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

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

The in-taxi digital signage market was valued at USD 630 million in 2020, and it is expected to reach USD 780 million by 2024, registering a CAGR of about 3% during the forecast period (2021 – 2026).

The COVID-19 outbreak has hindered the growth of the in-taxi digital signage market as there were continuous lockdowns and travel restrictions around the world. The ridesharing player, Bolt, closed its local operations after almost two and a half years in Australia, which was primarily a result of weakened demand due to the pandemic.

However, the growth of the market is driven by factors like increasing adoption of digital signage products in the commercial vertical, rising infrastructural developments in emerging countries, growing demand for 4K and 8K displays, and increasing technological advancements in display products.

Taxi advertising is one of the most immediately recognizable kinds of outdoor advertising. Taxi ads are used by advertisers to make a huge impact on riders, other drivers, and even pedestrians. Taxi top ads, partial or full wrapped taxi ads, taxi trunk ads, and in-cab ads are some of the options available for advertisers.

It is estimated that North America will be dominating the in-taxi digital signage market, showing considerable growth during the forecast period. Asia-Pacific is expected to hold the largest market share in the region. The growth would be possible because of marketing analytics tools and existing players that have been firmly established in the market since the beginning.

Key Market TrendsGrowing Adoption of Entertainment Devices in Luxury Taxis

Currently, local and foreign tourists in both developed and developing nations prefer luxury vehicles just for the experience, as owning them may not be feasible for most of them. Several taxi service providers across the world have started offering luxury vehicles in their fleets, and competitive pricing is providing opportunities for these vehicles to be picked up by tourists.

Also, local taxi service providers and individuals who own exotic and premium cars are putting them up for hire for tourists. This trend is prominent in the United States and Western Europe. Tesla Model X, Audi, and BMW are some popular brands that are on offer. In the United Arab Emirates, particularly Dubai, being a very popular tourist destination, the demand for luxury taxis has been increasing at a significant rate.

Other lavish destinations in Western Europe, Macao, and Hong Kong, among others, are also expected to show considerable growth rates. However, the market has been turbulent in this segment, with few companies shifting their entire fleet toward budget offerings due to higher demand from that segment. Additionally, the high cost of insurance and maintenance of these vehicles is also expected to hinder the market growth.

Asia-Pacific is Expected to Witness Growth

Asia-Pacific is projected to register the largest market share in the in-taxi digital signage market in 2026. Owing to low labor costs in the Asia-Pacific region, the overall cost of implementing and installing digital signage systems is significantly low in the region. This has led to the emergence of Asia-Pacific as one of the potentially largest markets for digital signage.

The in-taxi digital signage market has experienced significant growth in the Asia-Pacific region due to the increasing adoption and penetration of digital technologies and advanced audio-visual solutions integrated with next-generation technologies, including AI and AR.

Asia-Pacific is supposed to have greater demand during the forecast year because of the fast-growing population. This factor alone stands out as the reason why the region will dominate the in-taxi digital signage market share in the given forecast period. Improvements in GDP per capita and infrastructure development have urbanized the region to a greater extent, turning rural areas into urban areas. The sudden surge in demand has caused the cities to fall into unsustainable consumption models. The top key players in the market are located in the region.

As large projects are ongoing in countries like China, India, Australia, and Indonesia in Asia-Pacific, the region has the potential to bypass any competition. This is also because of the great amount of reserves the region has. Exploration activities in China are increasing, due to which China may have great demand for tin catalysts and compounds. According to the National Bureau of Statistics, the in-taxi digital signage market may witness an increase in regional demand during the forecast period.

Several countries, such as China, South Korea, and India, have witnessed developments related to infrastructure in recent years, along with the growth of retail, BFSI, and transportation applications. This factor is also expected to drive the demand for digital signage in the region.

Competitive Landscape

The market is consolidated as there are several local and international companies that supply LCD display screens (tablets) for taxis. Samsung (Knox Customization), Apple, Verifone, Swipe Technologies, and Touchmedia are the significant players operating in this market. For instance-

Samsung, through its Knox customization division, developed software in its own tablets (LCD screens) for taxi service providers.

The China-based TouchMedia has also provided software and hardware solutions for more than 50,000 taxis across seven major cities in China.

These two companies lead the software segment of the market studied, along with 42 Gears Mobility Systems and Bona Phandle Media. Moreover, several startups are emerging as software providers and hardware suppliers for taxi service providers in the in-taxi digital signage market. The major emerging organizations include Cabby Tabby Technologies and Swipe Technologies.

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• The market estimate (ME) sheet in Excel format
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Companies Mentioned

Advertising Service Providers
Software Providers
Device Manufacturers

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