To understand how big the software market was for design tools before Figma and how much market value Figma captured, we need to look at the historical market size for design software and Figma’s current market position.

Historical Market Size for Design Software

Pre-Figma Market Leaders

1. Adobe Creative Suite (Photoshop, Illustrator, Adobe XD, etc.):
   • Adobe has been a dominant player in the design software market for decades.
   • In 2015, Adobe Creative Cloud had about 5 million subscribers, generating billions in revenue annually from its suite of design tools.
2. Sketch:
   • Sketch, launched in 2010, quickly became a favorite among UI/UX designers, especially for its simplicity and focus on screen design.
   • By 2016, Sketch had over 1 million users.
3. InVision:
   • InVision provided a platform for prototyping and collaboration.
   • By 2017, InVision was used by over 2 million designers and had raised significant venture capital, indicating a strong market presence.

Market Estimates

• According to various market research reports, the global graphic design software market size was estimated to be around $3.3 billion in 2016.
• The market was expected to grow at a compound annual growth rate (CAGR) of around 7-8%, driven by increasing demand for digital content, UI/UX design, and collaboration tools.

Figma’s Market Value Capture

Figma’s Growth Trajectory

• Launch and Early Adoption:
  • Figma launched in 2016 and quickly gained traction due to its unique cloud-based collaboration features.
• User Base and Revenue:
  • By 2019, Figma had over 1 million users and was generating significant revenue, with an estimated valuation of around $440 million after a Series C funding round.
• Continued Expansion:
  • Figma continued to grow rapidly, with significant adoption among both individual designers and enterprise teams.
  • By 2021, Figma was valued at $10 billion following a Series E funding round, reflecting its substantial market capture.

Market Penetration and Share

• User Base:
  • Figma’s user base expanded to millions of users worldwide, including major enterprises, design agencies, and freelance designers.
• Revenue:
  • While exact revenue figures are not publicly disclosed, estimates suggest Figma’s annual recurring revenue (ARR) was in the hundreds of millions by 2021.

Competitive Impact

• Figma captured significant market share from incumbents like Adobe and Sketch by offering superior collaborative features and a cloud-based platform.
• It expanded the overall market by making design more accessible and collaborative, thus increasing the total addressable market (TAM).