The digital signage market size was more than $14.9 billion for 2015 and is expected to record a CAGR of 5.3 percent during the forecast period. Breakthroughs in methods of display-panel production have led to a considerable decline in cost and are predicted to positively affect digital signage market trends.
Today, software traders are increasingly concentrating on entry-level items. Flip-chip technique implementation leading to the good dissipation of heat, reduced LED failure and the large availability of light angles is projected to minimize digital signage industry costs.
However, the lack of standards not guaranteeing interoperability between these two kinds of devices is one of the key threats to industry growth. In addition to this, producing innovative solutions with the assistance of commercial media players and displays is also a key challenge to industry expansion due to interface compatibility.
There has been a significant rise in the growth of displays embedded with 4K technology to address the requirement of sharp displays on big screens produced by manufacturers. Content management systems also form a main part of the digital signage system and permit users to control what is presented on their screens. Content creators are those advertising or marketing firms that develop contents like pictures, texts, videos and graphics to create an effect on the targeted audience.
Developing and giving out contents through the digital signage technique is speedy and inexpensive as compared to print media. Furthermore, many public sector firms are turning to digital signage technology as it helps the firms to function and use tax money effectively.
Digital signage systems can prove beneficial for public sector firms and boost their businesses by improving internal communications, helping people with their usual needs, rapidly sharing emergency notifications, reaching a global audience and ensuring that each user and customer receives the message on time.
Outdoor digital signage offers many benefits for firms that want to reach a targeted audience and improve user experience. It is more interactive and accessible compared to conventional static signage and offers a more engaging experience to its users. Components for such installations can include web cameras and VOIP phone for calling listing businesses and printers.
Digital signage is also used in educational institutions like schools to minimize clutter and confusion, alert staff and students to emergencies, share information and increase interaction. Today, there is a seamless communication between mobile instruments and commercial digital signage as new emerging technology is bridging the gap between them and thus engaging users.
The industry is segmented into retail application and health care application. Retail application accounted for more than 39.9 percent of industry share during 2015 and is expected to lead the industry in future.
The health care segment displays positive regulatory conditions for industry growth and is predicted to record 7 percent CAGR during the forecast period. Strict rules in pharmaceutical marketing has led to the elimination of old and conventional business practices like distributing of notepads and branded pens to medical practitioners. This has boosted the use of 3D digital signage technology as an alternative tool of marketing.
Furthermore, this technique also helps in minimizing the perceived patient waiting period by removing their anxiety through entertainment activities. Additionally, 3D technology helps in producing revenues through appropriate advertising sale and sales promotion.
Display technology trends
Liquid crystal display technology, or LCD, accounted for more than 54 percent of the total share during 2015 but is expected to expand at a moderate rate during the forecast timeframe. Large screens such as those larger than 50 inches are anticipated to witness greater acceptance during the forecast timeframe. Small displays are anticipated to lose their industry share due to diminishing LCD prices and the growing digital signage market size.
Light-emitting diode displays, or LED, are predicted to record a CAGR of more than 6 percent in the coming years.
The U.S. digital signage market was evaluated at $4.3 billion for 2015. Rising trends and the increasing demand for digital signage across various applications is predicted to positively affect the growth of the industry.
An enhanced user experience and favorable application overview are the key factors promoting the industry growth in APAC. Growing demand for digital signage in the transportation segment is predicted to register a CAGR of about 7 percent during the forecast period in the region.
Major industry participants include Cisco Systems Inc, Samsung Electronics, LG Electronics, Scala, Adflow Networks, KeyWest Technology Inc, Microsoft Corporation, Panasonic Corporation, Intel Corporation and Winmate Communication Inc.
/ Ronak Bora is the senior executive for SEO for Global Market Insights Inc. He holds a B.E. degree from Savitribai Phule Pune University in India. He spent nearly four years writing news, blogs, press releases, articles and social media feeds on a variety of topics. He was also a content writer for a market research firm.