Design Industry

The design industry is a vibrant and multifaceted industry that includes graphic design, product design, interior design, and much more. To start your business in this industry, it is very important to understand the market conditions. In this blog, we will cover about market share data, total addressable market (TAM), initial cost, key market segments, useful tools for accurate market research, etc.

Market Overview

Total Addressable Market (TAM)

The value of the global design industry is approximately $290 billion in 2023, and the projected growth rate of this industry is 4-6%. The growth of this industry is due to the increased demand for innovation-design solutions in various sectors, which include technology, retail, and hospitality.

Key Market Segments

1. Graphic Design: Creating visual content for branding, marketing, and communication.
2. Interior Design: Designing functional and aesthetically pleasing indoor spaces.
3. Product Design: Creating and developing new products for various industries.
4. Digital Design: Focus on web design, UI/UX, and digital experiences.

Market Share of Key Companies

Graphic Design

1. Adobe: Market share: 60%.
2. Canva: Market share: 15%.
3. Fiverr: Market share: 5%.
4. DesignCrowd: Market share: 4%.
5. Visme: Market share: 3%.

Interior Design

1. Gensler: Market share: 10%.
2. HOK: Market share: 7%.
3. Perkins+Will: Market share: 6%.
4. IA Interior Architects: Market share: 5%.
5. CallisonRTKL: Market share: 4%.

Product Design

1. IDEO: Market share: 5%.
2. Frog Design: Market share: 4%.
3. Smart Design: Market share: 3%.
4. Continuum: Market share: 3%.
5. Fuseproject: Market share: 2%.

Digital Design

1. Huge Inc.: Market share: 5%.
2. R/GA: Market share: 4%.
3. AKQA: Market share: 4%.
4. SapientRazorfish: Market share: 3%.
5. Fantasy Interactive: Market share: 2%.

Key Players by Price Range

High-End Market

• IDEO is known for its innovative approach to product design.
• Pentagram is a multidisciplinary design firm with a global presence.
• Frog Design specializes in creating impactful digital experiences.

Mid-Range Market

• Landor focuses on brand transformation and design strategy.
• Huge Inc. is a digital agency that combines technology and design.
• Pearlfisher focuses on brand strategy and packaging design.

Budget Market

1. 99Designs is a platform connecting businesses with freelance designers.
2. Canva is a design tool for creating visual graphics.
3. Upwork is a freelance marketplace offering various design services.

Initial Costs to Start a Business

• Branding and Marketing: $5,000–$20,000
• Software and Tools: $2,000–$10,000
• Office Space and Equipment: $10,000 – $50,000
• Legal and Regulatory Compliance: $1,000 – $5,000
• Operational Costs (salaries, utilities, etc.): $20,000-$100,000.

Newly Started Design Firms (Operating for 3–5 Years)

1. Y Studios focuses on product design and innovation and is known for its creative approach.
2. Hawraf is an experimental design studio specializing in interactive and digital experiences.
3. Unfold is a digital design agency with a strong focus on user experience.
4. Ramotion offers branding and UI/UX design services and is known for its modern aesthetic.
5. Voyage Group specializes in brand strategy and graphic design, catering to startups and small businesses.
6. Paperform offers easy-to-use form-building tools with design customization.
7. InVision provides digital product design and development tools.
8. Figma A collaborative interface design tool that’s rapidly gaining popularity.
9. Sketch focuses on digital design for web and mobile applications.
10. Loom combines design and video communication for effective visual presentations.

Famous Ad Campaigns

1. Apple’s “Think Different” Campaign: This groundbreaking campaign positioned Apple as a leader in innovative design. [Read more]
2. Nike’s “Just Do It” Campaign: An iconic campaign that highlighted the power of effective design in branding. [Read more]

Useful Tools for Market Research

1. Statista: [Statista]
2. Nielsen: [Nielsen]
3. IBISWorld: [IBISWorld]
4. Euromonitor International: [Euromonitor]
5. Design Council: [Design Council]

By understanding these key aspects of the design industry, you can take your business to new heights. For more information and accurate market research, consider using the above resources.

Conclusion

The design industry is providing vivid opportunities to entrepreneurs, but there are many market segments and investment levels to consider. By using market research tools and identifying key players, new entrepreneurs can effectively establish themselves in this competitive market. To be successful in the design industry, entrepreneurs will have to constantly work on their skills.