Digital Signage Market to Grow by USD 9.86 Billion (2024-2028), Driven by Retail Expansion, AI's Role in Market Transformation - Technavio Report

NEW YORK, Aug. 27, 2024 /PRNewswire/ -- Report with the AI impact on market trends- The global digital signage market size is estimated to grow by USD 9.85 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 9.95% during the forecast period. High growth of retail space is driving market growth, with a trend towards introduction of soc technology. However, growing e-commerce market poses a challenge. Key market players include 3M Co., AT and T Inc., AUO Corp., BrightSign LLC, Cayin Technology Co. Ltd., Cisco Systems Inc., Daktronics Inc., Hon Hai Precision Industry Co. Ltd., HP Inc., Intel Corp., Keywest Technology Inc., Leyard Group, LG Corp., Omnivex Corp., Panasonic Holdings Corp., Rokk3r, Samsung Electronics Co. Ltd., Scala, Sony Group Corp., and YFY Inc..

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Market Driver

SOC, or System on Chip, is a technology gaining traction in the manufacturing of smartphones, tablets, and commercial displays. This innovation integrates essential processing components onto a single chip, reducing the need for additional components in digital systems. For digital signage applications, SOC technology can be incorporated into commercial displays, replacing multiple equipment such as media players. This streamlined solution allows digital signage operation directly from the screen, offering diagnostic information as well. The benefits of SOC technology in digital signage include cost savings on hardware and installation. Additionally, SOC simplifies digital content and application development and updates for digital signage systems. Content can be created using smartphones and tablets and easily uploaded to the digital signage system via SOC. This could lead to significant time savings in content creation and updating. Major players in the digital signage market, including SAMSUNG ELECTRONICS, LG Electronics, Panasonic, and Sony, offer SOC-compatible digital signage solutions. As a result, SOC is poised for significant growth as an integrated digital signage solution in the coming years, driving market expansion during the forecast period. 

The Digital Signage Market is thriving with the increasing number of internet users and the shift towards online advertising. Large audiences are engaged through digital signage in various sectors like retail, banking, hospitality, entertainment, healthcare, and more. Social media platforms and apps have become essential tools for targeted messaging and product promotion. Retail media, including retail stores, shopping malls, and supermarkets, leverage digital signage for an in-store customer experience. Digital signage offers eye-catching content through LED media boards, digital display panels, video walls, projectors, and multimedia content. Traditional static signs are being replaced with computerized systems that allow for dynamic content delivery, real-time updates, and targeted messaging. The 3PL market, transportation hubs, and airports are also adopting digital signage as a communication platform. Offering real-time content updates and remote management, digital signage is an effective tool for driving sales and attracting customers in the retail, banking, and hospitality industries. Digital signage solutions cater to diverse locations and offer customized offerings to meet specific business needs. 

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Market Challenges

• The e-commerce industry's robust growth over the last few years has led to an increase in the number of online retailers. These retailers have gained significant market share, reducing the reliance of consumers on traditional brick-and-mortar stores. Global retail e-commerce sales have consistently grown year-on-year, and this trend is expected to continue. However, this shift towards e-commerce could negatively impact the demand for digital signage equipment, as physical retail stores are the primary customers. Consequently, the growth rate of the digital signage market may be slightly impacted during the forecast period.
• The digital signage market is experiencing significant growth in various sectors like Hotels, Restaurants, Corporate offices, Transportation centers, and Education. Challenges include high cost of displays, customer experience, and power problems. Hardware and service providers face competition from traditional billboards and widescreen alternatives, as well as screenless displays. Technological developments, such as Near Field Communication and Touch Screen Technology, are driving innovation. Emerging display technologies like Micro-LED and Quantum dots are disrupting the market. Digital signage is increasingly being adopted by Government offices, the Educational sector, and Public Transports due to rapid digitalization. Large electronic giants are investing in advanced technologies like Artificial Intelligence, Machine Learning, and 5G technology to offer touchless & interactive solutions. The Retail industry is leveraging customer data and personalized content delivery through digital signage. Market consolidation, strategic expansion, partnerships, and collaborations are key trends. Digital signage providers must stay updated on these technological advancements to stay competitive in the market.

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Segment Overview 

This digital signage market report extensively covers market segmentation by

1. Application 
• 1.1 Retail
• 1.2 QSR and restaurants
• 1.3 Education
• 1.4 Healthcare
• 1.5 Others
2. Component 
• 2.1 Hardware
• 2.2 Software
• 2.3 Services
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Retail- The Digital Signage Market is a growing industry that provides businesses with an effective way to display dynamic content on digital screens. This technology allows companies to engage customers with real-time information, promotions, and advertisements. The market is driven by the increasing demand for interactive and personalized marketing solutions. Businesses across various sectors, including retail, healthcare, and transportation, are adopting digital signage to enhance customer experience and boost sales. The market is expected to continue growing due to the flexibility and cost-effectiveness of digital signage solutions.

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Research Analysis

The Digital Signage Market encompasses various technologies and components, including LED media boards, digital display panels, video walls, projectors, and multimedia content. These systems utilize computerized systems, software, and hardware to deliver real-time content updates and create engaging communication platforms. Traditional static signs are being replaced with these dynamic displays, offering improved customer experience in various sectors such as education, government offices, and retail. Cost-effective solutions like LED media boards and digital display panels are driving market growth. Technological developments, such as video walls, projectors, and emerging display technologies like Micro-LED, are expanding the market's scope. Real-time content updates and remote management capabilities enhance the value proposition of digital signage. Traditional billboards and widescreen alternatives are being challenged by these digital displays. Power problems and screenless displays are potential challenges. Large screen displays are popular in public spaces, offering a more immersive experience. The education sector is a significant end user, while government offices and the retail industry also contribute significantly to the market's growth.

Market Research Overview

The digital signage market is experiencing rapid digitalization, with LED media boards, digital display panels, video walls, projectors, and other multimedia technologies replacing traditional static signs. Real-time content updates, remote management, and communication platforms offer advanced capabilities for retail establishments, airports, hotels, restaurants, corporate offices, transportation centers, and other locations. Hardware and service offerings continue to evolve, with emerging display technologies like Micro-LED and quantum dots, as well as artificial intelligence, machine learning, and 5G technology driving innovation. The market is also seeing consolidation, strategic expansion, partnerships, and collaborations among digital signage providers. The retail industry is a major driver of growth, with personalized content delivery, audience analytics, and real-time data-driven decision-making becoming increasingly important. Digital signage is also being used for online advertisement and broadcast, reaching large audiences through social media platforms, apps, and retail media. The market is expected to continue growing as technological advancements and touchless & interactive solutions become more prevalent in various industries, including banking, hospitality, entertainment, healthcare, and education. The cost of displays and power problems remain challenges, but innovative solutions are being developed to address these issues.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Retail
• QSR And Restaurants
• Education
• Healthcare
• Others
• Component
• Hardware
• Software
• Services
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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