Industrial Design Services

Industrial Design Services Market by Type (Model Design & Fabrication, Product Design, User Interface & Interaction Design), Sourcing (Insourcing, Outsourcing), Product Type, Vertical - Global Forecast 2024-2030

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[182 Pages Report] The Industrial Design Services Market size was estimated at USD 2.98 billion in 2023 and expected to reach USD 3.15 billion in 2024, at a CAGR 6.14% to reach USD 4.53 billion by 2030.

Industrial Design Services Market
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Industrial design services encompass a vast and specialized field of work devoted to designing and developing various products meant for mass production. It is a human-centered discipline that merges aspects of art, science, and business to create functional, sustainable, and aesthetically appealing products. Inclination towards reducing carbon emission footprint globally and growing demand to bridge varied professional disciplines and business interests are driving the market growth. In addition, advances in medical technology and the need for interconnected devices fuel market development. Concerns associated with space constraints to manufacture and store the products and issues related to product quality and equipment usage could be improved in market growth. Integration of cloud infrastructure and the Internet of Things in industries into industrial design services has brought about new opportunities in the market. Moreover, incorporating green and sustainable practices in design methodologies is expected to create significant growth opportunities in the market.

Regional Insights

The industrial design services sector in the Americas, particularly, has exhibited remarkable growth in the past decade. The north American market has continued to lead with innovation, higher digital technology adoption, and robust research and development investment. Meanwhile, burgeoning economies such as Brazil and Argentina in South America have shown increasing demand for industrial design services, with a significant rise in industrial infrastructure activities. Europe houses some of the oldest industrial design service industries globally, with countries such as Germany, France, and the United Kingdom at its helm. Their contribution has been pivotal, enriching the industry with a catalog of ground-breaking designs backed by astute technological progress. In comparison, the Middle East and Africa are characterized by an amalgam of emerging markets, exhibiting enormous potential for industrial design innovation despite challenges related to infrastructure and investment. The Asia-Pacific region, boisterously led by China, India, and Japan, displays a galloping pace in advancing its industrial design service industry. An impressive blend of traditional arts with modern technological prowess makes the APAC a distinct player in the global scenario. The increasing number of startups, coupled with favorable government policies and growing investments in technology and infrastructure, points to a prosperous future for this region's industrial design services market.

Market Dynamics

The market dynamics represent an ever-changing landscape of the Industrial Design Services Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

  • Market Drivers
    • Inclination towards the reducing carbon emission footprint globally
    • Significant demand to bridge varied professional disciplines and business interests
    • Advancements in medical technology and need for interconnected devices
  • Market Restraints
    • Concern associated with space constraint to manufacture and store the products
  • Market Opportunities
    • Integration of cloud infrastructure and Internet of Things in industries into industrial design services
    • Incorporation of green and sustainable practices in design methodologies
  • Market Challenges
    • Issues related to product quality and equipment use
Market Segmentation Analysis
  • Type: Growing potential of user interface & interaction design in enhancing the digital experience

    Model design and fabrication act as a bedrock for the industrial design process by enabling the visualization of design aspects before actual product development, aiding in early problem detection and cost savings. Product design is pivotal in combining functionality with aesthetics, adding value to the end product. This discipline involves the creation of unique, innovative products that fulfill a user's needs or solve existing issues. User interface and interaction design help create intuitive and user-friendly digital interfaces, which is necessary in a digitizing world. The industrial design services domain is buzzing with technological advances, innovative partnerships, and growing customer expectations, marking an increasingly vibrant future for the industry.

  • Sourcing: Rising demand for outsourcing of industrial design services to take advantage of external expertise and potential cost savings

    Insourcing is the decision of a company to maintain its processes, including design and manufacturing, in-house. This model offers a strategic preference when proprietary content, skills, or technology are needed or an existing infrastructure adequately fulfills the company's design service needs. Outsourcing entails delegating a company's processes or services to third-party firms specializing in that particular field. This model is preferred when the external service provider delivers a higher level of proficiency or a more cost-effective method compared to internal capabilities. The choice between insourcing and outsourcing largely depends on a company's requirements. While insourcing ensures more control but demands substantial investments, outsourcing capitalizes on external expertise and cost savings but creates a dependency on third parties.

