Chapter 4: Digital Signage, growth prospects and current challenges

CHAPTER 4

DIGITAL SIGNAGE, GROWTH PROSPECTS AND CURRENT CHALLENGES

According to the report “Digital technologies for a new future” prepared by the Economic Commission for Latin America and the Caribbean (ECLAC) “the productive ecosystem found in digital technologies an opportunity to reach consumers and give continuity to the supply of their products and services”.

The associated impacts were evidenced in an average regional growth of 157% in trade through electronic media, based on two variables: on the one hand, the increase in the presence of companies on the Internet (800% in Colombia and Mexico and about 360% in Brazil and Chile) and, on the other hand, the explosion of new e-commerce sites (450% in Brazil and Mexico).

It is said that the Digital Signage market can still continue to strengthen the growth and profitability for Latin America, which would generate a greater opportunity in the sale of equipment, content generation and analytical services. It is estimated that in 2022 the global market for Digital Signage will reach $ 32,000 million USD and reach $ 44,700 million in 2026, as stated through the report 2021 Industry Outlook and Trains Analysis (IOTA).

In Latin America, during the 2021, Digital Signage applications rank sixth in revenue in the AV industry in the region, although with a sustained growth of about 10% per year, well above the 4.56% average growth of the AV industry in the world.

According to the study “Digital Signage: a high growth market” prepared by amplitude net, “the indicator of the compound annual growth rate (CAGR), will be 8.0% between 2019 and 2025, there it is proposed that the global market for Digital Signage will grow from 20,000 million USD in 2019 to 31,710 million in 2025”.

Digital signage market value, 2016-2027 (revenue millions of dollars)

35,000

30,000

25,000

20,000

15,000

10,000

5,000 8%

CAGR

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

North America Europe Asia Pacific South America Middle East and Africa

Fuente: Grand View Research - Digital Signage Federation, Digital Screenmedia Association, Digital Signage Magazine, DSEG, NDMC, IMDA, ACMA, USCBC, IAB, PC Magazine, entrevistas primarias y Grand view Research

On the other hand, the report “Latin American Digital Signage Market Outlook” states that, “numerous brands are making digital an important part of their media strategy to expand and interact with consumers across all channels. There is also an evolution from traditional stores to smart stores to maintain and attract a potential customer base”.

The outlook report adds, “In addition, increasing technological advancements in display products and growing investment in digital advertising are driving the Digital Signage market in the region. Growing demand for 4K and 8K displays with advanced features such as sharp images, high resolution, and enhanced motion rendering is also contributing to the industry”.

Additionally, other significant elements influencing the growth of the market are given by the development of infrastructure and increased commercial use of digital signage. With regard to demand, the increasing purchase of energy-efficient display panels, demand for Ultra-HD devices and the emergence of micro-LED display technology are expected to generate growth opportunities for the digital signage industry.