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Commercial Embroidery Services in the US - Market Research Report (2016-2031)

Christian Perdomo Christian Perdomo New York, United States Last Updated: February 2026 NAICS OD5325

Revenue

$987.4m

2026

$987.4m

Past 5-Year Growth

Profit

$XX.Xm

Employees

7,751

Businesses

943

Wages

$XXX.Xm

Commercial Embroidery Services in the US industry analysis

The Commercial Embroidery Services industry has seen a significant transformation, driven by technological advancements and evolving consumer preferences. In recent years, the transition to digital embroidery has revolutionized the precision and scalability of designs, setting new benchmarks in quality and efficiency. This technological shift has enabled manufacturers to deliver intricate designs with unparalleled accuracy while simultaneously scaling production to meet mass-market demand. Meanwhile, the expansion of personalization in consumer trends has further propelled the industry forward, reflecting a broader desire for customized products. Apparel brands are capitalizing on this by offering bespoke designs, expanding product lines and deepening customer relationships. Revenue has hiked at a CAGR of 0.1% over the past five years to reach an estimated $987.4 million in 2026, when income is projected to drop by 0.3%.

Trends and Insights

  • Unemployment is driving changes in commercial embroidery services. The rising rates are causing reduced demand from small businesses and events, leading firms to compete on price and shift focus toward recession-resistant segments like essential workwear, school contracts and online orders.
  • Embroidery services gain profitability through reduced synthetic costs. Lower thread expenses climb profit, enabling competitive pricing and discounts on bulk orders, thereby enhancing market reach.
  • Large population centers boost demand. These areas offer operators greater access to customers, facilitating business growth and market presence by leveraging the large number of potential consumers concentrated there.
  • Differentiation is essential. Companies achieve this by leveraging innovative design, strategic pricing and robust digital engagement to attract and retain discerning customers in a highly competitive, crowded market.
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Industry Statistics and Trends

Market size and recent performance (2016-2031)

Industry revenue has grown at a CAGR of 0.1 % over the past five years, to reach an estimated $987.4m in 2026.

Trends and Insights

Rising unemployment reshapes demand and cost pressures for commercial embroidery services

  • The national unemployment rate climbed 8.9% in 2025 and is expected to rise another 4.3% in 2026, signaling a cooling labor market with slower hiring and more cautious business spending. Commercial embroidery services, a roughly billion‑dollar niche tied to promotional apparel and customized textiles, now face softer order volumes from small businesses, events and discretionary consumer purchases.
  • Additional trends and insights available with purchase
Commercial Embroidery Services in the US
Revenue (2016-2031)
IBISWorld Logo Source: IBISWorld

Industry outlook (2026-2031)

Market size is projected to grow over the next five years.

Trends and Insights

Stronger profit will unlock new growth pathways for commercial embroidery providers

  • Corporate profit will climb about 3.3% in 2026, supporting a cautiously positive business environment that encourages steady, yet selective, increases in branding and marketing budgets across sectors. This incremental improvement underpins more frequent refreshes of uniforms, promotional apparel and logoed merchandise, creating a broader demand base for commercial embroidery services that can deliver quality, reliability and creative design support.

Biggest companies in the Commercial Embroidery Services in the US

Company
Market Share (%)
2026
Revenue
2026
Profit
2026
Profit Margin (%)
2026

There are no companies that hold a market share exceeding 5% in the Commercial Embroidery Services in the US industry.

Products & Services Segmentation

Commercial Embroidery Services in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Standard embroidery services, Applique embroidery services and 3D embroidery services. Standard embroidery services is the largest segment of the Commercial Embroidery Services in the US.

Trends and Insights

Standard embroidery services gain profitability and market reach amid lower input costs

  • Standard embroidery services decorate garments and accessories with custom designs, from simple monograms to highly detailed patterns, for individual and business clients. These services enhance perceived product value, yet rising labor, material and overhead costs directly impact pricing structures and, in turn, overall consumer demand.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Commercial embroiderers provide embroidery services to clients. The embroidery process involves using a sewing machine to create predetermined patterns on clothing and other textiles. These patterns can be designed using specialist software. Services are often sold to companies, teams and clubs for shirts, uniforms and other paraphernalia.

What's included in this industry?

Products and services covered in the Commercial Embroidery Services industry in the United States include Standard embroidery services, 3D embroidery services and Applique embroidery services.

