Digital Signage Market Report

Digital Signage Market Analysis By Type, By Component, By Technology, By Application, By Location, By Content Category, By Size, By Region, And Segment Forecasts, 2014 - 2025

Published: September 2017  |  100 Pages  |  Format: PDF  |  Report ID: 978-1-68038-157-3

Industry Insights

The global digital signage market size was estimated at USD 16,044.1 million in 2016 and is anticipated to reach USD 31,714.1 million by 2025. This industry growth is accredited to the increasing demand for the digital promotion of products and services so as to attract the attention of the target audience in an effective manner.

The evolution of innovative products such as home monitoring systems, leak detector systems, and so on, along with complicated monetary products such as forex cards that need informative and succinct advertisement content are some of the factors that are predicted to drive the demand for digital signage. Moreover, there is a rising demand for adopting advanced products that require digitized information management and guidance that can be accessed from remote locations. This is one of the key drivers anticipated to boost the global market over the forecast period.

U.S. digital signage market by application, 2014 - 2025 (USD Million)

U.S. digital signage market

Digital signage offers the necessary quality information to a large number of viewers by utilizing large display screens across the location with a concentrated target audience. With digitized display technology, information is provided in a digitized format that includes motion and pictures in order to attract customers with more impact as compared to the traditional modes of reaching out to customers.

Eventually, the growing awareness among the consumers regarding the drawbacks and complexity of traditional advertising such as short-lived print marketing and so on is instigating the digitized advertisement adoption. Additionally, the innovative efforts led by the display designers, researchers, and advertisement companies are spending more on the improvement of the digital signage display technology. As such, all these factors are in turn, expected to catalyze the overall industry growth.

With the advancement in display technologies, the evolution of LCD, LED, OLED, and Super AMOLED is further strengthening market growth. These technologies have led to the enhancement of the quality of advertisement content, thus creating a favorable impact on the target audience. The adoption of such advanced technologies in display systems by digital poster providers is anticipated to boost the overall industry growth

However, the factors such as software and hardware compatibility, networking, electrical interface, and connectivity are the few prevailing issues likely to hinder the market’s smooth growth. Moreover, the complex taxations levied upon the erection of digital signages and screens, coupled with the regulatory processes such as licensing are projected to hamper the market growth.

Type Insights

Based on types, the market has been segmented into video walls, video screens, transparent LED screens, digital posters, kiosks, and others. The video walls segment accounted for the largest market share in 2016 and this trend is expected to continue over the forecast period.

The video screens and kiosks segments gained a high market share in 2016 followed by the video walls segment. The adoption of these types of digital posters is greater as compared to the other types owing to the factors such as low price, ease of installation & mounting, and connectivity.

Video walls and screens have captured a major market share across shopping malls and other public places. Kiosks are generally used to provide information and for advertising in institutes and retail verticals.

However, transparent LED screens are predicted to witness the highest growth rate over the coming years. Transparent LED screens are capable of offering a transparency level beyond 80% coupled with high resolution. Additionally, they are adequately efficient in terms of energy, thus, reducing energy consumption and optimizing the overhead expenditure of users. All these factors are anticipated to catapult the demand for transparent LED screens over the forecast period.

Component Insights

Based on components, the industry has been segregated into hardware, software, and services segments. The hardware components segment dominated the overall industry market in 2016 and is anticipated to maintain its position over the forecast period.

Hardware components consist of displays, components required to manufacture a digital panel, displays, banners, and so on. Compared to software, the hardware requirement is huge, and thus, the segment accounts for a large market share.

Followed by the hardware components segment, the software segment accounted for a considerable market share. The software segment is predicted to exhibit a steady growth over the forecast period.

The services segment registers a comparatively lower demand owing to fewer maintenance and service issues occurring in digital signages. The installation of a digital display and internet connectivity are the major services involved here. Therefore, the service offerings are quite cheaper as compared to the hardware and software requirements, leading to a lesser market share.

Size Insights

Based on the size, the industry has been segregated into three segments such as below 32 inches, 32 to 52 inches, and above 52 inches. The market share for the 32 inches displays segment was greater in 2016 owing to the greater adoption of this type of signage in the retail sector.

