Digital Signage Market in APAC – Growth, Trends & Opportunities
Blog written by Manish Kumar
2021 has been a challenging, unpredictable year for economies around the globe. While lockdowns from the COVID-19 pandemic have upended our world, the rate at which technology has changed has been nothing short of remarkable. Powered by flexible technology, organizations have adapted the way they interact to help keep our lives connected, convenient and safe.
As we approach the last quarter of 2021, Manish Kumar, Managing Director - APAC, reflects on the rise of digital signage trends and discusses the opportunities for enterprises in Asia-Pacific.
While the pandemic paralyzed the world, technology didn’t stop innovating.
Despite a decline in the global economy, the digital signage industry has remained resilient and is set to flourish. Organisations today are seeking new, innovative ways to transform their business and evolve the customer experience to better interact with their target audience.
The global digital signage market is estimated at USD 16.3 billion in 2021 and is projected to reach USD 27.8 billion by 2026, rising at a CAGR of 11.2% during the forecast period.
According to the latest report by Research and Markets, APAC is projected to become the largest geographical market by 2026. The main drivers fuelling growth in this region are:
KBV Research estimates that in 2018-2024, the APAC digital signage market would observe a market growth of 10.6% CAGR, while outdoor digital signage is estimated to see a CAGR of 14.8%. In Singapore, the video walls & screen market is predicted to see a CAGR of 11.4% during the period.
In Japan, amidst the pandemic, transportation advertisers’ spending on digital signage reached 3.1 billion yen and the total digital signage spending across multiple industries amounted to a whopping 51.6 billion yen. Estimates forecast this to increase to more than 102 billion yen by 2024.
Here are the digital signage technologies that are positioned to stay or soar in 2022.
1. Voice and Gesture-enabled Digital Signage
Businesses are capitalising on digital signage to increase engagement and create an immersive customer experience. Frictionless, voice, and gesture-based triggers will take digital signage to the next level of intelligence.
Modern digital signage solutions are embedded with artificial intelligence (AI) and other digital sensors to present personalised merchandising and content, based on audience personas, to trigger the desire to purchase.
Augmented reality (AR) is also revolutionising the customer experience. Through new mobile technology, AR has emerged as an innovative tool that allows brands an endless opportunity to interact three-dimensionally with consumers on their mobile devices.
2. Outdoor Digital Signage
Digital-out-of-home (DOOH) advertising surged during the pandemic as businesses were forced to cease operations. Outdoor digital signage proved to be a life saver for many businesses as these robust, highly attractive displays served as an effective, round-the-clock communication tool.
Restaurants were quick to set up outdoor digital signs to facilitate contactless ordering. These digital signs could display QR codes for ordering, and feature menus and promotions.
3. Ultra Large Screens
The 52 inch and above display size segment is expected to register higher CAGR growth from 2021-2026.
The growth of this segment can be attributed to:
4. Proliferation of Software-as-a-Service
Digital signage Software-as-a-Service (also known as SaaS) is a cloud hosted subscription-based service which has been gaining popularity in recent times, especially amongst display network operators, corporate users and small business owners.
In addition to SaaS, managed services (m-SaaS) is also likely to gain traction. Managed services add value to digital signage offerings by providing content creation and management services. Business owners seeking cost-efficient, scalable and hassle-free solutions will increasingly turn to managed services to get the most out of their digital signage investments.
5. Phygital Retail
Maximizing both online and offline to complement each other has become one of the top priorities of retailers today. Phygital retail - a smart blend of ecommerce and the unique aspects of in-store shopping - is an emerging approach geared towards re-inventing the in-store experience digitally.
In the foreseeable future, phygital retail is likely to dominate the industry as retailers seek innovative ways to serve the ever-changing needs of customers and optimise their time in the store.
6. Emergence of microLED Technology
With an increasing focus on sustainable and green solutions, there will be a strong demand for microLED displays which combine the best features of current display technologies into something incredible. Using millions of tiny individually addressable LEDs, microLED is poised to offer better brightness, response times and energy efficiency.
MicroLEDs, primarily aimed at small, low-energy devices – such as smartwatches and smartphones – can be used to make next generation displays for commercial experiences including curved, transparent and ultra-low power interactive display devices.
The global pandemic has driven the adoption of digital technologies by several years. This digital acceleration has fuelled the demand for digital signage. Now, businesses aiming to reconnect with customers in the new normal deploy technology to transform their business. Touchless solutions, predictive digital signage and phygital retail are several trends which are set to take centre stage in the near future.
Digital signage solutions bring new life to any commercial environment. Interactive technology, virtual reality and predictive analytics enable unlimited possibilities and elevate the customer experience.
Across Asia-Pacific, Scala is creating headway in driving digital transformation across many industries with smart marketing technology and digital signage. With 30 years’ experience, Scala is well-known for its innovation and leveraging best-of-breed technologies to create solutions that are easy-to-use, flexible and infinitely customizable.
Find out more about Scala’s digital signage solutions here and kickstart your marketing transformation today.
Manish Kumar, Managing Director - APAC, helms the Asia-Pacific operations at STRATACACHE since April 2018. In this position, Manish oversees sales, services and support activities across the STRATACACHE brands, aligning operations with region- specific needs in the digital media/marketing technology market. The key driver for the phenomenal growth in APAC, he concurrently also holds the position of Vice President, Investments Asia-Pacific at STRATACACHE Capital, helping to lead deal discovery and investment on a global scale.