The global digital signage market is expected to achieve significant growth over the next five years driven by both marketing and technology factors. This includes the trend towards newer marketing solutions coupled with new technologies such as 4K screens, bigger displays and more high-definition (HD) content.
IHS Inc., for example, expects the overall revenue for the digital signage market to increase by 10 percent in 2015 and seven percent in 2016. This growth will be driven by the availability of larger panels, ultra-narrow bezel video wall displays, higher resolution, lower power consumption and a variety of content management software, said IHS. Another key driver is the lower total cost for digital signage, which continues to drop annually.
According to the IHS Digital Signage Industry Market Tracker, software revenue achieved its strongest overall growth in 2014, generating $431 million — an increase of 21 percent over the previous year. This was followed by media players and set-top boxes (STBs) with a 19 percent increase, and digital out-of-home media revenue at 11 percent.
“As the 4K ecosystem continues to mature, further revenue growth for media players, set-top boxes and PCs will be driven by the expansion of 4K digital signage solutions,” said Sanju Khatri, director of digital signage and professional displays for IHS Technology, in a statement. “An increase in the availability of 4K media players, along with decreased costs for entry into the space, will help propel strong growth this year and in 2016.”
Similarly, Frost & Sullivan analysts said “digital signage systems with higher resolution screens (4K), bigger displays (including video walls), and HD content, are becoming popular due to their ability to reach mass audiences and play engaging, targeted messages at the point of sale or a point of transit.”
“Digital signage has generated interest as an effective medium for both advertising, as well as superior shopper engagement,” explained Aravindh Vanchesan, Frost & Sullivan’s digital media program manager, in a statement. “Brands, marketers and retailers are actively exploring synergies between digital signage and cross-platform media tools such as mobile phones, tablets, kiosks and touchscreen displays, in order to rebrand stores and influence customer decisions.”
“The digital signage ecosystem is complex, involving display vendors, software companies, media player manufacturers, ad agencies, audio-visual integrators, and tech support services,” continued Vanchesan. “Hence, the emergence of affordable turnkey bundled solutions, as well as integrators that take charge of the entire deployment from concept to ongoing maintenance, will be vital to usher in the next wave of growth in the global market.”
Frost & Sullivan’s Analysis of the Global Digital Signage Systems Market finds the global market will reach $3.23 billion by 2020, up from $1.53 billion in 2014. This growth, in part, will be driven by the potential of omni-channel marketing, said Frost & Sullivan, “given that solely ad-supported networks are unable to sell advertisement spots and maintain the consistent flow of ad dollars.”