North America Artificial Intelligence in Fashion Market Growth Drivers and Forecast by 2027

The artificial intelligence in the fashion market in North America is expected to grow from US$ 128.7 Mn in 2018 to US$ 2254.2 Mn by the year 2027, with a CAGR of 37.9% from the year 2019 to 2027.

The increase in adoption of artificial intelligence in fashion industry to enhance operational efficiency and improve customer experiences and availability of a huge amount of data originating from different data sources are the major factors that are driving the growth of artificial intelligence in the fashion market. However, concerns related to data privacy and security are anticipated to hinder the market growth in the coming years. Data privacy concerns over the use of AI across fashion industry have been increasing majorly due to a lack of strong data protection laws in many regions/countries. The growth and functioning of AI in the fashion industry are majorly dependent on data collection and data analytics. For this, businesses and customers give AI access to large sets of data, which includes confidential information. With an increase in digital services and data storage on the cloud, concerns related to data security and privacy have also increased. Hence, it is a necessity that AI technologies and solutions providers develop solutions with inbuilt security features to boost investors’ confidence in this technology.

On the basis of application, artificial intelligence in fashion market is segmented into product recommendation, virtual assistant, product search and discovery, creative designing and trend forecasting, customer relationship management, and others. The product recommendation of artificial intelligence in fashion market led the market in 2018 and is expected to continue its dominance during the forecast period. In today’s omnichannel retailing space, product recommendations have turn out to be a significant retailer strategy. The growing range of products and information offered has resulted in intensifying diversity of consumers’ demand, which has become a challenge for fashion brands to offer the right products harmonized with customer preferences. A recommendation engine enables these brands to considerably enhance revenues, Click-Through Rates, conversions, as well as other vital metrics. It can have progressive effects on the user experience, thereby rendering greater customer satisfaction and retention.

The US led the North America artificial intelligence in fashion market in 2018 and is expected to continue its dominance during the forecast period. The US is the largest fashion market in the North American continent, as well as the globe. The fashion brands continue to invest substantial amounts in researching on prevailing and upcoming trends and also leverage their technologies to boost the industry. The fashion industry in the US is majorly boosted by the unique demand for value brand and luxury items. Very recently, several fashion brands have started to incorporate voice assistants and chatbots to influence customers and enhance their shopping experience. The Google Assistance, Amazon Alexa, Microsoft Cortana, and Amazon Alexa are some of the voice assistance technologies, the fashion brands in the US are leveraging on in the current scenario. The figure given below highlights the revenue share of the Mexico in the artificial intelligence in fashion market in the forecast period:

Mexico Artificial Intelligence in Fashion Market Revenue and Forecast to 2027 (US$ Mn)

NORTH AMERICA ARTIFICIAL INTELLIGENCE IN FASHION MARKET SEGMENTATION

By Offerings

• Solutions
• Services

By Deployment

• On-Premise
• Cloud-Based

By Application

• Product Recommendation
• Virtual Assistant
• Product Search and Discovery
• Creative Designing and Trend Forecasting
• Customer Relationship Management
• Others

By End-User Industry

• Apparel
• Accessories
• Cosmetics
• Others

By Country

• US
• Canada
• Mexico

Artificial Intelligence in Fashion Market - Companies Mentioned

• Adobe Inc.
• Amazon.com, Inc. 
• Catchoom
• Facebook, Inc.
• Google, Inc.  (Alphabet Inc.)
• Huawei Technologies Co., Ltd
• IBM Corporation
• Microsoft Corporation
• Oracle Corporation 
• SAP SE

North America Artificial Intelligence in Fashion Report Scope