U.S. Digital Signage Market Size, Share & Trends Report

U.S. Digital Signage Market Size, Share & Trends Analysis Report By Component, By Hardware Components, By Display Type, By Display Technology, By Application, By Location, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Feb, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-2-68038-463-5
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 110

Industry Insights

The U.S. digital signage market size was valued at USD 4.7 billion in 2019 and is expected to register a CAGR of 6.4% from 2020 to 2027. Digital signage is used for displaying promotional and informative content in the form of images, graphics, design collaterals, videos, and creative advertising on digitized displays. Creative advertising content can attract customers and viewers, engage viewers through impactful content management, and influence consumers’ purchasing decisions. This is leading to increased adoption of digitized displaying technologies in various end-use industries, such as retail, hospitality, healthcare, education, transportation, corporate, and banking.

In addition, surging consumer demand for concise and comprehensive information about products is boosting the implementation of digital signage. Moreover, increasing adoption of advanced technologies such as single or multi-touch display technologies and gesture-based displays is likely to drive the market. These devices require guidance and digitized information management, which can be accessed from a remote location with signage. This is one of the significant drivers projected to boost the market for digital signage over the coming years.

U.S. digital signage market

Advent of innovative displays, such as liquid crystal display (LCD), LED, OLED, and Super AMOLED display, is allowing advertisers to improve clarity and quality of the content being presented. This is prompting makers of digital signage to provide content that is compatible with all types of displays. Besides this, information is provided with the help of digitized display technologies, which include pictures and motion in a digitized format to attract attention of customers. Large investments are being made by marketers for creation of new content to attract customers.

U.S. is a prominent destination for market players as marketing and promotional techniques continue to evolve and advertisers prefer digitized promotion over conventional marketing. Other benefits associated with digital signage, such as better audience engagement, reduced paper consumption, increased sales owing to improved influence on customers, and cost-effective advertising, are encouraging their adoption in the country. Increasing use of 3D digital signage for effective branding and promotion of the product is anticipated to provide a lucrative platform for market growth over the forecast period.

However, high initial investments associated with digital signage are hindering market growth. Adoption of digitized signs by small and mid-sized enterprises is particularly limited owing to initial investment involved in obtaining supportive software and hardware. In addition, lack of research and awareness about the benefits of digitized signs is another factor restraining the growth of the market.

Component Insights

Based on component, the market for digital signage has been segregated into hardware, software, and services. The hardware segment dominated the market in 2019. It is anticipated to maintain its position through 2027 as hardware plays a major role in displaying content. On the other hand, software components are estimated to exhibit the highest CAGR of over 7.0% during the forecast period. The demand for software is growing owing to advancements in content management software, which is used to create and manage digital web content shown on the displays.

The services segment is also expected to grow, albeit at a rate lower than that of the hardware and software segments, as offering services associated with digital signage barely generate any significant revenues. Moreover, there are a number of service providers ready to offer customized services at lower prices. Nevertheless, the demand for services is expected to be driven by the fact that installed signs require regular servicing and maintenance.

Hardware Components Insights

Hardware components of digital signage can be further divided into displays, media players and extenders, and others, which include mounting devices and components. The displays segment accounted for the leading revenue share among all hardware components in 2019. It is expected to retain its position through 2027 owing to increasing innovations in display technologies, which are prompting advertisers to align with the latest trends. In addition, digital signage are being extensively used on public transport and places. Displays are of significant importance for signs, they are the first component that a target audience faces and can hence have a decisive impact on the experience. Brighter and high-resolution displays are more capable of attracting a larger audience as against unclear and pixelated displays.

Media players are projected to exhibit the highest growth rate over the forecast period. They are designed to support informative content on digital signage and share messages. Media players also integrate apps that expand functionality. Commercial establishments are particularly adopting media players, as installing and setting up these media players is a one-time task. Besides this, media players are easy to maintain. The rising demand for video walls and interactive digitized signs in the hospitality and retail industries is likely to drive the media player and extenders segment.

Display Type Insights

On the basis of display type, the market for digital signage includes video walls, video screens, transparent LED screens, digital posters, kiosks, and others. Video walls dominated the market in 2019 owing to their ability to offer uniform brightness and high-quality pixel density for every picture. While kiosks emerged as the second largest segment in 2019, the digital posters segment also generated notable revenue during the year. Kiosks are used to display information as well as advertisement in retail stores, malls, shopping complexes, multiplex and theaters, auditoriums, bus and metro stations, airports, and institutes, among others.

