Global digital signage market to top $14 billion U.S. by 2020
by all | 3 November 2016 9:15 am
The global digital signage industry will enjoy a compound annual growth rate (CAGR) of more than five per cent from 2016 through 2020, at which point it will exceed $14 billion U.S., according to analysts for market research firm Technavio.
The company has estimated the size of the worldwide market for digital signage based on the revenue generated from the sales of equipment, software and services across a number of sectors, including retail, health care, banking and education. In explaining the market’s continued growth, Technavio cites digital signage’s advantages over other media, including dynamic control, audience engagement, targeted content and, increasingly, interactivity.
When consumers can interact with screens via touch, body sensors and/or their own smartphones, the analysts explain, they tend to be more deeply engaged by the content and provide more direct feedback.
“Interactive digital signage will see high adoption over the coming years,” says Sunil Kumar Singh, Technavio’s lead analyst for displays. “It helps collect and analyze customer data, which then may be used to offer special discounts, coupons and other incentives.”
The largest revenue-generating countries for digital signage, according to the firm’s research, are the U.S., China and the U.K., with growing adoption particularly evident in health care environments, where screens bolster communication with patients by promoting hospital services, playing back videos about medical procedures and displaying updated patient status information; as well as in banks (example from Montreal-based iGotcha Media pictured), where updated screen content is replacing printed brochures, posters and data sheets.
Meanwhile, some other vertical markets for digital signage are facing challenges.
“The ongoing growth of e-commerce will slow down the adoption of digital signage in the retail sector,” says Singh. “Uncertain return on investment (ROI) is another factor, as the implementation of digital signage does not always ensure higher sales.”
Source URL: https://www.signmedia.ca/global-digital-signage-market-to-top-14-billion-u-s-by-2020/