The North America Digital Signage Market is expected to register a CAGR of 13.7% during the forecast period.
Key Highlights
- The signages have played an important factor in influencing the purchase decision in the US, and institutions like the Government, Healthcare, Public transit, and retail stores are now heavily relying on digital signages to better engage their targeted audiences to communicate their message.
- Digital signages are gaining popularity in the region, especially in the United States, due to the recent technological advancement in the display, connectivity, and monitoring space. Furthermore, the increasing adoption has also resulted in prices of display panels coming down significantly.
- The retail sector has been significantly adopting digital signage in the US, with primary and upcoming businesses opting for advanced digital signages featuring AI and machine learning to gain the most out of consumer analytics.
- Also, With an increased focus among retailers on targeted marketing strategies, the signage manufacturers are collaborating with retail stores to leverage increased sales by creating a branded environment. For instance, Mood Media generated a 10% increased profits for a North Carolina-based organic food retailer named Earth Fare.
- Furthermore, local governments in the area are also promoting the adoption of smart cities. For instance, Las Vegas is testing three pilot projects, with the government allocating USD 500 million to find ways to connect the entire city by 2025. Also, Intersection, a smart cities media, and technology company, has recently signed a 5-year contract with Chicago Transit Authority (CTA) to deploy over 700 new displays at CTA's rail street-level bus-advertising assets aiding the innovative city initiatives.
- Additionally, Pittsburg's Wood Street Station authority is considering expanding the installation of kiosks, and digital signage from CHK America Inc., enabled with route overview, real-time arrival information, and public service announcements like new fares and safety messages.
- Moreover, due to the region's high penetration and adoption of technology, technology giants, like Apple Inc. and Samsung Electronics, have been investing significantly in digital signage. For instance, recently, Samsung launched The Wall, an innovative display solution optimized for effective communication and collaboration across various applications. Apple Inc., on the other hand, has been looking at converting its set-top box to operate as digital signage through its management APIs and cloud-based software for retail installations. These innovations are going to play a vital role in the development of the market in the future.
North America Digital Signage Market Trends
Retail Industry is Expected to Hold Significant Market Share
- In order to leverage advanced signage technologies, the retail players are integrating the digital tools at their disposal to share relevant and profitable content at their premises and integrate digital ads into their retail stores to create a different in-store user experience.
- They are fusing the digital and physical shopping mode to create a cohesive multichannel experience, thereby reshaping different parameters, such as prices, contents, features, method of advertisement, etc. For instance, NEC Corp. developed a new series of large-format UHD displays that support short and long-distance viewing through a high level of detail and huge screen sizes.
- Moreover, retailers are striving to update the user-interactive screens in real-time to reflect the current trends in in-store age or gender demographics to promote specific items or remove sold-out products from the screen.
- According to Scala Digital Signage, 74% of the US retailers consider that developing a more engaging in-store customer experience is critical, and out of that, 42% of the sales are expected to come from online, mobile, and social commerce sites, in the next five years.
- Further, retail players, such as Tommy Hilfiger, IKEA, Argos, Last Call Studio, and many more, are adopting innovative shopping experience using digital signage in multiple ways, such as interactive displays and more innovative screen content, through various handheld devices, which can draw the shopper experience, thereby, leaving a long-lasting impression.
- For instance, the digital signs are getting more interactive and convenient to create a more robust and engaging window displays platform in boosting customer engagement. The integration of intelligent technologies is helping them to attract a greater audience based on their buyer persona. The majority of the retailers maintain more than 1,000 stores, adding to the demand for POP displays.
United States Accounts for the Largest Market Share
- To improve visitor, student, and faculty communication, educational institutes of all levels adopt digital signage. Used for emergency notifications, way-finding, and other applications, digital signage offers the educational sector an effective medium to increase communication.
- By replacing traditional message boards and posters, digital signage solutions enable immediate, up-to-date, and highly engaging rich-media content shared throughout educational facilities. For instance, the University of Southern California has deployed digital signage software from Enplug to inform and engage faculty and students of the happenings across the campus.
- In the United States, the Navy has awarded over 15 contracts to Aerva Inc., to launch a base-wide network of digital displays for internal communications at several Naval facilities, including Naval Undersea Warfare Center (NUWC), Naval Surface Warfare Centers (NSWC), Naval Shipyards (NSY), as well as other maintenance facilities for employee communications.
- Furthermore, movie theaters are already using digital kiosks across various cinemas in the country. These devices help get a better view of the seating arrangement, and they assist in reducing the long queues at the ticket counters. Increasing adoption of these devices in theaters is expected to carry the market forward.
- Additionally, concession boards are where cinemas earn a profit. According to Broadsign, currently, around 78% of cinema lobby activities are concession purchases. This implies that customers are in a purchasing state of mind. Digital menu boards bring concession goods to consumers' attention and can produce a 10-50% increase in sales.
- Moreover, ScreenBeam Inc., one of the key players in the United States in wireless display and collaboration solutions, has released an update featuring a digital signage capability that will empower their 1,100 clients to better leverage their meeting room displays in communicating essential employees and guests messaging, company branding, and beyond.
North America Digital Signage Industry Overview
The North American digital signage market is relatively fragmented with major global players, like NEC Display Solutions Ltd, Samsung Electronics Co. Ltd, Panasonic Corporation, Sony Corporation, covering the hardware end of the spectrum. At the same time, there happen to be several medium and smaller players who provide software for digital signage. Moreover, many players are entering the market offering unique product applications as niche players in the industry.
- May 2021 - Broadsign entered an agreement with Pladway to integrate the Broadsign Reach SSP with Pladway's DSP. This agreement is expected to enable high-impact, measurable global planning for brands and media buyers. At the same time, provide brands and agencies access to a programmatic campaign planning solution that can reach more than 80,000 premium screens in the region.
- January 2020 - Hitachi, Ltd. announced its intent to integrate Hitachi Vantara Corporation and Hitachi Consulting Corporation to lead Hitachi's global expansion of Lumada-based solutions and digital capabilities for its customers and partners. The combined organization will operate under the Hitachi Vantara brand.
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