A recent report published by Infinium Global Research on AI in fashion retail market provides an in-depth analysis of segments and sub-segments in the global as well as regional AI in fashion retail market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional AI in fashion retail market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast, and dollar values of global AI in fashion retail market. According to the report, the global AI in the fashion retail market was sized over USD 241 million in 2020 and is expected to reach a market size of more than USD 2546.8 million by 2026. The global AI in the fashion retail market is projected to grow with a CAGR of 40% during 2020-2026.
Artificial Intelligence has entered into many industries with the potential to transform businesses through higher speed, low operational costs, and access to a depth of consumer and market data that promise a strong competitive edge. Artificial Intelligence in fashion is changing this industry by playing a crucial role in the various key divisions. The fashion industry is the trillion-dollar industry in the world hence the demand for AI goes high to operate such a huge market. Artificial intelligence playing a crucial role starting from design to manufacturing, logistic supply chain, and marketing. AI-based technologies in the fashion industry are providing automated solutions to manufacturers helping them to leverage the intelligence of AI into fashion and exhaust the best possibilities into their field. Artificial Intelligence can detect the new trends with demand in projecting the new trend reducing the forecasting error.
An increasing amount of data generated by the consumers is majorly driving the growth of AI in the fashion retail market. About 2.5 quintillion bytes of data is generated every day by internet users across the world. A single internet user is estimated to generate around 1.7 megabytes of data per second. Artificial intelligence leverages this data to optimize the recommendation system as per the customer. Moreover, the growing penetration of the internet and smartphones is further propelling the market growth of AI in fashion retail. The growing penetration of internet and smartphone devices in the world provides access to AI services by fashion retailers as well as customers. However, the difficulties in integrating older technologies with AI pose a major challenge for market growth. The major problem with the older technologies is that they are usually incompatible with new systems such as ERP software. This, in turn, hampers the adoption of AI for the fashion retail industry. Nevertheless, the adoption of innovative technologies such as IoT, VR, and 5G is anticipated to augment market growth in the future. The ongoing COVID-19 pandemic has resulted in being a major disrupter, shifting the global dynamics. It is likely to cause supply chain chaos and ultimately force major players and intact industries to rethink and adapt to the global supply chain model. Numerous fashion designers and designer houses have stopped their production in 2020, which has collaterally damaged the supply chain and the industry. Broadly, three major factors are disrupting the fashion retail industry, namely, supply chain disruption, a shutdown of production units, and a decrease in demand amidst lockdown in many countries.
The North America region holds the largest market share in AI in the fashion retail market. The growing adoption of digital technologies such as mobile internet, advanced analytics, virtual and augmented reality, advanced robotics, and artificial intelligence is profoundly driving the growth of the market in North America. Furthermore, the growing adoption of AI-based solutions by fashion brands and government initiatives to protect copyrights for AI-in Fashion services provides a growing demand for the AI in fashion retail market in North America. The domination of the European region in the global AI in the fashion market was mainly due to the government initiatives and regulatory approaches for managing the development and use of AI. In the Asia Pacific, China’s State Council released the Next Generation Artificial Intelligence Development Plan which will fuel the market growth in China. The Development Plan sets forth long-term strategic goals for AI development in China, concluding in 2030.
The report on global AI in fashion retail market covers segments such as component, deployment mode, and application. On the basis of component, the sub-markets include software, and services. On the basis of deployment mode, the sub-markets include cloud, and on-premises. On the basis of application, the sub-markets include product recommendation, discovery, and search, creative designing and trend forecasting, virtual assistant, customer relationship management, and others.
The report provides profiles of the companies in the market such as IBM Watson, Stitch Fix company, FINDMINE, Intelistyle, Lily AI, Pttrns.ai, Syte, Microsoft Corporation, SAP SE, and Oracle Corporation.
The report provides deep insights into the demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of AI in fashion retail market. Moreover, the study highlights current market trends and provides forecast from 2020-2026. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.