Almost all developments in industry are prototyped before they are tried out for real. Any new product, whether industrial or commercial, is also prototyped, and the model is then extensively tested before it is launched. Companies spend millions each year on industrial prototypes, working from a very basic design into the fully-finished product, with many stages of prototypes in between.

The main purpose of industrial prototyping is to take the product from drawings and into the real world. Most prototypes will be designed first in paper, and then built in 3D images using computer aided drafting tools.

After this, the next stage is the industrial prototype. Specifics taken from the CAD image will be used in the manufacture of the prototype, and the design will be turned into a physical image. This allows designers to spot flaws or weaknesses which might not be apparent in images.

Another reason for the development of industrial prototypes is to allow the designer to trademark the invention, complete with images of the invention. Until a full-scale model is made and final revisions completed, any previous patent application will be inaccurate. A prototype allows the designer to know that they have completed a fully-working design which can be patented. The industrial prototype is therefore one stage in registering the design with a patent or trademark office.

Industrial prototyping is also important for presentation purposes. Most industrial inventions need financial backing, either from within the company or from outside speculators. Investors often want to see a physical example of the invention, preferably in full working order. Industrial prototyping allows them to handle and examine the product in its final design. Most companies want at least one prototype to show investors how useful the product is, and to be able to demonstrate on a physical object exactly how their invention will be used.