  • Product Type: Significant adoption of digital industrial design services for faster processes, cost-effective iterations, and environmental sustainability

    Digital Design's burgeoning growth in the Industrial Design sphere speaks volumes about its indispensability in the modern era. It encompasses various facets, including CAD design, 3D modeling, and animation. Advancements in digital technologies have allowed for an innovative design process capable of enhancing efficiency, reducing time-to-market, and mitigating cost implications. On the other hand, physical design deals with tangible elements such as mock-ups, prototypes, or the final product. This classic design form involves the physical creation and manipulation of materials to develop industrial goods. Comparatively, digital design promises swiffer processes, cost-effective iterations, and eco-friendliness, while physical design offers tactility, realism, and enhanced user experience.

  • Vertical: Increasing use of industrial design services for smarter and more connected commuting solutions in the automotive and transportation sector

    The automotive and transportation sector in industrial design services is critical in enhancing vehicle and transport systems' functionality and aesthetic appeal. In electronic devices, industrial design services refine interfaces and usability, encompassing a broad spectrum of products from smartphones to smart home systems. Industrial design services in machinery and equipment emphasize robustness, user-friendliness, and efficiency, overseeing the design of everything from construction equipment to industrial machinery. In summary, the future of industrial design, deeply rooted in customer preferences, boasts burgeoning collaborations and innovations. Therefore, it is safe to surmise that these sectors are essential contributors to the dynamic industrial design landscape, driving technological progress and enhancing customer experiences.

Market Disruption Analysis

The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Industrial Design Services Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Industrial Design Services Market.

Porter’s Five Forces Analysis

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Industrial Design Services Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

Value Chain & Critical Path Analysis

The value chain of the Industrial Design Services Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.

Pricing Analysis

The pricing analysis comprehensively evaluates how a product or service is priced within the Industrial Design Services Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Industrial Design Services Market.

Technology Analysis

The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Industrial Design Services Market.

Patent Analysis

The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Industrial Design Services Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.

Trade Analysis

The trade analysis of the Industrial Design Services Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.

Regulatory Framework Analysis

The regulatory framework analysis for the Industrial Design Services Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Industrial Design Services Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Industrial Design Services Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments
  • A New Partnership for Digital Design & Product Development eXcellence

    Jama Software and Engineering Group’s Industries eXcellence division joined forces in a strategic consulting partnership. This collaboration aims to optimize industrial product design and delivery. With Jama Connect, a powerful requirements management platform, teams can define, design, and develop products in a collaborative environment. The platform also offers Live Traceability, which enables faster time-to-market and improved product quality. Additionally, Engineering Industries eXcellence brings a wealth of experience in engineering services and a global network of digital transformation experts. Through this partnership, they strive to deliver exceptional industrial design services, leveraging their expertise and cutting-edge technologies. [Published On: 2023-09-21]

  • Kearney Acquires German Industrial Design Firm TEAMS

    Kearney acquired TEAMS, a German industrial design firm that operates in four locations worldwide. TEAMS' design studios are expected to become an integral part of Kearney's Product Excellence and Renewal Lab, which provides strategic guidance to organizations seeking to revitalize their product offerings. This move aligns with Kearney's commitment to helping companies adapt to changing customer expectations and achieve various objectives, such as increased profitability and sustainability. By combining their expertise, Kearney and TEAMS aim to support businesses in reinventing their products to meet evolving market demands and stay ahead of the competition. [Published On: 2023-07-11]

  • With the Acquisition of the Business of Optimal Design, Deloitte Further Expands Software and Product Engineering Services Portfolio