Shop dimensions are one of the most important reasons for concern in retail shops. Due to the limitations of area, the adoption of smaller-sized digital advertisement is greater. Thus, the segment accounted for a healthy market share and is anticipated to dominate the market over the forecast period.

Owing to the necessity of enhanced and enlarged advertisement content in order to have an impact on customers, the market is changing considerably in terms of the size specifications and demands. The market for 32 to 52 inches digital posters is anticipated to witness the fastest growth, owing to the increasing demand from healthcare, corporate, and retail sectors.

Furthermore, the demand for more than 52 inches posters is also expected to grow notably due to the significantly expanding transportation sector and flourishing advertisement industry. In addition, the increasing demand across out-store locations is again fuelling the above 52 inches segment and is expected to exhibit a steady growth over the forecast period.

Application Insights

Based on applications, the market is segmented into retail, corporate, banking, healthcare, education, and transportation sectors. The retail sector accounted for the maximum market share in 2016.

The retail sector is the most prominent sector demanding digital advertisements in order to market and promote products and services. The competition among the retailers owing to the variety of product offerings in the industry has led to the growing awareness of effective marketing strategies. Thus, digital posters are adopted largely by the retail sector as digitized advertising is an effective way of marketing a product, which attracts the attention of consumers.

Besides, the banking sector is another prominent adopter of technology. This is attributed to the widespread presence of banks, ATMs, and other banking facilities such as e-banking centers. The segment is anticipated to exhibit growth at a steady pace and should keep on contributing consistently to the global share.

The transportation sector includes the application of digital promotions & posters at airports, railway stations, metro stations, and bus stands. Additionally, the digital display is also extensively used on the roads over cabs, public transport buses, and other vehicles that advertise products and services. Owing to growing urbanization and the development of the transportation sector in emerging countries, the advertisement industry is expected to grow, ultimately boosting the industry.

Location Insights

Based on location, the industry is categorized into in-store locations and out-store locations. In-store locations include the deployment of digital posters within closed premises such as malls, corporate offices, retail shops, banks, and healthcare centers.

In-store location accounted for the largest market share in 2016. This is attributed to the heavy demand from retail stores since the retail sector is the most promising application sector of digital displays for advertisement purposes. The segment is predicted to maintain its position in the global market over the forecast period and exhibit growth at a considerable pace due to consistent demand.

However, the demand for out-store locations is expected to exhibit substantial growth over the forecast period. Thus, the segment is predicted to contribute significantly to the overall digital signage market. The demand at out-store locations is expected to rise owing to the growing transportation sector in developing countries. Additionally, the rising demand for promoting products effectively and on a large scale along with new trends such as election campaigns campaigning elections, introductory offers on products & services, and the increasing number of live concerts & shows are likely to boost the adoption of digital posters in open premises.

Content Category Insights

Based on content category, the market is segmented into the news, weather, sports, health & wellness, and vertically-oriented content. The vertically-oriented content category mainly includes safety signs & information, corporate communication, sales dashboards, product information erected vertically, directions, and transport information across the transportation sector.

The segment dominated the entire content category market with an enormous market share of than 50.0% in 2016. This trend is anticipated to continue with the segment generating the maximum revenue over the forecast period.

Health & wellness and news categories are likely to account for a considerable share as well, followed by the vertically-oriented content category. These segments are anticipated to witness significant growth owing to the rapidly increasing demand from healthcare and corporate sectors, where digital signages are used extensively for communication purposes.

The weather forecast is displayed majorly in external premises such as roads and transport facilities along with offices. The market for weather content is projected to maintain its share and generate stable revenue. The sports segment is comparatively the lowest among other content category segments as the sports content is displayed at a very few select premises or locations such as stadiums and public playgrounds during sports tournaments.

Technology Insights

The industry has been categorized based on technologies into LCD, LED, and projection. LCD technology is one of the most extensively adopted technologies in the advertisement & marketing industry. Therefore, it accounted for the largest market share in 2016.

The ease of producing LCDs and their lower manufacturing costs are a few factors behind the extensive adoption of LCD technology in digitized posters. However, LEDs have successfully made a mark as a standard product with their high-quality display. Manufacturers remain aspirant of the designing of flat-paneled, larger, brighter, and slimmer displays. LEDs are one of the successful achievements in display technology.