U.S. digital signage market

Transparent LED screens are anticipated to exhibit the highest CAGR during the forecast period owing to attractive designing and spatial constraints associated with the installation of other digital signage screens. Furthermore, transparent LED screens are one of the most advanced digital display technologies. Transparent LED screens offer a transparency level of over 80.0% along with enhanced and high resolution. Moreover, their energy-efficient operations can reduce energy consumption and help advertisers in cutting operational costs.

Display Size Insights

Based on the display size of a digital signage, the segments included in the market are below 32 inches, 32 to 52 inches, and more than 52 inches. The below 32 inches segment was at the forefront in 2019 as signage of this size are preferred the most by incumbents in retail, corporate, and BFSI industries. Smaller displays are ideal in confined spaces that cannot support larger displays. The adoption of smaller digitized signs is particularly evident in retail outlets. As a result, the below 32 inches segment is projected to maintain its dominance throughout the forecast horizon.

The 32 to 52 inches segment is expected to expand at the highest CAGR during the forecast period as incumbents of the hospitality, entertainment, transportation, and healthcare industries are increasingly adopting digital signage of this size. The above 52 inches segment is also likely to witness steady growth over the coming years. As the market continues to evolve continuously in terms of size specifications, advertisers opt for larger displays to promote their content to a larger audience. Incumbents of the advertising and transportation industries are particularly procuring digital signage larger than 52 inches to exhibit their content.

Software Insights

The software segment has been classified into display software and audience analytics and engagement software. Display software was the more preferred type in 2019, owing to extensive use of various display software to create and manage content to be displayed on digital signage. Content management software is turning out to be one of the leading display software owing to its ability to manage and schedule content. However, users often find it challenging to use content management software owing to complexities associated with software and hardships encountered in updating as well as uploading content on cloud in order to share it across multiple screens and locations.

Audience analytics and engagement software is poised to experience tremendous growth during the forecast period. It is expected to register a CAGR of over 8.0% over the forecast period, which can be attributed to increasing focus on competitive intelligence, providing enhanced customer engagement and viewer experience, and analyzing viewer statistics through gathering information.

Application Insights

Based on application, the U.S. digital signage market has been segmented into retail, hospitality, entertainment, stadiums and playgrounds, corporate, banking, healthcare, education, and transportation. The retail sector spearheaded the market in 2019 as incumbents of the retail industry emerged as one of the leading adopters of digital signage to promote products and services amidst intensifying competition within the industry. Competition in the retail industry is on an upswing as retailers are adopting various marketing strategies to promote their products. The industry holds immense growth potential to drive the market, as retailers are getting increasingly aware of the advantages of digital signage offer while attracting the audience and promoting products and offers.

The healthcare segment is estimated to witness substantial growth over the forecast period. In the healthcare industry, digital signage is used for managing inventory and staff, notifying staff and visitors of hospitals, and displaying patient-related information. Increasing adoption of digitized signs in the transportation industry in line with rising urbanization is expected to generate considerable revenue over the next few years. Digital signage is being installed at bus stands, railway stations, metro stations, and airports to display digitized posters, promotional content, and informative content. It is also being installed within cabs, buses, trains, and metros to advertise various products and services.

Location Insights

Based on location, the U.S. market for digital signage has been bifurcated into in-store and out-store. The in-store segment covers installation of digitized signs in retail shops, shopping malls and complexes, offices, banks, hotels, educational institutes, and healthcare centers, among others. The in-store segment dominated the market in terms of revenue in 2019 and is estimated to retain its dominance throughout the forecast period as retail stores are increasingly installing digital signage in their premises.

The out-store segment is projected to register a higher CAGR during the forecast period. The demand for out-store location is expected to grow over the coming years owing to rapid adoption of digital signage across the transportation, healthcare, and BFSI sectors and increasing development of stadiums and playgrounds in developing countries. Spiraling demand for promotional products on a large scale and new trends such as increasing number of shows and live concerts, election campaigns, and offers on products and services are likely to enhance the adoption of digital posters in open spaces, eventually boosting the implementation of out-store located displays.

