AI In Fashion Market Anticipated To Touch USD 26.22 Billion By 2032, Owing To The Surging Adoption Of AI Technologies Across Fashion Value Chain SNS Insider

(MENAFN- GlobeNewsWire - Nasdaq) The growing adoption of AI technologies throughout the fashion value chain is the main factor propelling the AI in Fashion Market's explosive expansion.

Austin, Oct. 01, 2025 (GLOBE NEWSWIRE) -- The AI In Fashion Market Size was valued at USD 1.75 billion in 2024 and is projected to reach USD 26.22 billion by 2032, growing at a CAGR of 40.30% over 2025-2032.

The primary driver of AI in the fashion industry is the growing demand from customers for individualized shopping experiences. Customers today demand goods and services that suit their own tastes, fashion sense, and even size. These fashion brands are able to offer these customized experiences at scale due to AI-driven technologies, such as recommendation engines, virtual try-ons, and predictive analytics. AI can recognize fashion trends and recommend items that suit individual preferences by using consumer data, including browsing habits, past purchases, and social media activity. Customization has a significant impact on market growth by boosting consumer happiness, engagement, conversion rates, and loyalty, all of which are elements that contribute to market growth.

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Key Players:

• Microsoft
• Google
• Amazon Web Services (AWS)
• IBM
• SAP
• Oracle
• Adobe
• Lily AI
• Catchoom
• Heuritech
• FINDMINE
• Vue
• Mode
• Stylumia
• True Fit
• Stitch Fix
• LVMH
• Alibaba (FashionAI)
• Perfect Corp.
• 3DLOOK

AI In Fashion Market Report Scope:

Report Attributes	Details
Market Size in 2024	USD 1.75 Billion
Market Size by 2032	USD 26.22 Billion
CAGR	CAGR of 40.30% From 2025 to 2032
Base Year	2024
Forecast Period	2025-2032
Historical Data	2021-2023
Report Scope & Coverage	Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments	. By Component (Solution, Services) . By Deployment (Cloud, On-Premises) . By Application (Product Recommendation, Product Search and Discovery, Supply Chain Management and Demand Forecasting, Creative Designing and Trend Forecasting, Customer Relationship Management, Virtual Assistants) . By Type (Apparel, Accessories, Footwear, Beauty and Cosmetics, Jewelry and Watches) . By End-User (Fashion Designers, Fashion Stores)
Customization Scope	Available upon request
Pricing	Available upon request

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Segmentation Analysis:

By Component, the Market was Led by the Solution Segment in 2024

In 2024, Solution led the market with share 60.34% due to the increasing use of AI-enabled tools for product recommendations, trend forecasting, virtual try-ons, and inventory optimization. Services are the fastest-growing segment with a CAGR 40.22% as brands specifically SMEs are increasingly looking for someone else to implement, maintain, and find the best way to utilize AI systems.

By Application, in 2024, the Product Recommendation Segment Dominated the Market

In 2024, Product Recommendation led the market with share 26.40% due to the increasing need for customized shopping experiences. Product Search and Discovery are the fastest-growing segment with a CAGR 41.71% during 2025-2032 as customers are expecting better ways to search for the products they want.

By Deployment, the Market was Dominated by the Cloud Segment in 2024

Cloud led the market with a share of 55.10% in 2024 owing to the number of benefits such as scalability, flexibility, and cost-effectiveness. The On-premises segment is projected to grow with the fastest CAGR of 40.55% as certain fashion brands demand higher levels of control over their data and AI systems, particularly when it comes to sensitive customer data or their proprietary designs.

By Type, Apparel Segment Dominated the Market in 2024

In 2024, the Apparel segment led the market with a share of 45.20% as the demand for AI-powered solutions capabilities for personalization, trend forecasting, at home virtual try-ons, and inventory, is higher in clothing. Accessories segment is the fastest-growing segment with a CAGR 42.50% owing to the growing interest among consumers in personalized and AI-recommended products such as bags, belts, hats and eyewear.

By End-User, in 2024, the Fashion Designers Segment Held the Dominant Market Share

Fashion Designers dominated with a market share of 60.20% in 2024 due to the growing adoption of AI-powered tools for creative designing, forecast trends, virtual prototyping, and personalized product recommendations. The fashion store segment is the fastest-growing segment with a CAGR 40.47% as the retailers are progressively embracing AI solutions for improving customer experiences, offering inventory optimization, product search and discovery and personalized recommendation.

North America is the Leading Region in the Market; Asia Pacific is Expected to be the Fastest Growing Region in the Market

Due to the existence of well-known fashion brands and sophisticated technological infrastructure, which raise customer awareness of AI-enabled shopping experiences, North America leads the AI in Fashion Market growth share at 33.20%. With a compound annual growth rate (CAGR) of 40.94%, the Asia Pacific area is now expanding at the quickest rate because of the increased use of AI technology in developing nations like China, India, Japan, and South Korea.

Recent Developments:

• In May 2025, Microsoft partnered with Curated for You to integrate AI-powered fashion suggestions into its Copilot assistant, enabling personalized shopping experiences through natural language interactions.
• In August 2025, AWS extended its partnership with Volkswagen for another five years to enhance its 'factory cloud' initiative, aiming to reduce production costs and improve operational efficiency with artificial intelligence.

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Exclusive Sections of the Report (The USPs):

• A I Deployment Intensity – helps you understand the average number of AI tools/platforms adopted per brand and how deeply organizations are embedding AI into core workflows.
• System Upgrade & Cloud Reliance Index – helps you track the frequency of AI model retraining cycles and the adoption split between cloud-based vs. on-premises deployments.
• Functional Integration Score – helps you identify how extensively AI is integrated with e-commerce, ERP, and customer engagement systems, driving multi-functional value creation.
• Application Diversification Metrics – helps you uncover which use cases (recommendations, trend forecasting, supply chain optimization, virtual assistants) are most prioritized by fashion brands.
• A I -Driven R OI & Sales Impact – helps you measure the direct uplift in sales conversion rates, revenue gains, and cost-efficiency improvements linked to AI-enabled operations.
• Cost-To-Efficiency Benchmark – helps you compare the average cost per AI implementation against traditional operations, guiding investment and budgeting decisions.

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