U.S. Digital Signage Market Size, Share, & Trend 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, 2023 - 2030

Report Overview

The U.S. digital signage market size was valued at USD 5,638.9 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 6.5% from 2023 to 2030. 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.

In addition, surging demand for providing concise and comprehensive information about products to consumers is boosting the implementation of digitized signs. 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 which is projected to boost the market over 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 gain 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 2021 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 have been poised for 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. In addition, the lack of research and awareness about the benefits of digitized signs is also another factor that is restraining the smooth growth of the market.

Covid Impact

The COVID-19 pandemic has had a significant impact on the digital signage market. The pandemic led to a surge in demand for digital signage solutions as businesses looked for ways to communicate important information and maintain social distancing in public spaces Remote work has become more widespread due to the pandemic, leading to an increased demand for digital signage solutions for virtual meetings and remote collaboration. The pandemic has changed consumer behavior, with more people opting for contactless transactions and seeking out digital experiences. Digital signage has become a way for businesses to adapt to these changes. The pandemic has caused disruptions in global supply chains, affecting the production and delivery of digital signage solutions. Overall, the COVID-19 pandemic has accelerated the growth of the digital signage market, as businesses look for new ways to communicate and adapt to the changing landscape.

Component Insights

In terms of revenue, the hardware segment accounted for largest market share of around 61.0% in 2022. It is anticipated to maintain its position through 2030 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 CAGR of over 7.8% during the forecast period. The demand for software components 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, like offering services associated with digitized signs hardly generate any significant revenues. Besides, there are a number of 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 of over 71% in 2022. It is expected to retain its position until 2030 owing to the increasing innovations in display technologies, which are prompting advertisers to 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 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 growth rate 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 segment.

Display Type Insights

On the basis of display type, video walls held a share of approximately 22% of the displays market in 2022. 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. They are poised to maintain their position until 2030. Kiosks emerged as one of the largest segments in 2021, 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.

The transparent LED screens segment is anticipated to exhibit the highest CAGR during the forecast period owing to the attractive design 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 2022 with a market share of over 39% 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. 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 2022 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 in order to share it across multiple screens and locations.

Audience analytics & engagement software is poised to experience tremendous growth during the forecast period. It is expected to register a CAGR of over 8.9% over the forecast period. The segment is expected to register a CAGR of over 7.7% 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 2022 and constituted a market share of around 21% 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 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 in order 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 2022 contributing a market share of more than 60% in 2022. 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. 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 coming years owing to rapid adoption across the transportation sector, healthcare, and BFSI 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, 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, LED segment dominated the market in 2022 and accounted for the share of more than 49%. 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.

The LED segment is projected to exhibit the highest CAGR 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 lifespans associated with LED displays act as restraining factors for the growth of the segment.

Regional Insights

From a geographical front, in 2022, the western U.S. region held prominent share of around 33% in the overall country’s market owing to the presence of a large number of manufacturers of electronic display products, systems, 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 the development of new manufacturing facilities for display products and hardware. The West region dominated the market in terms of revenue in 2021.

The Midwest region is projected to witness 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 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. Some of the prominent players in the U.S. display signage market include:

• 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

Segments Covered in the Report

This report forecasts revenue growth at country and state levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. 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, 2017 - 2030)

  • Hardware

  • Software

  • Services

• Hardware Components Outlook (Revenue, USD Million, 2017 - 2030)

  • Displays

  • Media Players & Extenders

  • Others (Mounting Devices & Components)

• Display Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Video Walll

  • Video Screens

  • Transparent LED Screens

  • Digital Posters

  • Kiosks

  • Others

• Display Technology Outlook (Revenue, USD Million, 2017 - 2030)

  • LCD

  • LED

  • Projection

• Display Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Below 32 Inches

  • 32 to 52 Inches

  • More than 52 Inches

• Software Outlook (Revenue, USD Million, 2017 - 2030)

  • Display Software

  • Audience Analytics & Engagement Software

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Retail

  • Hospitality

  • Entertainment

  • Stadiums & Playground

  • Corporate

  • Banking

  • Healthcare

  • Education

  • Transportation

• Location Outlook (Revenue, USD Million, 2017 - 2030)        

  •  In-store

  • Out-store

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • Northeast

    • New York

    • Maryland

    • Pennsylvania

  • Southeast

    • Florida

    • North Carolina

  • West

    • California

    • Idaho

    • Nevada

  • Midwest

    • Illinois

    • Ohio

    • Nebraska

    • Minnesota

  • Southwest

    • Texas