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Product Category
News
Digital Signage Market Insight from 2024-2030
Published time:09 December 2024
The global digital signage market was valued at approximately USD 26.76 billion in 2023 and is projected to experience a compound annual growth rate (CAGR) of 8.1% between 2024 and 2030. This expansion is attributed to the escalating demand for digitized promotion of products and services, which effectively captures the attention of the target audience. Additionally, the surge in demand for 4K digital signage displays, equipped with embedded software and media players, is fueling market growth. These displays provide a cost-effective Ultra HD digital signage solution, further boosting demand. Factors such as the development of innovative products like home monitoring and leak detector systems, as well as complex financial products like forex cards, which require informative and concise advertising content, are anticipated to propel product demand in the coming years.
Furthermore, the increasing demand for advanced products that necessitate digitized information management and remote access guidance is a significant driver expected to propel the global digital signage industry during the forecast period. Digital signage boards effectively convey high-quality information to a vast audience by utilizing large display screens in areas with a concentrated target audience. By leveraging digital signage display technology, information is presented in a dynamic and visually engaging format, including motion and imagery, which has a greater impact on customers compared to traditional advertising methods.
Moreover, the integration of biometric technology with modern digital signs has resulted in innovative products such as heat path tracking and gaze tracking. Gaze tracking technology enables companies to identify areas with higher consumer traffic, allowing them to analyze consumer behavior and tailor their marketing strategies accordingly. The growing utilization of these technologies is anticipated to enhance demand in the coming years.
Additionally, consumers are becoming increasingly aware of the limitations and complexities of traditional advertising, such as the short lifespan of print marketing, which is driving the adoption of digital advertising. Display designers, researchers, and advertising companies are investing more in the improvement of display technology to meet this demand.
Collectively, these factors are expected to accelerate the overall growth of the digital signage industry. Advances in display technologies, including the evolution of LCD, LED, UHD, OLED, and Super AMOLED, are further strengthening industry growth. These technologies have improved the quality of advertisement content, positively impacting the target audience. The adoption of such technologies by digital poster providers is expected to boost the overall growth of the industry.
However, there are some challenges that may hinder market growth, such as software and hardware compatibility issues, electrical interface and connectivity problems, and complex taxation and regulatory processes related to the installation of digital signs and screens. These factors could potentially impede the growth of the digital signage market.
Location Insights
In 2023, the in-store location segment held the largest market share of 71.1%. This segment includes the deployment of digital posters within enclosed spaces such as malls, corporate offices, retail shops, banks, and healthcare centers. The retail sector's significant demand for digital displays for advertising purposes is the primary driver of this segment's high share. The segment is expected to maintain its position in the global market and experience steady growth over the forecast period due to consistent demand.
However, the out-store location segment is projected to exhibit the fastest CAGR of 9.4% from 2024 to 2030. This growth is attributed to the expanding transportation sector, particularly in developing countries. Additionally, the increasing need for effective and large-scale product promotion, as well as emerging trends such as election campaigns, introductory offers, and the rising number of live concerts and shows, are expected to drive the adoption of digital posters in open spaces, thereby augmenting the growth of the out-store segment.
On the other hand, the transparent LED screens segment is expected to emerge as the fastest-growing segment, expanding at a CAGR of 10.5% from 2024 to 2030. Transparent LED screens offer a transparency level beyond 80% coupled with high resolution and are energy-efficient, reducing energy consumption and optimizing overhead expenditure for users. These factors are anticipated to drive the demand for transparent LED screens over the next six years, supporting the growth of this segment.
Furthermore, graphics design agencies are shifting their focus towards 3D holographic display cases. HYPERVSN, a European provider of holographic technology, offers these displays for numerous applications, ranging from advertising in malls to showpieces at trade shows. The services segment registers a comparatively lower demand due to fewer maintenance and service issues occurring in the product. The services offered in the industry include integration and installation, maintenance, and consulting. The major services involved here are the installation of digital displays and internet connectivity, which are relatively cheaper compared to hardware and software requirements, leading to a lesser market share.
The transportation segment is expected to emerge as the fastest-growing segment, expanding at a CAGR of 9.9% from 2024 to 2030. The transportation sector includes the application of digitized promotions and posters at airports, railway stations, metro stations, and bus stands. Additionally, digital displays are extensively used on roads by cabs, public transport buses, and other vehicles that advertise products and services. Due to rapid urbanization and the development of the transportation sector in emerging countries, the advertisement industry is expected to grow, ultimately boosting the growth of the market for digital signage.
Furthermore, the increasing demand for advanced products that necessitate digitized information management and remote access guidance is a significant driver expected to propel the global digital signage industry during the forecast period. Digital signage boards effectively convey high-quality information to a vast audience by utilizing large display screens in areas with a concentrated target audience. By leveraging digital signage display technology, information is presented in a dynamic and visually engaging format, including motion and imagery, which has a greater impact on customers compared to traditional advertising methods.
