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 that leads to good dissipation of heat, reduced LED failure and large availability of light angles is projected to minimize digital signage industry costs.
However, the lack of standards does not guarantee interoperability between these two kinds of devices, and that is one of the key threats to industry growth. In addition to this, producing innovative solutions with assistance from commercial media players and displays is also a key challenge to industry expansion due to interface compatibility.
Recently, there has been a significant increase in displays embedded with 4K technology to address the requirement of sharp displays on big screens produced by manufacturers. Content management systems (CMS) also form a large 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 the utmost effect on the targeted audience.
Developing and distributing content through digital signage techniques 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, sharing emergency information rapidly, reaching global audiences and ensuring that each user and customer gets messages on time.
Outdoor digital signage offers many benefits for firms who want to reach their targeted audience and improve user experience. It is more interactive and accessible as compared to conventional static signage and offers more engaging experiences to its users. Components for such installations include web cameras and VOIP phones for calling and listing businesses and printers.
Digital signage is also used in educational institutions like schools to minimize clutter and confusion, alert staff and students, share information and increase interaction. Today, there is seamless communication between mobile instruments and commercial digital signage as emerging technology bridges the gap between them and engages users.
The industry is basically segmented into retail applications and healthcare applications. Retail applications accounted for greater than 39.9 percent of industry share during 2015 and is expected to lead the industry in the future.
The Healthcare 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 have led to the elimination of old and conventional business practices like distribution of notepads and branded pens for medical practitioners. This has boosted the use of 3D digital signage technology as an alternative tool of marketing. Furthermore, this technique has also helped in minimizing the perceived patient waiting period by removing their anxiety through entertainment activities. In addition to this, 3D technology helps to produce revenues through appropriate advertising and sales promotion.
Display Technology Trends
LCD (Liquid Crystal Display) technology accounted for greater than 54 percent of the total share during 2015 but is expected to expand at a moderate rate during the forecast timeframe. Big screens like those larger than 50-inch displays are anticipated to gain wider acceptance during the forecast timeframe. Small sized displays are anticipated to lose their industry share because of diminishing LCD prices and growing digital signage market size.
LED (Light Emitting Diode) displays are predicted to record 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 increasing demand for digital signage across various applications is predicted to positively affect the growth of industry in the region.
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 sector is predicted to register a CAGR of about 7 percent during the forecast period in the region.
Samsung, LG, AUO, Panasonic, and Innolux accounted for significant LCD panel market share in 2015. Scala was one of the digital signage market leaders in terms of software in the same year.
Specifically designed hardware display panels are expected to be rivaled by consumer televisions, which are priced relatively lower. On-vehicle is poised to be an expanding application area, wherein public transit vehicles are equipped with display panels. Demand for digital displays equipped with 4K resolution is on the rise as a result of expansion in screen sizes which require sharper images.
Buyers are cost sensitive and analyze the expected Return on investment (ROI) before deciding to set up a network. New entrants, typically small software companies, need to be educated regarding distribution procedures, such as establishing tie-ups with distributors, making a choice between drop-shipping and warehousing, and forming alliances with network providers.
By Ronak Bora | Senior Executive – SEO | Global Market Insights Inc.
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