According to a survey by EMI Enterprises, only 26% of textile businesses reported adopting some form of digital transformation in 2024. While this shows improvement on previous years, it still shows that the textile industry is lagging behind other industrial ecosystems. Among the most adopted technologies is big data, which enables businesses to analyze large volumes of information, such as consumer behavior, purchase patterns, and market dynamics.
This use of big data has several tangible benefits:
- helping businesses align production with actual customer needs and reduce overproduction.
- enabling companies to tailor fabrics and product offerings based on customer preferences.
- Helping managers track logistics in real time and predict delays, leading to smarter resource management and reduced waste.
Artificial intelligence (AI) is also emerging as a powerful tool, particularly in textile recycling. AI-powered systems are being used to identify and sort materials through machine learning, significantly improving the efficiency of recycling processes and supporting circular economy goals.
Public funding has played a significant role in supporting this digital shift. Initiatives like the European Regional Development Fund (ERDF), Horizon 2020, and Horizon Europe have allocated substantial resources to digitalisation projects. Between 2014 and 2020 alone, ERDF supported digital transition projects with over €329 bn in funding. However, only 19% of this funding was directed toward advanced digital technologies. The majority were focused on more basic digital upgrades.
Despite increased interest in digitalisation, there are still certain crucial barriers in its implementation, especially amongst SME’s.
The major barriers to adopting advanced technology, to name a few, are: financial barriers, structural barriers, operational barriers, and lack of digital skills as well as employee availability.
Financial barriers significantly hinder digitalisation, especially in the case of SMEs. The textile industry’s low profit margins and intense competition make investments in Industry 4.0 technologies costly and risky (Hossain et al., 2024). Larger companies often prefer traditional methods that guarantee steady profits over expensive new technologies and workforce training.
Structural barriers arise from the complex, fragmented supply chains in fashion, where collaboration is essential but difficult (Moore, 1996; de Jesus and Mendonça, 2018). The industry is spread out all over the world, and there’s no clear plan on which technology to use. This causes delays and confusion, and companies don’t always want to pay for tech that also helps their competitors (Chauhan et al., 2022).
Operational barriers stem from how the textile business works, always changing designs, materials, and suppliers. This makes it hard to keep data organized and use digital tools smoothly. Many companies still use emails and spreadsheets instead of better digital systems. Furthermore, different departments don’t always work together, which makes using new tech harder (Chauhan et al., 2022).
Lack of digital skills proves to be a big problem, especially in smaller companies and among older workers. Many don’t have sufficient knowledge to navigate digital tools well or are afraid of losing control over their work. This stops companies from using digital technology fully. In addition, many fear that machines will take over their jobs, disregarding the fact that new tech can create new opportunities. The whole supply chain needs to get better at digital skills for things like 3D design to work well (Hossain et al., 2024).
In conclusion, the growing consumer demand for sustainability and innovation in the textile industry is a key point in encouraging companies to invest in digitalisation; however, there are also key barriers that should be taken into consideration when deciding whether it would be the right move.
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