    Deloitte acquired a significant portion of Optimal Design Co.'s assets, a provider of product engineering services in the industrial design sector. This strategic collaboration between Deloitte and Optimal Design's talented team aims to unlock innovation and drive digital transformation for their clients. The acquisition of Optimal Design is part of Deloitte's ongoing efforts to expand its presence in the product engineering industry through strategic acquisitions. By incorporating Optimal Design's capabilities, Deloitte can now offer comprehensive services, ranging from product ideation to prototype development. [Published On: 2023-05-22]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Industrial Design Services Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Industrial Design Services Market, highlighting leading vendors and their innovative profiles. These include 4Design, A.T. Kearney, Accenture PLC, Advanta Design Group, Ammunition Group, Artop Group (HK) Limited, Aruliden by Material Holdings, LLC., Beyonddesign Inc., BlueFocus Intelligent Communications Group Co. Ltd., BonaudiDesign, BUSSE Design+Engineering GmbH, Cambridge Design Partnership Ltd, Capgemini SE, Celestica, Inc., Concepto Studios Inc., Deloitte Touche Tohmatsu Limited, Delve, DesignThink, Inc, Designworks by A BMW Group, Fahrenheit Design, LLC, Flextronics International, LTD., Gaia&Gino, GK Design International Inc., Hatch Duo, LLC, HLB, Jabil, Inc., Karten Design, Kritzer Design Studio by Always Good Co. LLC, Metaphase Design Group, Inc. by Apter Pharma, Mixer Design Group, Momentum Product Design by HTEC Group, PDD Group Ltd, Pensa, Pininfarina S.p.A. by Tech Mahindra, Pivot International, Planet Innovation Pty Ltd, Plexus Corp., RKS Design Inc., RSW GbR, Seymour Powell Limited, Smart Design LLC, Tactile Inc., Ticket Design Pvt Ltd, Whipsaw Inc., Ximedica, Ziba Design Inc., and ‍IDEO LP.

Industrial Design Services Market - Global Forecast 2024-2030
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Market Segmentation & Coverage

This research report categorizes the Industrial Design Services Market to forecast the revenues and analyze trends in each of the following sub-markets:

  • Type
    • Model Design & Fabrication
    • Product Design
    • User Interface & Interaction Design
  • Sourcing
    • Insourcing
    • Outsourcing
  • Product Type
    • Digital
    • Physical
  • Vertical
    • Automotive & Transportation
    • Electronic Devices
    • Machinery & Equipment

  • Region
    • Americas
      • Argentina
      • Brazil
      • Canada
      • Mexico
      • United States
        • California
        • Florida
        • Illinois
        • New York
        • Ohio
        • Pennsylvania
        • Texas
    • Asia-Pacific
      • Australia
      • China
      • India
      • Indonesia
      • Japan
      • Malaysia
      • Philippines
      • Singapore
      • South Korea
      • Taiwan
      • Thailand
      • Vietnam
    • Europe, Middle East & Africa
      • Denmark
      • Egypt
      • Finland
      • France
      • Germany
      • Israel
      • Italy
      • Netherlands
      • Nigeria
      • Norway
      • Poland
      • Qatar
      • Russia
      • Saudi Arabia
      • South Africa
      • Spain
      • Sweden
      • Switzerland
      • Turkey
      • United Arab Emirates
      • United Kingdom

This research report offers invaluable insights into various crucial aspects of the Industrial Design Services Market:

  1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
  2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
  3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
  4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
  5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

Additionally, the report addresses key questions to assist stakeholders in making informed decisions:

  1. What is the current market size and projected growth?
  2. Which products, segments, applications, and regions offer promising investment opportunities?
  3. What are the prevailing technology trends and regulatory frameworks?
  4. What is the market share and positioning of the leading vendors?
  5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?

