Digital Signage is Tech to Provide Engaging Communication Solutions

Introduction

According to Digital Signage Statistics, Digital signage involves the utilization of electronic displays such as LCD or LED screens to transmit multimedia content, serving as a modern replacement for conventional static signs. Over time, it has undergone significant advancements and is now prevalent in a wide array of public venues. Typically, signage encompasses display screens, media players, content management systems, and the network infrastructure for connectivity.

The content displayed can encompass text, images, videos, and animations administered through specialized software. This technology serves many purposes in retail, hospitality, transportation, healthcare, and corporate environments, providing advantages such as heightened engagement, improved customer experiences, and cost-effectiveness. Nonetheless, it does come with its share of challenges, including technical glitches, intricate content management, and security considerations.

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• The digital signage market has been experiencing robust growth in recent years, with revenues steadily climbing at a CAGR of 7.7%.
• In 2022, the digital signage market generated $25.1 billion in revenue, projected to rise to $52.7 billion in 2032.
• In 2022, it was revealed that nearly half of the individuals who sign up for new gym memberships end up canceling them within the first six months.
• Meanwhile, the adoption of signage solutions is steadily gaining momentum, with roughly 60% of businesses that currently do not employ digital signage in their establishments planning to invest in this technology over the next 2 years.
• Moreover, a significant majority of current users of signage, surpassing 67%, have expressed their intention to increase their spending on out-of-home advertising through signage in the coming two years.
• For 46.1% of churches, social media has emerged as the primary outreach method, and the seamless integration of these platforms into digital signage presents an effective means to enhance engagement.
• Recent data also indicates that a substantial portion of users, approximately 33%, manage anywhere from 1 to 24 digital display or signage screens, while 15% oversee operations involving 15 to 99 screens.
• Among the brands offering digital communication systems, a noteworthy 80% have reported experiencing a boost in sales, often reaching up to 33%.

Global Digital Signage Market Overview

Global Digital Signage Market Size

• The digital signage market has been experiencing robust growth in recent years, with revenues steadily climbing at a CAGR of 7.7%.
• In 2022, the market generated $25.1 billion in revenue, projected to rise to $27.1 billion in 2023.
• The upward trend is expected to continue, with estimated revenues of $28.9 billion in 2024, $31.8 billion in 2025, and $34.7 billion in 2026.
• As we move into the next decade, the signage market is set to surpass the $44.8 billion mark in 2030, $48.4 billion in 2031, and an impressive $52.7 billion in 2032.

Global Digital Signage Market Revenue- By Type

• In 2022, the market generated a total revenue of USD 25.1 billion.
• This revenue was distributed across various digital signage solutions, including video walls, video screens, digital posters, transparent LED screens, kiosks, and other digital displays.
• Video walls accounted for USD 7 billion in revenue, while video screens contributed USD 6 billion.
• Digital posters and transparent LED screens generated USD 4 billion, while kiosks and other signage solutions brought in USD 2 billion and USD 4 billion, respectively.
• Video walls, screens, and digital posters are expected to maintain prominence, with steady revenue growth in the coming years.
• By 2032, the global digital signage market is anticipated to reach a substantial total revenue of USD 52.7 billion, with various digital displays contributing to this significant market size.

Global Digital Signage Market Share- By Region

• The global digital signage market is distributed across different regions, each contributing to its growth and development.
• North America is a major player, commanding a substantial market share of 33.8%.
• Europe follows closely behind, with a significant share of 25.4%, indicating a strong presence of signage solutions in the region.
• The Asia-Pacific (APAC) region is also a noteworthy contributor, accounting for 30.1% of the market share, highlighting the growing adoption of digital signage in emerging markets.
• In contrast, Latin America and the Middle East & Africa (MEA) regions hold relatively smaller market shares of 6.9% and 3.8%, respectively.

Key Players and Market Share

• In the competitive landscape of the digital signage industry, several key players hold significant market shares.
• Samsung Electronics and Panasonic Corporation each have a noteworthy 12% share of the market, showcasing their strong presence and influence.
• Exceptional 3D follows closely behind with a 15% market share, demonstrating its prominence in the industry.
• LG Electronics and Sony Corporation hold 11% and 9% of the market share, respectively, contributing to the diversity of signage providers.
• Leyard Optoelectronic Co., Ltd. and Scala also play essential roles in this dynamic market, with 8% and 9% market shares, respectively.

Applications of Digital Signage

Education Sector

• A significant 73% of educational institutions recognize the vital role of digital signage in shaping future communication.
• On college campuses, 70% have implemented digital displays, and 87% of educational establishments from K-12 to higher education have adopted signage systems to enhance communication and optimize their teaching strategies.
• Colleges and universities leverage signage solutions to enhance communication and provide valuable information to their campus communities.
• One hundred percent of these educational institutions use digital signage for institutional news and announcements, ensuring that students and staff are updated with important updates and events.
• Additionally, 86% of colleges and universities utilize digital menu boards in dining facilities, offering a dynamic and engaging way to showcase menu items and promotions.
• In the academic realm, classroom scheduling and emergency notifications are efficiently managed through signage by 57% of these institutions, improving the dissemination of crucial information during emergencies.
• Furthermore, 43% of colleges and universities employ digital signage for wayfinding, assisting students and visitors in navigating the campus effectively, and for room signs, which aid in location identification.

