A growing number of potential clients are internally developing and maintaining their own websites
New York, NY (PRWEB) March 21, 2015
The Web Design Services industry is expected to grow 4.9% per year on average to total $24.4 billion over the five years to 2015. Due to the proliferation of broadband and mobile internet connections, company websites have become an increasingly important opportunity to reach customers for small and large businesses alike. However, platforms that allow people without coding experience to create websites have stifled demand for industry services. Revenue gains are consequently anticipated to slow during 2015, with 2.8% growth projected during the year.
According to IBISWorld Industry Analyst Britanny Carter, “Growing reliance on the internet has bolstered industry demand over the past five years.” Consumers are going digital and shifting their media consumption and purchasing decisions to the web. While the falling price of broadband internet has facilitated this trend over the past decade, mobile internet connection growth has soared over the past five years. On-the-go consumers are using their mobile web browsers to find local businesses, encouraging companies to expand their online presence and hire web designers to develop mobile-friendly websites.
Although demand is on the rise, many developers in the Software Publishing industry (IBISWorld report 51121) are creating platforms that allow people with little to no coding experience to develop websites. “As a result, a growing number of potential clients are internally developing and maintaining their own websites,” says Carter. According to the National Small Business Association's 2013 Small Business Technology survey (latest data available), 40.0% of small business owners managed their own tech support that year, up from 25.0% in 2010. Many large companies are also opting to develop native applications for mobile devices and tablets instead of web-optimized sites. Native applications boast an array of features, such as push notifications, that allow businesses to better connect with customers. These conditions have suppressed industry growth over the past five years.
In the five years to 2020, industry operators will continue to benefit from increased internet connectivity, particularly across mobile platforms. Online website development platforms, however, are anticipated to limit growth. Moreover, low barriers to entry will spur more players to enter the industry, hampering profit.
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 the Web Design Services 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 build native applications or manage a client's online retail operations.
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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