Table of Contents
  1. Preface
  2. Research Methodology
  3. Executive Summary
  4. Market Overview
  5. Market Insights
  6. Industrial Design Services Market, by Type
  7. Industrial Design Services Market, by Sourcing
  8. Industrial Design Services Market, by Product Type
  9. Industrial Design Services Market, by Vertical
  10. Americas Industrial Design Services Market
  11. Asia-Pacific Industrial Design Services Market
  12. Europe, Middle East & Africa Industrial Design Services Market
  13. Competitive Landscape
  14. Competitive Portfolio
  15. List of Figures [Total: 24]
  16. List of Tables [Total: 372]
  17. List of Companies Mentioned [Total: 47]
How the Integration of Cloud Infrastructure and IoT Are Revolutionizing Industrial Design Services
December 8, 2023
BLOG
How the Integration of Cloud Infrastructure and IoT Are Revolutionizing Industrial Design Services
The world is rapidly incorporating technology into every aspect of our lives, including the industrial sector. The rise of cloud infrastructure and IoT presents a significant opportunity for industrial design services to enhance and streamline their services. The integration of these technologies is causing the industry to experience a vast transformation, facilitating businesses to operate more efficiently, make data-driven decisions, and improve their services to their customers. This blog discusses how cloud infrastructure and IoT revolutionize the industrial design services sector.

Increased Efficiency and Reduced Costs:

Integrating cloud infrastructure and IoT in industries provides industrial designers the potential to develop improved products and services through better data management. IoT devices collect data, store it in the cloud through cloud infrastructure, and centralize it to help businesses identify problems promptly across their streamlines. Industries can analyze the collected data to optimize machines, decrease downtimes, and reduce maintenance costs. The data analytics capabilities presented by IoT devices are vital for industrial designers as they enable them to create products that align with the customer's needs.

Smart Manufacturing:

Smart devices, enabled by IoT, change the pace and efficiency of the manufacturing process by connecting the machines and equipment used in manufacturing. This connection significantly reduces processing time by automating processes and reducing human intervention. The automation process minimizes the risk of human error and, as such, provides much-needed accuracy in the production process. Incorporating cloud infrastructure in smart manufacturing allows industries to collect data, predict downtimes, and prevent equipment failures.

High-Performance Products and Services:

With numerous industrial units creating various products, competition is high. To remain competitive, developing high-performance services and products to meet the customer's ever-changing needs is imperative. Integrating cloud infrastructure with IoT enhances the speed with which information is accessed and analyzed. It enables industrial designers to quickly create superior products and services that remain ahead of the competition.

Remote Working:

Initially, designers had to be present in the design laboratory to create and analyze product designs. However, with cloud infrastructure, their designs, data, and simulations are quickly shared through the cloud, facilitating collaboration. IoT devices help gather critical data on these designs during the testing phase, enabling designer teams to work remotely saving time and resources.

Improved after-sale Services:

Integrating cloud infrastructure and IoT devices presents an efficient approach for industrial designers to monitor and track the performance of their products accurately. The data from IoT devices enables designers to detect, monitor, and apply solutions along the product usage cycle. This continuous monitoring and maintenance of the product improve after-sale services and the overall customer experience.

Industrial design services are evolving due to technological advancements, and the integration of cloud infrastructure and IoT is among the most significant changes the industry has seen. The benefits of these technologies, such as increased efficiency, smart manufacturing, high-performance products and services, remote working, and improved after-sale services, are transforming the sector. Industrial designers should embrace these advancements to streamline their services, improve performance, and increase customer satisfaction.

Frequently Asked Questions
  1. How big is the Industrial Design Services Market?
    Ans. The Global Industrial Design Services Market size was estimated at USD 2.98 billion in 2023 and expected to reach USD 3.15 billion in 2024.
  2. What is the Industrial Design Services Market growth?
    Ans. The Global Industrial Design Services Market to grow USD 4.53 billion by 2030, at a CAGR of 6.14%
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