Price-based competition has risen due to a glut of freelancers in the industry.
New York, NY (PRWEB) June 16, 2014
Over the past five years, the hiring of graphic designers has become integral to generating brand awareness. For example, graphic designers have developed visual displays, from product packaging to advertisements, to influence consumers' purchasing behaviour. “In particular, many businesses have demanded graphic designers that specialize in design for interactive media, such as animation that integrates well with websites and mobile phones,” according to IBISWorld Industry Analyst Sarah Turk. Furthermore, alternative revenue streams, such as product placement, which includes designing product packaging for placement in movies or television programs, and invisible advertising, whereby actors promote a product in public places, have stimulated industry revenue.
The industry landscape has been particularly shaped by freelance graphic designers, which have comprised an estimated 32.0% of total graphic designers since 2006 (latest data available). Due to the high prevalence of self-employed graphic designers, price-based competition for the industry has intensified over the past five years due to freelancers being able to offer low-cost pricing on a project-by-project basis. “Nevertheless, high-cost graphic design software and equipment, coupled with many businesses not demanding sufficient industry services to justify an in-house graphic design team, has provided a boon to freelancers, thereby benefiting the industry,” says Turk. For example, many advertising agencies, among other businesses, have continued to outsource their graphic design services, bolstering industry revenue. In the five years to 2014, industry revenue is expected to grow at an annualized rate of 0.3% to $1.4 billion, including 0.4% revenue growth in 2014, which can be attributed to more businesses expanding their digital media-related graphic design services, such as logos geared to assist clients with increasing their sales volumes.
For example, many graphic designers have included writing, designing, creating computer graphics and providing product layouts in their product portfolio. In the five years to 2019, industry revenue is forecast to grow, driven by many graphic designers specializing in niche markets. In particular, graphic designers that offer interactive digital expertise will develop a strong customer base.
For more information, visit IBISWorld’s Graphic Designers in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry plans, designs and manages the production of visual communication to convey specific messages, clarify complex information or project visual identities. Services include design for printed materials, sales displays, packaging and corporate identification.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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