Global Digital Signage Market: A Brief Overview

Market value and expected growth

According to a report by MarketsandMarkets, the global digital signage market was valued at USD 19.44 billion in 2020 and is expected to reach USD 32.84 billion by 2026, growing by a compound annual growth rate of 8.18% during the projection. The need for more efficient product and service advertising in the digital realm is largely responsible for the expansion of this sector.

In addition, 4K digital sign displays with integrated software, such as, for example, the LOOK DS service and media players, are projected to see increased demand as they provide consumers with a cost-effective Ultra HD digital signage solution. Novel goods like household monitoring devices, leak detection systems, and sophisticated monetary technologies like forex cards that need informative and succinct advertising content are among the factors projected to boost product demand.

Market players

The digital signage market is highly competitive and involves a wide range of hardware manufacturers, software vendors, AV distributors and AV system integrators. Some of the key players in the market include LG Electronics, Samsung Electronics, NEC Display Solutions, Sharp Corporation, Sony Corporation and Panasonic Corporation. These companies continuously focus on improving their product offerings to cater to the growing demand for digital signage across various industries.

Market shares by regions

Geographically, it will be correct to distinguish the following regions: North America, Europe, Asia Pacific (APAC), and the Rest of the World (ROW). In 2022, North America's portion of total income soared over 34%, making it the most lucrative region. Europe came in second. Rising demand for signs in retail establishments and the prevalence of specialized vendors contribute to the high market share. A major expansion in the United Kingdom, Germany, and the U.S. growth is expected because businesses are investing more time and money into research and development and the government is encouraging the use of digital signs in the workplace to ensure a constant flow of information. Over the projection time frame, the Asia-Pacific region is anticipated to develop into the fastest-growing regional market.

Forecasts indicate that Asia Pacific will outpace all other regions throughout the anticipated time frame. The advantages of digital signs are becoming more widely known, contributing to the expansion. Many businesses in India and China are starting to use it in places like malls, workplaces, hospitals and hotels, so they expect a lot of growth. Mall and multiplex attendance in developing Asia and the Pacific economies has increased due to rising per capita income. Businesses use this medium for advertising their products and services on massive screens, allowing them to reach and engage with their ideal customers effectively. Over the projection period, the hospitality sector will likely boost its use of digital signage as the number of retail malls and multiplexes continues to grow.

The ROW is expected to witness significant growth in the digital signage market during the forecast period, primarily driven by the increasing adoption of digital signage in various sectors, such as retail and transportation.

Market shares by industries

Digital signage is used in various industries, including retail, education, healthcare, hospitality and transportation. In 2020, the retail sector accounted for the largest share of the market (about 50%), followed by transportation, education and healthcare. The growing adoption of digital signage in the retail industry is primarily driven by the need to enhance the customer experience and improve brand awareness.

Key growth factors

The digital signage market is expected to grow significantly over the next few years, primarily driven by the following factors:

• Rising demand for digital signage in the retail sector: With the growing competition in the retail industry, businesses are increasingly using digital signage to enhance the customer experience and improve brand awareness.
• Advancements in display technologies: The continuous advancements in display technologies, such as 4K and OLED, are driving the adoption of digital signage across various industries.
• Growing demand for interactive digital signage: Interactive digital signage is becoming increasingly popular in various sectors, such as healthcare, education and hospitality, as it provides a more engaging and immersive experience for users.
• Increasing adoption of digital signage in transportation: The use of digital signage in transportation, including airports and train stations, is growing as it helps provide passengers with real-time information and improves the overall travel experience.

Future of the Market

The future of the digital signage market looks promising as businesses and organizations continue to leverage the benefits of digital signage to communicate their messages to a larger audience. With the growing adoption of interactive and personalized digital signage, businesses can engage with their customers more meaningfully, leading to increased brand loyalty and customer satisfaction.

Moreover, integrating artificial intelligence and machine learning in digital signage is expected to revolutionize the market, providing businesses with real-time analytics and insights to understand their customers' needs and preferences better.

The digital signage market is poised for significant growth over the next few years, with the increasing demand for digital signage in various industries and the continuous advancements in display technologies. As businesses continue to focus on enhancing the customer experience, the adoption of digital signage is expected to increase, leading to a more immersive and engaging experience for users.