Industrial Design Services Industry Profile

Companies in this industry create and develop designs for manufactured products. Major companies include Ammunition, Designworks (owned by BMW), Frog Design, IDEO, RKS Design, and Smart Design (all based in the US), as well as Alessi (Italy), BUSSE Design (Germany), PDD Innovation and Seymourpowell (both based in the UK).

Global industrial design services market was about $50 billion in 2024, and is expected to reach about $77 billion by 2033, with a compound annual growth rate (CAGR) of 5.2%, according to Business Research Insights. China and the US had the most registered industrial designs in 2023, according to Statista.

The US industrial design services industry includes about 1,500 establishments (single-location companies and units of multi-location companies) with annual revenue of about $2 billion.

COMPETITIVE LANDSCAPE

Demand for industrial design is driven by consumer spending and advances in technology. The profitability of individual companies depends on efficient operations and effective marketing. Large companies have advantages in taking on multiple projects and serving major customers. Small companies can compete effectively by specializing. The industry in the US is concentrated: the top 50 companies account for about 50% of industry revenue.

Customers and prospects become competitors when they bring design services in-house rather than hire industrial design firms. Freelance designers may be competitors or contract labor.

PRODUCTS, OPERATIONS & TECHNOLOGY

Industrial designers develop the concepts for manufactured products taking into account factors such as aesthetics, function, production costs, usability, ...