US Web Development Industry
The web development industry encompasses web design, web content development, web server configuration, network security configuration, and e-commerce development. The industry supports the creation, maintenance, and management of websites and web-based applications across businesses and consumers worldwide.
The global website creation market was estimated at USD 54.92 billion in 2017. Within this market, website creation services accounted for USD 46.54 billion, while website creation platforms were valued at USD 8.38 billion. 1
The industry serves businesses, entrepreneurs, content creators, e-commerce operators, and enterprises seeking digital presence and online customer engagement. The market is being shaped by digital transformation initiatives, cloud adoption, AI-assisted development, cybersecurity requirements, and growing demand for web-based business applications.
Key Demand Drivers
1. Growth of Website Creation Services:
Website creation services represented the largest component of the website creation market, accounting for USD 46.54 billion in 2017.1
2. Expansion of Website Creation Platforms
Website creation platforms were valued at USD 8.38 billion in 2017 and continue to support businesses and individuals in building websites without extensive technical expertise.1
3. Growth in Web Content Management
Web content management is a major contributor to the web development industry and was valued at USD 6.9 billion in 2021. The segment is expected to grow at a CAGR of 15.7% through 2026.2
4. Rising Website Consumption
Web development content is primarily consumed through browsing. Of total users, 71% access content through desktops, 24% through mobile devices, and 5% through tablets.
United States Web Development Industry Overview
The United States is one of the largest markets for web design and development services globally, supported by a mature digital economy and strong business adoption of websites and online applications.
Industry Size and Growth
- The U.S. web design and development industry was valued at USD 40.8 billion and was expected to grow by 3.1% in 2021 4
- The industry grew at an average annual rate of 4.4% between 2016 and 2021 4
- Demand is driven by custom web development, WordPress development, content management solutions, and digital transformation initiatives
Business Adoption of Websites
- 64% of businesses already had a website according to a Clutch Small Business survey 4
- 94% of businesses without a website intended to create one by the end of 2019 4
Industry Structure
The industry consists of:
- Individual web developers
- Web development companies
- Website template providers
- Web hosting providers
- Content management service providers
Employment and Business Base
- The United States had approximately 77,094 web design and development companies employing 199,543 people 4
Porter’s Five Forces for the Web Development Industry
Threat of New Entrants – Very High
Entry into the web development industry is relatively easy, as basic knowledge of HTML and modern development tools can be sufficient to begin offering web development services. The industry requires limited capital investment and minimal infrastructure.
Threat of Substitutes – High
Website builders, no-code platforms, and AI-powered website generation tools represent significant substitutes for traditional web development services, particularly among cost-conscious customers.
Bargaining Power of Customers – High
Customers possess strong bargaining power due to the large number of web development agencies, freelancers, and offshore service providers available in the market.
Bargaining Power of Suppliers – Moderate
Skilled developers, UX designers, cybersecurity specialists, and technical architects remain critical resources. Competition for high-quality talent can impact pricing and project delivery.
Existing Competitive Rivalry – Very High
The industry is highly fragmented with intense competition among agencies, freelancers, offshore firms, and platform-based service providers. Pricing, service quality, specialization, and technological expertise are key differentiators.
Sources:
- Wonder Research Report – Size of the Website Creation Market (2017)
- Web Content Management Market
- The State Of Website Builders- Site Builder Report
- Web Design Services in the US - Market Size
