5 reasons why you should invest in UXaaS to boost your business
User experience, once a differentiator, is now an imperative. The rise of UX as a service ( UXaaS) reflects the industry-wide acceptance that superior user experience is no longer a choice but a requisite for successful products. Businesses have come to realize that the effectiveness of their digital products hinges on their ability to provide users with intuitive, efficient, and delightful interactions, which can ultimately determine whether they lead the market or quickly fall into oblivion.
In essence, the rise of UX as a service is not just a trend but a fundamental shift in how businesses operate, reinforcing the belief that satisfying users is instrumental for sustained growth and prosperity. User Experience as a Service (UXaaS) has experienced a significant surge and in this article, we will explore compelling industry statistics to gain insights into the topic.
An Overview of UX as a Service Market Report
The UXaaS market is thriving within the broader spectrum of user experience and digital transformation domains. The sector encompasses a diverse range of UI/UX design services dedicated to improving the usability, accessibility, and overall quality of digital platforms and applications. These services include user research, usability testing, UI/UX design, audits, and A/B testing.
To underscore how businesses across different industry verticals are integrating UXaaS to gain competitive advantage and meet the ever evolving user demands, let's look at some statistics.
- The Global User Experience Service Market is on the brink of substantial growth, with expectations to increase from USD 1,937.3 million in 2021 to a remarkable USD 48,931.58 million by 2031.
- This is an impressive Compound Annual Growth Rate(CAGR) of 37.8% for the forecast period spanning from 2021 to 2031.
- Breakdown of the Global User Experience Service Market Share by application areas is as follows:
- Professional design holds the largest share
- Business comes next
- Followed by education
- And other sectors.
What Drives this Boom in the UX Design Industry?
Businesses are increasingly prioritizing user-centric products to boost customer satisfaction and retention. The digital products UI is the first business touchpoint for customers and they get a positive experience interacting with digital products, become brand advocates, and spread positive word-of-mouth. To enhance customer acquisition and retention, businesses are investing in UI UX designs developed by skillful and experienced design companies.
Key factors that compel organizations to increase budget allocation for UX design
The world is becoming increasingly digitized
The world is becoming increasingly digitized, with almost all businesses transitioning to online mode. This shift drives up the demand for user-friendly and intuitive websites and applications. Consequently, there is a surging demand for UI/UX design companies that can craft well-designed digital products, making them a valuable asset in today's market.
Another driving force behind the industry's growth is the widespread use of mobile devices. As smartphones and tablets have become ubiquitous in our daily lives, businesses must ensure they have mobile-optimized websites and apps that deliver exceptional user experiences.
Importance of strategic UX investments
More and more businesses are recognizing the significance of UX design. A notable study conducted by Forrester Research revealed that companies making investments in UX design can realize a remarkable return of $100 for every $1 they put in. Such a return on investment is undeniably impressive.
In an article on Forbes, the founder and CEO of Intechnic emphatically stated that the business case for User Experience (UX) is a matter of survival. He argues that companies that don't embrace UX will lag behind their competitors.
Furthermore, a study conducted by the Design Management Institute analyzed 16 publicly traded stocks from design-centric companies. They used a set of criteria called the Design Value Index, which includes factors like "design operating at scale across the entire enterprise" and "increased investment in design to support its growing influence."
The findings revealed that organizations meeting the Design Value Index showed an impressive "211% return over the S&P 500, the American stock market index. This marks the third consecutive year with results exceeding 200% over the S&P," according to the report.
UX design is no longer just aesthetics it is about creating an optimal user experience
A great user experience is the result of a blend of creativity, attention to detail, and a deeper understanding of user needs and preferences. Business giants like Apple, Airbnb, and Amazon are prime examples of how the best practices in UX design can fuel customer satisfaction and drive business growth.
Apple, for instance, centers its approach on creating intuitive, user-friendly products. By prioritizing simplicity and ease of use, Apple has cultivated a loyal customer base willing to pay a premium for their products.
In a similar vein, Airbnb has made substantial investments in UI/UX design to ensure its platform is highly intuitive, facilitating easy bookings and property listings for users. Amazon, too, capitalizes on UX design to fuel its growth. Their website prioritizes usability, enabling users to easily find and purchase products. Personalized recommendations and a streamlined checkout process contribute to their success as one of the world's largest retailers, generating billions in annual revenue.
Not just visual and usability aspects, UX also focuses on enriching content experiences. A key example is the use of DAM (Digital Asset Management) metadata by organizations to improve the content experience. By creating a single source of truth for all assets across an organization, DAM metadata improves the user experience within an organization.
UXaaS allows businesses to access a dedicated team of user experience experts without the overhead costs of hiring and maintaining an in-house UX team. This can significantly reduce expenses while ensuring access to top-tier UX professionals who can enhance the user experience of your products or services.
Scalability and flexibility of UX design services
UX needs can vary over time, and businesses may require more or fewer UX resources based on project demands. UXaaS offers the flexibility to scale resources up or down as needed, ensuring that businesses can adapt to changing requirements without long-term commitments.
The bottom line is that businesses are significantly enhancing the user experience for their customers and users, recognizing the evolving role of UX design in today’s interconnected digital world.
The Dawn of Next-Gen UX Design Agencies
The UX as a Service Market report has received wholehearted approval from design leaders. One key takeaway is that the fusion of creativity and technology can significantly boost business profitability. This makes companies fearlessly experiment with cutting-edge technologies, to stride into a new era for enhancing user experience within the digital sphere.
- The User Experience Service Market is expected to grow significantly by 2031, indicating a rising demand for user experience services.
- The high Compound Annual Growth Rate (CAGR) of 37.8% suggests rapid market expansion.
- Professional design, business, and education sectors are leading in adopting user experience services.
- The presence of "other sectors" highlights the market's diversity and the potential for UI UX design services to extend to various industries.
- This growth signifies businesses' increasing focus on providing excellent user experiences to stay competitive.
- The market expansion offers significant opportunities for user experience service providers.
- It reflects a shift toward a user-centric approach in different sectors, where the user's needs and expectations take center stage.