Analyst predicts strong growth for market, as value reveals market performed well during recession

The digital signage market reached $3.9 billion (£2.5bn) in 2009 and is forecast to grow strongly in the next few years according to the latest analysis from IMS Research.

A new report revealed that the 2009 market grew over 2008 as digital signage vendors performed well during the recession. Growth from 2009 to 2013 is forecast to be around 20% each year including larger format LED arrays.

If light emitting diode (LED) arrays are excluded, growth rates are forecast to be even higher according to IMS Research analyst, Jamie Fox. He commented: "Growth is driven by either completely new installations or replacements of static displays in area such as retail and transport."

Report outlines out-of-home growth areas

These findings are from a new report, which examines the digital signage market in detail. Digital signage enables companies to provide targeted information and advertising in a wide range of out-of-home locations. The largest segments for flat screen display, liquid crystal display (LCD) and plasma-based digital signage systems are retail, hospitality/entertainment and airports. For LED arrays, the largest markets are stadiums and street displays.

The market size of $3.9bn is based on the total revenue to manufacturers of the individual components, made primarily up of displays, media players, set top boxes, computers, networks and software.