Digital Signage Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Digital Signage Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The digital signage services market was valued at USD 734.9 million in 2020 and is expected to reach USD 1436.92 million by 2026 at 11.9% CAGR during the forecast period of 2021 - 2026. Digital signage enables content and messages to be displayed on an electronic screen and can be changed without modification to the physical sign. The adoption of digital signage is becoming more popular and mainstream with technological advancements and reduction in price.

Key Highlights

• Major enterprises across the world have previously used static bulletin boards for company announcements. The static bulletin process was time-consuming and challenging to keep updated every time, so most companies moved towards digital signage technology. For example, in December 2019, Retractable truck bed cover manufacturer Retrax turned to Noventri Digital Signage to improve its brand communication. For excellence in communications, the company relies on Noventri. Noventri’s digital signage delivers information to staff in critical areas throughout the Retrax manufacturing plant. Noventri is providing installation, maintenance, and support services to its customers.
• Moreover, most of the traditional advertising (printed signage) is being replaced by digital signage with a focus on customer attraction and satisfaction. Printed signage tends to be a one-time use in many applications, including billboards and posters disposed of after a period. Digital signage, on the other hand, offers more flexibility, with the ability to run varied information without the need for complete replacement. Digital signage solutions can be used to display highly engaging content, thus attracting consumers’ attention toward its adoption. With the increasing digital signage solutions, the end-users are also opting for efficient services to keep the solutions operational.
• Digital signage can increase sales of promoted products. For instance, According to a recent QSRweb.com survey, “The Top 12 Benefits of Digital Menu Boards,” more than 30% of hospitality operators surveyed recouped their investment within 7 to 12 months around 5% sales lift for promoted food items, 20% for featured drinks. In other words, digital typically outperforms print or static signage.
• Digital Signage Kiosks offering free Wi-Fi, wayfinding services, transportation information, and advertising will replace existing wayfinding kiosks in Cleveland. IKE Smart City, based in Columbus, will deliver the kiosks, allowing users to upload data to smartphones. The new kiosks, which will be installed mostly downtown, will also provide 911 connections, enable people to take selfies, measure vehicles, and pedestrian traffic and monitor air quality.
• Due to the COVID-19 pandemic, over the last few months, consumers and brands have had to adapt to change quicker than at any time in the recent past. The way enterprises do business is changing, and with no clear end in sight, companies must get creative and move fast as they prepare for the coming time. The interactive digital signage has changed how a brand communicates with the masses. The evolution of hardware and cloud-based CMS technologies has helped for the development of new digital applications. These applications are assisting enterprises in solving the challenges of doing business in the COVID-19 pandemic.
• In the wake of the COVID-19 pandemic, Soofa Talk has been working closely with Atlanta city partners to push out emergency updates, and local shop’s opening times, among other alerts. The company has partnered with the City of Atlanta and reformatted their digital screen to include a permanent content displaying daily curfew information and the CDC’s news feed and tips for how people can partake in recovery efforts.

Key Market TrendsCommercial End-user Vertical is Expected to Grow at a Significant Rate Over the Forecast Period

• The commercial players integrate the digital tools at their disposal to share relevant and profitable content at their premises and integrate digital ads into their stores or other premises to create a distinct in-store user experience. According to Samsung, 53% of shoppers base their initial perception of the store on the exterior of the business front, making signage in commercial vertical vital for the operating players.
• For example, Ecoalf, a sustainable fashion brand that makes garments from recycled plastic bottles, has chosen TRISON World to provide digital signage technology to all its selling points. The challenge brought to TRISON by the brand consisted of integrating digital signage technology to stand out in the tech space by maintaining its Eco-sustainable model.
• Movie theatre and cinema businesses are also moving away from traditional visual merchandising like static POS material, big carton displays, to fully digital displays. For example, Pathe Arnhem has implemented its first full ‘digital’ movie theatre in the Netherlands utilizing a digital signage solution and services from Zetadisplay AB. Zetadisplay provides services like broadcasting, content and template production, concept and branding strategy, hardware concept and design, installation, monitoring, and support.

Europe Geography Segment is Expected to Hold a Significant Share Throughout the Forecast Period

• Digital signage continues to constitute a significant percentage of advertising revenue across enterprises operating in different industry verticals. This is mainly possible due to digital signage's inherent benefits, such as quick information dispensation, effortless control, and modification. According to IAB Europe, the European digital advertising market stood at EUR 64.8 billion during fiscal 2019, UK, Germany, France, and Russia being the top contributors in the region in the same respective order.
• Additionally, European digital advertising is growing significantly year on year; according to IAB Europe, digital advertising grew by 12.3% in 2019, driven by strong growth in video, mobile, and social spending. While the Western European market is quite mature compared to Eastern Europe, both are expected to witness significant growth.
• The UK is home to many media and technology companies. It is also Europe's capital for Digital out of Home and Digital Signage at the Point of Sale (PoS). According to a recent study in the UK, DOOH ads are twice as likely to be seen and are 2.5 times more impactful than OOH ads in the region. According to Campaign, Britons see as many as 1.1 billion DOOH ads during a week; the numbers are up by 36% compared to the previous year. This signifies the growth of digital signage solutions and services in the country.

Competitive Landscape

The digital signage services market is moderately competitive and consists of a significant number of global and regional players. These players account for a considerable share in the market and focus on expanding their customer base. These vendors focus on the research and development activities, strategic partnerships, and other organic & inorganic growth strategies to earn a competitive edge over the forecast period.

• In March 2020, Zetadisplay AB signed two new orders for digital signage installations through its Norwegian subsidiary with Hurtigruten AS, the world’s one of the large expedition cruise lines. The newly received order has a value of SEK 16 million over five years.
• In April 2020, Xtreme Media announced the development of its latest XM Aegis digital signage solution with a dispenser facility in the wake of the COVID-19 pandemic. The lockdown has left only a few numbers of places open for the public, with strict protocols to be maintained, and hand sanitization is one of the crucial requirements. The Mumbai-based digital solution provider came up with this digital display screen, which can be attached to a wall or a standee, also has a dispenser for the people visiting the place.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Noventri
BlueStar, Inc.
eyefactive GmbH
Zetadisplay AB
Trison World
Samsung Electronics Co Ltd
NoviSign Digital Signage Inc.
Signagelive Limited
LG Electronics Inc.
Panasonic Corporation

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