Digital Signage Market New Marketing Vertical with Huge Growth Potential

From a retailer at a shopping mall, a hospital in the town or a restaurant down the road, chances are wherever you go these days, you will see a hint of digital signage market making its presence. A digital signage represents a display that shows information of various kinds such as what’s on sale, what’s on menu, what’s special at the place, time schedule of trains, etc.

Digital signage may be installed for a variety of reasons, such as increasing sales in a retail marketplace through innovative product marketing, providing information and entertainment at a railways station or airport, etc. The possibilities of their application are infinite and they can be used at practically all places where there is a need to display some kind of information, for marketing or for engaging the customer.

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What it takes to install a digital signage

A digital signage can come across as a standalone device or a part of network containing hundreds or thousands of digital signs. It could be centrally managed or have a one-by-one management. Whatever the type of digital signage is, the core components that form a digital signage system include: a display, content management software, content and network.

Display types such as LCD, plasma and other varieties of flat panel screens, increasingly with touch screen and mobile device interactivity capabilities are commonly used for digital signage systems. Content in digital signage systems is managed with the help of sophisticated digital media players that are capable of managing video graphics, web feeds, images, text and other forms of content. For sourcing real-life data into digital signs or having a central control over the content being displayed, a wired or wireless network such as WAN or LAN is required.

What is the size of the digital signage market?

The digital signage market is big and expanding at a good pace. Analysts say that the hardware supporting digital signage generated revenues of more than US$5.4 billion in 2011. More than two million digital signs are already operating in the U.S. and their number is rapidly increasing. U.S. also represents the largest regional digital signage market across the world, and is expected to grow by about 20% every year. Similar to many other emerging forms of media and technology fields, the field of digital signage has not yet deeply proliferated in the Asia Pacific owing to its newness in the regions. However, the digital signage market will grow at the fastest pace over the future years due to technological developments in the field leading to the need for lesser funds for installation.

What are the top vertical digital signage application areas?

Clearly, advertisement is the major application area where benefits of digital signage systems can be best exploited. With more digital signage systems in place, and their number rising at a rapid pace, they are offering a good opportunity for advertisers to reach out to the intended consumers. Millions of digital media signage systems are operating worldwide currently and there are hardly public places where these systems cannot be found. Some of these major vertical markets of digital signage include airports, train and bus stations, hotels, restaurants, coffee shops, motels, big departmental stores, malls, movie theatres, office corridors, hospitals, clinics, schools and colleges, etc.

Technology Trends ruling the digital signage market

The costs of deploying digital signage systems have steadily decreased over the years. With a variety of flat panel displays available at cheaper costs now-a-days, and media player technologies becoming highly affordable, the overall cost needed to install, manage and maintain digital signage has become very affordable these days.

For displays, plasma and LCD displays are the most common choices, and account for more than half the revenues generated from the overall market. Screen sizes of roughly 42 inches are the most popular, sizes less than 30 inches and more than 50 inches are also growing in popularity.

In the media players division, the trend is towards smaller form factors. Manufacturers are designing systems that can be embedded within the display device. As such, display devices having expansion slots for holding media player are becoming increasingly popular.

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