Editorial: Digital Signage Continues to Thrive

Mark J. Pescatore, Content Director, Systems Contractor News
(Image credit: Future)

If you're a regular reader of the AVIXA Report in SCN, you know the Pro AV industry is growing—but not like it did in recent years. Following pandemic-related declines, the industry recovered very quickly. One might even say growth was explosive. Today, that growth has stabilized.

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While there might not be fireworks, Pro AV is still expected to remain higher than the U.S. gross domestic product. “It’s still growth, we’re in a true growth mode,” affirmed Sean Wargo, VP of market insight at AVIXA. “We’re growing better than the economies in which we exist.”

When you drill down specifically into digital signage, it’s growing faster than other solution areas within the Pro AV industry. It’s also one of the largest solution areas, too.

But digital signage hasn't exactly had the smoothest ride in recent years. Yes, there was rapid growth in 2021 and 2022, but there was a significant slowdown in 2023, and it slowed down even more in 2024. Wargo attributed this mostly to the drop in display prices that resulted from a rapid increase in display supply—but with potentially more stability in pricing, he expects a market correction this year.

Based on AVIXA estimates, you can expect the digital signage market to grow to $44.2 billion this year and continue to grow in 2026. Part of that growth will include projection (remember, digital signage isn’t limited to LED displays) that will be used for everything from live events to projection mapping. Also, some older digital signage displays are being replaced by new technology, such as dvLED, which will drive more growth.

There are plenty of potential public-facing areas where digital signage can be beneficial to customers, visitors, and even employees. Digital signage installs run the gambit, from wayfinding to digital out-of-home advertising to digital menu boards (yes, AVIXA includes them in its digital signage numbers). According to Wargo, “The opportunity is thinking about digital signage as points of delivery in public settings to communicate and convey information to all manners of audience."

Digital Signage at Airport

Transportation facilities such as New Jersey’s Newark Liberty International Airport are investing in digital signage. (Image credit: Mark J. Pescatore)

Retail and hospitality will continue to lead the digital signage success story. Digital menu boards found in quick-serve restaurants create a bit of a blur between the two markets, but Wargo said they remain a key driver. Another market showing promise is transportation, with facilities investing more in digital signage for wayfinding as well as enticing travelers to enjoy a meal (see the display to the right that encouraged me to have an overpriced dinner on my way to ISE earlier this year).

However, the digital signage market is about more than the display. As Wargo explained, the potential for the content management system component of the digital signage workflow is huge. Pick your flavor, on-site or cloud-based—CMS could see almost 30% growth.

Also, look for managed services to grow significantly as well. Wargo said the “bang and hang” installation possibilities are not where the opportunities end. From servicing equipment to creating content, he said integrators should look beyond the initial install and offer add-on services to create recurring revenue streams.

Another area that warrants some attention is interactivity. Companies like Navori Labs are already using AI to track audiences and deliver personalized content in retail environments. It's not alone. The use of data being captured at the point of customer interaction and the response to that data with personalization used to be the stuff of science fiction. Now, it's a compelling use case.

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Yes, Wargo acknowledged that there must be a sensitivity to privacy, but it's been shown that shoppers will share private information if it results in something that is relevant and useful. While AVIXA hasn’t quantified interactivity in its forecasts (yet), there's no doubt that personalized digital signage experiences will continue to gather momentum in retail and other markets. In other words, watch this space. After all, it's watching you.

Mark J. Pescatore
Content Director

Mark J. Pescatore, Ph.D., is the content director of Systems Contractor News. He has been writing about Pro AV industry for more than 25 years. Previously, he spent more than eight years as the editor of Government Video magazine. During his career, he's produced and hosted two podcasts focused on the professional video marketplace, taught more than a dozen college communication courses, co-authored the book Working with HDV, and co-edited two editions of The Guide to Digital Television.