Design Services Market Characteristics
The design services market consists of sales of design services such as interior, industrial, graphic and fashion design services, and related goods by entities (organizations, sole traders and partnerships) that plan, design and administer design projects according to the client’s specifications.
Design service is the process of providing a plan or drawing of an object to clients to show the look and function or workings of a building, garment, or other object before it is made.
Design service providers undertake processes where human capital is the major input. They make available the knowledge and skills of their employees, often on an assignment basis, where an individual or a team is responsible for the delivery of services to the client.
Design Services Market Size
The global market for design services reached a value of nearly $153.2 billion in 2018, having grown at a compound annual growth rate (CAGR) of 11.6% since 2014, and is expected to grow at a CAGR of 13% to nearly $249.5 billion by 2022.
Growth in the historic period resulted from strong economic growth in emerging markets, rapid technological developments, demographic shifts, and growth in the remodeling industry. Factors that negatively affected growth in the historic period were skilled workers’ shortages, and counterfeit designs.
Going forward, economic growth and international collaborations will drive growth. Factors that could hinder the growth of this market in the future include access to free online tools and blogs.
Design Services Market Drivers
The Key drivers of the design services market include:
Rapid Technological Developments – During the historic period, technological development was a significant driver of the design services market. Areas of rapid technological changes included electronic equipment, software and telecommunications. For instance, technologies such as CAD, CAM and 3D modelling technologies were aiding the supply side of the industrial design services market, whereas with growth in internet penetration, online platforms such as decorist.com , which provide the ease of delivering design services online, attracted a high demand for interior design services.
Design Services Market Restraints
The key restraints on the design services market include:
Skilled Workers’ Shortages – High competition among design services companies and a lack of suitably trained employees contributed to labor shortages in the design services market. For instance, as new technologies and standards were coming up in the market, designers needed to update their skillsets in latest technologies in terms of smartphones, tablets and other IoT (Internet of Things) applications. Likewise, some interior designers and industrial design professionals were not equipped with the latest skillsets leading to high competition among interior design and industrial design companies for individuals with the latest skills. For example, according to the Institute of Indian Interior Designers, as of 2018, there was a shortage of approximately 300,000 interior design professionals in India. The shortage of skilled workers limited the growth of the design services market.
Design Services Market Trends
Major trends influencing the design services market include:
Digitization – General professional service agencies are rapidly shifting towards IT transformation and digitalization services. With the emergence of advanced data analytics, big data is turning out to be a critical tool for market research companies while executing research projects on a large volume of data to offer analytics solutions to give more robust insights to their clients. Advertising and PR firms are offering digital campaigns taking advantage of the increasing digitalization and advances in social media, search engine marketing, content marketing and e-commerce technology. As a result of increasing internet penetration and smartphone users, online content marketing campaigns are expected to be three times more effective and cost 62% lesser than traditional campaigns.
Adoption Of Advanced Technologies – General professional services companies are increasingly using advanced research technologies to generate consumer and market insights. For instance, market research companies are providing eye tracking technology to aid researchers in giving unbiased insights. Advances in technology have helped scientific and research firms to develop biotechnical and mechanics discoveries in the fields of 4D printing, organ-on-a-chip and advanced bio engineering tools . Such advances in technology are significantly driving the design, research, promotional and consulting services industry.
Opportunities And Recommendations In The Design Services Market
Opportunities – The top opportunities in the global design services market will arise in the industrial design services segment which will gain $33.4 billion of global annual sales by 2022. The design services market size will gain the most in China at $17.4 billion. Market-trend-based strategies for the design services market include the adoption of VR and AR technologies, investments in big data analytics, and provision of online design services. Player-adopted strategies in the design services industry include reinforcing M&A strategies, and expanding services to industries such as health and wellness, sports and entertainment.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the design services companies to consider focusing on offering sustainable design services to their clients, and expanding in emerging markets, among other strategies.
Design Services Market Segmentation
The Design Services market is segmented by type of service and by geography.
By Service Type -
The design services market can be segmented by type of service into
- a) Industrial Design Services
- b) Graphic Design Services
- c) Interior Design Services
- d) Fashion And Other Design Services
The industrial design services market was the largest segment of the design services market in 2018 at 31.9%. The interior design services market is expected to be the fastest-growing segment going forward at a CAGR of 14.5%.
By Geography -
The design services market is segmented into
- o North America
- o Western Europe
- UK
- Germany
- France
- Spain
- Italy
- o Asia Pacific
- China
- Japan
- India
- Australia
- o Eastern Europe
- o South America
- o Middle East
- o Africa
North America was the largest market for design services, accounting for 30.6% of the global market in 2018. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, Africa and Eastern Europe will be the fastest growing regions in this market, where growth will be at CAGRs of 17.5% and 17.1% respectively. These will be followed by the Middle East and Asia-Pacific where the markets are expected to grow at CAGRs of 17.1% and 16% respectively.
Design Services Competitive Landscape
Major Competitors are:
- • John Wood Group PLC
- • Altran Technologies, SA
- • Gensler
- • Jacobs Engineering Group Inc.
- • Arcadis NV
Other Competitors Include:
- • AECOM
- • Stantec
- • Perkins+Will
- • HOK Group
- • HKS
- • Others
- • Flow
- • Neri and Hu
- • Ahead Design
- • Shark Design
- • Farfetech
- • Design Qube
- • Carafina
- • Desmania
- • IDEINN
- • Digiwebart
- • Logo Design India
- • CrowdStudio
- • Curiosity
- • Fhams
- • Hashimoto Yukio
- • Kono Designs
- • Eat Creative
- • Accorder Inc.
- • Azoth Inc.
- • Isato Design Works Ltd.
- • Kondo Knit Co. Ltd
- • Nippon Design Center
- • MIM Design
- • Coco Republic
- • Jac&
- • Nude Design Studio
- • Evie Group
- • Creator Global
- • Vert Designs
- • RKS
- • Designworks
- • IDEO
- • Karten Design
- • Studio O+A
- • IA
- • Eastlake Studio
- • Sagmeister and Walsh
- • Piscatello Design Centre
- • Georgia Thomas Designs
- • J. Jansen Designs
- • Keith Llyod Couture
- • MKV Design
- • Align
- • Wilkinson Beven Design
- • Addict Clothing
- • Seymourpowell
- • PDD
- • Gusto Design
- • Tangerine
- • Zara
- • Taxi Studio
- • Graphical House
- • La Boca
- • Design One
- • Iris
- • Valtech
- • 360i
- • Key Ideas
- • Luxottica
- • Altercasa
- • Andrei Dmitriev
- • Alter Ego Project Group
- • Antonovich Design
- • Al-Khulaifi Group
- • Rumaillah Services Est.
- • Sahar Madanat
- • Don Rite Consultance & Design
- • S3T Koncepts
- • Ideso
- • Bravo Design
- • Designs Squared
- • Sand Product Design NN Vintage
- • MaXhosa