The digital signage market is expected to grow at a compound annual growth rate of 11.67 per cent to reach USD11.372 billion in 2026 from USD5.250 billion in 2019, according to ResearchAndMarkets.
Growing demand for digital signage solutions across different industry verticals is expected to bolster the digital signage market growth in the upcoming years. Retailers can create an enriching shopping environment by implementing a market to entice information-driven consumers to pause, look, and purchase products and services. With the help of digital signage, retailers can project images and videos to showcase products and capture viewer interest, as well as they, can arrange displays and compose content to create an artistic and dynamic atmosphere. Owing to increasing digitization, consumers increasingly depend on online content to find information, get deals, discover new ideas, and become inspired before making a purchase.
According to the Cisco IBSG study, over 40 per cent of shoppers say that digital displays, such as video walls, can change what they buy. By using digital signage to provide relevant information to an audience near the point of purchase, retailers have generated higher brand awareness and sales uplift. The hospitality industry started recognizing the importance of digital communication to ensure guest satisfaction and reinforce its brand’s differentiating factors. Digital signage for the hospitality industry creates an integrated and dynamic system, linking the operations and marketing aspects of the hotel to create an efficient system that benefits their guest as well as hotel staff. Several players in this industry already started adopting digital signage as a way to attract guests and improve their experience.
However, there are some constraints. Digital signage is used in indoor and outdoor applications. In outdoor applications, they are used in the form of kiosks, billboards, and signboards. Harsh weather conditions, such as rain, snow, dirt, and extreme temperatures, can affect the performance of the digital signage and even might degrade their future performance. Digital signage, which is exposed to direct sunlight for long hours over a period of time, can also develop thermal management issues. This can affect the longevity of displays or even can degrade their performance. Therefore, it is extremely important to choose cooling filters and thermal management software to manage digital signage heat build-ups. Therefore, a lack of signage products that are capable of functioning properly even in harsh weather conditions may negatively impact its widespread adoption, leading to reduced market demand.
The COVID-19 pandemic is expected to negatively impact the digital signage market growth as it has adversely affected the display industry with manufacturing operations temporarily suspended across major manufacturing hubs, leading to a substantial slowdown in production. COVID-19 not only impacted the operations of the various digital signage manufacturers companies but also affected the businesses of their suppliers and distributors. The failure in export shipments and slow domestic demand for digital signage and display products in comparison to pre COVID-19 levels is also expected to negatively impact and slightly stagnate the demand for digital signage in short term. Some of the key display manufacturers including Samsung, LG Display, and Xiaomi among others have suspended their manufacturing operations in China, India, South Korea, and European countries. In addition to the impact on production activities, the ongoing pandemic has taken a toll on the consumer demand as well for display integrated devices, likely fueled by the lockdown imposed across major countries.