The digital signage market is expected to grow at a compound annual growth rate of 11.67% over the forecast period to reach a market size of US$11.372 billion in 2026 from US$5.250 billion in 2019.
Digital signage can be referred to as electronic signage. Signage is the design, or a group of signs and symbols, used for marketing. Digital signage uses technologies such as LCD, LED, and projection of display content, including digital images, video, streaming media, & information and is found in public spaces, transportation systems, museums, stadiums, retail stores, hotels, and restaurants, etc. to provide wayfinding, exhibitions, marketing, and outdoor advertising. The technology is increasingly being used to deliver updated information quickly and easily to the public, minimize paperwork, make advertising and marketing content more attractive through animations, and improve the user experience. Many digital signage vendors offer customization options for their products, making the product more lucrative for their end-users. Digital signage depends majorly on hardware components to ensure the delivery of high-quality content. These displays have replaced the traditional small and micro-display screens with large wall-sized LED and LCD displays, used across various industries. They are designed for applications that require the vendors to engage their customers/audiences with their wider viewing angle and to extract maximum effectiveness from the marketing messages. It is no longer just a simple screen displaying time-orchestrated content. We are living in an age when industries, creators, and service providers can choose at will from a diversity of hardware options to serve their goals. Additionally, leading-edge software solutions, like Intuiface, have even come up with products that empower even the non-technical teams to adopt modern technologies with minimal effort and experience. Here’s a thumbnail summary of some of the most favored technologies. With digitized display technology, information is provided in a digitized format that includes motion and pictures to promote a business more effectively than the traditional modes of reaching out to customers. Moreover, the integration of biometric technology with modern digitized signs has developed products, such as track heat paths and gaze tracking. Gaze tracking technology helps in locating the area, which is crowded with a greater number of consumers, thereby helping the companies to track consumer behavior for effective marketing. Thus, the growing use of the aforementioned technology is expected to strengthen the product demand in the coming years.
The digital signage market is segmented on the basis of solutions, industry verticals, and geography.
Growing demand for digital signage solutions across different industry verticals is expected to bolster the digital signage market growth in the upcoming years. Retailers can create an enriching shopping environment by implementing a market to entice information-driven consumers to pause, look, and purchase products and services. With the help of digital signage, retailers can project images and videos to showcase products and capture viewer interest, as well as they, can arrange displays and compose content to create an artistic and dynamic atmosphere. Owing to increasing digitization, consumers increasingly depend on online content to find information, get deals, discover new ideas, and become inspired before making a purchase.
According to the Cisco IBSG study, over 40 percent of shoppers say that digital displays, such as video walls, can change what they buy. By using digital signage to provide relevant information to an audience near the point of purchase, retailers have generated higher brand awareness and sales uplift. The hospitality industry started recognizing the importance of digital communication to ensure guest satisfaction and reinforce its brand’s differentiating factors. Digital signage for the hospitality industry creates an integrated and dynamic system, linking the operations and marketing aspects of the hotel to create an efficient system that benefits their guest as well as hotel staff. Several players in this industry already started adopting digital signage as a way to attract guests and improve their experience. For instance, The Hyatt Regency Chicago is one of the many hotel chains that have embraced signage technology. The Hyatt’s installed 40-inch NEC MultiSync LCD4010 and32-inch NEC MultiSync LCD3210 displays to cover the public areas and 228,000 square feet of meeting space at the Hyatt. Thus, the increasing adoption of digital signage products in commercial verticals is driving the growth of this market.
Digital signage is used in indoor and outdoor applications. In outdoor applications, they are used in the form of kiosks, billboards, and signboards. Harsh weather conditions, such as rain, snow, dirt, and extreme temperatures, can affect the performance of the digital signage and even might degrade their future performance. Digital signage, which is exposed to direct sunlight for long hours over a period of time, can also develop thermal management issues. This can affect the longevity of displays or even can degrade their performance. Therefore, it is extremely important to choose cooling filters and thermal management software to manage digital signage heat build-ups. Therefore, a lack of signage products that are capable of functioning properly even in harsh weather conditions may negatively impact its widespread adoption, leading to reduced market demand.
Impact of COVID – 19
The COVID-19 pandemic is expected to negatively impact the digital signage market growth as it has adversely affected the display industry with manufacturing operations temporarily suspended across major manufacturing hubs, leading to a substantial slowdown in production. COVID-19 not only impacted the operations of the various digital signage manufacturers companies but also affected the businesses of their suppliers and distributors. The failure in export shipments and slow domestic demand for digital signage and display products in comparison to pre COVID-19 levels is also expected to negatively impact and slightly stagnate the demand for digital signage in short term. Some of the key display manufacturers including Samsung, LG Display, and Xiaomi among others have suspended their manufacturing operations in China, India, South Korea, and European countries. In addition to the impact on production activities, the ongoing pandemic has taken a toll on the consumer demand as well for display integrated devices, likely fueled by the lockdown imposed across major countries.
January 2021 - Sony Corporation launched premium direct view LED professional displays, modular Crystal LED C-Series, and B-Series for applications incorporate showrooms, lobbies, and production houses.
November 2020 - The provider of content-rich digital signage software and solutions, Mvix, launched a new and innovative custom content production service for digital signage networks. The service billed as an ongoing subscription, offers unlimited custom content designs for all varieties of digital signage networks. In the last fifteen years, the company has supported more than 60,000 endpoints.
October 2020 - Epson Europe BV expanded its laser projector line-up with six new projectors to achieve more impactful signage and experiential immersive displays for various commercial environments, including retail, hospitality, museums, and visitor attractions.
January 2020 - Panasonic Corporation, Tokyo Electric Power Company, and Tepco Town Planning Co Ltd collaborated to transform sideways transformers into signage for displaying advertising, tourism, disaster prevention, and regional information.
Prominent/major key market players in the digital signage market include Samsung, Panasonic Corporation, Sharp Corporation, and Sony Corporation among others. The players in the digital signage market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the digital signage market.
Frequently Asked Questions (FAQs)
Q1. What is the size of the global digital signage market?
A1. Digital Signage Market was valued at US$5.250 billion in the year 2019.
Q2. What will be the digital signage market size by 2026?
A2. The digital signage market is expected to reach a total market size of US$11.372 billion by 2026.
Q3. What are the growth prospects for the digital signage market?
A3. The global digital signage market is expected to grow at a CAGR of 11.67% over the forecast period.
Q4. What factors are anticipated to drive the digital signage market growth?
A4. Growing demand for digital signage solutions across different industry verticals is expected to bolster the digital signage market growth in the upcoming years.
Q5. Who are the major players in the digital signage market?
A5. Prominent/major key market players in the digital signage market include Samsung, Panasonic Corporation, Sharp Corporation, and Sony Corporation among others.