. AI algorithms analyze large volumes of data to identify consumer trends, helping designers make informed decisions and create designs aligned with market demands.

Rising use of AI tools for optimizing fashion inventory is likely to drive the market. AI optimizes inventory management, demand forecasting, and supply chain logistics. By predicting demand more accurately, fashion brands minimize overstocking and stockouts, leading to cost savings and improved customer satisfaction. For instance,

• On February 20, 2023, TRUEFIT, the personalization platform for fashion, announced its partnership extension with Google Cloud. To unlock insights and serve fit personalization for customers, the company's fashion genome gathered data from 80 million active members and more than 17000 brands.

Existing Restraints

Limited adoption of AI tools, owing to dependence on traditional techniques is expected to restrain the market. Additionally, designers might feel their creativity is being compromised. AI algorithms, in some cases, inadvertently produce culturally insensitive or inappropriate designs, leading to potential backlash and reputational damage, which can limit their adoption, thus, hindering the growth of the market.

Emerging Opportunities

Rising e-Commerce platform enhancement with AI integration is anticipated to create lucrative opportunities in the market. The growing shift towards online shopping provides an opportunity for AI-powered virtual try-ons, leading to improved customer experiences and increased sales.

AI's predictive capabilities help fashion brands to design trends, which leads to better inventory management and reduced waste. Increasing AI use in advancing the operations and customer experience is likely to further boost the growth opportunities for the companies in the market.

Scope of Artificial Intelligence in Fashion Design Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Artificial Intelligence in Fashion Design Market Segment Insights

Component Segment Analysis

Based on component, artificial intelligence in fashion design market is bifurcated into services and solutions. The solution segment is expected to expand at a significant growth rate during the projection period.

The growth of the segment is attributed to the increasing inclination of the fashion industry towards digital platforms such as social media, e-commerce, and others. The growing penetration of the internet and the use of smartphones globally is likely to further fuel the segment in the fashion industry.

Get Free Sample Report

Deployment Segment Analysis

On the basis of deployment, the global market is divided into cloud and on-premise. The cloud segment is projected to register a considerable CAGR during the forecast period, owing to the adaptability and flexibility advantages provided by cloud-based solutions in the fashion industry. The segment is further driven by the increasing digital transformation that has boosted the demand for advanced software across all sectors.

Cloud-based solutions enable companies to benefit from advanced software, without having to wait longer for development or spend a significant budget for it. Cloud-based 3D imaging technology adoption is growing, due to its advantages, such as scalability, picture data maintenance, simple & effective management, low cost, and flexible nature. For instance,

• According to a report by textile learner, on August 5, 2021, cloud computing is the next big trend in the fashion industry. It is considered to be the next prominent and fashionable computing system offered through the internet, as it is creating lucrative opportunities in the fashion market.

• A study by Francescatabor (FRANKI T) published in August 2022, revealed that viewing of products 3D models in Augmented reality (AR) has increased the conversion rates by 250%, as customers can watch it online, which reduces the returns by 40%.

Application Segment Analysis

On the basis of application, artificial intelligence in fashion design market is segmented into customer relationship management, virtual assistant, product recommendation, product search & discovery, supply chain management & demand forecasting, creative designing, and trend forecasting.

The supply chain management & demand forecasting segment is expected to register a robust growth rate during the forecast period, as AI is able to predict future product performance and sales. Fashion businesses are able to make deliberate decisions regarding the manufacturing and delivery of fashion products. This increases the market value of AI, reduces unnecessary waste, and improves consumer satisfaction, which is likely to boost the segment in the market.

The customer relationship management segment is anticipated to hold a significant share of the market during the forecast period, as AI in fashion helps to manage and analyze customer interactions, preferences, and behaviors. This enables fashion companies to provide improved experiences to consumers based on their fashion tastes.

The AI tools analyze immense data on social media, online shopping platforms, and other sources to provide productive insights into customer preferences. This allows fashion brands to tailor their marketing strategies and product offerings to specific customer segments.

Get Free Sample Report

End-user Segment Analysis

On the basis of end-user, the global market is divided into fashion stores and fashion designers. The fashion store segment is expected to exhibit a significant growth rate during the forecast period, due to the rise of investments in innovative technologies by major players, aiming to offer personalized shopping experiences.

Both emerging and established fashion designers are exploring the use of generative AI. The AI technology helps professionals to present their unique ideas to customers in a personalized manner. It simplifies the process of showcasing various design concepts, which can speed up different tasks and reduce the time taken for generating creative designing concepts. For instance,

• In March 2022, Walmart's subsidiary, Zee Kit, launched an innovative solution for Walmart shoppers, a virtual fitting room in the Walmart app and website. With this solution, customers are able to try outfits virtually by choosing from 50 models of different heights and sizes, through choosing the ‘my model experience’ concept.

Regional Analysis

In terms of region, the global artificial intelligence in fashion design market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to the presence of major key players.

The growth of social media and the entertainment industry in this region is tremendous, which is likely to propel the market. Growing collaboration and partnerships between key players and technology firms are anticipated to further contribute to the generation of new opportunities in the market. For instance,

• In May 2022, Lanvin, a French luxury fashion Paris-based company, joined forces with Shopify Inc. to create an online platform for growth opportunities in North America. Using Shopify's technology, Lanvin aims to expand its product offerings for customers and its expansion in the global e-commerce apparel market.

Asia Pacific is projected to hold a significant market share, owing to the rising use of social media for marketing, browsing fashion-related content, and influencing shopping preferences. The wide use of smartphones and the popularity of AI platforms is likely to augment AI integration in fashion design.

In addition, supportive government policies are propelling digitization in emerging economies such as India, China, and others, which are further, boosting the growth of the market in the region.

Get Free Sample Report