Digital signage display revenue to outpace shipments

by all | 19 May 2016 9:00 am

[1]Global shipments of digital signs for public display are expected to grow by 9.3 per cent this year, as regional economies recover and more large projects are installed, and associated revenue will increase by 15.3 per cent, according to the latest research from IHS Technology.

IHS, a market research and analysis firm, predicts approximately three million units will ship in 2016 and revenue will climb to $9.7 billion, thanks to an increase in the average selling price (ASP) of a public digital display from $1,826 U.S. last year to $1,926 U.S. this year.

“To succeed in the global marketplace, manufacturers are focusing their resources on products that generate higher profit margins,” says Sanju Khatri, director of digital signage and professional displays for IHS. “Panel makers will continue to shift production to displays with larger sizes, higher resolutions, higher brightness levels and thinner bezels because these carry price premiums in the market.”

Shipments of ‘4K’ ultra-high-definition (UHD) liquid crystal displays (LCDs), for example, are expected to increase their market share from 1.4 per cent in the fourth quarter (Q4) of 2015 to 12.1 per cent by 2020 (installation example pictured). As for screen size, 1.4 (55-in.) LCDs comprised 18.4 per cent of the market in 2015 and should reach 28 per cent in 2017, but then decline to 21 per cent in 2020. Meanwhile, 1.8 (70-in.) LCDs will grow from 3.9 per cent in 2015 to 8.9 per cent in 2020, while the 1.8 to 2-m (70 to 79-in.) category will increase from 2.6 per cent in 2013 to 11.8 per cent in 2020.

[2]This growth (see chart) follows a series of economic slowdowns in 2015, particularly in Latin America, Eastern Europe and China, which shrank overall digital signage and professional display shipments by three per cent.

IHS also tracks sales of ‘public display TVs,’ which it defines as all-in-one digital signage systems, bundling displays with media players and software. The company recorded 100,000 such units shipped in 2015 and anticipates a compound annual growth rate (CAGR) or 11 per cent through 2020, topping 167,000. With their lower prices, they have represented three to five per cent of all shipments, but only 1.2 per cent of revenue.

Source URL: https://www.signmedia.ca/digital-signage-display-revenue-to-outpace-shipments/

---