Companies

Companies covered in the Commercial Embroidery Services industry in the United States include .

Purchase this report to view all major companies in this industry.

Related Terms

Related terms covered in the Commercial Embroidery Services industry in the United States include generation y, vertical integration, offshoring, embroidery head and outsource.

Industry Code

NAICS 2017

NAICS 314999 - Commercial Embroidery Services in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Unemployment is driving changes in commercial embroidery services. The rising rates are causing reduced demand from small businesses and events, leading firms to compete on p...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2016-2025) and forecast (2026-2031)
  • Employees, including historical (2016-2025) and forecast (2026-2031)
  • Businesses, including historical (2016-2025) and forecast (2026-2031)
  • Profit, including historical (2016-2026)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Embroidery services gain profitability through reduced synthetic costs. Lower thread expenses climb profit, enabling competitive pricing and discounts on bulk orders, thereby...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2026
  • Product innovation level

Charts

  • Products & services segmentation in 2026
  • Major market segmentation in 2026

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Large population centers boost demand. These areas offer operators greater access to customers, facilitating business growth and market presence by leveraging the large numbe...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2026

Tables

  • Number and share of establishments in each state in 2026
  • Number and share of revenue each state accounts for in 2026
  • Number and share of wages each state accounts for in 2026
  • Number and share of employees in each state in 2026

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Differentiation is essential. Companies achieve this by leveraging innovative design, strategic pricing and robust digital engagement to attract and retain discerning custome...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2021-2026
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

There are no companies that hold a market share exceeding 5% in the Commercial Embroidery Services in the US industry.

Analyst insights

No major companies dominate commercial embroidery services. The prevalence of localized operations and customers exacerbates fragmentation and creates a difficult path to sca...

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Commercial embroidery services companies are subject to many different regulations. These laws relate to product safety, labeling and advertising, environmental protection an...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2016-2031) 
  • Assistance historical data and forecast (2016-2031) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Profit remains flat for embroidery shops. Despite sales growth, rising labor and materials costs and increased competition, these factors have prevented significant profit pe...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2019-2024)
  • Industry Tax Structure (2019-2024)
  • Income Statement (2019-2024)
  • Balance Sheet (2019-2024)
  • Liquidity Ratios (2019-2024)
  • Coverage Ratios (2019-2024)
  • Leverage Ratios  (2019-2024)
  • Operating Ratios (2019-2024)
  • Cash Flow & Debt Service Ratios (2016-2031)
  • Revenue per Employee (2016-2031)
  • Revenue per Enterprise (2016-2031)
  • Employees per Establishment (2016-2031)
  • Employees per Enterprise (2016-2031)
  • Average Wage (2016-2031)
  • Wages/Revenue (2016-2031)
  • Establishments per Enterprise (2016-2031)
  • IVA/Revenue (2016-2031)
  • Imports/Demand (2016-2031)
  • Exports/Revenue (2016-2031)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2016-2031)
  • IVA (2016-2031)
  • Establishments (2016-2031)
  • Enterprises (2016-2031)
  • Employment (2016-2031)
  • Exports (2016-2031)
  • Imports (2016-2031)
  • Wages (2016-2031)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Commercial Embroidery Services industry in the United States in 2026?

The market size of the Commercial Embroidery Services industry in the United States is $987.4m in 2026.

How many businesses are there in the Commercial Embroidery Services industry in the United States in 2026?

There are 943 businesses in the Commercial Embroidery Services industry in the United States, which has grown at a CAGR of 0.0 % between 2021 and 2026.

How may import tariffs affect the Commercial Embroidery Services industry in the United States?

The Commercial Embroidery Services industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Commercial Embroidery Services industry in the United States?

The Commercial Embroidery Services industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Commercial Embroidery Services industry in the United States grown or declined over the past 5 years?

The market size of the Commercial Embroidery Services industry in the United States has been growing at a CAGR of 0.1 % between 2021 and 2026.

What is the forecast growth of the Commercial Embroidery Services industry in the United States over the next 5 years?

Over the next five years, the Commercial Embroidery Services industry in the United States is expected to grow.

What does the Commercial Embroidery Services industry in the United States include?

Standard embroidery services and 3D embroidery services are part of the Commercial Embroidery Services industry in the United States.

How competitive is the Commercial Embroidery Services industry in the United States?

The level of competition is high and increasing in the Commercial Embroidery Services industry in the United States.

Methodology

How are IBISWorld reports created?

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Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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