Display Technology Insights

Based on display technology, the market for digital signage has been segmented into LCD, LED, and projection. The LCD segment dominated the market in 2019 and accounted for a share of more than 40.0%. LCD signage is widely adopted in the marketing and advertising industries, especially in digitized posters, as this technology has a lower manufacturing cost and higher ease of production. LCD is expected to be seen with much higher displays, and the transformation is likely to occur from sRGB to BT.2020, which consists of 4K and 8K resolution embedded displays.

The LED segment is projected to exhibit the highest growth over the forecast period. Brighter, flat-paneled, larger, and slimmer display technologies are attracting end users and viewers. The adoption rate of LED displays is estimated to rise over the forecast period as the technology continues to evolve and the demand for innovative OLED displays is high. However, high production cost, complicated manufacturing process, and shorter lifespan associated with LED displays act as restraints to segment growth.

Regional Insights

From a regional point of view, the market has been classified into Northeast, Southwest, West, Southeast, and Midwest. States such as California, New York, Florida, Illinois, and Texas are prominent shareholders in the overall market, driven by increasing government investments on infrastructure development and development of new manufacturing facilities for display products and hardware.

West U.S. dominated the overall market for digital signage in terms of revenue in 2019, fueled by the fact that this region is home to the highest number of manufacturers of electronic display products, systems, and hardware components and software developers. The Midwest region is projected to exhibit the highest CAGR over the forecast period. Digital signage sales are rising in Illinois, Ohio, Nebraska, and Minnesota, especially in industries such as transportation, hospitality, healthcare, and retail.

U.S. Digital Signage Market Share Insights

Some of the major companies operating in the market are NEC Display Solutions of America, Inc.; BrightSign LLC; Planar System Inc.; Cisco Systems, Inc.; Intel Corporation; Microsoft Corporation; Keywest Technology, Inc.; Scala, Inc.; Visix, Inc.; Panasonic Corporation of North America; and Hughes Network Systems LLC. Commonly adopted strategies by key players include improvised product development, enhanced software solutions, advanced display technologies, licensing of technologies, and enhanced aftersales support and service.

Report Scope

Attribute

Details

Base year for estimation

2019

Actual estimates/Historical data

2016 - 2018

Forecast period

2020 - 2027

Market representation

Revenue in USD Million and CAGR from 2020 to 2027

Regional scope

Northeast, Southeast, West, Midwest, and Southwest

Country scope

U.S.

State scope

New York, Maryland, Pennsylvania, Florida, North Carolina, California, Idaho, Nevada, Illinois, Ohio, Nebraska, Minnesota, Texas

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 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 country and state levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the U.S. digital signage market report based on component, hardware components, display type, display technology, display size, software, application, location, and region:

  • Component Outlook (Revenue, USD Million, 2016 - 2027)

    • Hardware

    • Software

    • Services

  • Hardware Components Outlook (Revenue, USD Million, 2016 - 2027)

    • Displays

    • Media Players & Extenders

    • Others (Mounting Devices & Components)

  • Display Type Outlook (Revenue, USD Million, 2016 - 2027)

    • Video Walls

    • Video Screens

    • Transparent LED Screens

    • Digital Posters

    • Kiosks

    • Others

  • Display Technology Outlook (Revenue, USD Million, 2016 - 2027)

    • LCD

    • LED

    • Projection

  • Display Size Outlook (Revenue, USD Million, 2016 - 2027)

    • Below 32 Inches

    • 32 to 52 Inches

    • More than 52 Inches

  • Software Outlook (Revenue, USD Million, 2016 - 2027)

    • Display Software

    • Audience Analytics & Engagement Software

  • Application Outlook (Revenue, USD Million, 2016 - 2027)

    • Retail

    • Hospitality

    • Entertainment

    • Stadiums & Playgrounds

    • Corporate

    • Banking

    • Healthcare

    • Education

    • Transportation

  • Location Outlook (Revenue, USD Million, 2016 - 2027)

    • In-store

    • Out-store

  • Regional Outlook (Revenue, USD Million, 2016 - 2027)

    • Northeast

      • New York

      • Maryland

      • Pennsylvania

    • Southeast

      • Florida

      • North Carolina

    • West

      • California

      • Idaho

      • Nevada

    • Midwest

      • Illinois

      • Ohio

      • Nebraska

      • Minnesota

    • Southwest

      • Texas

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