U.S. Digital Signage Market Report

U.S. Digital Signage Market Analysis Report By Component, By Hardware Components, By Display Type, By Technology, By Size, By Software, By Application, By Location, And Segment Forecasts, 2018 - 2025

  • Published Date: Oct, 2018
  • Base Year for Estimate: 2017
  • Report ID: GVR-2-68038-463-5
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 100

Industry Insights

The U.S. digital signage market size was valued at USD 4.18 billion in 2017. It is expected to post a CAGR exceeding 6.5% during the forecast period. 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 & 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-user verticals. Major end-user sectors include retail, hospitality, healthcare, education, transportation, corporate, and banking.

U.S. Digital Signage market

In addition, surging demand for providing concise and comprehensive information about products to consumers 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 digital signage.

The 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 digitized signs, such as better audience engagement, reduced paper consumption, increased sales due to improved influence on customers, and cost-effective advertising, are encouraging their adoption in the country.

Information is provided with the help of digitized display technologies, which include pictures and motion in a digitized format to attract attention of customers. Besides, high investments are being made by marketers for creation of new content to attract customers.

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 digitized poster providers to provide content that is compatible with all types of displays.

However, high initial investments associated with digitized signs are poised the adoption of digital signage. Adoption of digitized signs by small- and mid-sized enterprises is particularly limited owing to initial investment involved in obtaining supportive software, hardware, and technology.

Component Insights

Based on component, the market has been segmented into hardware, software, and services. The hardware segment dominated the market in 2017. It is anticipated to maintain its position through 2025 as hardware plays a major role in displaying content and is hence of paramount importance. On the other hand, software components are estimated to exhibit the highest CAGR of 7.8% during the forecast period.

The services segment is projected to register noteworthy growth during the same period. The growth of the segment can be attributed to rise in the number of service providers ready to offer customized services at lower prices. Moreover, installed signs often require regular servicing and maintenance.

Hardware Components Insights

Hardware components can be further divided into displays, media players & extenders, and others, which include mounting devices & components. The displays segment accounted for the leading revenue share among all hardware components in 2017. The segment is expected to retain its position until 2025, thanks to increasing innovations in display technologies, which are prompting advertisers align with the latest trend. In addition, digitized displays are being extensively used on public transport and places.

Displays happen to be of significant importance for signs, as displays are the first component that target audience face 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 designed to support informative content on digitized displays 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 happens to be a one-time task. Besides, media players are easy to maintain. Rising demand for video walls and interactive digitized signs in the hospitality and retail industries is likely to drive the media player & extenders segment.

Display Type Insights

On the basis of display type, the segments reviewed in the report are video walls, video screens, transparent LED screens, digital posters, kiosks, and others. Video walls were the dominant segment in 2017. They are poised to maintain their position until 2025.

While kiosks emerged as the second largest segment in 2017, 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 & theaters, auditoriums, bus & metro stations, airports, and institutes, among others.

Transparent LED screens are anticipated to exhibit the highest CAGR during the forecast period. Transparent LED screens offer a transparency level of over 80.0% along with an enhanced and high resolution. Moreover, their energy-efficient operations can reduce energy consumption and help advertisers in cutting operational costs.

Display Technology Insights

Display technologies covered in the study are LCD, LED, and projection. LCDs are widely adopted in marketing and advertising industries and they represented the largest revenue share in 2017. Factors responsible for extensive adoption of the technology in digitized posters are lower manufacturing cost and ease of production of LCDs.

U.S. Digital Signage market

Brighter, flat-paneled, larger, and slimmer display technologies are attracting end-users and viewers. 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 a restraining factor for the growth of the segment.

Display Size Insights

Based on display size, the segments reviewed are below 32 inches, 32 to 52 inches, and more than 52 inches. The below 32 inches segment was at the forefront in 2017 as signage of this size are preferred the most by incumbents of the retail, corporate, and BFSI industries.

Smaller displays are ideal where places are confined and 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 digitized 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 larger audience. Incumbents of the advertising and transportation industries are particularly procuring displays of sizes larger than 52 inches to exhibit digitized posters.

Software Insights

The software segment has been further classified into display software and audience analytics & engagement software. Display software was the more preferred type in 2017, owing to extensive use of various display software to create and manage content supposed 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 the content on cloud in order to share it across multiple screens and locations.

