The digital signage market is expected to grow at an annual growth rate of 11.67% to reach a market size worth US$11.372 billion by 2026 which was valued at US$5.250 billion in the year 2019. Digital signages is referred to the technology such as LED, LCD, e-paper and projection to display weather data, web pages, video, digital images, text or restaurant menus which can be found in transportation systems, public places, retail stores, hotels, restaurants, corporate buildings, museums etc. to provide exhibitions, outdoor advertising, marketing and wayfinding. These are centrally managed network of electronic displays and individually addressable for the display of animated or video messages, for information advertising, entertainment to target based audience. However, the lack of superior quality digital signages to withstand harsh weather conditions is expected to act as a restraint on market growth to a certain extent. Moreover, the need of contactless engagement during the COVID-19 pandemic is expected to bring growth opportunities in the digital signage market.
Rising Demand of Digital Signages From the Commercial Sector Will Boost the Market in the Forecast Period.
The growing number of applications in various commercial sectors and industry verticals around the world are increasing the demand for digital signages. The use of digital signages in the commercial sector allows businesses to interact with customers effectively and efficiently, which gives more business opportunities for industries by increasing brand awareness among people, catching the attention of a passer-by, enhancing customer experience, promoting new products in the market and increasing brand awareness among consumers. Retailers with the help of digital signage can project videos and images to market their product and can compose content and arrange displays to create a dynamic and artistic atmosphere. Due to the rapidly growing digitization, consumers mainly depend on online content to discover deals, new ideas and to find information before buying a product. In a recent study conducted by Cisco IBSG, more than 40% consumers find that digital displays such as products marketed on video walls and big screens change their perception on buying products. The use of digital signage on helping customers by providing relevant information at the time of purchase has led to larger sales uplift and higher brand awareness. The use of digital signage in the hospitality sectors has upsurged in the recent time due to the highly transmissible COVID-19 virus which has helped the industry in understanding the importance of digital communication to ensure proper safety precautions have been met and to ensure patient satisfaction.
The Hardware Solutions will have a Significant Market Share During the Study Period of 2019 to 2026
The digital signage market is segmented, based on solution as hardware, software and services. Hardware is further segmented into LCD displays, LED displays, OLED displays, projector and services are further segmented into maintenance and support services installation services and others. During the study period, the market for hardware services is anticipated to witness remarkable growth. Hardware components include components, displays which are required for the manufacturing process of digital banners, panels, etc. The growing R&D and technological advancements such as 4K, 1080p and 8K display are anticipated to upsurge the demand of hardware components. The advancement in digital display units such as OLED displays and 3D technology will propel the its growth in the forecast period.
The Application of Digital Signage in Retail Is Expected to Drive the Digital Signage Market in the Forecasted Period.
The digital signage market, by industry verticals, is divided retail, government, transportation and logistics, healthcare and pharmaceuticals, media and entertainment, education, hospitality and leisure and Others. The demand for digital signage in the retail industry has increased in the forecast period owing to the use of digitized advertisements for promoting and marketing their products and services. The need for companies to have a competitive edge over others due to a variety of product offerings in the industry has upsurged the growing awareness of effective marketing strategies. Hence, the use of digital posters has widely grown in the retail sectors as it is considered as a marketing strategy for their product offerings.
The Lack of Superior Quality Digital Signages Products for Harsh Conditions May Hinder the Market Size of Digital Signages.
One of the prime factors that may hinder the market growth of digital signages is the lack of superior quality digital signages as they are used in both indoor and outdoor applications which include billboards, signboards and kiosks. The usage of digital signage in outdoor applications in harsh weather conditions such as dirt, snow, extreme temperatures and rain could affect its performance and even might degrade it. The effect of direct sunlight for prolonged hours on digital signages could affect its performance and develop thermal management issues which also effects its long-term use of these digital signages. Therefore, choosing cooling filters and thermal management software is extremely important to manage heat build-ups in digital signages. Hence the scarcity of superior quality digital signages which can function in harsh weathers like these could impact the overall growth of digital signages in the global market.
During the Forecasted Period, North America and the Asia Pacific Region Will Show Robust Growth.
The digital signage market, by geography, is divided into North America, Europe, Middle East and Africa, Asia Pacific and South America. The North American region holds the largest share and is predicted to grow at an increasing rate in the digital signage market. The growth is due to the high demand of signage in the retail industry and the presence of dedicated product suppliers in the region. The U.S, Germany, and U.K. are attributed to hold a significant share owing to the growing research and development programs by product manufacturers and the growing government initiatives for the installation of digital signages in various offices to maintain a continuous information flow system.
Asia Pacific region is expected to grow at the fastest rate in the digital signage market in the projected period. The lower cost of implementation and installation, lower labour costs is attributed to he growth of digital signages in the Asia Pacific region. Also, the advanced audio visual solutions integrated with next- generation technologies which include AI and AR and the increasing adoption and penetration of digital technologies have further boosted the growth of digital signages in the region. The infrastructural developments in many developing nations such as India, South Korea and China have boosted the growth in BFSI, transportation facilities and retail which is one of the prime reason for the growth of digital signages in the Asia Pacific region.
The Impact of the Outbreak of COVID-19 on the Cloud Storage Market
The COVID-19 pandemic has had an adverse effect on industries and their manufacturing and production units. The government of many nations have imposed strict nationwide lockdown due to the extensive spread of the virus. The COVID-19 virus has had a negative impact on the digital signage market owing to the negative impact on the display industry as due to the lockdown implemented manufacturing unit were forced to temporarily shut which slowed the overall production process. The spread of the virus has not only impacted the operations of companies manufacturing digital signage but also has had a deep impact on the supply chain management. The slow domestic demand and the failure in export shipments of digital signage and display units is anticipated to slowing the demand of digital signages and will therefore have a negative impact on the industry. The key manufacturers of display units including LG Display, Samsung, Xiaomi and others have suspended their manufacturing units in India, China, South Korea and other European countries. The pandemic has had a negative impact on the demand of display integrated devices by consumers due to the lockdown implemented in various parts of the world.