Demand design flaws: Weak manufacturing markets intensify competition and cut revenue

Industrial design firms primarily perform design work for manufacturers to improve the commercial viability, functionality, longevity and production efficiency of products. Over the past five years, the industry has faced declining demand from many downstream manufacturing markets. Local manufacturers have struggled in the face of low-cost imports, and have subsequently reduced spending on industrial design services. As a result, the industry has become more competitive, with design firms competing to win contracts and clients. Some operators have opened up new markets by developing promotional products for advertising agencies or designing bespoke products for end-users, such as banks and airlines.Industry revenue is expected to decline at an annualised 1.2%...read more.

Industry Statistics & Market Size
Revenue
$387m
Annual Growth 13-18
-1.2%
Forecast Growth 18-23
Profit
Employment
1,785
Businesses
268
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Improving manufacturing demand is expected to increase industry revenue over the next five years
  • Low barriers to entry and fierce competitive conditions have pushed down service prices
  • Industry players are expected to increasingly adopt new design technology, facilitating growth
  • Industry Report - Industry Analysis Chapter

    The Industrial Design Services industry has struggled over the past five years as demand conditions have deteriorated in the Manufacturing division, the industry’s principal downstream market. Local manufacturers have struggled to compete against low-priced imports and have subsequently reduced spending on industrial design services. Over the past five years, the industry’s leading industrial designers have taken greater responsibility for the holistic development of products, working closely with clients from the inception of designs through to the market stage. These clients are increasingly the end-users of the products, such as banks and advertising agencies.Industry revenue is expected to decline at an annualised 1.2% over the five years through 2017-18, to $386.8 million. Thi...purchase to read more.

    Additional Insights for the Industrial Design Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Industrial Design Services Industry are

  • Ability to alter goods and services produced in favour of market conditions
  • Access to a highly skilled workforce
  • Easy access for clients
  • IBISWorld analysts also discuss how external factors such as Demand from machinery and equipment manufacturing and Demand from structural metal product manufacturing in the Industrial Design Services industry impact industry performance..

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    What's in this report

    What is the Industrial Design Services Industry?

    Industry companies primarily develop designs and specifications for mass-produced products. This includes choosing the material, construction method, mechanism, shape, colour and surface finish of products to improve their market appeal, production, use and minimise their need for maintenance.

    Industry Products
  • Product design services
  • Model design and prototyping services
  • Other services
  • Industry Activities
  • Product design
  • Model design
  • Prototyping
  • Industrial design consulting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from machinery and equipment manufacturing
  • Demand from structural metal product manufacturing
  • Demand from furniture and other manufacturing
  • Private research and development expenditure
  • Demand from advertising agencies

  • Current Performance
  • Profitability
  • Downstream demand
  • Research and development trends
  • Globalisation
  • Chart: Revenue Growth

  • Industry Outlook
  • New skill sets
  • Downstream demand
  • Table: Industrial Design Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Industrial Design Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Engineering Consulting
  • Specialised Design Services
  • Advertising Agencies

  • Key Selling Industries
  • Computer and Software Retailing
  • Paper Stationery Manufacturing
  • Specialised Design Services

  • Products & Services
  • Product design services
  • Model design and prototyping services
  • Other services
  • Chart: Industrial Design Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food and beverage manufacturers
  • Other
  • Building equipment manufacturers
  • Transport companies
  • Electronic equipment manufacturers
  • Household equipment and appliance manufacturers
  • Consumer and medical goods manufacturers
  • Chart: Major Market Segmentation for the Industrial Design Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Industrial Design Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Industrial Design Services Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Industrial Design Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Industrial Design Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    3D Printing
  • The process used to synthesise a three-dimensional object by printing or adding successive layers of material using computerised control.
  • Experience Design
  • The design of a product with a heavy emphasis on the quality of user experience.
  • Prototyping
  • Creating a sample model for the trial phase of the designed product.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industrial Design Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Industrial Design Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Industrial Design Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Industrial Design Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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