UX Services Market Size & Share, By Service Type (UX Research, UX Design, UX Audit, UX Training, and UX Strategy and Consulting), By Enterprise Type (Large Enterprises and SMEs), and Regional Forecast, 2023-2030

The global UX services market size was valued at USD 2.59 billion in 2022. The market is projected to grow from USD 3.50 billion in 2023 to USD 32.95 billion by 2030, exhibiting a CAGR of 37.8% during the forecast period.

User experience (UX) includes all phases of the end-user's interface with the company, its services and products. It encompasses all actions performed by an end-user concerning the product. This includes integration into their overall workflow, steps before and after product use.

The study considered companies offering User Experience (UX) services such as UX research, UX design, UX audit, UX training, and UX strategy and consulting. Market growth is attributed to improved quality of content available, upgraded connectivity, and superior device capabilities. Prioritizing the creation of user interfaces, especially for users with disabilities, is crucial.  To ensure the inclusivity of user experience, it will be necessary to include features such as sense controllers, screen readers, keyboard navigation, and high contrast modes. For instance,

In September 2023, Sony launched new features in PS5 with upgraded accessibility, audio, and social features to enhance the user experience. Its engineering and design teams have worked together to develop a new form factor, providing more choices and flexibility to address the evolving customers’ needs.

Thus, the adoption of a product-led growth model and greater focus on accessibility are expected to create lucrative opportunities for the key vendors operating in this market.

LATEST TRENDS

Rising Technological Advancements and Digitalization to Set New Trends in the UX Services Market

The digital experience has started to highly integrate with emerging technologies such as augmented Reality (AR), virtual reality (VR), chatbots, and voice user interfaces. These technologies offer immersive experiences, fostering enhanced product interaction and engagement. In these environments, major players are exploring new ways to create immersive and user-centric design services, from AR-enhanced shopping experiences to VR-driven gaming interfaces.

Voice-enabled assistants such as Amazon Alexa and Google Assistant, are also being integrated with user experience services. The voice-enabled assistants are used to provide customers with personalized recommendations, answer queries, and automate routine tasks, frequently used by sales representatives to access customer data and update records while on the go.

According to Zendesk in 2022, it is estimated that 80% of the customers will be influenced in their future purchase decision by a better digital experience. Therefore, the increasing trend of digitalization and technological advancements in enhanced user experience services is a key factor accelerating the UX services market growth.

DRIVING FACTORS

Proliferation of Digital Products and Services to Accelerate the Market Growth

The adoption of enhanced digital capabilities ensures users leverage services, apps, and other digital tools to improve efficiencies, reduce costs, enhance customer experience, and scale organizational growth in the digital transformation era.

The increased number of digital products and tools has had a significant impact on user experience and consumer behavior. According to Forbes in 2022, 7 out of 10 Americans are active on social media. Moreover, studies showed that more than 50% of consumers rely on social networks reviews before purchasing a product or service. As a response, industry players are strategically investing in user experience services to gain a better understanding of their customers' feedback, which will contribute to improving sales channels and accelerating significant growth.

In addition, digital adoption platforms are being deployed by several organizations to assist their staff in the efficient management of adoption initiatives. This adoption makes it possible to monitor a variety of activities, such as user experience research, organizational change management, and the development of interface designs, in any part of the process of adopting digital products from an initial meeting until the final product launch. For instance,

• In August 2022, WalkMe Ltd announced a partnership with Deloitte Canada to invest in technology adoption solutions for Canadian enterprises. This collaboration aimed to develop digital transformation strategies that focus on the effective, efficient, and sustained adoption of digital technologies.

As a result of these factors, this market has experienced tremendous growth, with more industries exploring the possibilities of enhanced UX due to the proliferation of digital products and services.

RESTRAINING FACTORS

Concerns Related to Data Privacy to Hinder the Growth of the Market

Various end-users are using UX services in several countries but their usage raises concerns about a design development gap and privacy, with some regions strictly controlling them. The 2021 data breach report by Ponemon Institute and IBM Corporation stated that the cost of data breaches reached to USD 4.2 million in 2021, which increased by 10% from the average cost of USD 3.8 million in 2019.

Consequently, with greater emphasis on personal privacy of individuals, these restrictions are likely to become more stringent, hindering the development of the entire user experience services industry. According to the IBM report in 2021, approximately 44% of data breaches exposed personal customer information, including names, email addresses, and passwords.

SEGMENTATION

By Service Type Analysis

Growing Emphasis on Intuitive Experiences for Higher User Satisfaction to Bolster the Product Demand

Based on service type, the market is divided into UX research, UX design, UX audit, UX training, and UX strategy and consulting.

UX design segment held the largest market share in 2022, focusing on creating interfaces and experiences that are intuitive, easy to use, and enjoyable. This leads to a higher customer satisfaction, fostering positive perceptions of services.

UX training segment is expected to grow at a highest CAGR during the forecast period. As organizations increasingly recognize the vital role of UX in creating successful and user-friendly products, there is a growing demand for skilled professionals. UX training is essential to cultivate expertise in designing intuitive and satisfying user experiences.

By Enterprise Type Analysis

Complexity of Operations and Extensive User Base to Drive Large Enterprises Segment Growth

Based on enterprise type, the market is divided into large enterprises and SMEs.

Large enterprises accounted for the largest UX services market share in 2022 as these enterprises typically have more complex operations, involving a multitude of digital touchpoints and varied user interactions. Moreover, catering to a large and diverse audience requires sophisticated UX strategies to address various needs and preferences.

