Digital Out-of-home Advertising Market Size, Share & Trends Analysis Report By Format (Billboards, Street Furniture, Transit & Transportation, Place-based Media), By Region, And Segment Forecasts, 2022 - 2028

Report Overview

The global digital out-of-home advertising market size was valued at USD 6.8 billion in 2021 and is expected to expand at 13.8% from 2022 to 2028. Digital out-of-home advertising is one of the fastest-growing advertising types due to expansion into new venues & markets, innovation, and enhanced features in outdoor advertising are accelerating the market growth. Moreover, the increasing demand for creative and interactive displays of full-motion video and the inclusion of animation has expected to drive market growth in the forecast period.

Digital out-of-home advertising is a form of outdoor advertising for outdoor and integrating both digital components and offline out-of-home advertising. These digital advertisements are displayed on real estate present in various locations that are publicly accessible. Digital out-of-home advertisements provide innovative and creative content and it becomes more interactive and creative due to the display of data on digital screens in real-time. This feature results in better visibility of digital screens. the growing trend for interactive advertisements for consumers results in the increased adoption of digital out-of-home advertisements hence driving the market growth.

Digital out-of-home advertisements are cost-effective using which commercials can reach a wide range of populations thus their usage is high and increasing thus fueling the market growth in the forecast period. Additionally, the growing urbanization and rising infrastructure development across the globe are anticipated to propel the market growth during the forecast period. Furthermore, the increasing spending on outdoor advertising by various industries owing to its ability to run multiple advertisements on a single screen is accelerating market growth.

Digital outdoor advertising is gaining popularity in the advertising world as it creates brand awareness among people and also compliments the brand’s advertising campaigns on other channels, which are projected to accelerate the market growth. Moreover, as individuals spend more time outside their office and home, that allows brands to reach a mass audience consistently and rapidly through out-of-home advertising is accelerating the market growth in the forecast period. However, the intense competition among the vendors of the out-of-home advertising business is restraining the market growth.

Advancement in programmatic technology such as automated buying and selling of digital billboards and screens has led to a significant increase in market growth. However, strict government regulations regarding out-of-home advertising, data security, and privacy, such as General Data Protection Regulation (GDPR) in Europe will continue to hinder the market growth. In the U.S., the HBA regulates the placement and size of the billboards and regulates out-of-home advertising on controlled roads.

The COVID-19 epidemic has negatively affected the digital out-of-home advertising business. In response to the pandemic, governments around the world implemented several measures to try to contain the virus, such as quarantines, shutdowns, travel bans and restrictions, and work-from-home orders. These measures have impacted on workforce and operations of the out-of-home advertising industry, the behaviors of advertising customers and consumers, and the operations of raw material suppliers. Moreover, the ease of several restrictions and infrastructure development in emerging economies is projected to drive market growth in the forecast period.

Format Insights

The billboards segment contributed to the largest market share of around 40% in 2021 and has expected to expand at a CAGR of 12.2% from 2022 to 2028. The growing smart advertisement has enabled digital outdoor billboards to interact with the target audience is expected to accelerate the market growth. Moreover, technological advancements like augmented reality and virtual reality are making outdoor advertising campaigns more visceral and engaging, which will drive market growth.

The transit & transportation segment is expected to expand at the fastest CAGR of 15.7% from 2022 to 2028. The rising adoption of the LCD screen in the taxi, buses, or trains for displaying multiple advertisements on a single display is accelerating market growth. Moreover, the increasing preferences for public transport like buses, and trains for daily traveling by the consumer are the major driving factor for the market growth. Furthermore, the rising adoption of digital transit & transportation advertising for branding and spreading awareness regarding products is expected to accelerate market growth.

The street furniture segment is expected to expand at the second-fastest CAGR of 15.0% from 2022 to 2028. The growth of the segment is attributed to its high usage by various advertisers as they get easily noticed by consumers or by-passers. Street furniture can provide coverage to the targeted neighborhood as well as a coverage area with a broad base as a result of which it is highly used for advertising by entertainment, high-end fashion, finance, and packaged goods brand. Thus, due to the aforementioned factors, the adoption of street furniture is increasing and contributing to more revenue generation.

