A new report from Delaware-based Global Market Insights, a market research and consulting firm, finds that the global electronic digital signage market is projected to be a $23 billion industry by 2023.

The growth is being driven, the report says, primarily by the integration of LED lighting, which has led to significant energy savings. The report also finds that the emergence of the “Internet of Things” has the potential to transform the technology from mere content display to a hub capable of collecting operation data via cloud computing.

Dynamic digital signs engage the audience with real-time audio-visual multimedia content. It is also a suitable platform for creating and distributing content, since it is faster and less expensive than print media, the report notes.

There are roadblocks to the growth of digital signage, the report says. Hardware display panels specifically made for digital signage are more expensive even than consumer televisions. Further, compatibility and interoperability issues between media players and displays may also act as a growth restraint.

The report states that content management systems form a crucial component of digital signage, allowing end-users to control what is displayed on their screens. Content developers are usually advertisement agencies or marketing agencies which design the content, which can include text, graphics, images and videos.

Key insights from the report include:

• While the overall digital signage market is predicted to hit $23 billion by 2023, the global digital signage display market size was $6 billion in 2015 and revenue is expected to hit $9 billion by 2023. The display market is forecast to have 5.5 percent year-over-year growth from 2016 to 2023.
• Asia Pacific digital signage market share is forecast to grow at 6.5 percent year-over-year from 2016 to 2023. Developments in the government and educational sector along with enhanced user experience, infrastructure development, and decreasing display panel prices will drive the growth, the report says.
• Organizational uses for digital signage include navigation, communication, point of sale, point of transit, promotion and advertising and infotainment.
• Increased demand in healthcare services has contributed substantially towards technology implementation. Current healthcare IT trends include deployment of electronic medical records. The segment is forecast to surpass $850 million by 2023, with 7 percent year-over-year growth estimations from 2016 to 2023.
• LED is the most attractive product segment, and is anticipated to gain share over the forecast timeframe. This can be attributed to high efficiency, low power consumption and decreasing cost.
• Expected competition between specialized vendors and new entrants is forecast to result in product innovation for achieving differentiation. More solution providers will proactively participate in content development strategies as a majority of clients have limited experience in dealing with this medium.