Digital Signage Market : Global Industry Analysis and OpportunityA ssessment 2014-2020

Digital signage, also referred as dynamic signage, is the electronic displays that broadcast information, television programming, advertising, menus and other contents. Digital signs use different technologies such as LED, LCD, projected image or plasma displays to display their content. Digital signs are found in private as well as public environments such as hotels, retail stores, corporate buildings, restaurants and other locations. Digital signage is gaining wide acceptance in the market due to its dynamic nature where in the content may be frequently updated and real-world interface such as image capture, gesture recognition and embedded touch screens. Various hardware components used in the installation of typical digital sign include one or more medial players, content management server and one or more display screens. Digital signs rely on these hardware components to deliver the content.  At times, two or more of these components are required in a single digital sign, but typically there is a display screen, media player and a content management server that is connected to the media player over a network.

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The digital signage market is majorly driven by decreasing price of displays, improved user experience and development of government and educational markets. Furthermore, factors such as growing usage at the airports, growing infrastructure and significant impression of in-store digital signage on brand perception and awareness fueling the market growth. However, high initial investments, destruction due to displays, lack of standardization and power issues are some of the factors restraining the market growth. Technological advancements such as near field communication technologies, touch screen technology, and such others have created opportunities for digital signage market.

The digital signage market is segmented on the basis of application, hardware, display technology, type and geographic regions. On the basis of applications the digital signage market is segmented into various segments such as retail, hospitality, health clubs, airports, corporate, shopping malls, government, healthcare advertising and others. The market for digital signage is segmented based on hardware into displays, media players, distribution infrastructure, software and content management servers. Displays are further segmented based on their sizes into below 19’, 19’ to 32’, 32’ to 52’ and above 52’. In terms of display technologies the digital signage market is segmented into Plasma, LED, LCD and projectors. Moreover, on the basis of types the digital signage market is segmented into outdoor displays, mobile displays and indoor displays. Indoor displays are further segmented based on location of their usage into healthcare facilities, entertainment facilities and hospital centers. Furthermore, on the basis of geographic regions, the market for digital signage is segmented into North America, Europe, Asia Pacific, and Rest of the World (RoW). Asia pacific market is further segmented into China and rest of Asia Pacific. Currently, North America is the largest market for digital signage due to high adoption in the U.S. However, Asia Pacific is expected to remain the most lucrative market for digital signage in near future. 

At present, rising trend has been found towards the adoption of interactive displays that uses various technological capabilities such as gesture recognition, embedded location-based maps and interactive dashboards. This has given a major push to the mature markets such as the U.S. and opened opportunities for emerging markets such as Middle East and Asia Pacific.  The market is highly competitive in nature due to presence of large number of players. Software leaders such as Cisco Systems Inc. have acquired hardware players and hardware leaders such as Samsung have diversified their portfolio by acquisitions which have consolidated their product offerings. This intense competition is expected to trigger competitive pricing war across both software and hardware offerings.  

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Some of the major companies in the digital signage market are Cisco Systems Inc., Adflow Networks, Hewlett-Packard Company, Keywest Technology, NEC Display Solutions Ltd., Brightsign Llc., Omnivex Corporation, Broadsign International Inc., 3M Co., LG Display Co. Ltd., Panasonic Corporation, AU Optronics, Samsung Electronics Co. Ltd., Ucview Media Inc., Winmate Communication Inc., Onelan Ltd. and others.

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