Digital signage system,also termed as dynamic signage system,is used for transmitting and displayingdigital contents, such as animations, audio-visual, text and images.The system composites a playback device, a network and server, software and display device.The player or playback device is responsible for repetition of content onto the screen. The system’s capabilities are enhanced viaa wired or wireless network connectivity platform, whichenables the system to communicate with other connected devices.In addition, wireless network connectivity allows the user to access the digital signage system from anywhere, enhancingcontroland monitoringexperience of the system and its content.
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The digital signage system eliminates the use of materials like paper and paint required for traditional signage systems, making it more eco-friendly. It can be used for high target advertisement. Furthercapabilities like extending its display size by connecting with other multiple screens, real-time content update, remote access, monitoring and controlling, data transmission via compressed files, fan-less design for preventing malfunctioning, energy-saving, tamper-resistant, cost-effectiveness, dynamic and interactivityare some of the key factors that are increasing the usage of digital signage systems. Moreover, decline in price of display devices, rising scope of GPS market, increasing demand for digital out-of-home (DOOH) applications and a growing demand for additional integrated features in digital signage systems are expected to increase the scope of digital signage software market as well. However, the digital signage market is facing a few challenges, such as high initial cost associated with its installation, huge investment in its maintenance, content creation, support and hardware & software.
The digital signage system market can be segmented based on technology, software, system type andapplication.On the basis of technology, the market can be categorized intoLCD or plasma, OLED and LED display technology. The digital signage market can besegmented into software which include content management software, distribution and scheduling software. On the basis of types, the digital signage system market can be segmented into indoor and outdoor digital signage. Based on application, the market can be divided into various verticals such as corporate and commercial sector, manufacturing, educational institutes, government, banking and financial institutes, transportation, retail and wholesale, media and entertainment, and health care.
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The digital signage system market is expected to grow at a significant rate, reflecting a double-digital growth in its CAGR over the forecast period, from 2014 to 2020.Among all the regions, North America and Europe have the largest market share in digital signage market, however,Asia-Pacific is expected to emerge as a promising market in the near future, of which India and China would take the lead.
The key participants in this market focus on acquisition and merger strategies to outperform their competitors. For example, in 2014, Barco acquired X2O Media to expand its technology platform, connectivity capabilities andglobal presence, and strengthen its operations in digital signage system market. Further, in April 2013, RMG Networks acquired an intelligent visual communication provider,Symon Communications in order to strengthen its technological competenciesand expand its digital signage offering and customer base.Some of the key players identified in the digital signage market areCisco Systems, Inc.,Samsung Electronics Co., Ltd., NEC Display Solutions, Ltd.,BroadSign International, Inc., Panasonic Corporation,Smart Digital Signage Inc., Out Front Digital Communications, Israk Technology, Net Display Systems PADS, WinMate Communication Inc., Visix, Inc., Corum Digital Corporation, Almo Professional A/V, ADFLOW Networks and Mermaid vTouch Pro.
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