MUMBAI: Global digital signage systems market will reach $13.8 billion by 2017, said the latest report by Global Industry Analysts, Inc.
The report claims that opportunities for advertising are on the rise in developing Asian countries like India, China and Singapore largely due to the growing base of urban population and a resultant wider audience base of target corporate workers, commuters and shoppers.
The retail boom in Asia brought upon by strong economic growth, rising consumerism, rising standards of living, increase in disposable incomes, and changing lifestyles that rival western counterparts, all provide a strong platform for growth.
“Given its ability to use vibrant, media-rich messages to rope in the right audiences, digital signage represents a powerful medium for advertising, information display and entertainment,” the report added.
The marketing arena worldwide has witnessed dramatic transformation over the past few years. The recent years have seen decline in traditional print advertisements in newspapers and static outdoor billboards, but commensurately rising interest in new interactive marketing strategies, including digital signage.
According to the research, the market is further driven by the evolution of hybrid digital signage systems wherein digital signs are augmented with the interactivity of digital kiosks. The amplification of marketing impact possible through this medium provides a high return on investment (ROI) business case for these systems.
Major application areas in these regions include public notices and real-time weather forecasts among others. Industrialisation will remain a key factor, indirectly driving growth in the marketplace.
Development of transportation networks, public infrastructure, new construction of commercial buildings will create demand for digital signage in public spaces, the report asserted.
Against a backdrop of a digitalised world, the digital platform of marketing makes for an effective medium to target elusive consumers, especially the younger generation. With several advantages like higher viewer recall and retention of digitally displayed messages, stacked in its favor, digital signage systems are forecast to witness sturdy gains in the upcoming years.
The report also stated that despite the market advantages enjoyed by digital advertising technologies, the global digital signage systems market witnessed sizeable deceleration in growth momentum during the years 2008 and 2009, as direct fallout of narrow creativity levels in a weak economy, and credit shortages for funding new and risky ventures during the period.
For instance, new investments in digital signage infrastructure came under direct pressure as a result of preferences among advertisers for existing and already accessible infrastructure.
Additionally, financing for big digital signage projects experienced relatively tougher funding options, as venture capitalist preference during this period was particularly skewed towards established technologies/projects with faster exit options.
The research underlines that falling costs associated with purchasing, installing and maintaining digital signage systems in sync with technology development and market penetration, will help bolster the market in the post recession period.
Low hardware costs, and declining software development costs have made systems, such as media players, and display units like LCD displays cheaper and affordable. While the retail sector remains the prime end-user of digital signage technologies, evolving application areas, such as in financial services, transportation and hospitality are forecast to generate steam in the upcoming years.
Companies poised to gain will be those capable of providing end-to-end digital signage solutions encompassing installation, consulting, content creation, content management and support, the report concluded.
