Digital Signage Market: Global Perspective

1. Global Digital Signage Industry

1.1 Digital Signage: An introduction

 Components of a Digital Signage system (DSS)
 Communication flow in the Digital Signage system
 Industry Segmentation into
• Retail Signage/Billboard
• Indoor Venues
• Rental/Staging
• Outdoor events
• Education
• Transportation
• Control Room/Simulation
• Conference Room
• Financial Exchange

1.2 Market Overview (Refer to Figure 1.2, 1.3 & 1.4 in Appendix)

1.3 Market Trends

Digital Signage becoming a critical tool for marketers and retailers
 Integration of software and networking infrastructure through acquisitions & joint ventures
Growth of sign technology

1.4 Factors Driving the Market

Growth in Retail Signage
 Rapid product revisions
 Declining prices of LCD & PDP TVs and displays
 Increasing competition among retailers
 Growth in sales of companies

1.5 Benefits of Digital Signage

 Effective message communication
 Enables flexibility of incorporating changing market developments
 Enables control & monitoring of content
 Enables improved customer service and productivity of store personnel
 Provides cost savings
 Provides profit opportunities

1.6 Market Size & Forecast (Refer to figures 1.6, 1.7, 1.8 & 1.9 in Appendix)

1.7 PEST Analysis

1.7.1 Political Factors
 Restriction on mobile signs in a few countries

1.7.2 Economic Factors
 Recovering economy expected tlead tgrowth in industry
 Increase in advertising expenditure

1.7.3 Social Factors
 Impulse buying driven by Digital Signage systems
 Provides an alternative ttraditional media formats

1.7.4 Technological Factors
 Improvement in hardware technology,
 Software--ASP Technology used in digital signage
 Increased interactivity through touch screens

2. Digital Signage Markets

Digital signage is being used in the following businesses
2.1 Retail
2.2 Hospitality
2.3 Health Clubs
2.4 Restaurants & Sports Bars
2.5 Airports
2.6 Shopping Malls
2.7 Corporate
2.8 Advertising
2.9 Healthcare
2.10 Government
2.11 Museums/Research Centers

3. Porter’s Five Forces Analysis

Analysis of the global Digital Signage industry with the ‘Five Forces’ framework
3.1 Bargaining Power of Buyers/Customers
 Retailers entering into media partnerships
 Backward integration by retailers

3.2 Bargaining Power of Suppliers
 Dominance of Plasma Display Manufacturers
 Alternative technologies leading to increasing competition
 More options in the supply chain

3.3 Rivalry among Competitors
 Acquisitions rampant in the market
 Increasing competition in high-end segment

3.4 Threat of New Entrants
 Low-cost attracts new players
 Need for strategic alliances deters entrants

3.5 Threat of Substitutes
 Other Media Formats

4. Supply Chain of Digital Point of Sales: Major Players

 PRN Corporation
• Founded in 1992, it is the largest in-store television network in the US
• Acquired by Thomson and is a part of Thomson’s Network Operations Services business unit in the services division

 Convergent Media Systems
• Provides broadband platforms and services, and delivers video-powered communications
• Major clients include AT&T Wireless, Bank of America, Eli Lilly, Unisys

 Barco NV
• Provides display and visualization solutions for business-to-business (B2B) market
• Major clients include Merrill Lynch, Fuji TV, Quiksilver, BMW, Deutsche Telekom

 Clarity Visual Systems
• Provides large-scale display systems; serves retail stores, banks, aviation industry and others
• Has worldwide clients such as Australian Stock Exchange, Beijing International Airport, General Motors Corporation, and others

 Cotco International
• Founded in 1982; manufactures LED products and technology for lamps, modules, displays and other applications

5. Recent Digital Signage Products

360° Outdoor Video Display
 CAT5 UTP Video Splitter
 DS Vision 3000
 Flasma
 Electronic Paper
 AxisTV
 Wireless Signage
 Single-Sheet Holographic Free-Space Projection Screen
 Onyx Permanently Tensioned Projection Screen

6. POS Application Software

6.1 Compliance Mandates and Standards driving POS application software demand
6.2 Technology and Solution Trends
• Two-Dimensional (2D) Symbologies
• Radio Frequency Identification (RFID)
6.3 Market size and forecast

7. Strategic Alliances in Digital Media Content

Vormittag Alliance with Verifone
 NEC display Solutions Collaborates with Cisco
 Silver Beacon and American Technology Partnership
 Verite and Helius Ink Strategic Partnership to Provide Full Service Digital Signage Solutions
 Simtrol and Tech Electronics Licensing Agreement
 SkyStream and Helius Cross-Licensing
 Convergent SignStorey Alliance
 Clarity Visual’s acquisition CoolSign

8. Market Opportunities

Growth projected in outdoor market
 Growth opportunity in Interactive Digital Signage
 Emerging LCD markets

9. Market Barriers

Confusion in marketplace owing to a large number of providers and entry points,
 Users skeptical of returns owing to high initial investment required for its installation
 Development and provision of effective, targeted content is a challenge