Design flaws: Falling demand for industry services has intensified competition

Industrial design firms primarily perform design work for manufacturers to improve the commercial viability, functionality, longevity and production efficiency of products. Demand for industry services from many downstream manufacturing markets has declined over the past five years. Local manufacturers have struggled to compete against low-cost imports over the period, leading them to spend less on industrial design services. As a result, the industry has become more competitive, with design firms competing to win a smaller pool of 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 more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
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 competition have pushed down service prices
  • Industry players are expected to increasingly adopt new design technology, facilitating growth
  • Industry Report - Industry Investment Chapter

    The Industrial Design Services industry exhibits low capital intensity. The principal value added by this industry is derived from the application of innovative design and technical skills, which tends to inflate the labour intensity of production and reduce the relative capital input. In 2018-19, for every dollar spent on wages the industry is expected to invest $0.06 in capital equipment and machinery. The fundamental skills required to provide industrial design services means that the industry will remain labour-intensive...purchase to read more.

    Additional Insights for the Industrial Design Services Industry

    IBISWorld has determined the most important Key Success Factors for the Industrial Design Services 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 quality and market appeal.

    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 markets
  • 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
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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 can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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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