GVR Report cover 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 Display Size, By Software, By Application, By Location, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Oct, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-463-5
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 110

Report Overview

The U.S. digital signage market size was valued at USD 5.0 billion in 2020. It is expected to expand at a compound annual growth rate (CAGR) of 6.0% from 2021 to 2028. 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-user verticals. Major end-user sectors include retail, hospitality, healthcare, education, transportation, corporate, and banking. The surging demand for providing concise and comprehensive information about products to consumers is boosting the implementation of digitized signs.

U.S. digital signage market size, by component, 2018 - 2028 (USD Billion)

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 one of the significant drivers is projected to boost the market in the coming seven years.

The advent of innovative displays, such as liquid crystal display (LCD), LED, OLED, and Super AMOLED display, is allowing advertisers to improve the 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. Besides, information is provided with the help of digitized display technologies, which include pictures and motion in a digitized format to attract the attention of customers. High investments are being made by marketers for the creation of new content to attract customers.

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 owing to improved influence on customers, and cost-effective advertising, are encouraging their adoption in the country. The 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. In the U.S., the West American region held the largest share in 2020 owing to the presence of a well-developed and highly penetrated advertising segment that uses innovative digitized signs to attract an audience.

However, high initial investments associated with digitized signs are poised to drive the adoption of digital signage. Adoption of digitized signs by small- and mid-sized enterprises is particularly limited owing to the initial investment involved in obtaining supportive software, hardware, and technology. Also, the lack of research and awareness about the benefits of digitized signs is another factor that is restraining the smooth growth of the U.S. digital signage market.

Component Insights

In terms of revenue, the hardware segment accounted for the largest market share of around 62% in 2020. It is anticipated to maintain its position through 2028 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 over 7.3% during the forecast period. The demand for the software segment owing to the technological advancement, which has led to the innovative approaches by the manufacturers such as audience analytics and audience engagement tools, is projected to grow notably over the estimated duration.

The services segment is also expected to grow, albeit, at a rate lower than that of the hardware segment and the software segment, as offering services associated with digitized signs hardly generate any significant revenues. Besides, there are many service providers ready to offer customized services at lower prices. Nevertheless, the demand for services is expected to grow considerably over the forecast period, as the installed signs would require regular servicing and maintenance.

Hardware Components Insights

The displays segment accounted for the leading revenue share among all hardware components with a market size of USD 2.2 billion in 2020. It is expected to retain its position until 2028 owing to the increasing innovations in display technologies, which are prompting advertisers to align with the latest trend. Besides, 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 the 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 than unclear and pixelated displays.

The media players segment is projected to exhibit the highest CAGR over the forecast period. They 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. 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

Based on display type, video walls held a share of approximately 23% of the display market in 2020. The increasing adoption of video walls owing to their ability to offer uniform brightness and high-quality pixel density for every picture is expected to drive the segment growth. They are poised to maintain their position until 2028. While kiosks emerged as the second-largest segment in 2020, 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.

Transparent LED screens are anticipated to exhibit the highest CAGR during the forecast period owing to the attractive designing and the spatial constraints associated with the installation of digital signage screens. Furthermore, the transparent LED screens are one of the most advanced technologies of digital displays which are impacting the adoption of digital signage over the estimated duration. 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 Size Insights

The below 32 inches segment was at the forefront in 2020 with market size of USD 0.9 billion as a 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. They are mostly used across the closed premises, where ample space is available as compared to the congested showrooms and shops. 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 displays of sizes larger than 52 inches to exhibit digitized posters.

Software Insights

Display software was the more preferred type in 2020 and held a software market share of more than 62%, 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 the cloud 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 8.4% over the forecast period. The growth of the segment 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

The retail sector spearheaded the market in 2020 and constituted a market share of around 23% 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 offers 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 signs are used for managing inventory and staff and notifying staff and visitors of hospitals. It is also used in displaying patient-related information and flashing indulging information for patients and visitors to calm down their anxiety, particularly during rush hours. Furthermore, the increasing adoption of digitized signs in the transportation industry in line with rising urbanization is expected to generate considerable revenue over the next seven years. 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.

