Web Design Services in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: November 2023
NAICS OD4586Revenue
$42.2bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
825k
Businesses
190k
Wages
$XX.Xbn
Web Design Services in the US industry analysis
Web design service providers have performed well during the current period. As the percentage of business conducted online expands, demand for website design has grown, boosting revenue for web design service providers. Strong economic conditions before the pandemic pushed corporate profit, so companies spent more of their income on redesigning their websites, benefiting the industry. Web design service providers thrived during COVID-19, as the shift to remote work raised investment in websites. Revenue was somewhat muted in 2020 as declining business sentiment and corporate profit reduced demand from businesses. High inflation currently threatens the industry, as rising prices for web design services have been encouraging buyers to use substitutes, such as in-house website design. Overall, revenue for web design service providers is anticipated to expand at a CAGR of 2.6% during the current period, reaching $42.2 billion in 2023, including a 4.0% jump in that year.
Trends and Insights
- Web design service providers performed well during the current period. Since the internet is still becoming more prevalent, demand for web design services has risen despite recent economic challenges.
- The internet has become more popular, so demand for WordPress has risen because it's inexpensive and easy to use. Low corporate profit and high inflation have moved consumers away from applications such as Shopify, Squarespace and custom platform web development.
- The West region is home to large technology companies such as Google and Apple. Technology corporations need many websites to advertise and organize their services, so demand for web design services is high in the region.
- Creating a web design service company is easy, as it only requires software, a few developers and an office space. These low barriers to entry enable many small companies to enter the industry, reducing concentration and boosting internal competition.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 2.6 % over the past five years, to reach an estimated $42.2bn in 2023.
Trends and Insights
The growth of the Internet has spurred demand for the industry's services
- Since the Internet only became widespread two decades ago, its use is still expanding at a rapid pace, which is demonstrated by high growth in the percentage of business conducted online and the number of broadband connections.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Market saturation will remain relatively low
- Most business and recreational activities will become connected to the Internet in the near future, so consumers and corporations previously not working online will need to adapt to the digital world. As a result, households, businesses, government agencies and not-for-profit organizations will make more websites, boosting demand for the industry's services and promoting a continuous rise in revenue growth during the outlook period.
Biggest companies in the Web Design Services in the US
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 | Profit ($short_0)
2023 | Profit Margin (%)
2023 |
|---|
There are no companies that hold a large enough market share in the Web Design Services in the US industry for IBISWorld to include in this product.
Products & Services Segmentation
Web Design Services in the US
Products & Services
Industry revenue is measured across several distinct product and services lines, including Custom platform web development, WordPress web development and Other content platform web development. Custom platform web development is the largest segment of the Web Design Services in the US.
Trends and Insights
Muted corporate profit shifts spending away from custom platform web development
- Custom platform web development involves developing all aspects of a website without a content management platform (e.g., WordPress).
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Data Processing & Hosting Services in the US
- Graphic Designers in the US
- Internet Service Providers in the US
- Internet Publishing and Broadcasting in the US
International industries
- IT Consulting in Canada
- Computer System Design Services in Australia
- Computer System Design Services in New Zealand
- Computer Consultants in the UK
- Computer Consultants in Ireland
Table of Contents
About this industry
Industry definition
Companies in this industry provide various 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.
What's included in this industry?
Custom platform web developmentWordPress web developmentDeveloping websites for e-commerceCreating a website through a serviceCompanies
Purchase this report to view all major companies in this industry.
Related Terms
FREELANCERJAVASCRIPTSEARCH ENGINE OPTIMIZATION (SEO)NATIVE APPLICATIONWEB APPLICATIONMOBILE RESPONSIVEHTML5Industry Code
NAICS 54151 - Web Design Services in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Web design service providers performed well during the current period. Since the internet is still becoming more prevalent, demand for web design services has risen despite r...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The internet has become more popular, so demand for WordPress has risen because it's inexpensive and easy to use. Low corporate profit and high inflation have moved consumers...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The West region is home to large technology companies such as Google and Apple. Technology corporations need many websites to advertise and organize their services, so demand...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Creating a web design service company is easy, as it only requires software, a few developers and an office space. These low barriers to entry enable many small companies to ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Since market share concentration is low in this industry, there aren't any large players. Low barriers to entry, weak regulation and the prevalence of nonemployers make it ve...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Web design service providers don't face that much regulation. They must adhere to copyright and privacy laws that apply to their clients' work, which are enforced on domestic...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit has crept downward during the current period because COVID-19 reduced spending on web design services. Increased interest in Internet services has also raised the numb...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Web Design Services in the US industry in United States in 2024?
The market size of the Web Design Services in the US industry in United States is $42.2bn in 2024.
How many businesses are there in the Web Design Services in the US industry in 2023?
There are 190k businesses in the Web Design Services in the US industry in United States, which has grown at a CAGR of 4.0 % between 2018 and 2023.
Has the Web Design Services in the US industry in United States grown or declined over the past 5 years?
The market size of the Web Design Services in the US industry in United States has been growing at a CAGR of 2.6 % between 2018 and 2023.
What is the forecast growth of the Web Design Services in the US industry in United States over the next 5 years?
Over the next five years, the Web Design Services in the US industry in United States is expected to grow.
What does the Web Design Services in the US in United States include?
Custom platform web development and WordPress web development are part of the Web Design Services in the US industry.
How competitive is the Web Design Services in the US industry in United States?
The level of competition is high and increasing in the Web Design Services in the US industry in United States.
