In its ‘Digital Signage Market Size, Share & Trends Analysis Report’, ResearchAndMarkets.com predicts the global digital signage market size to reach $38.23 billion by 2028, growing at a CAGR of 7.5% from 2021-2028. This growth will be driven by the increasing demand from the end-use industries, which prominently include retail and healthcare.
Digital signage emerges as an effective promotional strategy for enterprises due to its ability to reach a larger audience base. This is anticipated to spur the adoption of digitized marketing via signage across the corporate and hospitality sectors.
Digital screens equipped with 4K technology have high demand as they offer enhanced displays. Thus, the demand for advertising content with better sharpness and enhanced quality is fueling product adoption. Moreover, the incorporation of LED-backlit panels has led to additional energy savings at a considerable level. Thus, the reduction in energy consumption due to the adoption of advanced technologies is luring enterprises to opt for digital signage.
The software providers are focusing on the new entrants of the industry by providing design solutions that are compatible with the Android operating systems. The emergence of IoT, coupled with the increasing adoption of cloud computing, is expected to enable the collection of vital operational and marketing data. Digital signage helps companies decrease their long-term operational costs by reducing the use of paper for advertising and frequent damages and changes that are associated with traditional marketing activities.
Asia Pacific is estimated to be the fastest-growing regional market during the forecast period owing to the factors, such as demand for a better viewing experience, the growing transportation sector, and decreasing prices of display panels. However, North America is estimated to account for the largest revenue share by 2028 on account of the high product demand across various application sectors due to technological advancements and the modern customer base in the region.
The report further highlights that LED digital signage dominated the global market in 2020 and accounted for the largest revenue share owning to the high-quality displays. On the other hand, the retail segment contributed a revenue share of over 20% in 2020. However, the transportation segment is estimated to register the fastest CAGR over the forecast period.
With hospitals increasingly incorporating digital signage for numerous purposes, the sector will contribute a significant number towards the growth. The hardware component segment, which includes 8K and 4K-UHD displays, is projected to dominate the global market, in terms of revenue share as well as growth rate over the forecast period. Alongside, the out-store segment is also anticipated to witness the fastest CAGR from 2021-28 owning to the rising product demand for out-store applications.
