AI and Healthcare Demand Propel Smart Textile Market Growth
New York, Monday, 4 August 2025.
The smart textile market is projected to grow at a 26.1% CAGR through 2032, driven by AI, IoT, and wearable technology, offering opportunities in fashion, sports, and healthcare sectors.
Technological Advancements and Collaborations
The smart textile market is experiencing a surge in innovation, reflecting robust collaborations between technology giants and textile manufacturers. Notably, in July 2025, Google partnered with Levi’s and MIT to produce AI-enabled denim jackets featuring voice-activated and gesture-responsive capabilities, pushing the boundaries of fashion-tech integration [1]. Meanwhile, Infineon Technologies has launched new ultra-low-power microcontrollers to enhance the performance of smart wearable textiles, aiding in improved battery life and data processing [1].
Healthcare and Sportswear Innovations
The intersection of healthcare and smart textiles continues to be a focal point for growth. Adidas AG recently debuted smart training gear equipped with pressure-sensitive fabrics that provide athletes with real-time biomechanical feedback, broadening the application of smart textiles in sports [1]. In the healthcare sector, smart textiles are developing capabilities for remote health monitoring, leveraging the expanding IoT network to provide tailored health insights and proactive medical feedback [1].
Market Drivers and Key Segments
A key driver of smart textile growth is its potential in the defense sector, where modernization efforts emphasize the development of smart uniforms capable of enhancing soldier safety through environmental adaptability and health monitoring. Moreover, the fashion-tech sector is poised to leverage smart clothing’s commercial viability, portraying significant synergy between technology and traditional apparel [1]. The market is categorized into passive, active, and ultra-smart textiles, each serving diversified functions including sensing, energy harvesting, and aesthetic applications [1].
Strategic Mergers and Future Prospects
Corporate strategies are increasingly favoring mergers and acquisitions to seize competitive advantages. For instance, Gentherm’s acquisition of a minority stake in Fibertronic Ltd. aims to expand its portfolio in smart heating textiles, focusing on automotive applications, while Textronics and Peratech Ltd. have merged efforts to pioneer flexible pressure-sensing smart fabrics [1]. Looking to the future, smart textile applications are expected to benefit significantly from advancing IoT and 5G technologies [1].