According to a new report published by Allied Market Research, titled, "Digital Signage Market by Offering, Product, and Location: Global Opportunity Analysis and Industry Forecast, 2019–2026," the global digital signage market size was valued at $17.23 billion in 2018, and is projected to reach $32.12 billion by 2026, growing at a CAGR of 8.1% from 2019 to 2026.
Digital signage is an emerging technology, which offers high image resolution, and better picture quality over traditional displays. It offers enhanced contrast over the traditional OLED and LED display technologies. Moreover, it features enhanced response time. In addition, the consumption of power by digital signage is less as compared to other technologies such as LEDs and OLEDs.
Digital signage depends majorly on hardware components to ensure the delivery of high-quality content. These displays have replaced the traditional small and micro-display screens with large wall-sized LED and LCD displays, used across various industries. In the current business scenario, it is crucial to employ efficient systems for advertising, owing to the development of numerous user engagement devices and applications. Electronic signage is a cost-effective medium of promoting and branding any product or service; this advantage drives the digital signage market.
Digital signage is a class of large display screen formats that improve the visual experience with its professional-grade image quality and are mostly used for endorsing and advertising. These displays have replaced the traditional small and micro-display screens with large wall-sized LED and LCD displays, used across various industries. They are designed for applications that require the vendors to engage their customers/audiences with its wider viewing angle and to extract maximum effectiveness from the marketing messages.
Decrease in cost of displays and improved customer experience are the factors that drive the growth of the digital signage industry worldwide. In addition, development of government bodies as well as fast growing educational sector contributes toward the growth in digital signage industry. Technological developments including near field communication are expected to create greater opportunities. Advent of touch screen technology is also expected to open new avenues.
The digital signage market trends are analyzed on the basis of various segments including offering, product, location, end user, and region. By product, the market is classified into single screen display, video wall, and kiosk. Among these products, kiosk segment is anticipated to witness highest growth during forecast period, owing to surge in adoption of digital kiosk in retail industry.
Rise in demand for bright and power-efficient display panels and rapid digitalization and decline in demand for traditional billboards are the factors that drive the growth of the digital signage market. However, deployment of widescreen alternatives such as projectors and screenless displays and lack of standard policy and power problems hampers the digital signage market growth to a certain extent.
Furthermore, emerging display technology such as microLED and quantum dots and increase in preference of electronic giants toward large-screen displays offer lucrative opportunities for the digital signage market in the country.
The global digital signage market analysis is done across various regions including North America, Europe, Asia-Pacific, and LAMEA, among which North America dominated the global market in terms of value and is projected to follow same trend during forecast period.
In March 2019, Planar Systems launched 100-inch 4K LCD display with Ultra HD resolution (3840 x 2160), which offers high brightness of 700 nits and wide color gamut for stunning image quality and deep, rich color reproduction. Also, on September 2018, Panasonic Corporation launched SignEdge, a digital solution, which is ideal for companies to show their advertising and branding. This solution enables users to achieve their communications goals in an efficient manner.
Key Findings of the Study:
- In terms of revenue, the hardware segment contributed the maximum digital signage market share in 2018, and is expected to maintain its lead throughout the forecast period.
- The healthcare segment is expected to grow at the highest CAGR during the forecast period.
- In 2018, North America accounted for over 36.65% share globally and is expected to dominate the market in the future.
The key players profiled in the report include NEC Corporation, Sony Corporation, LG Electronics, Samsung Electronics, Panasonic Corporation, ViewSonic Corporation, Volanti Displays, iSEMC (HHSD), Koninklijke Philips N.V., and Planer System Inc. These key players have adopted strategies, such as product launch, expansion, and partnership to enhance their position in the market.