Moreover, the integration of biometric technology with modern digital signs has resulted in innovative products such as heat path tracking and gaze tracking. Gaze tracking technology enables companies to identify areas with higher consumer traffic, allowing them to analyze consumer behavior and tailor their marketing strategies accordingly. The growing utilization of these technologies is anticipated to enhance demand in the coming years.
Additionally, consumers are becoming increasingly aware of the limitations and complexities of traditional advertising, such as the short lifespan of print marketing, which is driving the adoption of digital advertising. Display designers, researchers, and advertising companies are investing more in the improvement of display technology to meet this demand.
Collectively, these factors are expected to accelerate the overall growth of the digital signage industry. Advances in display technologies, including the evolution of LCD, LED, UHD, OLED, and Super AMOLED, are further strengthening industry growth. These technologies have improved the quality of advertisement content, positively impacting the target audience. The adoption of such technologies by digital poster providers is expected to boost the overall growth of the industry.
However, there are some challenges that may hinder market growth, such as software and hardware compatibility issues, electrical interface and connectivity problems, and complex taxation and regulatory processes related to the installation of digital signs and screens. These factors could potentially impede the growth of the digital signage market.
Location Insights
In 2023, the in-store location segment held the largest market share of 71.1%. This segment includes the deployment of digital posters within enclosed spaces such as malls, corporate offices, retail shops, banks, and healthcare centers. The retail sector's significant demand for digital displays for advertising purposes is the primary driver of this segment's high share. The segment is expected to maintain its position in the global market and experience steady growth over the forecast period due to consistent demand.
However, the out-store location segment is projected to exhibit the fastest CAGR of 9.4% from 2024 to 2030. This growth is attributed to the expanding transportation sector, particularly in developing countries. Additionally, the increasing need for effective and large-scale product promotion, as well as emerging trends such as election campaigns, introductory offers, and the rising number of live concerts and shows, are expected to drive the adoption of digital posters in open spaces, thereby augmenting the growth of the out-store segment.
Type Insights
In 2023, the video walls segment accounted for the largest market share of over 26.4%, and this trend is expected to continue during the forecast period. Video screens and kiosks also held significant shares in 2023, with video screens following closely behind. Video walls and screens have captured a major market share in shopping malls and other public places. However, the kiosks segment is estimated to account for the maximum revenue share by 2030, becoming the largest type segment in the global market. Kiosks are commonly used for information provision and advertising in institutions and retail verticals.On the other hand, the transparent LED screens segment is expected to emerge as the fastest-growing segment, expanding at a CAGR of 10.5% from 2024 to 2030. Transparent LED screens offer a transparency level beyond 80% coupled with high resolution and are energy-efficient, reducing energy consumption and optimizing overhead expenditure for users. These factors are anticipated to drive the demand for transparent LED screens over the next six years, supporting the growth of this segment.
Component Insights
The hardware components segment accounted for the largest market share of 57.8% in 2023 and is expected to maintain its position during the forecast period. Hardware components include displays, components required to manufacture digital panels, banners, and so on. The hardware requirement is substantial compared to software, resulting in a large share for this segment in the industry. The growing number of innovative display technologies, such as 1080p, 4K, and 8K displays, is expected to propel the demand for hardware components in the coming years. Advancements in 3D technology have led to the development of glasses-free 3D displays, which are used in various products.Furthermore, graphics design agencies are shifting their focus towards 3D holographic display cases. HYPERVSN, a European provider of holographic technology, offers these displays for numerous applications, ranging from advertising in malls to showpieces at trade shows. The services segment registers a comparatively lower demand due to fewer maintenance and service issues occurring in the product. The services offered in the industry include integration and installation, maintenance, and consulting. The major services involved here are the installation of digital displays and internet connectivity, which are relatively cheaper compared to hardware and software requirements, leading to a lesser market share.
Application Insights
The retail sector accounted for the largest market share of 19.5% in 2023. The retail sector is the most prominent sector demanding digitized advertisements for marketing and promoting products and services. The competition among retailers due to the variety of product offerings in the industry has led to an increased awareness of effective marketing strategies. Therefore, digital posters are widely adopted in the retail sector as digitized advertising is an effective way to market a product, attracting the attention of target consumers.The transportation segment is expected to emerge as the fastest-growing segment, expanding at a CAGR of 9.9% from 2024 to 2030. The transportation sector includes the application of digitized promotions and posters at airports, railway stations, metro stations, and bus stands. Additionally, digital displays are extensively used on roads by cabs, public transport buses, and other vehicles that advertise products and services. Due to rapid urbanization and the development of the transportation sector in emerging countries, the advertisement industry is expected to grow, ultimately boosting the growth of the market for digital signage.