This shift toward more technology-heavy ventures comes at a critical time for the sneaker market. Last month, Nike predicted a surprise decline in sales in the 2025 financial year due to weakening demand, while Adidas an operating profit of $293 million last year, down nearly 60% from 2022.

The once-thriving sneaker resale market is also suffering, with the value of classics like Nike’s Air Jordan plummeting due to oversupply. While classic silhouettes like Adidas’ Samba and Nike’s Cortez dominate the streets, seasoned collectors are hungry for something new.

Brands are investing more aggressively in technology; a fertile area poised for impressive growth. According to analysts, the AI-driven footwear market is expected to reach $1.5 billion in volume.551.9 billion until 2028.

For Nike, the introduction of digital tools means that the company can optimize not only its design expertise but also its production process.

“We can make better products faster, with more precision, creativity and collaboration,” said Kathy Gomez, vice president of Nike NXT Footwear Innovation Jing Daily Earlier this year, the company is currently using 4D motion capture tools alongside its AI capabilities to streamline product development.

German-American footwear pioneer Zellerfeld is taking a similar approach. The company specializes in cutting-edge 3D technologies designed to enable more complex designs on a more environmentally friendly scale. In June this year, it launched a new 3D printing trading platform – backed by SpaceX, PayPal and sneaker resale site StockX – with the goal of breaking down barriers for developers and brands.

As competition becomes increasingly fierce, the frontrunners are turning to new technologies to increase their competitive advantage. Nike, for example, uses augmented reality for its virtual fitting service Nike Fit. This allows consumers to take a first, detailed look at products from the comfort of their own home.

Nike’s aggressive investments in novel technologies are to be expected. Over the years, unsuspecting competitors like On (which recently announced a second-quarter revenue increase to $645 million, up 27.8 percent year-over-year) and Hoka have begun to nip at the brand’s heels. Former athletic underdog turned rival New Balance also recently announced The company plans to generate sales of $10 billion within the next few years.

The proliferation of blockchain technology has opened up new growth opportunities for brands. It is also helping them appeal to a new wave of consumers, says Jeremy Merrell Williams, technology expert and founder of fashion growth lab Vyudu Inc.

“New technologies like AI and blockchain are giving the sneaker game a significant upgrade,” adds Williams.

Although the sneaker industry was still in its infancy, it was one of the first industries to use blockchain products – even if brands didn’t always get it right.

Last May, Nike’s first Dot.Swoosh NFT sneaker sparked a fierce backlash as a site crash and a slow minting process left collectors waiting for hours. Despite some issues, the project still generated over $1 million in sales, highlighting the high demand for digital assets in the sneaker space.

Meanwhile, Web3-native startups like Sol3mates – the sneaker label conceived in March 2023 by Dubai-based luxury innovation hub Chalhoub Group – have seen a stormy breakthrough with blockchain-connected shoes.

Sol3mates co-founder Nick Vinckier attributes the brand’s success to seamless on-chain authentication, a community-first design approach, and the use of NFTs to unlock exclusive perks. These strategies, he says, keep Sol3mates “at the forefront of innovation while preserving the core values ​​of sneaker culture.”

The idea is not only to offer something new to die-hard sneaker fans who are bored with the lack of innovation, but also to appeal to tech-savvy fans.

Nike-acquired digital studio RTFKT – considered a frontrunner in Web3-connected footwear – has found success by leveraging both Web3’s creator economy and the community love of sneaker culture. By last November, the brand had reportedly Trading volume reached $1.4 billion (equivalent to around $170 million in profit), with CryptoKicks and Clone X collections cited as the main profit drivers.

The success of Sol3mates and RTFKT is a lesson for larger retailers adopting innovative developments. However, as new technologies become ubiquitous, brands can no longer rely on novelty alone to drive sales.

“For me to buy a pair of tech-equipped sneakers, they have to create more than just hype,” says Williams. As an avid sneaker fan, Williams emphasizes the importance of utility.

“They have to offer real value, like tracking my training, giving me feedback and adapting to my movements,” he says. “If they’re not powerful and durable, it’s a clear no. Novelty is cool for a minute, but I’m looking for the long-term game.”

In the case of On’s LightSpray technology, the project has attracted attention thanks to its uniqueness. However, performance innovations are a different matter entirely. To prove itself as a serious player, the brand has recruited athletes to put the sneaker to the test.

For example, at the 2024 Olympic Games in Paris, where Kenyan long-distance champion Hellen Obiri wore the sneaker in the marathon on August 11. Although On’s risky gamble may have paid off – Obiri won the bronze medal with her time of 2 hours and 23 minutes – it remains uncertain how the shoes will be received by the average consumer (the sneaker is scheduled to hit the market in the fall).

As fashion and sport move ever faster into a technology-driven future, staying up to date with new developments like AI and blockchain can prove useful, but true staying power depends on brands finding the right balance between novelty, durability and functionality.