Digital Signage Market Expected to Double Over Next Five Years

NEW YORK - October 31, 2008

The digital signage market will more than double in size over the next few years, according to a new report from ABI Research. Driven by a desire by retailers and advertisers to better target consumers in the out-of-home media market, the overall market for digital signage software, hardware, installation and management services in the United States will grow from a $641 million market in 2008 to nearly $1.4 billion by 2013.

“We certainly expect the economic slowdown in the United States and other markets to impact retailer and advertising spending on new initiatives over the next 12-24 months,” says research director Michael Wolf. “However, we believe that there will be continued spending in emerging areas where cost of entry is not prohibitive. That gives retailers and advertisers a differentiated approach to reaching the consumer, particularly one that gives them an interactive component and more robust targeting.”

While most large retailers have at least evaluated digital signage, the largest nationwide chains such as Walmart and Costco have made significant investments in the technology. Digital signage implementations 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. ABI Research expects demographic targeting using cameras, and the integration of RFID sensor networks with signage, to add significant interactivity capabilities in coming years that will also help drive the overall market.

“Retailer rollouts of digital signage tend to go in waves, often targeting highest traffic storefronts first,” Wolf notes. “Over time, we expect that lower implementation costs, together with the continued drop in screen prices and better measurement of signage impact will eventually induce those large retailers who have only dipped a toe in the water to dive right into the pool.”

Digital Signage Market Analysis examines current trends in the digital signage market and explains digital signage’s role in driving sales, increasing revenues and communicating with the end user. The report includes company profiles, market forecasts, and analysis of price trends.

It is a component of the firm’s Digital Media Research Service.

ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit www.abiresearch.com, or call +1.516.624.2500.