SMEs are projected to display the highest CAGR during the forecast period. SMEs are recognizing the crucial role of UX in gaining a competitive edge. Investing in user experience services provides a competitive edge by delivering well-designed and user-friendly products or services, attracting and retaining customers. In addition, UX services offer cost-effective solutions for SMEs to improve their digital interfaces.

REGIONAL INSIGHTS

Based on the region, the market is studied across North America, South America, Europe, Asia Pacific, and Middle East & Africa.

North America region leads the UX services market share driven by the rising adoption of digital transformation initiatives and the presence of tech-savvy consumer base in the U.S. and Canada. Enterprises across various sectors in the U.S. are actively engaged in digital transformation efforts, and user experience services play a critical role in these initiatives, ensuring that digital products and services meet the evolving needs of users. Stricter regulations regarding user data protection and privacy have prompted companies to invest in user experience services to ensure compliance in the region, particularly in sectors dealing with sensitive user information. Moreover, consumers in North America have high expectations for digital experiences. To stay competitive, companies invest in user experience services to meet and exceed these expectations, fostering customer loyalty.

Asia Pacific market is expected to grow with the highest CAGR during the forecast period owing to rapid industrialization, increasing adoption of smart devices, and a growing automotive sector. Market players in the region are focusing on expanding their geographical presence by offering advanced and user-friendly UX services to businesses across developing nations. In Asia Pacific, multiple SMEs and startup businesses are adopting user experience services to offer a seamless and optimized user experience, which leads to higher conversion rates. Users are more likely to engage in terms of sales, sign-ups, or other desired actions, when the digital experience is smooth and user-friendly.

Europe is expected to hold a prominent share in the global market. The growth is owing to increasing adoption of cloud-based services, surge in data generation in telecom, healthcare, e-commerce & retail sector, and increasing government spending on adopting advanced digital technologies to benefit their business. For instance, According to European organizations, around 70% of the organizations in Europe are migrating their workloads to the cloud. This is primarily attributed to optimizing cost due to cloud usage, and around 50% of organizations have deployed a cloud-first strategy to increase business efficiency. This trend will create diverse market opportunities for key players to expand their UX services offerings across the U.K., Germany, France, Spain, Italy, and other countries.

The market in Middle East & Africa is in the emerging phase owing to limited number of startups and domestic market players. Some governments in the MEA region are emphasizing digitization and innovation. This push aligns with the adoption of user experience services, especially in sectors such as e-government services and Fintech. In addition, Fintech companies prioritize UX services to design user-friendly and secure digital financial platforms for the diverse user base in the region.

The South America market is in evolving phase, owing to rising investment done from governments and key players in sectors such as e-commerce & retail, IT & telecommunication, healthcare, education, and others. Key players in the regional market are focusing on expanding their geographical presence across Caribbean countries, offering enhanced user experience services enabled with innovative technologies. Moreover, certain South American countries nurture a thriving start-up culture, emphasizing innovation and technology. Start-ups often prioritize UX services to create competitive and user friendly digital products.

KEY INDUSTRY PLAYERS

Collaborations & Partnerships among Key Players to Propel the Market Growth

Key players operating in the market are entering into strategic partnerships and acquiring businesses. They adopt these strategies to support their product portfolio and expand their scale of operations. Major global corporations are forming partnerships and alliances with other players to streamline and grow their business operations. For instance,

• September 2023: McKinsey partnered with Salesforce to develop generative AI for marketing, sales, commerce, and service. This collaborative effort involves a team of solution architects, UX designers, data scientists, cloud engineers, and organization culture specialists working alongside the company teams.

List of Key Companies Profiled:

• Accenture (Ireland)


• PwC (U.K)


• Ipsos (France)


• UX Studio (Hungary)


• Neilsen Norman Group (U.S.)


• Appnovation (U.S.)


• Answer Lab (U.S.)


• Bold Insight Inc. (U.S.)


• IDEO (U.S.)


• McKinsey & Company (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• September 2023: PwC declared a three-year partnership with Amazon Web Services (AWS) to fast-track and improve operational efficiency, foster innovation, and transform the way business is done. Together, PwC and AWS offered a combination of cloud infrastructure and consulting, including product design, UX/UI, and PMO activities.


• May 2023: Bold Insight Inc. launched Check UX Consumer Duty service to aid financial services and fintech companies in complying with the Financial Conduct Authority’s (FCA) new Consumer Duty rules. The new UX service minimized robust action from the FCA and helped companies in identify simple changes to be made in digital products and services.


• January 2023: ReSight Global (parent company of Bold Insights Inc.) acquired PeepalDesign, a UX firm in India. The acquisition benefited ReSight Global with access to 220 UX experts and offices in Shanghai, Tokyo, Chicago, Basel, London, Hamburg, Bangalore, Munich, and Pune.


• September 2022: AnswerLab stated it had secured a strategic investment from Shamrock Capital. The investment would drive the company’s expansion and service offerings for enterprises looking to reduce costs, improve engagement, and increase conversion on their digital products.


• June 2022: Ipsos launched the Ipsos Experience Lab in downtown Chicago. It is a UX facility built to meet research needs ranging from interviews and focus groups to simulations and device tests. The Ipsos UX team consists of design thinkers, researchers, developers, and artists.

REPORT COVERAGE

The market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation