The significance of user-centered design in product development is that it prioritizes the needs, preferences, and behaviors of users throughout the design process. By involving users in the development phase, businesses can create products that are more intuitive, usable, and appealing. This approach can lead to higher customer satisfaction and loyalty, as products are tailored to address real user problems. Additionally, user-centered design can reduce development costs and time by minimizing the need for rework and adjustments, ultimately fostering innovation and market success.