A UK-based research firm published a Global LED Display Market Report in 2022, in which they stated that the LED display marketplace is expected to grow at 21% until 2026, with a sales figure of approximately $19.5 billion.
LED screens are now a dominating category and new projections indicate the market is increasing in terms of strength and maturity. 2020 – the year of the pandemic brought in major disruptions due to shipping and transport issues, as well as the practical difficulties in installation. Digital signage service providers were unable to enter indoor spaces, which restricted the installation of units.
It was remarkable how the market recovered, considering these hurdles. By 2021, recovery was seen – whereas many anticipated 2-3 years will be required to see values before 2019. Instead, growth has been so good – exceeding 2019 levels by nearly 10%!
R&D is what drives growth in technological markets such as LED displays, “creating seismic shifts” within the market, as per experts. By the end of the decade, LEDs will surpass LCD and RPC options, wherein micro LED will be a critical part of this transition. Micro LED technology has the capability to mass transfer Thin Film Transistors (TFTs) backplanes with the help of an active driver technology. These kinds of transitions will significantly reduce the prices of digital signage, making the technology available for less than $3000, thereby eating up the LCD market.
Micro LED and Mini LED will soon replace surface-mounted LED manufacturing, and LCDs will only have simple uses such as for small retail merchandising and for restaurant menus. Dramatic shifts such as these will increase LED signage sales to almost three times that of LCD screens within a span of five years. As a result, brands will have to adapt in order to survive in this ever-changing world.
LED Craft Inc presents a few more insights on the digital signage industry as per the Digital Signage Market Analysis Report published by the Grand View Research Company.
LED Screen Type Insights
The global market for LED displays is segmented into video walls, video screens, transparent LED screens, digital kiosks and more. The largest share of the global revenue came from the video walls segment. Video walls have become increasingly popular in shopping malls and other public places. But predictions are that the maximum revenue by the year 2030 will come from the digital kiosks segment. The purpose of a kiosk is to provide information, advertise in institutes and for retail verticals.
The transparent LED screen segment is also expected to grow at a rapid speed, as they are capable of offering an 80% transparency level as well as a high resolution. The demand for this segment is driven due to its adequate efficiency in terms of reduced energy consumption and optimized overhead expenditure.
Digital Signage Location Insights
In 2021, indoor digital signage accounted for over 71% of market share. Popular locations include LED displays in malls, corporate offices, retail shops, banks and healthcare centers. There is a heavy and promising demand from the retail sector that drives growth in this segment.
Outdoor digital signage is expected to have the fastest CAGR (Compound Annual Growth Rate) over the next ten years. In line with the growth in the transportation sector, particularly in developing countries, the demand for outdoor LED displays is expected to rise. Moreover, businesses always need to promote products effectively in larger scale. Election campaigns, products launch, increasing number of live shows and other such emerging trends will boost the adoption of outdoor electronic displays.
LED Signage Content Category Insights
Fastest growing segment: Broadcast content category – news, weather sports, etc. This category was dominated by the sports sub-segment in 2021. This sub-segment is driven further due to the increasing implementation of digital signage in sports-related venues. The news sub-segment is also quite popular and will grow as a result of increased demand of digital signage in corporate sectors, for communication purposes. Weather forecast is a sub-segment that is popular in outdoor digital signage – road and transport facilities.
Overall LED Display Technology Insights
As compared to LCD and projection segments, the LED segment accounted for more than 46% of the revenue in 2021. With their high quality display LED screens have successfully made a mark in the industry. Manufacturers such as LED Craft Inc are determined to design better flat-paneled, larger, brighter and slimmer displays in the future.