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TAMs (total addressable market) for graphic design software.
The use of graphic design software impacts the everyday lives of virtually everyone in the world. The uses for graphic design software include creating logos, web graphics, digital fine art, producing advertisements, product packaging, and editing and sharing digital photos, among others. Adobe Creative Cloud has been the most popular and successful graphic design software used globally. While Adobe Creative Cloud does have some competition from other software companies, none of them are as yet large enough to present a real challenge to Adobe's graphic design software dominance. There are four graphic design software categories: photo-editing, illustration, page layout, and web design.
We've used the number of graphic designers and the number of graphic design businesses globally along with monthly and annual plans for "single app" and "all apps" packages from Adobe to calculate a range of total addressable market sizes. We've used Adobe as the benchmark for the market because it is the "gold standard" in the market and is likely to be used more than any other software in the market. The TAM of graphic design software for individuals ranges between $136.6 million and $273.3 million. Similarly, the TAM of graphic design software for businesses ranges between $139.1 million and $324.7 million. However, the real-world market most likely consists of both individuals and businesses using graphic design software; therefore, the likely range in which the TAM for the real-world market lies would be between $136.6 million and $324.7 million.
Triangulation
The total global market size and other relevant financial data for recent years are available only through paywalls. Statista can provide this data but a membership must be purchased. Market size data is also available in paid reports which can be purchased through Reuters, IBISWorld, EquityInsider, MarketersMedia, and PRNewswire.
As an alternative, we've used the number of graphic designers and the number of graphic design businesses globally along with monthly and annual plans for "single app" and "all apps" packages from Adobe to calculate a range of total addressable market sizes. We've used Adobe as a benchmark for the market as it is the "gold standard" in the market and is likely to be used more than any other software in the market.
According to IBISWorld, there are currently 386,609 graphic design businesses globally and 569,396 people employed in those businesses. The cost of a single Adobe Creative Cloud program is $19.99 per month. For the purposes of this calculation, if we assume that all of these businesses require a graphic design software to run their business, and that all are using the top graphic design tool (Adobe), then the total addressable market size may be calculated as follows:
Monthly revenue = 569,396 * 19.99 = $11,382,226.
Total addressable market size (annual) = 11382226 * 12 = $136,586,712 or $136.6 million.
Similar calculations may be performed for the case where graphic designers are using annual subscription. The annual subscription costs $479.88. Therefore, the total addressable market size using annual subscription costs will amount to $273,241,752 or $273.2 million.
These calculations were performed using monthly and annual costs for individual purchases. Similar calculations for business plans which can cost $69.99 and $29.99 for 'single app' and 'all apps' packages respectively. Using these numbers and a similar calculation, the total addressable market size for 386,609 businesses would be between $139,132,847 (or $139.1 million) and $324,705,167 (or $324.7 million).
Please note that these estimations are based on the number of graphic designers, which does not take into account the people who subscribe to or buy the software for personal use such as a hobby or freelance work.
Adobe Creative Cloud
With an estimated number of subscribers equaling more than 10 million users, Adobe Creative Cloud is the go-to graphic design software suite of products. Seeking Alpha calls Adobe, "The gold standard for multimedia/creativity software." The company experienced record growth in the third quarter of 2017 which demonstrates that the popularity of its software is showing no sign of slowing down. Design Bombs describes Adobe as, "The long-established ... de facto leader when it comes to design tools and software." The Creative Cloud software is available through subscription only. Subscriptions can be purchased for a single software program or for the entire Adobe Creative Cloud suite of programs through the Adobe website.
Reinforcing the dominance of Adobe Creative Cloud software is the Branford Hall Career Institute's list of "5 Programs that Every Graphic Designer Should Know". The first four programs on the list are Adobe
Creative Cloud software programs. Those four software programs are InDesign, PhotoShop, Illustrator, and Dreamweaver. The only non-Adobe product to make the list is PowerPoint.
Adobe Creative Cloud Competitors
Simply because Adobe is the standard-bearer of graphic design whose products are seen by many as being synonymous with both graphics editing and design as well as with vector graphics does not mean there are no other software programs out there that are viable alternatives to Adobe Creative Cloud. Design Bombs has compiled a list of 11 competing software programs that range from beginner-focused to professional level and from free to expensive. Free alternatives to Adobe Creative Cloud software includes Gimp, InkScape, and Krita. Inexpensive alternative software includes Acorn ($29.99), Affinity Designer ($49.99), and Sketch ($99). The more expensive alternatives include CorelDraw and Corel Photo-Paint. CorelDraw costs $699 and includes Corel Photo-Paint in its software suite.
According to the Softonic Editorial Team, the following graphic design software programs are best for beginners: Canva, Pixlr, InkScape, PicMonkey, PictoChart, and Adobe Illustrator.
Capterra and Vectorgraphit list some advanced graphic design software, which include Adobe Creative Cloud, InkScape, FatPaint, Vectr, GIMP, Canva, Affinity Designer, and QuarkXPress.
Free Graphic Design Software
Another factor that directly impacts the TAM of graphic design software is the prevalence of free graphic design software programs such as Skencil, GIMP, Pixlr, Blender, and Canva. These free programs detract from the market size but increase the TAM. Many of the free programs are geared specifically towards beginners and may lead to the purchase of more advanced software programs. An account of available software for beginners and professionals is given below.
Conclusion
Graphic design software are versatile and in demand. While the exact market size of graphic design software is available for purchase through Statista, we've triangulated the TAM to be between $136.6 million and $324.7 million globally.