LaFontaine Web Consulting

Web Design Market Sector



$11 billion industry

Growth Rate: -1.4 percent (as of 2022)

Note: Growth or loss is first determined by demand for web designers. Then, key factors from a company’s perspective (who the web designer works for) include web design expertise within its employees, budget to contract a web designer, and coming to terms with the designer on a timeline. Finally, from the web designer’s or firm’s perspective, the amount of contractual work and money (commission) earned determines growth or loss.

Key Economic Drivers

  • Percent of businesses online versus in-person – As online business continues to grow, the demand for web services will increase.
  • Corporate profit – higher corporate profit will result in companies investing in website upgrades and redesigns.
  • Number of mobile connections and users – businesses are more heavily exercising the idea of making mobile-friendly websites for stakeholders to interact regardless of location and device.

    • Industry Outlook

  • IBISWorld projects that revenue for the Web Design Services industry will fall at an annual rate of 0.4 percent between 2022 and 2027. For 2022, the industry revenue is $11 billion; by 2027, the revenue for this industry will be around $10.8 billion.
  • Between 2022 and 2027, more ubiquitous internet connectivity will boost demand for web design and development services. However, with more skilled workers in information technology and digital marketing fields, there may be less demand for services because of the skilled web developers within the company.
  • In the next five years, IBISWorld forecasts that the number of web design-specific companies will fall at an annual rate of 2.3 percent (again, due to more people coming in to work with web design and development knowledge). As noted by IBISWorld, “End users have increasingly turned to alternatives to web design services, such as social media strategists of do-it-yourself web-building services.”

    • Web Design in the Digital Marketing Industry

    Web design and development is a key player in the digital marketing industry. Digital marketing consists of web design and development, Search Engine Optimization (SEO), doing competitive analysis to figure out a brand’s strengths and weaknesses, and analyzing Key Performance Indicators (KPIs) that drive a business. KPIs may include website conversion rate (percent of viewers filling out a form or purchasing an item); cost per transaction (number of transactions divided by cost of web design and other services); and profit gained or lost. As previously mentioned, the web design industry is forecasting a revenue loss over the next five years.

    Key Economic Drivers

  • Businesses, farms, and nonprofit organizations are the most popular users of web design services. As noted by IBISWorld, businesses and farms are expected to generate 70 percent of revenue alone in 2022.
  • Government agencies account for the second-largest revenue amount in web design of all industries, ranging from federal to local governments. This sector alone generates around 26 percent of revenue within the web design industry.
  • Household consumers and individuals, accounting for just 1.4 percent of revenue within the web design industry, are the third-largest group.

    • Current Performance

    While businesses, government agencies, and many other sectors utilize web design services, more website-building platforms are emerging. Common examples include Wix.com and SquareSpace.

    Globalization

    Globalization, the process of organizations developing international interactions and influence, is at a low level within the web design industry. While there is an abundance of communication to encourage businesses to outsource web design services, the work is mostly done locally. Even the largest of businesses and agencies are contracting domestic web design companies over international ones.

    Trends Driven by Enhancements in Web Design

  • Websites will become mobile-friendly, compatible with computers, tablets, and smartphones. Whether the website is done by a web design company or completed internally, the experience will be more interactive across all devices.
  • Employees may be educated on web design, eliminating the need to hire web design companies. For example, internal employees or clients will have the expertise to design and maintain their own websites without the need of web designers.
  • oFreelancers, or web designers who can work from anywhere, have more freedom when working for a company. Therefore, when they incur extra costs (overhead costs) or cannot come to terms with a company, they have the freedom to back off on working for the company.

    • What can be done to meet demand?

  • Educate those in information technology-related fields about web design and development. Not only will these individuals be more well-rounded and have more job opportunities after education, but there will also be more opportunities for freelancers and web designers directly within a company.
  • Companies should devote “learning days” to all workers, employees or contractors, to explore soft skills or recognize shortcomings within the company. Web design and development is a great example of this; having these “learning days” may result in more skilled web designers.

    • Marketing Uses for Web Design

  • Increase website interactivity through advertising and promoting products
  • Increase sales; opportunities turn into conversions (customer interactions or transactions)

    • Sources

    1. Beladiya, K. (2020, August 30). Why web design is so important in digital marketing. The One Technologies - Software Company. Retrieved May 1, 2022, from https://theonetechnologies.com/blog/post/why-web-design-is-so-important-in-digital-marketing

    2. Egan, S. (2022, February). Web Design Services. IBISWorld. Retrieved May 1, 2022, from https://my-ibisworld-com.ezproxy.lib.uwstout.edu/us/en/industry-specialized/od4586/about

    3. SEO Tools - Search Engine Optimization Tools. (2018, August 15). Web design and marketing: Why your website is an integral part of your marketing campaign. Web Design and Marketing: Why Your Website is an Integral Part of Your Marketing Campaign. Retrieved May 1, 2022, from https://www.webconfs.com/2131/web-design-and-marketing-why-your-website-is-an-integral-part-of-your-marketing-campaign/

    4. Vaughn, M. (2022, April 26). 22 inspiring web design trends for 2022: Webflow blog. Webflow. Retrieved May 1, 2022, from https://webflow.com/blog/web-design-trends-2022