An iterative design environment performs an iterative design process of a product by implementing usage feedback of the product when utilized under real-world conditions. Sensors are installed on the physical product and collect data about the behavior of the product under real-world conditions. The sensor data comprise usage feedback implemented to inform and produce a design problem statement and one or more design solutions. The sensor data is received by a problem statement engine to produce a problem statement based, at least in part, on the sensor data. A design engine then produces one or more design solutions for the problem statement and one of the design solutions is fabricated to produce a new physical product. Sensors are then installed onto the new physical product and the iterative design process may be performed again. The iterative design process may be performed multiple times until a satisfactory physical product is achieved.