Traditional advertisement has taken a back seat to make way for novel technologies like interactive ads on mobile phones, websites, and digital billboards. Digital signage systems encompass digital devices that can display information or content.
The Digital Signage Market is predicted to reach revenues worth USD 20.1 billion by 2020, as per a report by Hexa Research. It was worth around USD 13.3 billion in 2013. The market will display 6.1% CAGR from 2014 to 2020. Factors like improved user experience, decreasing prices of display panels, and cost-effective promotion should positively impact the market.
The digital signage market is divided on the basis of technologies, applications, and geographies. Technologies like LCD, LED, and front projection are expected to propel the market. LCD had lion’s share in 2013, and accounted for more than 50% of the global revenues that year. LED will be adopted in the near future for saving energy.
The market finds applications in banking, healthcare, education, retail, and transportation. Companies utilize point-of-sales (POS), point of transit (POT), point of purchase, and infotainment to entice consumers. Retail had more than 40% share in 2013 and would dominate the digital signage market over the next six years.
The sector of healthcare has utilized digital signage to provide registration information on cell phones, tips on better health, and guidance to visitors. Geographies wise, North America captured more than 35% of the total demand in 2013. It will face increased demand from various sectors owing to advanced infrastructure and technology.
Asia Pacific has the highest potential on account of decreasing prices of LCDs and favorable regional conditions. The worldwide digital signage market includes major players in Nippon Telegraph and Telephone (NTT) Corporation, Microsoft Corporation, Cisco Systems Inc., and LG Electronics. It is expanding swiftly due to product developments and technological advancements by its players.