Industry Vertical Insights

The real estate segment contributed a share of around 15% in the global digital out-of-home advertising market in 2021. The rising spending on outdoor advertising by construction industries to promote their properties and to build brand awareness is accelerating market growth. Moreover, the increasing popularity of digital out-of-home advertising for real estate marketing due to the high conversion rate of the ads is accelerating the market growth. Furthermore, digital outdoor advertising provides real estate brands an opportunity for creative flexibility to contextually relevant and timely messaging is accelerating the market growth over the forecast period.

The government segment of the digital out-of-home advertising market is expected to register the fastest growth, with a CAGR of 15.6% from 2022 to 2028. The rising adoption of digital out-of-home advertising by various governments to bring awareness about schemes and newly introduced policies is accelerating market growth. Moreover, the increase in politically spending on out-of-home advertising during the election campaign and various protests adds to the market growth.

The automotive segment is expected to expand at a significant CAGR of 14.6% from 2022 to 2028. The growth of the segment is attributed to the elevated use of digital out-of-home advertising in the industry. With the use of digital out-of-home advertising automotive businesses have the ability to launch campaigns in a faster, flexible, and accessible manner to raise the level of awareness among the consumers regarding dealerships and vehicles. This helps in driving the sales of automotive due to which its adoption is increasing hence boosting the market growth.

Regional Insights

North America made the largest contribution to the global digital out-of-home advertising market of over 35% in 2021 due to the increasing urbanization and rising awareness about the branding of the particular product. Digital outdoor advertising has an eye-catching and interactive advertising strategy, that allows the brands to digitalize themselves and display content easily available to the general public, this may propel the market growth. Furthermore, the increasing investment in digital out-of-home advertising is expected to drive regional market growth.

Asia Pacific is the fastest-growing digital out-of-home advertising market and is expected to witness a CAGR of 14.6% from 2022 to 2028. This can be credited to the increased spending on digital out-of-home advertising in emerging countries like China, India, and Japan owing to the huge consumer base. Moreover, the increasing popularity and acceptance of out-of-home advertising among the various industry verticals has projected to boost the digital out-of-home advertising market over the forecast period. Furthermore, the rising infrastructural development in emerging economies like India, and China are driving market growth over the last few years.

Europe is expected to grow with the second-fastest CAGR of 14.0% in the forecast period. The growth of the regional market is attributed to the growing adoption of digital out-of-home advertising in commercial verticals, rapid urbanization in emerging countries of the region coupled with rapid digitization. The further growth of the market in the region is contributed to increasing technological advancements along with the growing proliferation of smart cities.

Key Companies & Market Share Insights

The market is characterized by the presence of various established market players of digital out-of-home advertising across the globe. Companies are focusing on launching new functions to meet consumers’ expectations by offering a trending outdoor advertisement format. Moreover, vendors are expanding their reach across the globe with an innovative business model.

Players operating in the market are undertaking major business initiatives such as mergers and acquisitions, partnerships, agreements, the launch of new products, global expansion, and others. In April 2019, JCDecaux formed a partnership with COFREX (Compagnie française des expositions) for the French Pavillion to work on the promotion of the presence of France at the World Expo to be held in Dubai from 20 October 2020 to 10 April 2021. In addition, In April 2019, Broadsign International Inc. announced its agreement for the acquisition of Ayuda Media Systems. The strategy was adopted to rationalize operations regarding a business across their inventory, digital and classic. Some of the key players operating in the digital out-of-home advertising market include: -

• JCDecaux

• Stroer SE & Co. KGaA

• Clear Channel Outdoor Holdings, Inc.

• Outfront Media

• oOh!media Ltd.

• Lamar Advertising Company

• Broadsign International LLC.

• Focus Media

• Global Outdoor Media Limited 

Digital Out-of-home Advertising Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the latest trends and opportunities in each of the sub-segment from 2017 to 2028. For this study, Grand View Research has segmented the global digital out-of-home advertising market report based on format, industry vertical, and region.

• Format Outlook (Revenue, USD Million; 2017 - 2028)

  • Billboards

  • Street Furniture

  • Transit & Transportation

  • Place-based Media

• Industry Vertical Outlook (Revenue, USD Million; 2017 - 2028)

  • Automotive

  • Financial Services

  • Government

  • Media & Entertainment    

  • Retail

  • Real Estate

  • Restaurants

  • Others

• Regional Outlook (Revenue, USD Million; 2017 - 2028)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa