Market Challenges And Opportunities

Market Dynamics- Drivers

Increasing the budget for advertising in various sectors is expected to drive growth of the India digital signage system market during the forecast period. Advertising, marketing campaign, promotional activities, and information display for various services and products of the company has become essential. It expands the consumer base and enhances market presence. Digital signage offers multiple benefits to end users in terms of time and cost saving on marketing campaigns, enhances customer engagement, facilitates easier communication of dynamic information, and improves aesthetics of display of products or services. Furthermore, various end-use sectors such as real estate, retail stores, and service industries have witnessed high growth in the recent past, due to changing lifestyles, rising disposable income, and growing urbanization.

Time and cost efficiency offered is expected to propel the India digital signage system market growth over the forecast period. Digital signboards offer the flexibility of displaying dynamic information at an instant at multiple locations. As a result of this, companies need not invest in advertising or promotion activities for different products or services. Moreover, visual displays have a greater impact on customers since it offer focuses on details. It ensures better returns on advertising expenditure and impactful communication with consumers. The display content could be managed from one place for multiple locations, which results in time-saving and better control over the activities.

Market Opportunities

Growing accessibility to smaller business can provide major business opportunities in the India digital signage system market. High capital cost along with technical support and maintenance cost makes the system expensive for small businesses. India is a country with around 80% unorganized retail sector. Development of customized and specific software, built-in technologies into display and launch of the new range for beginners are some of the initiatives, which are expected to increase digital signage system adoption across all the sectors in India.

Content projection in educational institutes can present lucrative growth opportunities in the India digital signage system market. Digital signage systems are widely used at retail stores, airports, railways stations, and stadiums for the visual and animated display of static or dynamic information. However, content projection is now being used in educational institutes such as colleges and universities for on-campus or off-campus learning activities. According to the University Grants Commission (UGC), there are over 533 university-level institutions in India that will enroll over 13.6 million students every year. Adoption of digital signage systems in these universities is expected to increase in the near future, owing to its potential benefits.

Market Dynamics- Restraints

High capital cost is expected to hamper the India digital signage system market growth over the forecast period. The digital signage system involves expensive components and accessories including LED displays screens, software, and media players. These systems need high initial investment for installation, technical support, and maintenance. Small retailers or businesses find it difficult to justify the expense for marketing or promotion activities of their services or products. Some of the stores with restricted product variety or process industries have limited use of digital signage, thus often resist the adoption of these systems. Hence, these factors are expected to hamper the India digital signage system market growth over the forecast period.

Issues regarding power and maintenance are expected to restrain growth of the India digital signage system market during the forecast period. Since digital signage systems are deployed widely outdoor, it requires additional precaution in its mounting and installment. The outdoor screens, especially the ones that are installed on highways or open weather face unfavorable conditions, which can hinder its durability and thereby requiring frequent maintenance operations. All the digital signage screens work on electricity and their consumption depends upon their time of use, the number of screens, and the size of screens which adds to the variable cost of retail stores or the users.