Prototyping in product design is significant as it allows teams to visualize and test their ideas before full-scale production. This process fosters collaboration among stakeholders, enabling early identification of issues and adjustments based on feedback. Prototypes can range from wired to interactive models, catering to different stages of design validation. Iterative prototyping encourages creativity and experimentation, ensuring the final product aligns with user needs and enhances usability. Ultimately, prototyping reduces development risk and costs while improving overall product quality.