iSuppli on Indoor Digital Signage Growth
iSuppli on Indoor Digital Signage Growth
There has been intense growth for the digital signage industry as a whole, but for the industry more specifically, indoor-venue and hospitality markets have been emerging as the biggest growth opportunity for providers of digital signage equipment, digital signage software, and full-service turn-key providers. The hospitality and indoor-venue markets have provided revenue growth said i-suppli in a recent press release. In fact, according to i-suppli, the indoor-venue segment accounts for 26 percent of the total digital signage and professional market revenue. iSuppli forecasts revenue for the indoor venue-segment will achieve a Compound Annual Growth Rate (CAGR) of 8 percent. At that rate, the indoor-venue digital signage segment is expected to reach $3.8 billion by 2010, up from $2.8 billion in 2006. The unit growth rate for the indoor-venue market looks even more bullish, with predicted increases to 1.7 million units in 2010, up from 683,000 units in 2006. This translates in to a CAGR of 26 percent. Within the digital signage hospitality segment, hoteliers have been transitioning to the use of Flat Panel Displays (FPDs) in guest rooms and are providing targeted information and entertainment content for guests. I recently traveled to Bellevue Washington, a growing city full of hot new start-up companies. I stayed in a hotel called the Silver Cloud. They recently made the transition to LCD televisions in all of their guest rooms. The results were amazing, as the units revived an older-looking guest room in to a high-tech business lodging room, and it certainly made my stay more pleasant. "How guests perceive their rooms can be more powerful than any other factors in terms of the way they view a hotel’s overall value," said Sanju Khatri, principal analyst for projection and large-screen displays at iSuppli Corp. "Delivering a variety of in-room entertainment options may promote greater guest satisfaction, leading to repeat business." Khartri adds. Divided even further, the hospitality segment houses the lodging and restaurant segment. That segment of the digital signage market is expected to reach $1.1 billion in revenue by 2010, which is up from $1 billion in 2006. Although revenue is generally flat in this segment, the digital signage usage rate is doubling as unit shipments increase by almost 100% this period due to a decline in prices and the perceived need by hoteliers to differentiate their brands.
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