How Is Digital Signage Evolving and Expanding?

Digital signage is a new media concept, referring to professional multimedia audiovisual systems that display commercial, financial, and entertainment information via large screen terminals in public places such as shopping malls, supermarkets, hotel lobbies, restaurants, cinemas, and other areas with heavy foot traffic. Digital signage systems can also record and analyze multimedia content, including playtime, frequency, and coverage, and offer powerful interactive features. This creates opportunities for developing new media avenues.

In the past year, governments have actively promoted policies to boost consumption, especially in key sectors such as home goods, automotive, electronics, and dining, which has increased demand for advertising. Advertising is the core driving force behind the digital signage industry. In 2023, after the disruption caused by the pandemic, the digital signage market has shown a strong recovery.

Expanding Applications of Digital Signage

Indoor applications remain dominant, accounting for over 97% of the market. Retail, transportation, finance, and education are the main sectors where digital signage is applied. For outdoor digital signage, as the government focuses on developing smart communities, smart campuses, and the digital culture industry, these products are increasingly used for information dissemination, dynamic exhibitions, advertising, and cultural communication, broadening their range of applications.

Diversification of Digital Signage Channels

As the market expands, competition in the digital signage industry is intensifying. Traditional display manufacturers and emerging internet companies are ramping up their efforts in the digital signage market. Leading companies, with their strong brand influence, technical capabilities, and channel advantages, hold favorable positions in the competitive landscape.

In response to the pressure from leading companies, second-tier brands are actively seeking differentiation strategies. Some focus on niche markets, such as education and healthcare, by providing targeted solutions to meet user needs. Others are investing heavily in technological innovation to enhance their product competitiveness.

In terms of size, 43/32/55-inch displays are the mainstream demand in the industry, remaining the dominant shipment sizes. Additionally, 25/18.5-inch displays have shown significant growth in media applications, with notable year-on-year increases in shipment volumes.

Regarding sales channels, the proliferation of internet technologies has led to a diversification of digital signage sales channels. Traditional offline channels, such as agents and distributors, and new online channels, such as e-commerce platforms and self-built websites, are all key sales outlets for digital signage manufacturers. The trend of integrating online and offline sales channels is becoming increasingly apparent. Online channels, with their lower costs, higher efficiency, and wider reach, are gaining favor among manufacturers and customers alike. Some manufacturers have expanded their online presence through self-built websites and partnerships with e-commerce platforms. However, offline channels remain important due to their strong experiential component and superior customer service, especially in certain niche markets. Many manufacturers are also enhancing their offline channels and service quality to strengthen their market competitiveness.