The Largest Market Segment in Digital Signage: Which One Is It?
![](https://cdn.prod.website-files.com/659be23c8497101ee8a162d1/66698437d151a0b035d50e4b_biggest-market-segment-digital-signage.webp)
We encounter digital signage everywhere, the most memorable being those larger-than-life DOOH advertising billboards in public spaces. But this is just a glimpse of it. Digital signage has been adopted by a vast array of industries and sectors because organizations can see its impact on their bottom line.
But which of these market segments is truly the largest? In this article, we’re going to uncover the truth by analyzing the market size of the key market segments in digital signage, their driving forces, and their growth potential.
The Global Digital Signage Market Size
Businesses across industries are continuously adopting digital signage because market research from different firms backs its growth potential and expansion in years to come.
Global Market Size Estimates:
Grand View Research: The global digital signage market size is at USD 26.76 billion in 2023 with a projected compound annual growth rate(CAGR) of 8.1% from 2024 to 2030. They attribute this growth to the increasing demand for digitized promotion and the rising adoption of 4K digital sign displays.
Astute Analytica: Valued the global digital signage market at US$ 22.0 billion in 2023 with a projected market valuation of US$ 43.8 billion by 2032. They forecast a CAGR of 7.97% between 2024-2032, highlighting the rising adoption of outdoor digital signage solutions as a significant trend.
Precedence Research: Valued the global digital signage market at USD 25.24 billion in 2023 and expects the market to reach USD 51.62 billion by 2033 at a CAGR of 7.41% from 2024.
Key Market Segments in Digital Signage
Retail
![Digital Signage in a window of fashion retail store](https://cdn.prod.website-files.com/659be23c8497101ee8a162d1/666985155c0fff55340477c2_retail-digital-signage.webp)
In-store shopping has been an ongoing trend in retail and is a key contributor to the popularity of digital signage in retail. eMarketer forecasts that US retail sales in 2024 will reach $7.450 trillion, with brick-and-mortar retail accounting for 83.7% of those sales.
Market Size Estimates:
Mordor Intelligence: They expect the retail digital signage market to grow at a CAGR of 7.56% from 2022 to 2027.
Major Players:
North America holds the largest market share due to the presence of major vendors, technological advancements, and the widespread adoption of digital signage solutions in retail environments. Retailers in this region are increasingly focused on creating immersive in-store experiences, with digital signage playing a pivotal role in achieving this goal.
Growth Drivers: Enhanced customer engagement, personalized marketing, improved operational efficiency, and omnichannel integration.
Healthcare
![room with digital screens in clinic](https://cdn.prod.website-files.com/659be23c8497101ee8a162d1/66698648eb5ec3053a76b000_healthcare-digital-signage.webp)
The current market size for healthcare digital signage in 2023 is estimated to be between USD 6.4 billion and USD 7 billion. Different sources provide varying figures.
Market Size Estimates:
Straits Research: USD 6.4 billion in 2023
Acumen Research and Consulting: USD 5.7 billion in 2022
Grand View Research: USD 5.82 billion in 2022
The difference in numbers is attributed to different methodologies and scopes of research, but the consensus is that healthcare digital signage is experiencing substantial growth, with a projected compound annual growth rate (CAGR) of 13.2% to 13.7% in the coming years.
Major Players:
North America currently holds the largest market share in the healthcare digital signage market, driven by technological advancements, a focus on patient engagement, and the presence of major vendors in the region.
However, the Asia Pacific region is projected to be the fastest-growing market due to increasing healthcare expenditure, a growing geriatric(elderly) population, and a rising number of hospitals and clinics.
Growth Drivers: Improved patient experience, enhanced communication, emerging technologies, and reduced costs.
Education
There has been an emphasis on interactive and engaging learning environments which is largely driving the adoption of digital signage in educational institutions. MarketsandMarkets projects the global smart education market size will reach USD 155.2 billion by 2029, from USD 67.1 billion in 2024, growing at a CAGR of 18.3% during the forecast period. This suggests that the demand for technological solutions and innovations in the education sector is increasing significantly.
Market Size Estimates:
Verified Market Reports: Valued at USD 26.76 billion in 2023, with a projected growth to USD 45.94 billion by 2030, indicating a significant and expanding market.
Major Players:
Yet again, North America is spearheading the adoption of digital signage in education. The US and Canada in particular have well-funded educational systems and modern facilities that make it easier to adopt and integrate new technologies into schools and universities.
Growth Drivers: Improved learning experience, modern campus environment, streamlined operations for admin tasks, and increased availability for customized solutions.
Hospitality Industry
![digital menu in food court](https://cdn.prod.website-files.com/659be23c8497101ee8a162d1/6669889329a79ca563ffbcbc_digital-menu-hospitality-industry.webp)
Hospitality in digital signage is an umbrella term for QSR and hotels. Both subsets use digital signage for wayfinding and navigation, menu boards, entertaining guests in hotels, and information dissemination among others. Our research however has only yielded information on the menu board market size in hospitality. This accounts for the portion of the market using dynamic menu boards to display menu items and thereby reduce waiting times for their guests,
Market Size:
360 Market Updates: The global market size for Hospitality Digital Signage (Digital Menu Board) in 2024 is US$ 2645.25 Million and is expected to reach US$ 3932.11 Million in 2032. This represents a CAGR of 6.83%.
Major Players:
Major regional adopters of menu boards include Asia Pacific, Europe, Latin America, the Middle East, and Africa. According to the report, North America is still taking the lead with the largest market share.
Challenges and Opportunities in the Largest Market Segment
As of 2024, retail is the largest digital signage market segment. Businesses are spending billions in advertising to gain exposure and reach new customers. The retail landscape is facing both some prohibitors to its growth and opportunities to advance further. Let’s look at them.
Challenges
High Initial Investment: The initial costs of acquiring and installing digital signage systems, including hardware, software, and content creation, can be substantial, especially for smaller retailers.
Maintenance and Upgrades: Ongoing maintenance, software updates, and potential hardware replacements can add to the overall cost of ownership.
High Power Consumption: Digital signage uses a lot of electricity, which can be expensive and bad for the environment.
Opportunities
According to Mordor Intelligence, the retail sector is significantly adopting digital signage, with major and upcoming businesses opting for advanced signage solutions that feature AI and machine learning to gain the most out of consumer analytics. This suggests that there are opportunities for companies that sell digital signage to target the retail market.
Key Take Aways
- The global digital signage market is headed for remarkable growth in the near future, with leading research firms forecasting a compound annual growth rate (CAGR) ranging between 7.41% and 8.1%.
- The retail sector currently holds the largest share of the digital signage market, driven by the increasing demand for digitized promotion and enhanced customer engagement.
- The healthcare and education sectors are also experiencing substantial growth in the adoption of digital signage, with projections indicating a significant increase in market size.
- While the retail sector holds immense potential for digital signage providers, obstacles such as substantial upfront investment and ongoing maintenance costs must be tackled to fully realize its potential.
- The adoption of advanced technologies like AI and machine learning in digital signage solutions is becoming a significant trend, especially in the retail sector.
- North America currently dominates the market, but the Asia Pacific region is projected to be the fastest-growing market, driven by factors like increasing healthcare expenditure and a growing geriatric population.