Procurement Market Intelligence Report

Industrial Design Services
Sourcing Guide & Market Intelligence

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Industrial Design Services Global Overview

Definition

Summary

Operators in this market supply industrial design services pertinent to automobiles, hand tools, packaging, furniture and tools, among other items. These services are designed to optimize the appearance, value, appeal, use and functionality of buyers' products. More specifically, providers of industrial design solutions help buyers decide on the materials, build, shape, color, surface finishes and other aspects of their products.

This Report Includes:

  • Automobile Design
  • Hand Tool Design
  • Furniture Design

Not in this Report:

  • Clothing Design
  • Jewelry Design
  • Footwear Design

Global Industrial Design Services Procurement Trends

Discover the top international trends affecting procurement in the global Industrial Design Services market.

Warning Trends

Canada and Mexico tariffs to negatively impact the vehicles and transportation sector

  • On March 4, 2025, the United States imposed a 25.0% tariff on goods imported from Mexico and Canada, which applies in addition to other duties or fees that are in place. President Trump announced a 25.0% tariff on all cars and light-duty trucks imported into the United States from any country in April 2025.
  • As of April 3, 2025, US automakers compliant with the United States-Mexico-Canada Agreement (USMCA) will continue to be exempt from Canada-Mexico tariffs.
  • According to the United States International Trade Commission, Mexico and Canada account for 47.4% of motor vehicle imports to the United States, and 54.1% of motor vehicles bodies and parts. According to Anderson Economic Group (AEG), a Michigan-based economic consultancy, the broad-based 25.0% tariff could raise new car prices by $1,000 to $4,000, and up to $10,000 if manufacturers are unable to mitigate the tariff’s impact.
  • Around half of the vehicles and light trucks exported by Mexico to the United States were manufactured by the largest three Detroit-based automakers (GM, Ford, and Stellantis). Other automakers to be impacted include Honda Motor, which sells 80.0% of its Mexican output in the United States, BMW, where nearly all Mexican output is exported to the United States, and Volkswagen, which exported nearly 350,000 cars to the United States that were manufactured in Mexico.
  • According to Telemetry Insights, many auto parts suppliers will be unable to absorb the tariffs or make adjustments to mitigate the tariff impact (e.g., relocating their facilities or splitting efforts across three countries). With the introduction of 25.0% steel and aluminum tariffs for Mexican and Canadian imports, and the interconnected nature of vehicle/automotive supply chains (components may cross the US-Canada and US-Mexico borders up to eight times before final assembly), tariff-related costs could drive up production costs further.

United States announces additional tariffs on China

  • In February 2025, the United States announced 10.0% tariffs on imports from China. The tariffs took effect on February 4, 2025.
  • The tariff plan applies to all merchandise imported for consumption and applies in addition to other duties and fees that are in place, with limited exceptions.
  • In response, China announced a 15.0% tariff on products such as coal and natural gas, as well as a 10.0% tariff on crude oil, agricultural machinery, pickup trucks, and large cars. The tariff executive orders indicate retaliatory tariffs could lead to further escalation in rates.
  • Providers in this market rely on inputs often sourced from China. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.

United States postpones plans for sweeping tariffs on Canada and Mexico

  • In February 2025, the United States announced 25.0% tariffs on imports from Canada and Mexico.
  • Though initially set to take effect on February 4, 2025, the implementation of tariffs on Canada and Mexico has been postponed 30 days to allow for further negotiation.
  • The tariff plan initially proposed by the US applies to all merchandise imported for consumption and applies in addition to other duties or fees that are in place, with limited exceptions.
  • Providers in this market rely on input costs often sourced from an affected country. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.

Global Industrial Design Services Market - Suppliers by Region

Country/RegionNumber of Suppliers
#1Europe23,925
#2China18,220
#3United States12,950

Explore supplier concentration across the globe

We've uncovered the 11 top regions for global procurement, based on feedback from our most strategic clients. Access vendor counts for each unique region when you subscribe.

