The digital signage industry is facing a challenge from cheaper, conventional TV panels that replace specialised custom products that long have differentiated the professional displays market, according to a new report from IHS Technology.
Consisting of digital signage monitors and digital signage televisions used in venues like hotels and public spaces, the signage and professional displays market will see global revenue start to deteriorate after this year, unless the industry changes the current dynamics afflicting the space.
Industry revenue in 2014 is forecast to reach $13.76 billion, an improvement over the 2013 sum of $13.58 billion but still down from the 2012 total of $14.00 billion. Moreover, none of the projected forecasts from 2015 to 2018 will exceed this year’s figure, remaining flat despite a steady rise in shipments during the same time.
“The future for display vendors in digital signage is going to be challenging,†said Sanju Khatri, director of digital signage and professional video at IHS.
“The industry faces tough competition from ordinary consumer television products that are being used by commercial establishments instead of specially outfitted digital signage displays, and the result is a loss for the signage industry as sales go instead to consumer-type replacements.â€
Digital signage panel manufacturers and set makers can capitalise on existing advantages offered by the technology. These include high-brightness displays of 1,000 to 1,500 nits without compromising display lifetimes; ultra-narrow bezel displays for data visualisation; ultra-high-definition displays in high-end applications such as architecture firms and medical operating theatres; and touch, gesture or embedded vision for segments like education, for use in interactive whiteboards.
These findings are available in the report, “Signage & Professional Displays Market Tracker – Q1 2014,†from the Consumer Electronics service of IHS.