Published on: January 7, 2025 / Update from: January 7, 2025 - Author: Konrad Wolfenstein
Phygital screens and smart displays: The development of the global market for interactive digital signage - creative image: Xpert.Digital
Future of Display Technology: Insights from the Global Digital Signage Boom
In recent years, digital signage has established itself as a key technology that helps companies and organizations communicate more effectively with their target groups and present information dynamically. Interactive displays are becoming increasingly important because they offer a personalized and intensive experience that both increases users' attention and increases their length of stay. This report analyzes the global development of the interactive digital signage market, identifying the leading nations and highlighting what other countries can learn from it.
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Origin and meaning of digital signage
Digital signage refers to the broad use of digital media content for advertising and information purposes on electronic displays or projection surfaces. The term includes both interactive and non-interactive systems.
The term “digital signage” has established itself as a generic term for digital display systems, while “interactive displays” only represent a partial aspect of it.
Distinction from interactive displays
- Scope: Digital signage includes all types of digital displays, while interactive displays represent only a specific type.
- Functionality: Not all digital signage systems are interactive. Many serve primarily to disseminate information without direct user interaction.
- Historical development: Digital signage existed before the widespread use of interactive technologies.
Advantages of the broader definition
- Flexibility: The term “digital signage” allows various technologies and applications to be combined under one roof.
- Future-proof: As a comprehensive term, digital signage can more easily integrate new technological developments.
- Industry standard: The term has become established in the industry and is widely understood.
Market development and global trends
The market for interactive digital signage is in a dynamic growth phase worldwide. According to studies, the global market, which was valued at $18.7 billion in 2020, is expected to reach $26.1 billion by 2028. This represents a compound annual growth rate (CAGR) of 6.9%. Drivers of this growth include the rapid advancement of technologies, the growing demand for personalized and interactive content, and the increasing integration of digital signage in various industries such as retail, education, hospitality and healthcare.
Important trends at a glance
1. Increasing interactivity
Users can actively interact with the content thanks to touchscreens, gesture control and voice interaction. These technologies create an individual experience and increase loyalty to brands and products.
2. Integration of artificial intelligence (AI)
AI is increasingly being used to analyze customer data and deliver personalized content in real time. These developments enable a targeted approach that reaches customers better.
3. Omnichannel strategies
Interactive digital signage systems are often embedded into omnichannel concepts to create a seamless brand experience. This is how online platforms are linked to physical stores.
4. Linking to mobile devices
Smartphones and tablets are increasingly connected to digital signage. Customers can interact with displays, scan QR codes or access personalized information via their smartphone.
5. Sustainability
Companies are increasingly relying on energy-efficient displays and environmentally friendly production methods to improve the ecological aspect of their installations.
6. Use in smart cities
In urban environments, digital signage is used for traffic management, information dissemination and navigation. Real-time data about public transport or traffic flow is shown on interactive displays.
7. Education and interactive learning
In schools and universities, digital signage solutions enable interactive learning and better communication between teachers and students.
Leading countries in interactive digital signage
1. USA and Canada
North America is considered the largest and most technologically advanced market for digital signage. The region is characterized by high market maturity, broad acceptance in various industries and strong innovative strength. Companies like Google, Microsoft and Intel are driving the further development of the technology.
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2. China
With one of the world's largest markets for digital displays, China relies on large-scale and spectacular installations, particularly with LED technology. The Chinese government is massively promoting digitalization and using digital signage in areas such as public transport and smart cities.
3. South Korea
South Korea is known for its innovation in display technology. Companies like Samsung and LG are developing advanced displays, while the government is actively promoting the use of digital signage in various sectors. South Korea particularly stands out for the aesthetic design and user-friendliness of the installations.
Success factors and best practices
The leading countries have gained a competitive advantage in digital signage through specific success strategies. Important success factors are:
1. Technological innovation
Advances in AI, IoT and LED technology are driving the development of digital signage solutions. In the USA and Canada, companies have taken a pioneering role by integrating the latest technologies.
2. Government support
Support from governments, such as in China and South Korea, has made a decisive contribution to anchoring digital signage in society. From subsidies to regulatory relief, companies benefit from political initiatives.
3. Scalability
In China in particular, large projects such as extensive LED installations demonstrate the scalability of digital signage.
4. User-friendly design
Ease of use is a key factor in the widespread acceptance of digital signage. Ergonomic operating concepts and intuitive navigation ensure high user satisfaction.
5. Integration into everyday life
The connection of digital signage with smart cities, educational institutions and public spaces has significantly expanded the reach of the technology.
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Challenges and opportunities for other countries
challenges
1. Data protection
The use of AI and personalized content brings with it data protection challenges. This is a critical point, especially in Europe, where strict data protection laws apply.
2. Costs
Digital signage systems can be expensive to purchase and maintain, especially for smaller businesses.
3. Technological complexity
Integrating modern technologies such as AI, IoT and big data requires expertise and a solid infrastructure.
4. Security risks
Cyberattacks on digital systems can disrupt operations and compromise sensitive data.
opportunities
1. Improved customer retention
Interactive content creates an engaging experience that retains customers in the long term.
2. Increase in sales
Through targeted advertising and innovative product presentations, companies can increase their sales figures.
3. Optimization of internal processes
Companies can also use digital signage for internal communication, such as employee training or real-time updates.
4. Promoting innovation
The integration of digital signage into smart cities and IoT applications offers immense opportunities for innovative approaches.
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Germany in comparison
Germany still has some catching up to do in the area of digital signage, especially compared to leading nations such as the USA, China and South Korea. Although the German digital signage market is expected to show strong growth by 2030 (projected annual growth rate of 8.1%), the penetration of interactive displays and the integration of AI technologies have so far been limited.
Recommendations for German companies
1. Investing in research and development
Companies should invest more in the development of innovative technologies in order to remain internationally competitive.
2. Focus on privacy and security
Germany can leverage its strengths in data protection to offer trustworthy solutions that meet strict legal requirements.
3. Better training of professionals
Targeted further training programs can increase specialist knowledge in the industry.
4. Stronger partnerships
Collaboration with international companies could help Germany benefit from their experience and technologies.
Market with significant growth opportunities
The market for interactive digital signage is a promising area with significant growth opportunities. While countries such as the USA, China and South Korea currently dominate the industry, the technology also offers significant potential for other markets. Germany should specifically focus on innovation, data protection and the integration of the latest technologies in order to keep up with international competition. By strategically promoting research, standards and training, Germany can take a pioneering role in the area of digital signage and sustainably advance digitalization.
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