Further advancements in LEDs have led to the evolution of OLED displays that are anticipated to propel the overall adoption of LEDs in displays. Superior picture quality offered by the OLED is predicted to be a prominent factor for the increasing demand. However, the production costs and complicated manufacturing process, coupled with a shorter lifespan of LED displays could hamper the market growth.

Projection display could be a rear projection or front projection. Projection display technology in is anticipated to exhibit stable adoption and grow at a steady pace over the forecast period. The technology is a bit complex in nature and difficult to install, making it less adaptive. Thus, the market share for projection technology is comparatively less, although the demand for projection technology is increasing and is expected to grow at a considerable pace.

Digital signage market by technology, 2016

Digital signage market

Regional Insights

North America and Europe are together expected to lead over the forecast period on account of the increasing presence of dedicated suppliers of industrial equipment and products. Additionally, the demand for digitized display in the retail industry is increasing at a considerable pace in these regions, which is further driving the overall industry.

Countries such as the U.S., UK, and Germany are predicted to exhibit significant growth, mainly on account of increasing R&D efforts led by manufacturers in order to enhance the quality of the advertising content. Furthermore, increased government initiatives to install digital signage in offices so as to maintain a consistent information flow is again expected to catapult the region’s stronghold.

However, the Asia-Pacific region is expected to take over the European market by 2025. This growth of the market is attributed to the growing awareness among the population of the region regarding benefits of digital signage. China, South Korea, and India are projected to exhibit substantial growth, mainly due to the increasing applications across retail stores, offices, banks, hospitals, and the hospitality industry. In addition, the expanding transportation sector in the Asia-Pacific region is further expected to catapult the market growth.

The growing disposable income of the regional population has led to a surge of visitors to malls and multiplexes in the emerging countries of Asia-Pacific. Therefore, enterprise owners are leveraging these opportunities in order to promote their product offerings by making use of large displays, in turn helping them to attract the target audience in an effective way. Thus, the adoption in this region is predicted to grow enormously over the forecast period.

Competitive Insights

Key industry participants include Omnivex Corporation, Microsoft Corporation, KeyWest Technology, Inc., ADFlow Networks, NEC Display Solutions, Ltd., LG Electronics, Winmate Communication, Inc., Panasonic Corporation, and Samsung Electronics.

The introduction of innovative solutions is anticipated to propel the business over the forecast period. For instance, Intel Corporation introduced Open Pluggable Specification (OPS) that has helped in standardizing the design of digitized marketing. Also, Nippon Telegraph and Telephone (NTT) Corporation, Japan, created digital signs using aroma-emitting devices. The companies, through R&D efforts and continuous innovation, are also endeavoring to develop premium quality and high-value products at an optimum cost to gain a competitive edge in the price-sensitive market.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Million & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, and South America, and MEA

Country scope

U.S., Canada, Mexico, UK, Germany, Japan, China, India, and Brazil

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific market information that is not currently within the scope of the report, we will provide it to you as a part of the customization.


Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the digital signage market based on type, component, technology, application, location, content category, size, and region:

  • Type Outlook (USD Million; 2014 - 2025)

    • Video walls

    • Video screens

    • Transparent LED screens

    • Digital posters

    • Kiosks

    • Others

  • Component Outlook (USD Million; 2014 - 2025)

    • Hardware

    • Software

    • Services

  • Technology Outlook (USD Million; 2014 - 2025)

    • LCD

    • LED

    • Projection

  • Application Outlook (USD Million; 2014 - 2025)

    • Retail

    • Corporate

    • Banking

    • Healthcare

    • Education

    • Transportation 

  • Location Outlook (USD Million; 2014 - 2025)

    • In-store

    • Out-store

  • Content Category Outlook (USD Million; 2014 - 2025)

    • News

    • Weather

    • Sports

    • Health & Wellness

    • Vertically Oriented Content

  • Size Outlook (USD Million; 2014 - 2025)

    • Below 32 inches

    • 32 to 52 inches

    • More than 52 inches

  • Regional Outlook (USD Million; 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • UK

    • Asia Pacific

      • China

      • India

      • Japan

    • South America

      • Brazil

    • Middle East & Africa

Key questions answered by the report
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