This thesis explores the development of industrial design and its role in contemporary society. The paper also explores the role of industrial design in fostering innovation and competitiveness. With the help of industrial design, through the various stages of product development, differences in relation to the competition are highlighted in order to differentiate the product from other similar products. Industrial design affects the final performance and functionality of the product. Today, in product design, a very important factor is the feasibility of the product and its final price. In addition to the fact that the appearance of the product is a design priority, it must also follow the technical characteristics that give certain conditions to the design (example: Aerodynamics of a car body). When designing, it is also necessary to take care to simplify the process as much as possible for future mass production and to reduce the costs of creating the complete project. Industrial design is a field that deals with the creation of functional and aesthetically attractive products. Through the analysis of the historical development of industrial design, the paper presents the historical development of industrial design from its beginnings to the present day. Furthermore, the influence of technological progress on the development of industrial design is considered. With increasingly advanced technology, designers have access to new tools and materials that enable the creation of innovative products. The growing awareness of sustainability and the need for environmentally friendly products also affects design decisions. At the end, trends in industrial design and examples of the use of industrial design in Croatian companies are presented. In the end, a conclusion is reached about the importance of industrial design for the success of the product on the market and for achieving the competitiveness of the company itself in the modern business environment.