  • Canada
  • United States
  • Mexico
  • Latin America
  • South America
  • India
  • China
  • Europe
  • Africa & Middle East
  • Australi & New Zealand
  • Oceania & Southeast Asia

Geography Drilldown - US

Average Cost of Industrial Design Services

United States
2025 Market Pricing
$20.00 to $XXX.XX
per hour

Average Price

Prices in the Industrial Design Services market range from $20.00 to $XXX.XX, depending on Timeframe, Supplier Reputation and Project Complexity. For example, lower prices are associated with Longer project timeline (e.g., 16-24 weeks) ($20.00 to $250 per hour), whereas higher prices are associated with Fast turnaround time (e.g., 4-8 weeks) ($50.00 to $400 per hour).

Need the scoop on international price trends?

Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.

Industrial Design Services Category Price Trends

Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Industrial Design Services market, prices in the US have grown 2.2% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more

United States (2022-2025)

2.2%

Compound Annual Growth Rate
United States (2025-2028)
Compound Annual Growth Rate
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Wondering where prices are heading?

Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.

Cost Analysis - Total Cost of Ownership for Industrial Design Services

Total cost of ownership is Medium in the Industrial Design Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Delays may raise the total cost of ownership unexpectedly.

Negotiated Before

Prototyping

Prototyping and testing the product comprise the majority of hidden costs surrounding industrial design services.

Set Up Fees

Reconfiguration and setup costs are typical when purchasing industrial design services.

Unforeseen

Delays

Project delays will create opportunity costs for buyers.

Buyer Power in Procurement Negotiations

In 2025, buyer power amounts to -2.5 in the United States. Buyer power is most positively impacted by Product Specialization. It is most negatively impacted by Supply Chain Risk. Subscribers can access details on eight other factors that impact buyer power. Learn more

United States
-2.5

Buyer power forecasts: your glimpse into the future

Develop strategies for the upcoming year and identify unforeseen opportunities for buying now

  • Actionable "Buy Now" and "Buy Later" insights
  • Near-real-time updates to current and forecast Buyer Power Scores
  • Methodology and weightings for Buyer Power Score Components

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Supply Chain Risk

The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:

1st

Tier Suppliers

  • Computer Stores
  • Software Publishers
  • Office Supply Stores

2nd

Tier Suppliers

  • Computer Manufacturers
  • Computer Peripheral Manufacturing
  • Office Stationary Wholesalers

Biggest Industrial Design Services Suppliers in the US by Revenue

The largest Industrial Design Services vendors by revenue in the US are Product Creation Studio, Karten Design and Jacobs Engineering Group Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more

SupplierOperational SizeHeadquartersNumber of EmployeesMarket Share (%)Market Share Performance (3yr trend)Total Revenue ($ million)Profit Level (%)Risk Level
Jacobs Engineering Group IncGlobalDALLAS1,001-10,00015-20
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Capgemini SeGlobalParis, FR>10,0015-10
Bureau Veritas S AGlobalParis, FR>10,0015-10
BMW GroupGlobalMunich, DE>10,001< 5
Altair Engineering Inc.GlobalTROY, MI1,001-10,000< 5
IDEOGlobalPalo Alto, CA501-1,000< 5
Product Creation StudioNationalSeattle, WA25-50< 5
Karten DesignNationalMarina del Rey, CA25-50< 5
Ammunition GroupNationalSan Francisco, CA<25< 5

Looking for a list of suppliers by country?

Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.

Profit Analysis

The average profit margin across vendors in the Industrial Design Services market is 13.5% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Purchases. The cost trend for this component is rising, when considering movement between 2024 and 2025. To understand cost forecasts for 2026 and uncover the implications on profit, start your subscription. Learn more

Vendor & Supply Chain Analysis

Large suppliers with diversified operations tend to have the lowest level of financial risk because they do not solely rely on demand for industrial design services to generate revenue. Conversely, smaller design firms face slightly higher risk levels due to smaller and less diversified downstream buyer markets.

Supply chain risk is low in the industrial design market. Vendors do not typically rely on volatile upstream inputs, which protect buyers from price shocks resulting from supply chain disruptions.

Market share concentration is moderate in the market. Buyers will have the opportunity to source from a variety of different vendors, with no single supplier having total control of market prices.

The United States is a net importer of computers, meaning it imports more computers than it exports. This adds risk for buyers as currency exchange rates and trade policies can affect the price of steel products entering the market.