Location Insights

In terms of revenue, the in-store segment dominated the market in 2020 registering a market size of USD 3.0 billion. The in-store segment covers the installation of digitized signs in retail shops, shopping malls and complexes, offices, banks, hotels, educational institutes, and healthcare centers, among others. 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 locations is expected to grow over the forecast period owing to rapid adoption across the transportation sector, healthcare, and BFSI and the 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, 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 LCD segment dominated the market in 2020 and accounted for a share of more than 40%. It is widely adopted in the marketing and advertising industries. The factors responsible for the extensive adoption of the LCD technology in digitized posters are lower manufacturing costs and ease of production of LCDs. 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.

U.S. digital signage market share, by display technology, 2020 (%)

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 costs, complicated manufacturing processes, and shorter lifespan associated with LED displays act as restraining factors for the growth of the segment.

Regional Insights

From a geographical front, in 2020, the western U.S. region held a prominent share of around 35% in the overall country’s market owing to the presence of a large number of manufacturers of electronic display products, systems, and hardware components and software developers based in the West region. The growth in different states of the U.S. is attributable to increasing government investments in infrastructure development and development of new manufacturing facilities for display products and hardware. The West region dominated the market in terms of revenue in 2020.

The Midwest region is projected to expand at the highest CAGR over the forecast period. Digital signage sales are rising in Illinois, Ohio, Nebraska, and Minnesota. The increasing adoption of digital signage from the transportation, hospitality, healthcare, and retail industry is positively impacting the market growth in the region. Therefore, the region is likely to grow in the coming seven years.

Key Companies & Market Share Insights

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. Introduction of innovative solutions such as smart retail, smart signage solutions, voice-controlled displays among others are anticipated to propel the digital signage market over the forecast period. For instance, Intel Corporation introduced Open Pluggable Specification (OPS) that has helped standardize the design of digitized marketing.

The key market players, thorough 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. For instance, Samsung Electronics is focusing on developing digital signage solutions to various new product categories, such as infrastructure, smart retail, and institutional applications. The company has developed an all-in-one software solution to address all of the customers' needs, such as interactive e-board presentations, content scheduling, and creation, in-house hotel media management, among others. Some of the prominent players operating in the U.S. digital signage 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

  • Hughes Network Systems LLC

U.S. Digital Signage Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 5.3 billion

Revenue forecast in 2028

USD 8.0 billion

Growth Rate

CAGR of 6.0% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

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

Segments covered

Component, hardware components, display type, display technology, display size, software, location, application, region

Regional scope

Northeast U.S.; Southeast U.S.; West U.S.; Midwest U.S.; Southwest U.S.

States scope

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

Key companies profiled

Planar Systems, Inc.; Exceptional 3D, Inc.; Christie Digital Systems USA, Inc.; Broadsign International LLC; Fabcon Inc.; BrigthSign, LLC; Keywest Technology, Inc.; Cisco Systems, Inc.; Intel Corporation; Microsoft Corporation; NEC Display Solutions of America, Inc.; Samsung Electronics; SCALA, Inc.; Morrow Technologies Corporation; Optconnect, LLC

Customization scope

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Segments Covered in the Report

This report forecasts revenue growth at country and state levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For 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, 2017 - 2028)

    • Hardware

    • Software

    • Services

  • Hardware Components Outlook (Revenue, USD Million, 2017 - 2028)

    • Displays

    • Media Players & Extenders

    • Others (Mounting Devices & Components)

  • Display Type Outlook (Revenue, USD Million, 2017 - 2028)

    • Video Walls

    • Video Screens

    • Transparent LED Screens

    • Digital Posters

    • Kiosks

    • Others

  • Display Technology Outlook (Revenue, USD Million, 2017 - 2028)

    • LCD

    • LED

    • Projection

  • Display Size Outlook (Revenue, USD Million, 2017 - 2028)

    • Below 32 Inches

    • 32 to 52 Inches

    • More than 52 Inches

  • Software Outlook (Revenue, USD Million, 2017 - 2028)

    • Display Software

    • Audience Analytics & Engagement Software

  • Application Outlook (Revenue, USD Million, 2017 - 2028)

    • Retail

    • Hospitality

    • Entertainment

    • Stadiums & Playgrounds

    • Corporate

    • Banking

    • Healthcare

    • Education

    • Transportation

  • Location Outlook (Revenue, USD Million, 2017 - 2028)

    • In-store

    • Out-store

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

    • Northeast 

      • New York

      • Maryland

      • Pennsylvania

    • Southeast

      • Florida

      • North Carolina

    • West

      • California

      • Idaho

      • Nevada

    • Midwest

      • Illinois

      • Ohio

      • Nebraska

      • Minnesota

    • Southwest

      • Texas

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