(I-BusinessNews.Com, July 21, 2022 ) Digital signage technology is constantly evolving, with incorporation of latest technologies. With the advancements in display technologies, the evolution of LCD, LED, UHD, OLED, and Super AMOLED is further strengthening the market. These technologies have led to the enhancement of the quality of advertisement content, thus creating strong impact on the target audience. The key end user segments for digital signage solutions include retail, hospitality, transportation, and entertainment. The growth in transport networks, public infrastructure, and new commercial buildings, particularly in developing economies is creating more opportunities in this market. Digital signage is being used in and on all modes of public transportation to attract the attention of on-the-go viewers, providing the real-time location, and context awareness related to traveller information and advertising.
The digital signage market is expected to grow at a CAGR of 4.3% from 2020 to 2027 to reach $19.44 billion by 2027. The growth in this market is mainly driven by increasing adoption of digital signage products in commercial vertical and technological advancement in display technology. In addition, rapid digitization in emerging countries is further offering opportunities for vendors to provide digital signage products. However, increasing trend of online advertisement hinders the growth of the digital signage market. In this study, the global digital signage market is segmented based on product, component, application, end-user, and geography.
Based on the product segment, digital signage market is broadly segmented into video wall and standalone display. The standalone displays segment is estimated to command the largest share of the overall digital signage market in 2020. The growing demand for digital signage solutions across different industry verticals for enhancement of brand awareness, consumer engagements, and consumer experience are expected to drive the growth of the standalone digital signage solutions market during the forecast period. Furthermore, the growth in transport networks, public infrastructure, and new commercial buildings, particularly in developing economies is creating growth opportunities in this market.
Based on the component, the digital signage market is broadly segmented into hardware, software, and services. In 2020, the hardware segment is estimated to command the largest share of the overall digital signage market. This growth is driven by growing adoption of digital signage solutions in commercial verticals, increasing retail space, and growing infrastructural developments in emerging economies. In addition, newer technologies such as fine-pixel LED and OLED are expected to drive the growth of the digital signage industry for hardware devices during the forecast period.
In 2020, the display segment is estimated to account for the largest share of the digital signage hardware market. Technological advancements in digital displays in terms of resolution, ability to build displays of large sizes at lower cost, and ability to integrate these displays into different hardware formats for digital signage applications are expected to drive the growth of the digital signage displays market over the forecast period. The display market is further segmented into LCD, LED, and OLED display. In 2020, LCD displays segment is estimated to account for the largest share of the digital display market.
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Based on the application, the digital signage market is broadly segmented into indoor and outdoor. In 2020, the indoor digital signage segment is estimated to command the largest share of the overall digital signage market. The growth of indoor signage market is mainly attributed to the usage of immersive and highly interactive display technologies in sports stadiums, indoor arenas, airports, bus/rail stations, retail stores, schools, hotels, restaurants, and so on.
Based on the industry vertical, the digital signage market is broadly segmented into retail, hospitality, entertainment, corporate, healthcare, and others. In 2020, the retail vertical segment is estimated to command the largest share of the overall digital signage market. With the help of digital signage solutions, retailers can generate higher brand awareness and uplift sales, considerably; which is one of the key factors driving the demand for digital signage solutions in the retail industry. The growing investment by retailers on smarter technologies and increasing focus on upgrading their infrastructure is also supporting the market growth. However, hospitality vertical is expected to register the fastest growth rate during the forecast period. Hospitality industry including restaurants, hotels, resorts, and theme parks, among others.
Based on geography, the global digital signage market is categorized into five major geographies, namely, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. In 2020, North America region is estimated to command the largest share of the global digital signage market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The large share of the North America region is attributed to the technological advancements, growing advertising sector, coupled with growing application of digital signage products among retail and hospitality sectors. Further, the growth in transportation networks, educational facilities, and commercial establishments is also creating numerous opportunities for digital signage systems in this region. On the other hand, the Asia Pacific region is projected to grow at the fastest CAGR during the forecast period. The region has a large number of young and tech-savvy populations which is the target audience for digital signage technologies. With increasing disposable incomes, this population is increasingly embracing the new technologies made available in the market.
The global digital signage market is characterized by the presence of several companies competing for the market share. Some of the leading companies in the digital signage market are LG Electronics, Inc. (South Korea), Samsung Electronics Co., Ltd. (South Korea), Shanghai Goodview Electronics Co., Ltd. (China), NEC Corporation (Japan), and Sharp Corporation (Japan). These companies are leading the market owing to their strong brand recognition, diverse product portfolio, strong distribution & sales network, and strong organic & inorganic growth strategies. The other key players in the global digital signage market are Intel Corporation (U.S.), Hewlett Packard Company (U.S), Cisco Systems, Inc. (U.S), Sony Corporation (Japan), Hitachi, Ltd. (Japan), Panasonic Corporation (Japan), AU Optronics Corporation (Taiwan), Leyard Optoelectronics Co., Ltd. (U.S), Delta Electronics, Inc. (Taiwan), Barco NV (U.S), among others.
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