21+ Product Development Statistics To Know in 2024

You’ve got a new product idea. It’s brilliant. Revolutionary, even. Now you just need to turn that idea into an actual product people will buy. Easier said than done, right? Product development is complicated, with countless statistics and trends to consider. But don’t let the numbers intimidate you. We’ve dug into the latest product development research so you don’t have to.

In this article, we’ll share the most important product development statistics that can help guide your product roadmaps, resourcing, and budgeting. We’ll look at trends in development costs, timelines, and new product success rates across major industries. These up-to-date metrics will give you benchmarks to measure against as you plan out your product pipeline for the next year and beyond.

Table of contents

• Key Product Development Statistics
• Statistics About Challenges to Product Development
• Industry-Specific Product Development Statistics
• Resource Allocation in Product Development
• Technology Adoption in Product Development Statistics
• Product Development Workflow Statistics

Key Product Development Statistics

Product development is a critical component of business success, with significant implications for both costs and outcomes. The product statistics presented here offer valuable benchmarks for companies seeking to optimize their product development efforts.

1. On average, product design and development agencies typically charge $10,000-$49,999 per project. (Clutch)

2. The best-performing companies in terms of product innovation have an average success rate of 76%, while other companies have a 51% average success rate. (PDMA)

3. Fifty-one percent of companies with over 10,000 employees say business goals drive their product strategy, compared to 36% of companies with under 20 employees that rely more on customer feedback. (ProductPlan)

4. Eighty-one percent of new products introduced to the market are premium products, priced above the category average. (Elsevier)

Statistics About Challenges to Product Development

Developing new products is no easy feat. These statistics underscore the complexities inherent in product development, from high failure rates to the critical need for thorough user research and testing. Understanding these product management challenges is crucial for businesses seeking to improve their new product development (NPD) success rates and drive sustainable innovation.

5. NPD failure rates vary by industry, ranging from 35%-49%. (Journal of Marketing and Consumer Behaviour in Emerging Markets)

6. NPD failure rates for startups can be as high as 90% due to the unique challenges they face, such as limited resources, high risk, and uncertainty. (ECIE)

7. Thirty-three percent of products have a lifecycle of less than one year. (Journal of Political Economy)

8. Sixty-six percent of new products fail within two years of launch. (Columbia Business School Publishing)

Industry-Specific Product Development Statistics

Product development is a multifaceted field that varies significantly across industries. These industry-focused metrics highlight the varying complexities, priorities, and constraints that shape product development strategies across diverse market landscapes.

9. Nearly two-thirds of all global research and development spending is concentrated in just three industries: software and internet, health, and hardware producers. (Statista)

10. In the consumer products industry, 86% of profitable growth companies prioritize introducing new products compared to 46% of all other companies. (Deloitte)

11. It takes an average of three to seven years to get a new medical device approved by the FDA. (International Journal of Health Planning and Management)

12. In the automotive industry, time-to-market can take up to seven years. (ACIS)

Resource Allocation in Product Development

Companies invest a lot of time, money, and effort in building a new product. Understanding how other businesses allocate resources during product development can help ensure your own product’s success.

13. Forty-five percent of companies outsource their product development activities. (Deloitte)

14. During the COVID-19 pandemic, top-performing firms increased their NPD investments by over 20%, while the rest decreased by less than 4%. (Journal of Product Innovation Management)

15. Forty-two percent of the world’s research and development (R&D) spend comes from companies based in the United States. (European Commission)

Research and Development Spending by Region

Technology Adoption in Product Development Statistics

As technology continues to advance, companies are adopting new tools to streamline product development. Those who invest in the latest tools and skills gain a competitive advantage through faster innovation, higher-quality products, and improved customer experiences.

16. Machine learning algorithms can sift through market data to uncover latent consumer needs, identifying up to 50% more market opportunities than traditional methods. (IJMED)

17. Forty-one percent of industrial companies use data analytics and AI in product development. (PwC)

18. Digital twin technologies reduce total development times by 20%-50% and decrease the number of prototypes needed. (McKinsey)

19. By 2025, digital product development is expected to increase efficiency by 19%, reduce time-to-market by 17%, and reduce production costs by 13%. (PwC)

Product Development Workflow Statistics

Effective NPD requires a well-structured and efficient workflow, as evidenced by the following facts about product development. These workflow statistics highlight key friction points, team dynamics, and performance benchmarks that shape the efficiency of product development projects.

20. More than half of large product teams (50+ people) cite maintaining consistency across roadmaps and processes as their top challenge. (ProductPlan)

21. Nearly half (48%) of physical product development teams are cross-functional. (PDMA)

22. The development cycle times for top-performing firms are consistently 20%-25% faster than other companies. (PDMA)

Take a Data-First Approach to Product Development

As these statistics show, product development is complex, resource-intensive, and risky. However, organizations that adopt best practices, optimize resource utilization, and leverage the right technologies dramatically improve their odds.

At StudioRed, we understand the unique demands of product development. Our team of seasoned industrial designers and engineers is equipped to help you overcome workflow challenges, accelerate your design process, and bring your innovative ideas to life. Get in touch to learn how StudioRed can drive your next breakthrough product.