The U.S. digital signage market size is anticipated to reach USD 7.8 billion by 2027, according to a new report by Grand View Research, Inc., registering a 6.4% CAGR over the forecast period. The demand is expected to increase as advertisers, enterprises, and corporates are increasingly adopting this technology to promote and distribute content. Advancements in display technology are also likely to drive the market. Furthermore, increasing demand for digital signage solutions from industries such as healthcare, transportation, hospitality, and retail is likely to propel market growth over the forecast period.
Growing adoption of this technology is due to increasing demand for advertising content with enhanced quality and better sharpness. Rising demand for 4K embedded digital displays can be attributed to increase in need for enhanced sharp images. Digital signage above 52 inches are poised to gain popularity over the forecast period as advertisers are increasingly preferring outdoor advertising.
Besides this, software providers are engaged in providing design solutions that are compatible with multiple operating systems to new entrants in the market. They are particularly offering cloud-based design solutions that can aid in managing advertising content displayed on digital signage.
Operational cost of companies is reduced by cutting down the use of paper for advertisements and deviating from traditional marketing activities. In addition, combination of LED-backlit panels is resulting in substantial energy savings. Decrease in energy consumption owing to adoption of enhanced technologies, which includes LED, is attracting enterprises to opt for digital signage.
West U.S. accounted for the largest share in the market in 2019 and is estimated to retain its lead through 2027. The Midwest region is projected to exhibit the highest growth rate during the forecast period owing to burgeoning sales of digital signage in multiple industry verticals across the region.
Some of the prominent companies operating in the market are Cisco Systems, Inc.; Intel Corporation; Microsoft Corporation; BrightSign, LLC; Keywest Technology, Inc.; Planar System Inc.; Scala, Inc.; and Hughes Network Systems LLC.
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Further key findings from the report suggest:
- On the basis of display technology, the LCD segment commanded the leading share in the market in 2019 owing to lower manufacturing cost and benefits associated with LCD technology
- The retail industry was the most prominent application segment in the U.S. digital signage market in 2019. It is estimated to retain its position through 2027, as there is high competition in the industry, which augments the need for innovative advertising medium
- Based on display type, transparent LED screens are projected to exhibit the highest CAGR during the forecast period as high level of transparency and resolution offered by them proves to be lucrative for advertisers
- By component, the hardware segment, which includes displays and media players, is anticipated to dominate the market throughout the forecast period as users remain keen on adopting different types of displays
- The out-store location segment is expected to witness considerable growth through 2027 owing to growing adoption of digital signage in various outdoor applications
- The West region was the highest revenue generating region in 2019 owing to the adoption of this technology across applications such as retail and hospitality. The region is home to the largest number of companies manufacturing electronic display products
- Prominent players in the U.S. market include Panasonic Corporation of North America; Cisco Systems, Inc.; Intel Corporation; Microsoft Corporation; and Planar System Inc.