World Digital Signage Systems Market

This Frost & Sullivan research service titled World Digital Signage Systems Market provides market drivers, restraints, forecasts by geographic regions, competitive and market share analysis. In this research, Frost & Sullivan's expert analysts thoroughly examine the following sectors: digital signage displays, software and media players.

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Market Overview

Ability to Deliver Focused Messages to a Finely Targeted Audience Boost Market Prospects

The dilution of mass media and shrinking attention spans of consumers worldwide caused by media clutter have led marketers to gravitate toward digital signage - a medium that can influence the customer at the point of purchase. The industry is gradually maturing with the emergence of turnkey solution providers, development of best practices for content creation, entry of cash-rich media conglomerates, M&A activity and the development of standards for measuring the reach of in-store media. “Greater emphasis on content creation and on-going content strategies bode well for the industry’s prospects,” notes the analyst of this research. “In order to succeed, it is critical for businesses to understand what they are looking to accomplish with the digital signage system by developing an audience centric approach to the content and communication strategy.”

In the past, several pilot projects in the industry failed for the simple reason that the same content was played repeatedly in loops for a period of months or the core message of the content was lost in the clutter of extraneous details. Encouragingly, there is a notable change in perception among many brand managers, content providers and network operators who realize that TV advertisements would not be as effective on an in-store display. “Moreover, content creation costs are being factored into the overall cost of installing and maintaining the network at the initial stages,” adds the analyst. “A sign that the industry is maturing is the growing awareness about the importance of a content strategy and the emphasis on the creation of best practices for content.”

Strong Business Case, rather than Technology Drivers, to Promote Uptake of Digital Signage over Long Term

The digital signage industry, already facing concerns over intense competition and eroding margins, has had to contend with recessions and reduced consumer spending in major markets. The turbulent effects of the current macro-economic climate have resulted in lower than expected growth rates in the United States, Western Europe, and parts of Asia and Latin America. “The concept of slashing IT budgets to achieve profitability is an unfortunate trend that is likely to dissuade end-users from equipping their stores with world class digital media solutions,” explains the analyst. “In the short and medium terms, growth in this market is likely to be driven by the state of the economy and the availability of credit / capital.”

The continuous erosion of prices of digital signage system components including networking, connectivity, servers and displays has fuelled industry growth even in tough economic conditions. Rapidly falling prices for the hardware needed for out-of-home media networks is also allowing small- and medium-sized businesses to upgrade their marketing and communications strategies by including a digital signage component. “The recession of 2008 and 2009 played a major role in the significant price drops witnessed across the industry, although prices have stabilized to an extent in 2010” says the analyst. “In the long-term, the value proposition of digital signage will be etched and business drivers more than technology drivers are expected to motivate spending.”

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Digital signage systems
• Digital signage software
• Media players

Technology

The following technologies are covered in this research:

• Media player
• Broadband
• LCD/LED/plasma

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