Increased mobile connectivity has spurred industry demand, particularly for smartphone applications"
Melbourne, Australia (PRWEB) December 02, 2013
The growth in smartphone usage has supported a robust performance in the Web Design Services industry in Australia. Not only this trend led to larger web traffic, but has also forced businesses to have mobile-ready websites. The Web Design Services industry is forecast to grow by an annualised 4.2% in the five years through 2013-14, strengthened by rising internet penetration and wider acceptance of online shopping. The industry is forecast to expand by 2.4% in 2013-14 to reach $413.0 million. According to IBISWorld industry analyst Nick Flores, “Mobile-based applications underpinned demand for industry operators to design and develop online content.” Society's increasing reliance on the internet and web services has also contributed to industry growth.
Mobile internet connections have skyrocketed due to the heightened popularity of smartphones. Smartphones exploded into the mainstream in 2007 with the introduction of the iPhone. Other companies followed to also provide easy-to-use smartphone devices, which has fuelled increased mobile connections. This has spurred industry demand, particularly for smartphone applications and the need for responsive web design. “In addition, the growth in online shopping has altered consumer purchasing behaviour, which has consequently compelled traditional retailers to expand their reach in the online space,” says Flores. The industry exhibits low market share concentration, with no major players controlling a significant share of revenue.
The continuous growth in internet connections, combined with advances in technological applications, represents a growth opportunity for Web Design Services industry players. The business and government sector is aiming to solidify their online presence, which is further boosting demand for web design services. The industry faces the threat of offshore outsourcing for design and development work to low-cost countries like India and Philippines. This is further aggravated by the emergence of freelance platforms like DesignCrowd and Odesk, which effectively connects local businesses to freelance designers all over the world. The growth in cloud applications is also projected to spur growth in outsourcing and remote design work. Profit margins are projected to decline due to intensified price competition, offshore and locally.
For more information, visit IBISWorld’s Web Design Services in Australia industry report page.
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IBISWorld industry Report Key Topics
Operators in this industry provide a variety of web design solutions. The main activities of the industry include web graphic design, web development and programming, search engine optimisation, integration, and other related aspects of code-writing. The industry excludes the development of software applications.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.