What is the market size for the industry that Wix operates in? What is its projected growth for the next 5-10 years?
Hello! Thanks for your question about the market size and projected growth of DIY web design services. The short version is that the DIY website design industry is estimated at $1.5 billion. The projected CAGR from 2016 to 2021 for the web design industry is 3.6%. The projected market size for DIY web design in 2021 is $1.79 billion. Below you will find a deep dive of my findings.
METHODOLOGY AND FINDINGS
Wix is considered DIY web design software and belongs to the website design industry. According to DazeInfo, 3% of websites are made with DIY software like Wix.
IBIS World reports that the US website design industry is valued at $26 billion with a 2011 - 2016 CAGR of 4.8%. The projected CAGR from 2016 to 2021 for the US web design industry is 3.6%. Since Wix is used around the world and the IBIS World data is for the USA, I looked for related industries with global market sizing data. I found that the global graphic design market is valued at $56 billion. Since these industries are similar, I assumed that the global website design industry is valued closer to $50 billion.
Therefore, to calculate the DIY web design market size:
$50 billion * 3% = $1.5 billion
KEY FINDING: The global DIY web design industry is estimated to be $1.5 billion.
PROJECTED GROWTH (3.6% CAGR) 2016 - 2021
2016: 1.5 billion
2017: 1.55 billion
2018: 1.60 billion
2019: 1.66 billion
2020: 1.72 billion
2021: 1.79 billion
An article published by Medium show that over $400 million in venture capital funding was raised by DIY website builder startups between 2013 and 2015.
The market is saturated with most companies showing little growth. "WordPress, Joomla, Drupal and Magento...have captured almost 91% of total DIY market." PageCloud and The Grid think they can disrupt the market.
To wrap it up, the DIY web design market is estimated to be around $1.5 billion with a 3.6% CAGR over the next five years. Thanks for using Wonder! Please let us know if we can help with anything else!