DIGITAL SIGNAGE MARKET ANALYSIS

Global Digital Signage market size was valued at US$ 44.72 billion in 2030, exhibiting a compound annual growth rate (CAGR) of 7.8% from 2023 to 2030.

Global Digital Signage Market: Regional Insights

North America dominated the global digital signage market during the forecast period, owing to the presence of key suppliers in the region. Furthermore, advancements in display technology is expected to drive the market growth. Due to security and cost profits, digital signage is an better alternative to printed signs. It enables the visualization of safety measures, which is a critical component in the development of smart hotels and associated businesses, and it is expected to drive the market growth during the forecast period. For instance, in March 2022, Xpodigital, a digital signage solution company, had expanded its vital management positions to Las Vegas as the first step in becoming the city's first choice for fully-managed conference internet and digital signage solutions.

Europe digital signage market is expected to witness growth due to increased investment in research and development by enterprises to improve product quality and rising government initiatives to install digital signs at various locations to ensure continuous information flow systems.

Figure 1: Global Digital Signage Market Share (%), By Region, 2022

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Global Digital Signage Market: Drivers

Increasing Demand for Customized Digital Signage Solutions from Different Sectors

Digital signage provides digital contents, design collaterals, creative advertising, and several other services that leads to adoption of digital signage technology in various applications in sectors such as hospitality, healthcare, education, corporate, banking, transportation, retail, and entertainment.

Healthcare sector is one of the prominent end-use industries of digital signage solutions with the growing technological penetration. Moreover, considering the demand for interactive digital advertising, the digital signage is progressing rapidly and witnessing growth which is expected to boost the market.

Furthermore, medical institutes and hospitals that prioritize cost savings and patient satisfaction uses healthcare digital signage to reduce perceived wait time by showcasing health news, videos, and trivia in the waiting room, improve revenue & brand awareness by advertising events & services, and to keep employees’ updates, empowered & engaged by displaying performance information & new policies.

Increasing Demand for 4k Digital Signage

Rising demand for 4K digital signage display with the embedded software and media player as it offers customers an affordable Ultra HD digital signage solution is expected to drive the market growth. The customers can deploy, manage, and schedule digital signage displays to deliver the right message at right time to the right audience. Furthermore, growing demand for DisplayPort is increased, owing to displays with higher resolution and 4K digital signage solutions, along with smaller devices with flexible connectivity.

Rising consumers income leads to increasing purchasing power, and this is expecetd to drive the market growth. The 4K displays are increasingly adopted by the public-display and professional-monitor owing to the improved image features. Moreover, sub-pixel rendering technology is another factor responsible for growing demand for 4K display technology. The sub-pixel rendering technology is used in commercial production of LCDs and active-matrix organic light- emitting diode (AMOLED).

Global Digital Signage Market: Opportunities

Advancement in the Digital Signage Technology Solution

Benefits offered by digital signage solutions such as effective content, collateral design, and impactful marketing & advertisement leads to increased adoption of digital signage. Growing demand for digital signage across various application verticals such as government, healthcare, hospitality, retail, and transportation is expected to drive the market growth. Digital signage is expected to comprise various features such as interactive media, augmented reality (AR), artificial intelligence, and data analysis in the near future.

Global Digital Signage Market: Trends

Growing demand for technologically advanced digital signage

The digital signage industry is estimated to grow significantly over the forecast period. The prime focus is on the enhancement of hardware and software used in digital signage industry. The increasing demand for advanced technology such as slim, sleek, and attractive screens, in digital signage industry are driving market growth. The size of screens is another essential factor in the success or failure of a digital communication system as how the screen fits in along the surroundings or how the screen needs to be installed. The enhanced, better, slimmer designs of the digitized screens to display the content attracts the consumers. Personalization and customization of content to makes it interactive, and thus, digital allows the use of touch screens and allows friendly user-experience.

