U.S. Digital Signage Market Growth & Trends
The U.S. digital signage market size is anticipated to reach USD 8.0 billion by 2028, according to a new report by Grand View Research, Inc. It is projected to register a CAGR of 6.0% from 2021 to 2028. The demand is expected to increase as advertisers, enterprises, and corporates are increasingly adopting digital signage to promote and distribute content. Advancements in display technology are also likely to drive the market. Furthermore, the increasing demand for digital signage solutions from the industries such as healthcare, transportation, hospitality, and retail, is likely to propel the market growth over the forecast period.
The growing adoption of digital signage is due to the increasing demand for advertising content with enhanced quality and better sharpness. The rising demand for 4K embedded digital displays is addressing the increase in the need for enhanced sharp images. Digital signage above 52 inches is poised to gain popularity over the forecast period due to their increasing popularity among advertisers for outdoor advertising.
Besides, software providers focus on providing design solutions compatible with multiple operating systems, to new entrants in the digital signage industry. The design solution providers target new entrants with solutions compatible with different operating systems. They are particularly offering cloud-based design solutions that can aid in managing advertising content being displayed on digital signage.
The operational cost of companies is reduced by cutting down the use of paper for advertisement and deviating from traditional marketing activities. The combination of LED-backlit panels is resulting in substantial energy savings. A decrease in energy consumption owing to the adoption of enhanced technologies such as LED is attracting enterprises to elect for digital signage.
The West region accounted for the largest market share in 2020. It is estimated to remain the highest revenue-generating regional market until 2028. The Midwest region is projected to exhibit the highest CAGR during the forecast period owing to burgeoning sales of digital signage in multiple verticals of various states.
Furthermore, the software providers are focusing on the new entrants of the digital signage industry by providing design solutions that are compatible with the Android operating systems. The use of digital signage helps in optimizing and reducing the company’s long-term operational spending. This drop in the operational expenditure is due to avoiding the use of paper for advertisement purposes and frequent damages and changes that are associated with the traditional marketing activities.
U.S. Digital Signage Market Report Highlights
- The LCD technology segment commanded the leading market share in 2020, owing to the lower manufacturing cost and benefits associated with the LCD technology
- The retail industry was the most prominent application segment in the market in 2020. It is estimated to maintain its position through to 2028, as there is high competition in the industry, which augments the need for an innovative advertising medium
- In terms of display, the transparent LED screens segment is projected to witness the highest CAGR during the forecast period as the high level of transparency and resolution offered by them proves to be lucrative for advertisers.
- The hardware segment, which includes displays and media players, is anticipated to dominate the market throughout the forecast horizon as users remain keen on adopting different types of displays
- The out-store segment is expected to witness a considerable growth rate owing to the growing adoption of digital signage in various outdoor applications
- The West was the highest revenue-generating region in 2020 owing to the adoption of digital signage across applications. The region comprises the largest number of digital signage companies manufacturing electronic display products, which is expected to further fuel the growth