The global digital signage market is estimated to be USD 16.3 billion in 2021 and projected to reach USD 27.8 billion by 2026; at a CAGR of 11.2%. Key factors fueling the growth of this market include the growing adoption of digital signage in commercial applications, increasing infrastructure developments in emerging countries, surging demand for 4K & 8K resolution displays, and ongoing technological advancements in displays.
The infrastructure application segment is expected to register the highest CAGR during the forecast period
The infrastructure segment for the digital signage market is expected to register the highest CAGR during the forecast period by application. The transportation and public places segment are expected to lead the digital signage market for Infrastructure applications owing to the increased need for accurately delivering travelers with real-time information related to their travel. Railways, roadways, and airways utilize digital signage in various places such as coaches, subways, cruising, stations, waiting and resting spaces, lobbies, boarding areas, and airports to inform and entertain passengers, minimize the perceived transportation time, and enhance the travel experience. New trends in digital signage are leveraging the advancements in software, Internet of Things (IoT), user-generated content, and artificial intelligence (AI) to drive the growth of digital signage in the entertainment and sports segment of infrastructure applications.
The outdoor digital signage segment is expected to witness higher CAGR growth during the forecast period
The outdoor segment of digital signage market is expected to witness highest CAGR growth during the forecast period, by installation location. This growth can be attributed to various technological developments related to digital signage display as a result of which businesses have the option to choose from a wide variety of high brightness, highly attractive displays in different sizes and configurations offering brightness of more than 2000 nits, making them perfectly suitable for outdoor locations. Moreover, with recent advancements in display technology, digital displays have become less prone to harsh outdoor environments and deliver excellent product life.
The 52 inch and above display size segment is expected to witness higher CAGR growth during the forecast period
The 52 inches and above segment of the digital signage market is expected to register higher CAGR growth during the forecast period by display size. The growth of the segment can be attributed to various technological developments related to digital signage displays owing to which businesses are preferring for larger size displays for both indoor and outdoor applications. Further, growing digitalization is accelerating the adoption of outdoor digital signage solutions by businesses across various sectors. Additionally, the developments related to the video walls and OLED technology are also expected to fuel the demand for displays sizing above 52 inches in the coming years.
APAC is projected to register the largest market share of the digital signage market in 2026
The Asia Pacific is projected to register the largest market share of the digital signage market in 2026. Owing to low labor costs in APAC, the overall cost of implementing and installing digital signage systems is significantly low in the region. This has led to the emergence of APAC as one of the potentially largest markets for digital signage. The digital signage market has experienced significant growth in APAC due to the increasing adoption and penetration of digital technologies and advanced audio-visual solutions integrated with next-generation technologies, including AI and AR. Several countries, such as China, South Korea, and India, have witnessed developments related to infrastructure in recent years, along with the growth of retail, BFSI, and transportation applications. This factor is also expected to drive the demand for digital signage in the region.
The recent COVID-19 pandemic is expected to slightly negatively impact the global digital signage industry. The entire supply chain got disrupted due to a limited supply of parts during the first quarter of 2020. For instance, the outbreak of COVID-19 in China resulted in lockdown measures which included the shutdown of manufacturing facilities and warehouses and affected the global exports and shipments of various industries. The lockdown measures announced in several countries across the globe as they got impacted by the COVID-19 pandemic also led to a fall in the domestic and export demand for commercial products including digital signage in these countries.
Key Market Players: Samsung Electronics (South Korea), LG Electronics (South Korea), Leyard Optoelectronic (parent company of Planar Systems, Inc.) (US), Sharp Corporation (Japan), and Sony (Japan).