Audience analytics & engagement software is poised to experience tremendous growth during the forecast period. The growth of the segment can be attributed to increasing focus on competitive intelligence, providing enhanced customer engagement & viewer experience, and analyzing viewer statistics through gathering information.

Application Insights

Based on application, the U.S. digital signage market has been further segmented into retail, hospitality, entertainment, stadiums & playgrounds, corporate, banking, healthcare, education, and transportation. The retail sector spearheaded the market in 2017 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 banking industry is also emerging as one of the prominent end users as digital signage are being increasingly rolled out in ATMs, banks, and e-banking centers. The segment is anticipated to command a sizeable share in the market throughout the forecast period.

Adoption of digitized signs is increasing in the transportation industry in line with rising urbanization. Digital signage is being installed at bus stands, railway stations, metro stations, and airports to host digitized posters, promotional content, and informative content. It is also being installed within cabs, buses, railways, and metros to advertise various products and services.

In the healthcare industry, it is being used for managing inventory and staff, notifying staff and visitors of hospitals, displaying patient-related information, and flashing indulging information for patients and visitors in order to calm down their anxiety, particularly during rush hours.

Location Insights

Based on location, the market has been bifurcated into in-store and out-store. The in-store segment covers installation of digitized signs in retail shops, shopping malls & complexes, offices, banks, hotels, educational institutes, and healthcare centers, among others.

The in-store segment dominated the market in terms of revenue in 2017. It is estimated to remain dominant 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 same period. The demand for out-store location is expected to grow over the coming years owing to rapid adoption across the transportation sector, healthcare, and BFSI and increasing development of stadiums & playgrounds in developing countries. Spiraling demand for promotional products on a large scale and new trends such as increasing number of shows & live concerts, election campaigns, 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.

Regional Insights

From a geographical front, the market has been further classified into Northeast, Southwest, West, Southeast, and Midwest. West and Midwest dominated the market in terms of revenue in 2017. Number of manufacturers of electronic display products, systems, and hardware components and software developers based in the West region is the highest.

States, such as California, New York, Florida, Illinois, and Texas, are prominent shareholders in the overall country’s market. The growth is attributable to increasing government investments on infrastructure development and development of new manufacturing facilities for display products and hardware.

Midwest is projected to progress at the highest CAGR during the forecast period. Digital signage sales are rising in Illinois, Ohio, Nebraska, and Minnesota, as the transportation, hospitality, healthcare, and retail industries are increasingly adopting digital signage.

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

2017

Actual estimates/Historic data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Revenue in USD Million and CAGR from 2018 to 2025

Country scope

U.S.

Regional scope

Northeast, Southeast, West, Midwest, and Southwest

State scope

New York, Maryland, Pennsylvania, Florida, North Carolina, California, Idaho, Nevada, Illinois, Ohio, Nebraska, Minnesota, and 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 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 country & state levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. 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, 2014 - 2025)

    • Hardware

    • Software

    • Services

  • Hardware Components Outlook (Revenue, USD Million, 2014 - 2025)

    • Displays

    • Media Players & Extenders

    • Others (Mounting Devices & Components)

  • Display Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Video Walls

    • Video Screens

    • Transparent LED Screens

    • Digital Posters

    • Kiosks

    • Others

  • Display Technology Outlook (Revenue, USD Million, 2014 - 2025)

    • LCD

    • LED

    • Projection

  • Display Size Outlook (Revenue, USD Million, 2014 - 2025)

    • Below 32 Inches

    • 32 to 52 Inches

    • More than 52 Inches

  • Software Outlook (Revenue, USD Million, 2014 - 2025)

    • Display Software

    • Audience Analytics & Engagement Software

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Retail

    • Hospitality

    • Entertainment

    • Stadiums & Playgrounds

    • Corporate

    • Banking

    • Healthcare

    • Education

    • Transportation
  • Location Outlook (Revenue, USD Million, 2014 - 2025)

    • In-store

    • Out-store

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • Northeast

      • New York

      • Maryland

      • Pennsylvania

    • Southeast

      • Florida

      • North Carolina

    • West

      • California

      • Idaho

      • Nevada

    • Midwest

      • Illinois

      • Ohio

      • Nebraska

      • Minnesota

    • Southwest

      • Texas

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