Supplier Information

Jacobs Engineering Group Inc

Jacobs Engineering Group Inc. is a technical, professional, and construction services company. It offers two lines of businesses: the Critical Mission Solutions segment, which focuses on digital transformation and modernization, national security and defense, space exploration, digital asset management, the... Subscribe to learn more

Bureau Veritas S A

Bureau Veritas S A is a public company operating globally in the professional, scientific and technical services sector. The company's offerings include nondestructive testing services, industrial design services, industrial hygiene services, air quality monitoring services, water quality testing services.... Subscribe to learn more

Capgemini Se

Capgemini Se is a public company operating globally in the professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include ai development services, industrial design services, business process outsourcing services,... Subscribe to learn more

Smart Design

Smart Design is a private company operating globally in the professional, scientific and technical services sector. The company's offerings include industrial design services. Founded in 1980, the company is currently headquartered in New York, New York, United States of America with an estimated 375 employees.... Subscribe to learn more

Ammunition Group

Ammunition Group is a private company operating nationally in the professional, scientific and technical services sector. The company's offerings include industrial design services. Founded in 2007, the company is currently headquartered in San Francisco, California, United States of America with an estimated... Subscribe to learn more

Karten Design

Karten Design is a private company operating nationally in the professional, scientific and technical services sector. The company's offerings include industrial design services. Founded in 1984, the company is currently headquartered in Marina del Rey, California, United States of America with an estimated... Subscribe to learn more

Product Creation Studio

Product Creation Studio is a private company operating nationally in the professional, scientific and technical services sector. The company's offerings include industrial design services. Founded in 1999, the company is currently headquartered in Seattle, Western Australia, United States of America with Subscribe to learn more

IDEO

IDEO is a private company operating globally in the professional, scientific and technical services sector. The company's offerings include industrial design services. Founded in 1991, the company is currently headquartered in Palo Alto, California, United States of America with an estimated 750 employees.... Subscribe to learn more

Altair Engineering Inc.

Altair Engineering Inc. is a public company operating globally in the information and professional, scientific and technical services sectors. The company's offerings include machine learning solutions and industrial design services. Founded in 1985, the company is currently headquartered in Troy, Michigan,... Subscribe to learn more

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Procurement Management KPIs for the Industrial Design Services Market

Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Order Value and Customer Retention Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Delivery and other factors.

KPILevel of Importance (1-5)MeasurementsKey Considerations
Average Order Value

Total revenue

Number of orders

The average order value represents the revenue generated from the average order.

The average order value can be used to evaluate a company’s reputation.

Customer Retention Rate

Number of customers at start of period

Number of customers at end of period

The customer retention rate can be used to determine the extent to which a company’s customer base fluctuates over time.

A company with low retention rate may be providing services that are sub-par.

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Questions to Ask During Procurement Negotiations

How can I gain leverage during negotiations?

Qualifications

On average, how many years of experience does your staff have in my field? How does that measure up to the market average?

Tell me about similar projects you have worked on in the past. What challenges did you face and how did you overcome them?

Staff Turnover

Do you provide ongoing training and development for your employees?

What is the average tenure of your employees? Do you experience trouble with turnover? If so, how does that affect service delivery?

Customer Support

If a client is dissatisfied with the design, what steps does it take to address the issue?

How do you evaluate customer satisfaction? Are the findings available to clients?

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Industrial Design Services RFP Guidelines

What should my RFP include?

Organizational Overview

Buyers should give an overview of their organization, including industry and number of employees.

Buyers should explain why they are seeking industrial design services.

Statement Of Need

Buyers should specify the type(s) of industrial design services they require.

Buyers should specify their desired nondisclosure terms.

Project Budget

Buyers should specify the total budget for the service.

Buyers should list miscellaneous design services not provided in the statement of work.

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Our Reports include:

  • Opportunity assessment
  • Market dynamics
  • Recent developments
  • Positive and warning trends
  • Buyer power levers
  • Price environment and market pricing
  • Geographic wage rates
  • Global market updates
  • Total cost of ownership
  • Cost structure benchmarks and analysis
  • Supply chain and vendors
  • Global supplier breakdown
  • Market share concentration
  • Regulation and business requirements
  • Vendor management and KPIs
  • Sourcing strategy guidance