Digital signage, also known as digital signs or digital boards, is digital video content or digital images displayed on a screen. The technology allows room for flexibility and has a powerful impact on businesses.
In place of traditional print advertisements, posters or signs, the digital images and video that make up the signage are displayed on a high definition screen, or a series of screens. Content is then driven to the screen from a media player, which stores the content that is driven by a cloud-based software that determines how content is displayed on the screen, for example, the Look Digital Signage Software.
There are numerous areas to use digital signage, including shopping malls, schools, libraries, office buildings, medical facilities, airports, train and bus stations, banks and other public venues.
In 2019, the global digital signage market size was estimated at $19.3 billion and is likely to reach $32.12 billion by 2025, growing at an annual rate of about 8% from 2020 to 2025. The digital signage market’s growth results from rising infrastructural developments in emerging countries, growing demand for 4K & 8K, increasing adoption of digital signage products in the commercial vertical, and growing technological advancements in display products.
The African Market
The Digital Signage market in the Middle East & Africa is expected to register a CAGR of 6.5% between 2020 and 2025. In this region, signage uses methods like LCD, LED, OLED, and projections, to display content including digital images, video, and streaming media.
These are mostly found in museums, public spaces, stadiums, transportation systems, restaurants, hotels, retail stores, and corporate buildings. Content can be displayed with the help of content management systems, which can either be run from personal computers (PCs) and servers, or regional/national media hosting providers.
Digital signage deployed in the form of video walls, digital hotel signs, or interactive kiosks usually provide increased customer engagement, enhanced guest experience, increased revenues and brand loyalty, reduced perceived wait times in queues, and a slash on printing costs. As a result of the aforementioned benefits, the digital signage market in the Middle East & African region is projected to witness massive growth over the forecast period.
Besides, in the past few years, digital signage systems as the advertising medium have witnessed increased demand in the region due to several major retailers’ presence. Currently, digital signage is gradually replacing printed signage displays, and the former has emerged as the most preferred medium for advertisers.
Market Segmentation
The digital signage market is segmented by:
- •By Offering (Hardware, Software, Services): the estimated growth rate of the digital signage market for software is higher than hardware. This is because hardware devices are not frequently purchased since they have a long operational life. On the other hand, software licenses need to be purchased and upgraded at regular intervals.
- •Product Type: it is classified as single-screen, video wall, and kiosk. Among these products, the kiosk segment is expected to experience the highest growth over the forecast period, due to the large increase in digital kiosks’ adoption in the retail industry. These digital kiosks are also used for ticketing, registration, billing, and other banking applications.
- •Size (Below 32 Inches, 32 inches to 52 Inches, above 52 Inches)
- •Application (Indoor, Outdoor)
- •Vertical (Institutional, Commercial, Industrial, Infrastructural, Others): Commercial vertical to dominate the digital signage market during the forecast period. The commercial vertical growth is attributed to the rising adoption of digital signage products for advertising and content delivery to increase the customer base and enhance consumer satisfaction.
- •Country (South Africa, U.A.E, Egypt, Saudi Arabia, Israel and the rest of the Middle East and Africa)
Under the market segmentation, the following are the major growing sectors:
In product type, video walls are growing at the highest CAGR because they are considered another source of digital advertisement that is large and thus captures large audiences’ attention.
In size, above 52 inches segment is growing at the highest CAGR because the display screen offers up to 700 cd/m2 of brightness. These panels are equipped with thermal protection and have internal temperature sensors that manage the overall temperature of the display panel. This display offers flexible control options along with Ethernet, RS-232 in/out, IR and DDC/CI. They are also integrated with a real-time clock and a built-in scheduler, which allow for advanced scheduling of monitor powering up/down.
In the vertical sector, the commercial segment is growing at the highest CAGR as a result of an increase in the use of digital signage system mostly in the retail sector for advertisements, displaying, and installing kiosks for effective operations in the restaurants, supermarkets, etc.
Media Players to Hold Significant Market Share
There is an increasing deployment of media players for digital signage market, which can be attributed to increased installation of signage solutions in establishments such as restaurants, bars, etc., seeking to improve the customer experience.
Media players are used to power screens that display attention-grabbing advertisements. The introduction of these devices in the retail sector is expected to grow in the forecast period (2020 – 2025), due to an increased need for brand visibility, therefore, fueling the demand.
Furthermore, manufacturers such as LG, Samsung, and NEC Display Solutions have introduced displays with built-in media players. The embedded displays can streamline the installation method, alongside enhancing the performance and safety of digital signage. The increasing deployment of these devices results from features like small, compact, and ease of installation suitable for outdoor environments. Additionally, video wall applications and professional installations also contribute to the growth of the region’s digital signage media player market.
See Also:
