International Collaborations And Economic Growth Are Driving The Design Services Market
The global design services market is expected to grow from nearly $173 billion in 2019 to more than $249 billion in 2022 at a compound annual growth rate (CAGR) of 13%. Many design services companies are expected to enter into new markets by collaborating with foreign designers to offer a wider range of services, thus eliminating boundaries on the geographic scope of design services. Many companies are collaborating to have access to globalized and advanced design services. For instance, Callison RTKL, a Baltimore-based design firm, collaborated with HBS realtors, an Indian real estate company, to design residential buildings in India. The collaboration of international design companies is expected to drive the market for design services in the forecast period to 2022.
The design services market is also benefiting from the increasing collaborations between design companies and large technology companies. With the increasing number of foreign brands emerging in the design services market, consumers and businesses are investing heavily in design services, thus supporting the market’s potential. Many businesses are collaborating with design companies to increase their presence, as well as enhance customer experiences. For instance, in 2017, Samsung collaborated with the Pentagram, one of the largest design companies in the world, to redesign the overall experience of its devices. Pentagram along with Samsung’s UX Innovation Team developed a unique iconographic system that redesigned the overall interface of Samsung’s devices.
The global design services market growth will also be aided by stable economic growth forecast for many developed and developing countries. The International Monetary Fund (IMF) predicts that the global real Gross Domestic Product (GDP) growth will be 3.7% over 2019 and 2020, and 3.6% from 2021 to 2023. Recovering commodity prices, after a significant decline in the historic period are further expected to aid the design services market growth. Developed economies are also expected to register stable growth during the forecast period. Additionally, emerging markets are expected to continue to grow slightly faster than the developed markets in the forecast period. For instance, India’s GDP is expected to grow at 7.3%, whereas China is forecast to register GDP growth of 6.2% in 2019. Stable economic growth is expected to increase investments in end-use markets, thus driving the design services market during the forecast period.
Emerging markets such as India, China, and Brazil are attracting investments into their construction, textile and apparel industries, thus increasing the potential of the design services market. This is mainly due to continued economic growth, positive demographic trends, and government initiatives, as well as policies inviting foreign investment, urbanization, and increasing income levels. In 2017, the foreign direct investment (FDI) in India’s textile industry was around $618.9 million, compared to $230.13 million in 2016. Such investments in the textile and apparel industry increase the demand for fashion designers, which promotes the need for design services.