Scala, Inc., provider of end-to-end solutions for the Digital Signage market announced that Frost and Sullivan has placed Scala, Inc. at 35.4% worldwide market share of the Digital Signage software industry.
In a newly released research report entitled "World Digital Signage Markets," Frost & Sullivan undertakes a strategic analysis of the worldwide Digital Signage industry and makes strategic recommendations for growth in the industry.
According to the report the World Digital Signage Systems market grew 21.3% in revenue in 2006. Scala significantly outpaced this growth with an increase in sales of 59% (vs. 2005). Frost & Sullivan expects the World Digital Signage Systems market to grow from $313.9 million in revenues in 2006 to over $1 billion in 2012 at a compound annual growth rate (CAGR) of over 20% and Scala expects to continue to outpace this growth rate. The overall ease of installment, network flexibility and management, the ability to remotely control multiple screens, and increased reliability are driving growth in the market.
The report identifies three tiers of Digital Signage software providers, of which, Tier I is comprised of software vendors with a global presence and a large capital base. Frost and Sullivan places Scala squarely in the Tier I category. The revenues of Tier I companies far exceed that of Tier II and Tier III companies. With Tier I companies holding more than 60% of the market– Scala commands a 35.4% overall market share position.
Frost & Sullivan suggests that ultimately, the success of a Digital Signage network is based on its ability to deliver relevant content to customers at the right time and location. Digital Signage provides a unique opportunity for brand building as well as a strategic channel to influence customer behavior. Digital Signage can create a stimulating environment where the customer's long and short-term behavior can be shaped, which ultimately results in sales lifts that can justify the initial implementation costs according to Frost & Sullivan.
"Scala has built on the success of its InfoChannel 3 product, with the June 2006 launch of InfoChannel 5. The combination of powerful tools for content creation and network management pushed Scala to 35+% market share for 2006," stated Rufus Connell, Vice President - Information and Communication Technology for Frost & Sullivan.
The Frost & Sullivan report focuses on digital signage deployments whose business model revolves around merchandising or advertising, and excludes digital signage applications that focus on corporate communications, flight simulation displays, security and cable TV.