Global Digital Signage Market: Restraints

High Initial Investments

High installation cost of digital signage is one of the significant barriers across the application verticals of digital signage solutions. High initial investment associated to the digital signage solutions along with the advanced technology and supportive hardware & software requirements are limiting the adoption of digital signage, particularly in the small & medium-sized retail sector. The initial cost of digital signage is high for small & medium organizations, mainly when it adds to the operating expenditure. The installation of the digital signage system is affordable to the large enterprises, however, for small and mid-sized businesses, the solution imposes several complications including deployment, installation, and maintenance, resulting into an expensive marketing solution.

Figure 2: Global Digital Signage Market Share (%), By Component, 2022

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Global Digital Signage Market: Segmentation

Global digital signage market report is segmented into type, component, technology, application, location, content category, size, and region.

Based on Component, the market is segmented into hardware, software, and service. Out of which, hardware segment is expected to dominate the global market over the forecast period due to growing number of innovative display technologies such as 1080p, 4K, and 8K displays. The digital signage hardware offerings include systems in the form of display panels, media players, front projection, mounts, and other accessories. As compared to software, the hardware requirement is huge, and thus, the segment accounts for a large share in the industry. Moreover, advancements in 3D technology leads to development of glasses-free 3D displays. Such displays are used by fashion, retail, and other industries.

Software segment is also expected to witness significant growth in the near future, owing to the technological advancements that have driven retail and hospitality industry to use new strategies such as audience analytics and audience engagement tools. Digital signage software includes the standalone software to automate the content displayed on the digital signage. Interactive digital communication has become necessary due to number of strategic initiatives designed to attract customers. Thus, software are required to operate hardware displays.

In digital signage, services segment include integration and installation, maintenance, and consultancy services. There has been huge demand for digital signage services as the technology is increasingly utilized across a wide range of sectors including hospitality, healthcare, education, corporate, banking, transportation, retail, and entertainment. However, due to fewer product maintenance and repair difficulties, the services segment experiences a relatively lower demand. The industry provides consulting, maintenance, and integration & installation services. The main services involved in this are the setup of a digital display and internet connectivity. As a result, the cost of the service offerings is significantly lower than that of the hardware and software needs.

Global Digital Signage Market: Key Developments

On March 30, 2023, Samsung Electronics, electronics corporation, had launched a new interactive display with upgraded features and a powerful software solution at BETT (British Educational Training and Technology) 2023, the world’s largest education technology exhibition, in London, U.K. Over 30,000 attendees at BETT explored the future of education with the cutting-edge Samsung Interactive Display and the Samsung Whiteboard App.

In July 2021, Intel Corporation, company developing microprocessors, had collaborated with Clevertouch Technologies, a manufacturer of interactive touchscreens, collaboration software, and digital signage, to offer its customers and partners a wider range of Intel-based products.

In November 2022, Sharp NEC Display Solutions Europe, a signage solutions provider company, and Seenspire, a content creator company, collaborated for enhanced customer experience of digital signage.

In January 2021, LG Electronics, multinational conglomerate corporation, introduced three series of commercial LED screens with pixel pitch varying from 3.9 to 16-millimeters. The displays include six variants in the GSCD Ultra-Light, GSCC Essential, and GSCA Versatile Series.

In June 2022, LG Electronics acquired AppleMango, an South Korea-based EV charger manufacturer, together with GS Energy and GS Neotek, a subsidiaries of GS Holdings. LG Electronics stated that the acquisition will help the company to create ‘fully-featured charging stations’ and integrate the existing charging management system developed in-house.

In May 2020, Sony Electronics Inc., multinational conglomerate corporation, had announced the launch of new XAV-AX5500 car AV receiver that offers upgraded audio extensibility, enhanced smart features, and user customizations.

Global Digital Signage Market: Key Companies Insights

Global digital signage market is highly competitive due to continuous launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies, in order to expand their presence on regional as well as global basis.

Some of the key players in the global digital signage market are Samsung Electronics, Daktronics, Exceptional 3D, LG Electronics, Panasonic Corporation, Sony Corporation, Leyard Optoelectronic Co., Ltd., Scala, E Ink Holdings Inc., Deepsky Corporation Ltd., Intel Corporation, and Microsoft Corporation

*Definition:  The Digital Signage market refers to the industry involved in the production, distribution, and management of digital display systems that are used for advertising, information dissemination, and communication purposes.