Retail Digital Signage Market Size

Retail Digital Signage Market Analysis

The retail digital signage market is expected to grow at a CAGR of 7.56% during the forecast period, 2022-2027. The ongoing increase in advertising is expected to supplement the market growth.

• Digital signage is a display technology showing images, texts, and videos. It uses LED, LCD, projection, and e-paper to display the digital advertisement content. Digital content is more likely to be noticed and remembered by consumers than static print-based signs. There are several reasons at work here, but the primary one is that people are drawn to movement, color, and freshness.
• For instance, digital billboards are prevalent in many metropolitan areas, marketing everything from real estate and grocery stores to pediatricians, car dealerships, and burger eateries. These massive billboards have been demonstrated to significantly enhance retention rates, sometimes by more than 50%, meaning that people who see a digital billboard rather than a standard print billboard are more likely to recall its information. Many clients are willing to pay for that kind of influence.
• The retail sector is significantly adopting digital signage, with major and upcoming businesses opting for advanced digital signages featuring AI and machine learning to gain the most out of consumer analytics. According to Zenith Media, the outdoor advertising expenditure in Western Europe is expected to cross USD 6.4 billion by 2022.
• The market is witnessing various product innovations and developments to keep up with the latest technologies. For instance, in June 2022, Scala announced the launch of its flagship digital signage platform, Scala Enterprise Version 12.70, to allow faster new feature developments.
• However, drawbacks, such as high initial investments, high maintenance costs, and high power consumption, restrain the market growth. Nonetheless, with the advancement in technologies of digital signage systems, the market is expected to overcome these issues.
• Since the spring of 2020, digital signage businesses have had to make some difficult decisions and learn to adapt to remain competitive. In particular, the digital-out-of-home (DOOH) business was forced to pivot and think of new ways to reach consumers when many consumers were staying at home. The digital signage business recovered well in 2021. Industry leaders discovered that as more people stepped out in public after months of isolation, they were more likely to detect DOOH, especially if the promotions were original and attention-grabbing.