Competition is expected to remain intense as technological innovations further expose the industry to international industrial design firms.
Melbourne, Australia (PRWEB) December 10, 2014
Operators in the Industrial Design Services industry in Australia primarily provide clients with designs for new products that they are interested in manufacturing. According to IBISWorld industry analyst Ryan Kerin, “the industry has changed somewhat over the past five years, as the major markets in the Manufacturing division have shrunk or stagnated in response to the broader economic trends of a high Australian dollar and falling competitiveness with foreign manufacturers.”
As the factors that drive industry demand have performed poorly, design firms have become more competitive when trying to win contracts and clients. “Demand has only remained healthy in the mining and information and computer science segments, but competition in these markets is significantly more intense as many of the players in these industries have well-resourced research and development departments of their own,” says Kerin. Consequently, IBISWorld expects industry revenue to decline at an annualised 5.2% over the five years through 2014-15. In 2014-15, revenue is forecast to increase by 2.9% to $381.6 million. The industry displays low levels of market share concentration.
Over the next five years, competition is expected to remain intense as technological innovations further expose the Industrial Design Services industry to international industrial design firms and aspiring inventors who have a 3D printer. Local manufacturing is expected to perform better than over the past five years, which should help the industry to grow. Challenges will come in the form of the closure of the major vehicle manufacturers in 2017-18. This is expected to reduce demand for industry services, but government support for affected industries should help the industry return to growth quickly. The expectations of industrial design firms are also expected to increase as clients desire products that incorporate a thorough understanding of the economy and market they are being manufactured for. Therefore the industry is expected to undergo some consolidation, as firms that are unable to adapt are acquired or exit the industry.
For more information, visit IBISWorld’s Industrial Design Services industry in Australia report page.
This industry includes companies that primarily develop designs and specification for mass-produced products. This includes deciding the materials, construction, mechanism, shape, colour and surface finishes of products to improve their market appeal, production, use and maintenance.
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