A new report from ABI Research “Digital Signage Market Analysis,” forecasts the digital signage market to more than double in size over the next few years.
Digital signage deployment can range from a single screen attached to a basic PC with player software to large thousand-screen networks with nationwide distribution over IP networks, according to ABI.
The research firm said this growth will be driven by retailers and advertisers desire to better target consumers in the out-of-home media market. The report predicts that in the United States, the overall market for digital signage software, hardware, installation and management services will reach around $1.4 billion by 2013, up from the $641 million market in 2008.
ABI’s research director Michael Wolf said their research firm expects that over the next one to two years, the economic slowdown in the United States and other markets will impact retailer and advertising spending on new initiatives. ABI expects continued spending in emerging areas where cost of entry is not prohibitive and Wolf believes this trend will give both retailers and advertisers a differentiated approach to reach their target market.
The “Digital Signage Market Analysis,” also shows that most large retailers have evaluated digital signage and Walmart and Costco, the largest nationwide chains, have already invested in the technology. In coming years, the research firm expects demographic targeting using cameras, and the integration of RFID sensor networks with signage, to add significant interactivity. In fact these are expected to help drive the overall market.
“Retailer rollouts of digital signage tend to go in waves, often targeting highest traffic storefronts first,” added Wolf. Looking forward, the lower implementation costs combined with the reduction of the screen prices, as well as better measurement of signage impact, will eventually encourage the large retailers to significantly increase their investments.
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Edited by Stefania Viscusi