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Global digital signage market to top $20B by 2020

Growing demand from application areas such as retail and health care expected to drive the global market over the next six years, research firm says.

November 26, 2014

The global digital signage market should reach $20.03 billion by 2020, according to a new study by Grand View Research Inc.

Growing demand from application areas such as retail and health care is expected to drive the global market over the next six years, the company said in announcing the study. Creating and distributing content via digital signage serves as an effective marketing tool, which is expected to spur adoption in the corporate sector, the company said, and larger screen sizes such as those over 50-inch displays are expected to gain popularity over the forecast period.

Demand for digital displays with 4K technology also is on the rise to address growing image sharpness requirements to accommodate large displays. Software providers have been targeting the entry-level digital signage market by designing solutions compatible with Android OS. The emergence of IoT and increased adoption of cloud computing is expected to enable collection of vital operational data. Use of digital signage helps prevent paper wastage, and incorporation of LED backlit panels has resulted in considerable energy savings, which is expected to aid in market growth.

Further key findings from the study suggest:

• LCD dominated the global display market in 2013 and accounted for over 50 percent of the overall revenue in the same year. Lowering prices coupled with the advantages offered by this technology over alternatives such as plasma displays is expected to fuel the LCD market over the forecast period. LED backlit panels are expected to be increasingly incorporated in digital signage as they help achieve significant energy savings.
• Retail accounted for over 40 percent of the market in 2013 and is expected to remain the largest application segment over the next six years. The health care segment has significant growth potential as health care providers and hospitals have increasingly incorporated digital signage for numerous purposes such as sharing important registration information, conveying wellness tips for improving patients' health and guiding visitors through wayfinding functions.
• North America accounted for the largest market share of over 35 percent in 2013; growing demand across application areas is expected to favorably impact the regional market over the next six years. Factors including improved user experience, educational and government market development, decreases in display prices and infrastructure development are likely to spur Asia Pacific market growth.
• The industry has started showing signs of consolidation in the wake of a mini spate of mergers and acquisitions and joint ventures.

For the purpose of this study, Grand View Research said it segmented the global digital signage market on the basis of technology, application and region.