Digital signage dash, as LED on track to overtake LCD by year end

The global digital signage industry continues to face macroeconomic challenges, yet still maintains growth. A new report from Futuresource Consulting reveals that digital signage hardware generated spend of close to $14 billion in 2023 across displays and media playback devices.  

While LCD still accounts for the market majority, at 52% of spend in 2023, LED is closing the gap. Futuresource data shows that the LED segment grew by 10% year-on-year in 2023 and will overtake LCD by the end of this year. 

“LED is the lodestar of digital signage,” says Morris Garrard, Lead Analyst, Futuresource Consulting. “We’re expecting it to continue its ascent throughout our forecast period, achieving a CAGR of 23% between 2023 and 2027, and on track to chalk up $13 billion in sales by 2027. 

“In contrast, LCD is beginning to wane. It has been a well-established component of the signage ecosystem for many years, yet rapidly falling LED prices will see the focus shift as we progress through the forecast period.” 

However, there are bright spots on the LCD landscape, with interactive flat panel displays set to rise in volume and value over the next four years, albeit from a low starting point.  

Content management systems climbing high

Beyond displays, content management systems play a crucial part in the digital signage ecosystem. With a multitude of CMS platforms available to fulfil the wide variety of end-user requirements, they not only enable management of content across vast signage networks, but also allow content to be monitored and analysed remotely. Futuresource expects the signage CMS market to achieve annual double-digit growth out to 2027. 

China leads the way, Americas keeping pace

Looking to the regions, China accounts for the largest share of spend on digital signage displays, followed by the Americas, which is led by the affluent North American markets. EMEA takes third position, with APAC (excluding China) accounting for the remainder of spend. 

“China will continue to capture global share,” says Garrard, “although we expect the Americas to keep pace with China’s growth, at the expense of EMEA and APAC.”. 

Samsung still number one

In terms of brand performance, Samsung remains the market leader, accounting for nearly one in every four dollars of spend. LG currently retains second position, although dedicated LED brands such as Unilumin and Daktronics are rapidly increasing their share of the market. 

An innovative future for digital signage

“Digital signage has a dazzling future ahead,” says Garrard. “Moving forward, we expect the market to climb from nearly $14 billion in 2023 to more than $21 billion by 2027. And we’re going to see some major developments during that time. 

“AI promises to revolutionise the way in which audiences are tracked and measured, enabling more targeted and personalised content triggering. Perhaps we’ll even see dynamic content generation. This will result in significant increases in average spend, as well as more engaging purchasing journeys. Sustainability also remains a key talking point. Transitions from print to digital, from LCD to more energy-efficient LED, and the rise of EPD (E-Paper Displays) are all helping to reduce power consumption and physical wastage.” 

Futuresource Consulting’s digital signage market report provides detailed analysis and forecasts of display technologies, including DV LED, mainstream and high brightness commercial LCD, interactive flat panel displays, tiled LCD video wall and projection. Other key components of the signage industry covered in this report are media players, media servers, NUCs, transparent OLED, E-Paper and content management systems. For more information or to make a purchase, please contact Ben Thrussell at ben.thrussell@futuresource-hq.com 

About the author

Morris Garrard

Morris Garrard is a Lead Market Analyst at Futuresource Consulting, working within the Professional Displays team.