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on May 10, 2024
The digital signage market involves display technologies and solutions that deliver visual content such as digital images, video, streaming media, web content and other forms of multimedia content. These visual displays make use of LCD, LED and projection technologies to impart information for various applications such as retail, hospitality, education, corporate, stadiums and healthcare among others. The advantages of digital signage over traditional signage includes interactive content, centralized content management, real-time content updating and versatility. With growing retail industry and expanding corporate sector across regions, digital signage is increasingly being adopted for branding, advertising, wayfinding and internal communications. The Global digital signage market is estimated to be valued at US$ 30.75 Bn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the digital signage market are Samsung Electronics, Daktronics, Exceptional 3D, LG Electronics, Panasonic Corporation, Sony Corporation, Leyard Optoelectronic Co., Ltd., Scala, E Ink Holdings Inc., Deepsky Corporation Ltd., Intel Corporation, and Microsoft Corporation. These players are focusing on partnerships, new launches and geographical expansions to strengthen their positions in the market.
The key opportunities in the digital signage market include increasing adoption in developing economies owing to growing infrastructure, adoption across new verticals like transportation and healthcare, and integration of advanced technologies like artificial intelligence and internet of things.
Technological advancements are also fueling market growth. Advancements like higher resolution displays, interactive digital signage, android-powered signage, programmable digital signage and flexible displays are expanding applications of digital signage. Transition to energy efficient LED displays from traditional LCD is another opportunity.
Market Drivers
One of the key drivers for the digital signage market is growth of retail industry globally. Retailers are widely adopting digital signage for branding, promotions, wayfinding, timely product updates and interactive experiences.Secondly, growing construction of malls, airports and other commercial buildings in developing nations is propelling installation of digital signage. Thirdly, reduced hardware and content management costs due to technological advancements is encouraging adoption across small and medium enterprises.
Current challenges in the Digital Signage market:
The digital signage market is facing challenges related to integration of technologies and managing content effectively. Screens are getting more advanced with features like touch interactivity but developing and programming interactive content is a complex task. It requires expertise in UX design, software development and multimedia production. Managing content across large networks of screens is also challenging due to the diversity of devices, platforms and locations. Deploying updates cohesively and tracking metrics from every screen requires robust content management systems and tools. Change management within organizations is another hurdle as digital transitions require changing existing habits and workflows.
SWOT ANALYSIS
Strength: Advanced features like touchscreens allow innovative content ideas. Ability to customize content location-wise and deliver messages precisely.
Weakness: Developing rich interactive content requires diversified expertise and budget. Complex networks are difficult to manage centrally and require ongoing maintenance.
Opportunity: Growing demand from various sectors like retail, education, transportation exploration of new use cases. Integration of other interactive technologies like AI, VR/AR can further enhance user experience.
Threats: Fragmented standards lead to issues of compatibility. Stiff competition can impact pricing and technological upgrades. Dependency on reliable network connection and power supply.
Geographical regions with market concentration:
North America has the largest share in the digital signage market currently. This is attributed to high adoption across commercial sectors like retail, healthcare and hospitality for advertising and information dissemination. The United States accounts for the majority share in the region.
Fastest growing regional market:
The Asia-pacific region is expected to grow at the fastest pace during the forecast period. Countries like China, India and Japan are major economies rapidly embracing digitalization. Significant infrastructure developments and smart city initiatives and growing tourism and retail industries offer huge potential for digital signage networks.
Posted in: Technology