Digital Signage Market: Trends, Growth, and Future

The digital signage market is experiencing a robust growth trajectory.

Think of digital signage as those eye-catching electronic displays you see in malls, airports, or on big billboards. They're not just getting bigger; they're also getting smarter, thanks to advancements in technology.

The market's evolution is not just about size but also about the sophistication of technology and application versatility, making digital signage a ubiquitous feature in urban landscapes.

Market overview

As we enter 2024, the adoption of digital signage has been growing consistently.

According to the report by Grand view research, the market size for digital signage in the U.S. was valued at approximately $5.64 billion in 2022 and is projected to grow to around $5.99 billion in 2023.

Moreover, until 2023, the digital signage market stood at an impressive $18.7 billion, with projections from Markets and Markets suggesting a surge to $26.1 billion by 2028 i.e approximately 39.5% growth.

In this report, we cover what is driving this impressive growth, the latest trends shaping the industry, and the hurdles it is facing.

Key trends shaping the digital signage market

The digital signage industry is evolving rapidly, driven by several key trends that are shaping its future. Here are some of the most significant trends:

How retail and advertising industries are leading in digital signage demand

According to a report by Hughes Network Systems, 94% of retailers use or have used digital signage to augment, change, or improve customers’ in-store experiences.

Digital signage is like a magnet for customers' eyes. It's all about creating ads that aren't just informative but also super engaging.

This kind of advertising can really influence what people buy, which is why it's popping up in so many places – from retail stores and hotels to hospitals, schools, buses, corporate offices, and even banks.

This trend is driving a surge in the utilization of digital display technologies across a range of industry verticals.

Key sectors embracing this technology include retail, hospitality, healthcare, education, transportation, corporate environments, and the banking industry.

Video walls exhibit the highest CAGR in the digital signage market

The market is segmented into various types, components, and application sectors.

Video walls held a share of approximately 22% of the displays market in 2022. Apart from this, kiosks, and digital posters are the next popular types, with hardware components dominating the market share with 71%.

The retail sector leads in application, leveraging digital signage for effective product marketing and customer engagement.

Transportation and corporate communications are also fast-emerging sectors, utilizing digital signage for dynamic content delivery and internal communication.

North America registers the highest CAGR in regional segmentation

Regionally, North America, Europe, and the Asia Pacific are key players in the digital signage market.

In the US, the western U.S. region held prominent share of around 33% in the overall country’s market for 2022. North America leads, thanks to a strong presence of dedicated suppliers and a burgeoning retail industry.

The Asia Pacific region is poised for rapid growth, driven by increasing awareness of digital signage benefits and rising applications in diverse sectors like retail, healthcare, and hospitality.

Innovation and digital signage

The market's growth is significantly influenced by technological advancements. The transition from traditional LCDs to more advanced LED, UHD, OLED, and Super AMOLED displays has revolutionized content delivery.

These technologies enhance the quality of advertisement content, creating a more significant impact on the target audience.

Furthermore, the integration of biometric and gaze tracking technologies, along with cloud-based solutions, is setting new benchmarks in personalized and interactive advertising.

The trend towards larger, high-resolution displays is also notable, meeting the demand for more visually striking and informative digital signage.

Challenges and restraints

Despite its promising growth, the digital signage market faces several challenges.

Compatibility issues between software and hardware, complexities in electrical interfaces, and stringent regulatory frameworks pose significant hurdles.

Additionally, the COVID-19 pandemic has compelled businesses to rethink their strategies, with a notable shift towards cloud-based solutions to ensure business continuity and adaptability.

The future of digital signage

The days look bright for digital signage.

With new tech developments and expanding uses, it's set to become an even bigger part of our everyday lives.

With consistent demand for digital signage across industries and regions, no wonder the growth trajectory looks promising and exciting.

Businesses and public spaces are increasingly turning to digital signage not just to advertise, but also to share information and connect with people in new and exciting ways.

TL;DR:

The digital signage market, valued at $18.7 billion in 2023, is projected to grow at 39.5% to $26.1 billion by 2028.

Key trends shaping the industry:

1. Interactive displays

2. AI-driven content management

3. AR/VR integration

4. Cloud-based solutions

5. Data-driven content

6. Sustainability

Key geographical areas

1. North America

2. Asia Pacific

3. Europe

Challenges

1. Technology compatibility

2. Regulatory issues

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