Manufacturing

• The United States incurs a substantial annual cost of $170 billion due to workplace injuries, illnesses, and fatalities.
• This significant financial burden could otherwise be reinvested into businesses for growth and development.
• However, implementing safety and health communication strategies, such as digital signage, has shown remarkable results.
• These measures have led to reductions of 20% or more in the rates of workplace injuries and illnesses. In manufacturing, 93% of companies employ signage to showcase their products at trade shows and exhibitions.

Banking & Finance

• Studies suggest that having digital signage in a bank branch enhances the perception of trustworthiness among customers, with 87% sharing this view.
• Surveys also indicate that a significant majority, 87%, of consumers, primarily consisting of millennials at 97%, actively utilize mobile banking applications.
• Consequently, it is advisable that when integrating signage, banks creatively highlight their mobile apps and their features, as this can serve as a persuasive tool for those who have not yet adopted digital banking with the bank.
• Moreover, during their wait in branch queues, many customers tend to feel impatient and perceive their waiting time as longer than it is.
• To address this issue, 60% of banks have turned to digital signage, which provides engaging content, with 75% related to bank updates and 25% offering other news to keep customers engaged.

Retail

• A considerable 90% of shoppers find videos displayed on screens to be valuable when making purchasing decisions.
• Therefore, if your store already employs digital screens, it’s advisable not to leave the content static; instead, consider showcasing engaging video content to enhance your brand’s effectiveness in selling.
• Impressively, 76% of American consumers are inclined to enter a store for the first time when drawn by appealing digital signage.
• Additionally, 67% of consumers report frequently purchasing products based on the visual content they see on digital signs.

Media & Advertising

• An overwhelming 91% of advertisers recognize that consumers now anticipate personalized and engaging advertisements, a capability readily offered by digital signage.
• Remarkably, 52% of global marketers prioritize digital solutions as their primary strategic focus for profitability.
• The adoption of omnichannel experiences by companies has seen a substantial rise, surging from 20% to over 80% in recent years, with signage playing a pivotal role in achieving success in this context.
• Notably, 76% of companies are investing in emerging technologies such as interactive kiosks, touchscreen wayfinding guides, and IoT-based signage.
• Moreover, 86% of companies consider cloud technology a critical component of their digital transformation efforts, extending to cloud-based digital signage solutions.

Healthcare

• Efficient utilization of Internet of Things (IoT) healthcare technologies has the potential to generate savings of more than $300 billion within the healthcare industry.
• A significant 70% of hospitals have embraced digital communication systems.
• Furthermore, 64% of physicians believe that IoT can help alleviate the workload of nurses and doctors.
• It’s worth mentioning that 75% of caregivers and patients who engage with hospital messaging via digital signage find the content enhances the hospital experience and delivers valuable health information.
• Concerning patient involvement, 78% actively seek digital health solutions whenever possible, and 52% obtain health-related information from signage.
• 75% of individuals exposed to digital signage within a hospital can recall at least one message.

Advantages of Digital Signage Solutions in Corporate and Employee Communication

• Human resources (HR) managers and business leaders recognize the significance of signage in fostering employee engagement.
• Nearly 56% of teams responsible for internal communication contemplate investments in signage.
• Among communication professionals, 50% utilize digital signage as a communication platform.
• Digital signage has enhanced internal communication, leading to a notable 25% increase in productivity.
• Furthermore, companies with effective internal communication witness employees who are four times more likely to feel engaged, while disengaged employees are twelve times more likely to resign within a year.

Digital Signage in Worship Venues

• Churches typically allocate around $6,500 annually for photocopying, paper, and printing expenses.
• However, adopting signage has led to a substantial 76% reduction in these costs.
• Notably, there has been a significant 72% increase in technology integration in churches led by Baby Boomers.
• Around 52.9% of religious organizations employ projectors and various digital signage to deliver sermons.
• Moreover, 4 out of every five places of worship maintain websites and actively incorporate modern technologies to engage with a wider audience, particularly the younger generation.

DOOH & Digital Signage

• As of September 2022, 98% of consumers have frequented at least one Digital Out-of-Home (DOOH) venue within the past month.
• Many individuals encounter multiple DOOH screens daily. This medium has seamlessly integrated into our daily lives, making it nearly impossible not to come across it, yet it does so without being overly intrusive.
• This integration gives advertisers an impactful means of reaching consumers without causing disruption.
• Impressively, 84% of consumers can recall encountering DOOH ads.
• Compared to a recent study by Kantar and Snapchat that examined social media advertising recall, Gen-Z reported a 55% recall rate, while older generations like millennials (46%) and boomers (26%) had even lower recall rates for social media advertising.

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