As smartphone usage has increased, many companies are requiring mobile-ready websites
Los Angeles, CA (PRWEB) August 02, 2013
IBISWorld estimates that revenue for the Web Design Services industry has increased at an annualized rate of 2.7% to $20.1 billion in the five years to 2013, including growth of 4.5% in 2013. “Industry revenue fell 2.5% in 2009 as clients reduced spending and price competition prevailed in response to the recession,” IBISWorld industry analyst Kevin Culbert says. The industry, however, has benefited from several trends throughout the past five years, causing industry growth to rebound faster than most industries after the recession.
During the five years to 2013, an increasing reliance on the internet and web services has contributed to the industry's growth. “Ultimately, this reliance has been the result of a shift in media consumption habits and the falling price of broadband internet prices, which have both caused more consumers to use the internet,” Culbert says. In the five years to 2013, IBISWorld estimates that the number of broadband connections will increase at an annualized rate of 17.5% to 263.3 million. Furthermore, the rapid proliferation of smartphones and tablets has caused businesses to turn to companies in the Web Design Services industry to develop websites optimized for mobile platforms.
The Web Design Services industry has a low level of market share concentration. While large multiservice agencies operate in the industry, revenue is also spread among thousands of small firms and nonemployers. No single web design firm accounts for more than 5.0% of total industry revenue. Nonemployers make up the majority of industry enterprises.
In the five years to 2018, IBISWorld estimates that industry revenue will increase. During this period, industry operators will continue to benefit from increased internet connectivity, especially across mobile platforms. In spite of this revenue growth, low barriers to entry will cause more players to enter the industry, hampering profit growth. In the five years to 2018, IBISWorld estimates that the number of firms operating in the industry will increase in the five years to 2018. Furthermore, the industry will face increased competition from operators overseas in countries with low wage costs, such as India. For more information, visit IBISWorld’s Web Design Services in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry provide an assortment of web design activities including web graphic design; user experience design; interface design; search engine optimization; and related aspects of code-writing. Web design services incorporate a variety of coding languages. While the industry’s services include those dedicated to mobile web design, it does not include companies that manage the online retail operations of clients.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.