Signage

Global Signage Industry Outlook

• The global signage market is estimated to be at $46.5–49 billion for 2023 [F]

• Asia, North America and Europe are high-maturity markets with China, India, the US and UK being the key demand countries

• Major Australian retail chains adoption of digital signage have driven growth, along with other end-user segments, such as financial service and public transport sector

• Industries like Retail, FMCG and FBT are contributing significantly to the signage market revenue

Global Signage: Market Maturity

• Signage is gaining prominence in the overall in-store promotions category strategy. North America and Europe are high-maturity markets with the US and the UK being the key demand countries

• Major end-users for signage are retail, CPG, FBT and pharmaceutical companies

• The increasing demand for digital signage in public and commercial sectors, advancement in technology offerings, and rising infrastructure are the key driving factors of the digital signage market

Global Signages: Industry Trends

• Suppliers are increasing their geographic footprint as mature buyers increase their focus on supplier consolidation opportunities

• Interactive digital signage, especially in the retail and restaurant industry, is a major trend in the global and regional markets, due to increased speed in response time and cost optimization in the process

• Suppliers are increasing their geographic footprint as mature buyers increase their focus on supplier consolidation opportunities

• In addition, suppliers are also widening their service portfolio to offer a wide range of services to bring in a larger share of buyers’ trade marketing spend

Global Signage: Drivers and Constraints

• Growing expansion of modern retail in the developing markets is expected to strongly drive the in-store marketing budgets and also increase the demand for both conventional and digital signage

• Technology adoption by suppliers will be a major growth driver in both matured and emerging markets to ensure better visual appearance inside and outside the stores

Drivers

Evolution of retail store formats in the emerging markets

• Development of modern retail in tier-2 and tier-3 cities, especially in the developing markets in Asia and LATAM, will increase the demand for signage. Retailers are tapping opportunities to grow in the developing markets and are investing more in these markets

Growing significance of window displays and signage

• Increasing adoption of online shopping and pre-shopping online research by customers have increased the significance of signage as one of the most powerful tools to drive walk-ins

Increase in technology adoption

• Suppliers are investing more in technology to improve their capabilities, and add more value with respect to the services offered, thus providing a high level of accountability to buyers

Constraints

Rise in e-commerce retail

• Consumer preference for online stores may increase further in the future. This would reduce the significance of other retail formats and result in lesser demand for signage in the future

Innovations in Retail

Retailers are increasingly finding new ways to utilize various innovative solutions that engage customers and also provide valuable data on shopping patterns.

• Digital signage is witnessing unique use cases, such as touchless and trigger-based solutions to help retailers, restaurants, and other businesses safely operate in the face of new health regulations brought on by the COVID-19 pandemic

• By scanning a QR code, customers can transfer control of the experience to their phones, eliminating the need for physical contact. Another use case could be voice-activated displays for office hoteling and scheduling conference and meeting rooms rather than setting it up by touching the display

• Technology providers have developed automated identity and temperature monitoring tools that allow locations to check people's temperatures

• Kiosk hardware and software manufacturers in combination with biometric technology providers are working on similar use cases

• Retailers, like Tesco, Macy’s, Debenhams, M&S, have trialed touch screen kiosks in several stores, which allow exploring products and fits, stock checking, ordering etc.

• Different variations, like interactive projection screening onto display table, self-service kiosks, promotions on 2D and 3D displays, have been adopted at the point of sale to increase the basket size and bill value. This also helps to speed along the checkout procedure

• Digital signage has grown and it has capability to recognize facial expression and eye-tracking

• AI-based systems have aptitude to manage and monitor audience reaction

• This information helps retailers to optimize the marketing efforts and also driving the trend towards tailored content, specific to the person currently looking at the screen

Supply Market Outlook: Supply Trends and Insights

Global/regional supplier

Global/regional service providers 

• Global suppliers are enhancing their geographic and service capabilities to attract large buyers
• Buyers in North America prefer to work with strong regional players since the supply market is more matured and sophisticated compared to any other markets

Supply trends

Technology platforms:

• Retailers in recent years have witnessed a higher adoption of more personalized and interactive displays

• Sophisticated interactive software allows the retailer to understand buyer behavior, patterns etc. Facial recognition software helps to recognize the age/gender of the viewer and tailor the content appealing for their demographics

Engagement trends

Most adopted model globally: Preferred supplier model

• For large-scale global expansions/rebranding that demands high manufacturing capacity and huge network of installers, a few preferred suppliers can be engaged, as it will result in brand and signage consistency across stores. In case of signage projects that demand high expertise in technology and innovation, service specialists can be engaged, who are key suppliers in the digital signage industry