The global digital signage market size was estimated at USD 18.55 billion in 2018 and is anticipated to reach USD 31.71 billion by 2025, at a CAGR of 8.0% from 2019 to 2025. This growth is accredited to the increasing demand for digitized promotion of products and services to attract the target audience in an effective manner. In terms of shipments, the market was estimated at 3,500 thousand units in 2018 and is expected to reach 6,451 thousand units by 2025.
The evolution of innovative products such as home monitoring systems, leak detector systems, and so on, along with complicated monetary products such as forex cards that need informative and succinct advertisement content are some of the factors predicted to drive the product demand. Moreover, there is a rising demand for advanced products that require digitized information management and guidance that can be accessed from remote locations. This is one of the key drivers anticipated to boost the market over the forecast period.
The integration of biometric technology with modern digital signage has developed products such as track heat paths and gaze tracking. Gaze tracking technology helps locate the area which is crowded with a greater number of consumers, thereby helping the companies to track consumer behavior for the effective marketing of products. Thus, the growing use of the aforementioned technology is expected to strengthen the demand in the next eight years.
It offers the necessary quality information to a large number of viewers by utilizing large display screens across the location with a concentrated target audience. With digitized display technology, information is provided in a digitized format that includes motion and pictures to attract customers with more impact as compared to the traditional modes of reaching out to customers.
Eventually, growing awareness among consumers regarding the drawbacks and complexity of traditional advertising such as short-lived print marketing and so on is instigating the digitized advertisement adoption. Additionally, the innovative efforts led by the display designers, researchers, and advertisement companies are spending more on the improvement of the product’s display technology. As such, all these factors are in turn, expected to catalyze market growth.
With the advancement in display technologies, the evolution of LCD, LED, UHD, OLED, and Super AMOLED is further strengthening the market. These technologies have led to the enhancement of the quality of advertisement content, thus creating a favorable impact on the target audience. The adoption of such advanced technologies in display systems by digital poster providers is anticipated to boost the market.
However, factors such as software and hardware compatibility, networking, electrical interface, and connectivity are the few prevailing issues likely to hinder the smooth growth of the digital signage market. Moreover, the complex taxation levied upon installation of digital signage and screens, coupled with the regulatory processes such as licensing, are projected to hamper the growth.