Global Outdoor LED Display Market is Estimated to Witness Significant Growth Owing to Rising Infrastructure Development and Increasing Adoption of Digital Marketing
The Global Outdoor LED Display Market is estimated to be valued at US$ 12.38 Bn in 2024 and exhibit CAGR of 11.1% over the forecast period 2024-2031. Furthermore, rapid urbanization and growing demand for outdoor advertising are further fueling the market growth.
Market Dynamics:
The growth of the global outdoor LED display market is primarily driven by the rising infrastructure development activities across the globe and increasing adoption of digital marketing strategies by companies. Rapid infrastructure development projects such as shopping malls, airports, metro stations, and commercial buildings are boosting the installation of outdoor LED displays for advertising and informing purposes. According to the UN, over 68% of the world's population is projected to live in urban areas by 2050. This is anticipated to generate significant demand for outdoor LED displays for branding and communication needs in urban infrastructure.
Moreover, companies are increasingly shifting from traditional to digital marketing methods to effectively engage customers. Outdoor LED displays have emerged as an important digital marketing platform for companies to reach a wider audience and convey branding messages vividly. The interactive and customized content delivery features of LED displays are appealing many advertisers. This growing reliance on digital and experiential marketing is projected to drive the global outdoor LED display installations significantly over the forecast period.
Increasing Adoption of Digital Signage Driving Growth in Outdoor LED Display Market
One of the key drivers propelling the growth of the global outdoor LED display market is the increasing adoption of digital signage across various industries. Digital signage allows companies to engage with customers through dynamic content and messaging. Outdoor LED displays offer brighter, clearer and sharper images compared to traditional billboards. They also provide opportunities to leverage multimedia and interactive content which helps businesses better capture customer attention. Many retail stores, shopping malls, stadiums and airports have increasingly started deploying outdoor LED display boards to showcase product offerings, event promotions and guide customers.
Growing Demand for Outdoor Advertising Fueling Market Expansion
Another major factor fueling the demand for outdoor LED displays is the growing expenditure on outdoor advertising globally. Outdoor advertising remains one of the most effective ways for brands to reach mass audience and generate brand awareness. With the ability to deliver high quality images in all lighting conditions, outdoor LED displays have become the preferred choice for advertisers compared to traditional billboards. Furthermore, these displays offer flexibility to change ads and messages in real-time remotely. The dynamic nature helps keep ads engaging and attract more viewers. This is driving several companies across industries to invest in outdoor LED displays for branding and marketing purposes.
High Initial Investment Acts as a Market Restraint
One of the key challenges faced by the outdoor LED display market is the high initial investment requirement. Outdoor LED displays involve significant capital expenditure due to the usage of premium components like LED chips and drivers. Additionally, costs are incurred towards installation, commissioning and maintenance of these large format displays. This high upfront cost deters many small and medium enterprises from adopting outdoor LED displays. The restraining effect of high investment requirement is however diminishing over time as LED display prices continue to decline with technological advancements.
Dependence on Weather Conditions Restricting Market Growth
Another major restraint for the outdoor LED display market is the dependence on weather conditions for visibility and legibility of displays. Adverse weather like heavy rain, snow or fog can negatively impact the brightness levels and image clarity of outdoor LED screens. Moreover, direct exposure to sun light degradation can reduce the lifespan of LED chips over time. This necessitates weatherproof casing and enclosures which further adds to the costs. The effect of weather poses challenges especially for outdoor displays installed in regions with extreme climatic conditions. Product innovations to improve weather resistance can help address this restraint.
Growing Popularity of Experiential Marketing Opening New Avenues
One of the key opportunities for outdoor LED display providers is the rising focus on experiential marketing globally. Companies are increasingly leveraging digital out-of-home platforms like interactive kiosks and mobile LED walls to engage customers through immersive experiences. For instance, live polling and surveys, AR/VR interactions are being integrated along with traditional display of videos and images. This helps brands better connect with target audiences and improve customer insights. The experiential aspect of outdoor LED displays is finding wider applications across industry events, trade shows and product launches.
Adoption in Developing Markets Presenting Immense Growth Prospects
Further, the untapped potential of outdoor LED displays in developing regions across Asia Pacific, Latin America, Middle East and Africa presents lucrative opportunities for market expansion. These areas are witnessing significant economic growth and infrastructure development activities. Rapid urbanization, emerging shopping malls and improving standards of living are propelling investments towards outdoor advertising. While developed markets like North America and Europe currently dominate outdoor LED display installation, emerging countries will drive the next phase of growth as they catch up with the digital transformation trends. Leading manufacturers are actively targeting these developing geographies which bodes well for the future outlook of the global market.
Link: https://www.coherentmarketinsights.com/market-insight/outdoor-led-display-market-956
Key Developments:
- In March 2024, Samsung SDS, a leading global information technology services and software company, announced a strategic partnership with a prominent hotel chain to implement its advanced digital door lock solutions across the hotel's properties. This collaboration aims to enhance the guest experience by providing seamless, secure, and convenient access management, while also streamlining operations for the hotel. As a trusted provider of innovative technology solutions, Samsung SDS continues to drive digital transformation in the hospitality industry, enabling its partners to deliver exceptional experiences for their customers.
- In December 2023, Honeywell International, a global leader in smart home security solutions, acquired a startup specializing in AI-powered facial recognition technology. This strategic move will allow Honeywell to integrate the advanced biometric capabilities into its digital door lock offerings, providing enhanced security and unparalleled user convenience for its customers. By leveraging the latest advancements in facial recognition, Honeywell is poised to deliver even more robust and user-friendly access control solutions that cater to the evolving needs of homeowners, businesses and commercial properties. This acquisition further strengthens Honeywell's position as a trusted provider of innovative smart home technologies that seamlessly blend security, convenience, and cutting-edge innovation.
- In June 2023, Spectrum Brands, a leading global consumer products company known for its portfolio of trusted brands including Kwikset, launched a new biometric digital door lock system with advanced facial recognition technology. This innovative solution, marketed under the Kwikset brand, provides residential users with a high level of security and unparalleled convenience by enabling seamless, hands-free access to their homes. Leveraging the latest advancements in biometric authentication, the new Kwikset digital door lock system allows homeowners to unlock their doors simply by having their faces recognized, eliminating the need for physical keys or access codes. This launch further solidifies Spectrum Brands' position as a trusted provider of smart home security solutions that enhance the lives of consumers worldwide.
- In May 2023, Spectrum Brands, a leading global consumer products company known for its trusted brands such as Kwikset, Remington, and FURminator, announced a merger with a top manufacturer of smart home devices. This strategic move aims to create a comprehensive portfolio of connected home solutions, including advanced digital door lock systems, under the Spectrum Brands umbrella. By combining their expertise and resources, the merged entity will be well-positioned to offer innovative, integrated smart home technologies that cater to the evolving needs of consumers worldwide. The merger solidifies Spectrum Brands' commitment to improving the way people live life at home through trusted, high-quality, and reliable products that provide the newest solutions for enhanced convenience, security, and connectivity.
Key Players:
Barco NV, Daktronics, Inc., ELECTRONIC DISPLAYS INC., GALAXIA ELECTRONICS, LG Electronics Inc. (LG Corp.), Leyard Group, Lighthouse Technologies Limited, Panasonic Corporation, Samsung Electronics Co Ltd, Shenzhen Absen Optoelectronic Co., Ltd., Shenzhen AOTO Electronics Co., Ltd., Shenzhen Liantronics Co., Ltd., Shenzhen Mary Photoelectricity Co., Ltd., Sony Group Corporation, and Toshiba Tec Corporation
