Market Trends of Digital Signage Media Player Industry
This section covers the major market trends shaping the Digital Signage Media Player Market according to our research experts:
Trends Favoring the Growth of Context-Aware Advertising to Drive the Market
The majority of traditional advertising is printed signage, which has been replaced with digital signage, aiming at customer attraction and satisfaction through cost-effectiveness in the long run. Printed signages were single-use messages such as billboards and posters, which are frequently discarded due to the dynamic nature of content marketing today.
- The retail sector is a widely adopted segment with the highest investment in digital signage for advertising. One major challenge is coordinating marketing campaigns while accommodating the individual needs of various locations. Adopting a robust digital signage system is making the process of engaging retail stakeholders much easier.
- Out of the different advertising channels, such as radio, television, print, etc., digital remains a key driver of global advertising market growth and is on an upward trajectory. Such increased digital advertising spending, along with allocated budgets by the companies toward digitization, is the major reason for the high adoption rate of these devices in the commercial segment. In particular, digital signage, coupled with Bluetooth or BLE, offers an effective combination for contextual marketing. Beacon-enabled mobile apps collect customer data and use it to send personalized messages.For the same reason, media player providers need to embed the required connectivity.
According to Dentsu, in 2021, digital ad spending increased by 32.0% following the pandemic. It was expected to grow by 14.2% in 2022 to reach USD 409.9 billion, a 55.5% share of global ad spending. The company also predicts a further 9.3% growth in 2023 and an additional 7.1% in 2024. Digital ad spending for digital signage is expected to increase along with global brands' affinity towards digital ad spending (internet), opening paths to incorporate digital spending along with OOH (Out of Home) ads. Such trends create a positive outlook for the market.
North America Holds Major Market Share
- The United States is one of the largest digital signage marketplaces. Due to recent technological advancements in the display, connectivity, and monitoring spaces in numerous applications, including retail stores, transportation systems, outdoor advertising, restaurants, museums, corporate buildings, and public spaces, digital signage is becoming increasingly popular in the United States. In addition, the widespread usage has led to a sharp decline in the cost of display panels.
- The retail sector in the United States is predicted to gain a considerable market share to provide a distinct in-store user experience. The OBERLO estimates that US retail sales will expand by 0.6% in 2023 and 1.3% in 2024, standing at USD 1.9 trillion in the third quarter of 2022. Businesses are combining online and offline shopping to make a seamless multi channel experience. This has changed a lot of things, like prices, features, ways to promote, etc.
- According to Scala Digital Signage, 42% of purchases are anticipated to come from online, mobile, and social commerce websites. In comparison, 74% of US retailers believe creating an engaging in-store consumer experience is crucial. As a result, both new and established firms are heavily investing in their R&D capabilities, releasing new products or developing old ones, and forming partnerships to gain the largest possible market share.
- Canada is renowned for punching above its weight in the economic and industrial realms despite having a population of only 39 million and one of the largest economies in the world. This is also true for digital signage, where a mature infrastructure and a populace that prefers in-person shopping to online shopping present network operators with enormous opportunities.
- The pandemic permanently altered Canadian retail, yet the growth of e-commerce has been robust and long-lasting. Unsurprisingly, online information, inspiration, and purchasing are all facilitated by digital, which is now the doorway to all commerce and is driving the Canadian shopping experience online and offline. Because of this, the Canadian retail market for digital signage is likely to grow, since it's important for businesses to have a strong digital presence to meet customer needs.
