Product Design And Innovation Consultancies: Market Size
The two major types of design consulting are innovation strategy and product and service design. Companies who want to introduce novelty into their business or launch a new product have increasingly turned to innovation consultancies.
The US industrial design industry has an approximate market size of $3bn for US product design and innovation consultancies.
- The industrial designers industry, which consists of innovative product design, model design and fabrication, and other industrial design services such as graphic design, consists of industrial designers who are hired by manufacturers to improve functionality, longevity, and production efficiency of goods.
- The total industrial designers industry revenue in 2019 has been $3bn (three billion USD). The industry revenue is expected to rise, since higher corporate profit boosts demand for industrial design services. This is the value used to extrapolate the market size.
- The global industrial design market size is expected to gain market growth from 2020 to 2025, and will be expected to reach $56,910M USD by 2025, from $46,700M USD in 2019. The compound annual growth rate is speculated to be 5.1% between 2020 and 2025.
- Over the five years to 2019, increased consumer spending on cars, furniture, and other good has stimulated increased downstream demand for the industrial designers industry.
- The industrial design market has grown steadily in the last few decades. The annual growth of the industry from 2014 to 2019 has been an estimated 0.7%. This is due to the growing investment in computer-aided design and computer-aided engineering. Increasing environmental awareness among industrial heavyweights and the growing incorporation of automation and intelligent technology into industrial sectors are influencing factors.
- In business and model innovation, innovation consulting specialists see growing demand.
- The companies holding the largest market share in industrial designers in the US in 2019 include Jacobs Engineering Group Inc, Bureau Veritas SA, and IDEO.
- The surgical instruments segment held major market share of 26.6% in 2018 due to the complexity of instruments required in detailed designing for making them suitable for human body contact. Increased US medical spending also boosted industry activity in that segment.
All the data collected on product design and innovation consulting companies were lumped under the category of "industrial designers", with reports mentioning companies such as IDEO, FROG, and Altitude as some companies that own large market shares of those designers. As mentioned in the research, the industrial design industry has been described as including product design, model design and fabrication, and other industrial design services. As described by Max Burton on the Fjord website, industrial design is now experience design, and all designers need to consider the entire experience of a product and service where the relationship between company and customer is extended over time and space. Strategic and conceptual methods involved in industrial design result in holistic delivery, from ideation to prototyping to production. While industrial design is a category of service, there is a significant crossover between it and other services that allow for the possibility of innovation. This allowed us to assume that data applied to the industrial design field could be applied to our question in hand.
Despite scouting the websites of top innovation consulting companies, we were unable to establish a customer number for design and innovation consulting companies, since the customer base was far too large to be calculated into a single value. However, we were able to find the revenue of the US industrial design industry to be $3bn, which we extrapolated to be market size of the product design and innovation consultancies. We made this assumption based on one of the definitions of the market size, which described it as the maximum amount of revenue that can be possibly generated by selling products or services to potential customers. We were able to find a reported number for the global industrial design market size, which is $46,700M USD, or $46bn. We were unable to find statistics regarding the US market share within the industry.