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The digital signage market is estimated to grow at a CAGR of 9.04% between 2022 and 2027. The size of the market is forecast to increase by USD 8,113.34 million. The growth of the market depends on several factors, including the high growth of retail space, the increasing adoption of digital signage in numerous service sectors, and the high growth of DOOH signage.
This report extensively covers market segmentation by application (retail, QSR and restaurants, education, healthcare, and others), component (hardware, software, and services), and Geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The high growth of retail space is notably driving the digital signage market growth, although factors such as the growing e-commerce market may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Digital Signage Market Driver
The high growth of retail space is notably driving the market growth. The high growth of the retail industry can be attributed to a rise in demand for consumer goods, promoting the retailers to expand their market presence. Factors such as increasing urbanization, growing household incomes, and the rise in demand for quality products and experiences have led to high growth in the retail industry. The growth in the global retail industry is similar in developed and developing countries. With the expanding retail space, the adoption of digital signage will rise.
Digital signage, being a prominent enabler for information dissemination, creating engaging customer experiences, and attracting more customers, can be deployed as a part of customer relationship management and marketing tools for companies. Therefore, with the growing retail space, the demand for digital signage will increase globally.
Significant Digital Signage Market Trend
The introduction of SOC technology is the key market trend driving the global digital signage market growth. SOC is an emerging technology being employed in the manufacturing of smartphones, tablets, and commercial displays. SOC enables the integration of key processing components on a chip, which reduces the requirement for components in the digital system.
SOC technology can be fitted with commercial display systems. This can substitute multiple types of equipment such as media players used in digital signage systems. This helps in providing a streamlined solution by operating the digital signage from the screen itself, along with providing diagnostic and other information. The advantages of SOC technology in digital signage include the reduction in hardware and installation costs. Thus, SOC can witness high adoption as an integrated digital signage solution in the future.
Major Digital Signage Market Challenge
The growing e-commerce market is the major challenge impeding the global digital signage market growth. The strong growth of the e-commerce industry has resulted in the emergence of numerous e-commerce retailers over the past few years. Some online retailers have grown into huge organizations. These online portals have reduced the dependence of consumers on retail stores, as they deliver the products directly to the customers.
The global retail e-commerce sales in total retail sales have been consistently increasing on a year-on-year basis. This trend is expected to continue, leading to an increasing share of e-commerce sales in the retail sector, reducing the overall share of conventional retail stores in global retail sales. With physical retail stores being the major customer segment for digital signage equipment, a reduction in the retail stores due to growth in the e-commerce market could lead to lower demand for digital signage equipment.
Key Digital Signage Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Digital Signage Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Leyard Group - The company offers digital signage and other related products such as Audience Measurement Solution for Digital Signage. The company also offers a series of LED products including displays and lighting such as wholesales series, fine pitch series, micro pitch series, front access series, indoor fixed series, and outdoor fixed series among others.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the retail segment will be significant during the forecast period. Digital signage offers numerous advantages over traditional printed signage, as it facilitates customer interaction, offers accurate and centralized control capability, and provides superior design capability. Retailers can deploy digital signage in window displays to attract customers by providing information on discount updates and offers on store products. Retailers can also use digital signage inside the retail stores for disseminating store information and specific product information and upselling more products to the customers.
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The retail segment was valued at USD 2,979.11 million in 2017 and continued to grow until 2021. Globally, retailers are focusing on creating innovative customer experiences to boost their revenues and foothold in the market. In the current scenario, the retail industry is increasingly incorporating digital technology in physical shopping activity to create unique customer experiences. Hence, the adoption of digital signage in the retail sector is expected to be high. With retailers focusing on establishing more retail stores, the usage of digital signage will increase.
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APAC is estimated to contribute 36% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to vendors is North America. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The digital signage market in North America is dominated by countries such as the US and Canada, along with Mexico. Digital signage is an important tool for companies that rely on digital advertisements and marketing. Digital advertising spending in the region is expected to grow at a CAGR of 8% during the forecast period. The recent uses of digital signage in Chicago's 900 North Michigan Shops and Los Angeles' Wilshire Grand Center in the US are among the key examples of the extensive use of digital signage in the US. This indicates the increasing spending on digital advertising in the region, which will aid in the growth of the digital signage market in North America during the forecast period.
In 2020, the outbreak of COVID-19 in the region hampered the growth of the digital signage market in the region. However, the majority of the US population had been vaccinated by the end of 2021, and it was expected that by that time, retail outlets, supermarkets, food joints, and other commercial units would return to normal operations and might register footfalls on par with the pre-COVID-19 levels. This will help the market align itself on a growth trajectory. Hence, during the forecast period, the market in focus in North America will grow at a moderate rate.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The reports categorize the global digital signage market as a part of the global electronic equipment and instruments market within the overall electronics market. The super parent global electronics market includes manufacturers of communications equipment, technology hardware storage and peripherals, electronic equipment and instruments, electronic components, consumer electronics, and industrial electronics products, as well as electronic manufacturing services. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Digital Signage Market Scope |
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Report Coverage |
Details |
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Page number |
179 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.04% |
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Market growth 2023-2027 |
USD 8,113.34 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
8.36 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 36% |
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Key countries |
US, Canada, China, Japan, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
3M Co., AT and T Inc., AU Optronics Corp., Cisco Systems Inc., Daktronics Inc., Hon Hai Precision Industry Co. Ltd., HP Inc., Intel Corp., LG Corp., Samsung Electronics Co. Ltd., Sony Group Corp., YFY Inc., BrightSign LLC, Cayin Technology Co. Ltd., Keywest Technology Inc., Leyard Group, Omnivex Corp., Rokk3r, Scala, and Panasonic Holdings Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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