Technavio analysts forecast the global digital signage market 2016-2020 market to grow at a CAGR of over 5% according to their latest report.
The adoption of digital signage has been increasing due to advantages like zero paper waste, audience engagement, dynamic content control, cost-effectiveness, and the display of targeted content. These advantages make digital signage a reliable alternative to other advertising media like posters and banners. China, the US, and the UK are the largest revenue-generating countries in the digital signage market.
However, Sunil Kumar Singh, a lead analyst for displays at Technavio cautions that market definitely faces some challenges. “The ongoing growth in the e-commerce sector will slow down the adoption of digital signage in the retail sector. Uncertain ROI is another factor which will impact the adoption of digital signage, as the implementation of digital signage does not ensure higher sales,” said Sunil.
Technavio has calculated the market size of the global digital signage market based on the revenue generated from the sales of digital signage equipment, software, and services to the retail, education, healthcare, and other sectors.
Technavio’s market research analysts have identified the following three factors as the driving forces behind the market growth for digital signage:
- Advantages over traditional advertisement boards
- Growing adoption in healthcare and banking sectors
- Growing popularity of interactive digital signage
Advantages over traditional advertisement boards
Digital signage effectively makes use of the flexibility offered by advances in audio-visual technology and is increasingly replacing print media in public places. This technology has the ability to integrate dynamic content as opposed to the static images used by simple printed signage.
The adoption of digital signage has been increasing due to advantages like zero paper waste, audience engagement, overcoming space limitations, dynamic content control, cost-effectiveness, display of targeted content, and interactive digital signage.
Digital signage is better at protecting the environment, creates a more engaging customer experience and is more cost efficient. These advantages make digital signage a reliable alternative to other advertising media like posters and banners. With interactive digital signage, customers can explore products more thoroughly and use their personal devices to connect with the signage and receive alerts about offers and promotions.
Growing adoption in healthcare and banking sectors
Digital signage helps hospitals and other healthcare facilities bolster communications with patients, visitors, and employees. In a healthcare facility, digital signage systems are used in lobbies, waiting areas, cafeterias, and patient rooms.
In patient rooms, there are systems with interactive touchscreen displays that provide videos on medical procedures and display patient status information. Digital signage in lobbies and waiting areas is used for promoting hospital services.
The banking sector is also increasingly adopting digital signage due to a number of improvements for customer engagement, scope for targeted promotions, and corporate communications options.
Digital signage enables banks to change content from a central location, allowing for the quick updating of company-related information. The electronic management of information saves a lot of money for banks as they are no longer required to print brochures, posters, or data sheets to convey frequently changing information.
Growing popularity of interactive digital signage
Vendors are adopting interactive touch displays to change the user experience drastically. Interactive digital signage displays enhance users’ engagement with content, leaving a deeper imprint on their minds. They allow end-users to interact with content via touch screens, body sensors, and quick-response codes through smartphones.
“Interactive displays will help users in collecting and analysing customer data. The data collected and analysed from customer interaction may be used to offer special discounts, coupons, and other incentives. Due to these advantages over normal displays, interactive digital signage will have high adoption over the coming years,” says Sunil.
