The digital signage media player market is expected to register a CAGR of 9.09% during the forecast period. Digital signage has played an important factor in influencing the purchase decision. Institutions like government, healthcare, public transit, and retail stores have been heavily relying on it to engage their targeted audiences better and communicate their message. The media player is at the core of a digital signage system and is designed to broadcast the digital signage campaign to the displays.
Digital signage displays offer an effective solution to feature promotions for products, services, events, and sales. As well as rotating graphics, multimedia screens also use video and animation. This means that advertisers can use digital signage to show static ads, product demos, or video testimonials.
As digital signage enables content and messages to be displayed on an electronic screen or digital sign, the content can be changed without modifying the physical sign. This is aligned with aggressive growth across various emerging economies over the next few years. As technology gets better and prices go down, more and more people are starting to use digital signage.
Progressing installations of signage solutions in bars, restaurants, and similar establishments to enhance the customer experience is expected to propel the digital signage media player market demand over the foreseen period. To substitute the conventional way of informing customers through menu cards, these devices are employed on power screens to display attention-grabbing advertisements and provide notable market opportunities to the industry. Also, more and more of these devices are being used in the retail sector as the need for brand visibility and to serve the digital signage media player market grows.
However, digital signage for end users trying to develop and deploy the infrastructure on their own can be confusing. Being a complex undertaking, it requires expertise in various areas, such as IT, audiovisual, software, mechanical, and display technologies. In order to take advantage of complete solutions offered by value-added retailers (who incorporate products from partner hardware and software vendors), the need for technical ease and standardization of protocols is required. This not only eases installation but simplifies upgrades and reduces maintenance.
The COVID-19 outbreak affected the market, as the manufacturing facilities were closed in the initial phase, and work-from-home trends also reflected the decrease in demand. However, the scenario expanded the scope of marketing through digital signage across many industries, especially in hospitals and public places, which utilized the technology for displaying important information.
In the post-pandemic world, businesses are looking toward new approaches to engaging customers with the emergence of new technologies and the ever-increasing popularity of digital content. Moreover, organizations that once used printed signage and in-person communication have relied more heavily on digital communications over the past two years, and the trend is expected to continue. Digital signage would be very important in the world after COVID-19 because companies would print less physical material and have lower capacity limits.
Digital Signage Media Player Market Trends
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.
Digital Signage Media Player Market Competitor Analysis
The digital signage media player market comprises diverse areas to excel in, such as hardware and software. There has been intense competition in both sectors of the market. Competitive rivalry in this industry is governed by significant players, such as 3M, Cisco, Dell, and Advantech. Profitability in the industry is significantly increasing player activity.Thus, the new players, along with the existing giants, are adopting powerful strategies to maintain a competitive edge in the market. Therefore, the competitive rivalry in the market is high.
In November 2022, Nice, a global manufacturer of smart home, security, and building automation solutions, announced shipping for the new Gefen AVoIP Matrix Controller, a flexible yet effective solution for controlling compatible video and KVM over IP-based extenders within the same network. The AVoIP Matrix Controller gives integrators and distributors easy access to advanced features while giving them the most control.
In September 2022, Christie Digital Systems announced the introduction of two new pixel pitches for its acclaimed MicroTiles LED. In addition to the current lineup of 1.25 and 1.5mm pixel pitches, the new 0.75mm and 1.0mm variants provide more dependability, efficiency, and improved durability. As part of its business plan, the company also aims to work with educational institutions. It does this by offering high-quality display technology that can make the user experience easier and make it easier for students to learn with lifelike images and perfect clarity.
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