According to a new outlook from Market Research Intellect, the global textile market is entering a sustained growth phase. The market is projected to expand from USD 1.5 trillion in the mid-2020s to USD 2.3 trillion by 2031, reflecting a compound annual growth rate (CAGR) of 5.2%.
Growth is being fueled by rising demand across apparel, home furnishings, and industrial applications, alongside rapid innovation in sustainable fibers, smart textiles, and automated manufacturing.
Key Growth Drivers
- Sustainability & Materials Innovation
Strong consumer shift toward eco-friendly fabrics, organic cotton, recycled fibers, and low-impact production is enabling premium positioning and long-term demand resilience. - Technology Integration
Adoption of automation, AI, IoT, and advanced analytics is improving efficiency, lowering costs, and enabling customization across the value chain. - Expanding End-Use Applications
Beyond fashion and home textiles, growth is accelerating in automotive, healthcare, construction, and industrial textiles, where performance and safety are critical. - Government Policy & Infrastructure Support
Industrial policies, incentives, and sustainability regulations—particularly in Asia-Pacific and Europe—are accelerating domestic textile production and modernization.
Market Structure & Competitive Dynamics
- Mid-range products are expected to dominate volumes, balancing affordability and quality.
- Premium and performance textiles will capture niche but high-margin demand.
- Competitive differentiation will increasingly hinge on:
- Fabric technology innovation
- Digital design and engagement tools
- Sustainable and compliant production systems
Manufacturers are also investing in virtual design tools, digital engagement, and subscription-style business models to improve customer retention and aftermarket sales.
Regional Outlook
- Asia-Pacific: Fastest growth, driven by China, India, Japan, urbanization, rising incomes, and large-scale manufacturing investments.
- Europe: Growth led by sustainability regulation, advanced materials, and industrial textiles, particularly in Germany, the UK, and France.
- North America: Stable growth supported by innovation, automation, and premium textile applications.
- Rest of World (LATAM, Middle East & Africa): Moderate but rising growth tied to infrastructure expansion and industrialization.
Bottom Line
The global textile industry is evolving from a volume-driven manufacturing sector into a technology-enabled, sustainability-led ecosystem. With demand expanding across lifestyle, industrial, and technical applications—and regulation favoring cleaner production—the market is positioned as one of the most resilient and adaptive segments of the global consumer and industrial economy through 2031 and beyond.
