Major growth factors for the market include customer’s demand for a personalized experience, increasing the need for inventory management and the growing influence of social media in the fashion industry. MarketsandMarkets expects the global AI in fashion market to grow from USD 228 million in 2019 to USD 1,260 million by 2024, at a Compound Annual Growth Rate (CAGR) of 40.8% during the forecast period.
The AI-based technologies, including, computer vision, visual search, image recognition, ML, deep learing , and among others are being used by fashion retailers and brands to streamline their business processes from designing, manufacturing, inventory management, supply chain management, to sales and marketing processes. The AI in fashion is being used in the various applications areas, such as product search and discovery, creative designing and trend forecasting, customer relationship management, virtual assistants, and among others.
Product search and discovery is one of the major applications of AI in fashion area. The organizations are majorly using the AI-powered solutions to find potential use cases in fashion industries, and current fashion trends that can help them update their inventory as per current market needs. This can promote their brand, enhance brand exposure, and create a higher level of customer engagements through personalized services.
The apparel user category is expected to maintain its dominance in terms of revenue generation during the forecast period. Fashion lifecycle for apparel is for a very short time and keeps on changing every day. The behavior of customer influences by various factors, such as discount, festival sale, offers on bulk purchase, and among others. Managing customer demand data and providing apparel as per their demand becomes challenging for fashion brands. These challenges have drawn the attention of large retail and fashion brands; thereby large enterprises are investing millions of amounts in AI-powered technologies
The geographic analysis of the AI in the fashion market covers five major regions: North America, Europe, APAC, Latin America, and MEA. North America is expected to be the leader in the adoption and implementation of AI-powered solution and services in fashion retail, followed by APAC and Europe. Early technological adoption and higher IT spending are likely to drive the market in North America. APAC is expected to invest more in the AI and ML technology, owing to the large population and increasing active users of social media channels would lead to the faster growth of AI in fashion in APAC region.