Monday, January 24, 2005

New InfoTrends/Cap Ventures Study - Digital Signage Forecast

A follow up report to Cap Venture's 2002 "Narrowcasting in Public Spaces" is now available. The 2002 report was primarily focused on retail applications.

The new report is named "The North American Commercial Digital Display Market". The new study is more broadly focused on commercial displays applications - aka narrowcasting.

InfoTrends/CAP Ventures expects the narrowcasting market to grow at a CAGR of over 20 percent, rising from $452 million to $1.3 billion by 2009. According to the analysts' market sizing and forecast, the largest single revenue component for this industry is -- and will continue to be -- external advertising revenues, which are expected to grow from $161 million in 2004 to $857 million in 2009, a 40 percent CAGR.

Key findings in the new study are:

  • Sales of hardware, software, installation and integration services, and support for all commercial display applications totaled nearly $1.7 billion in 2004.
  • For networked display systems in retail and public spaces, network operation / management services and advertising revenues generated an additional $413 million.
    This industry is expected to demonstrate a CAGR in excess of 25% over the next five years.
  • The list of industry vendors continues to change as companies leave and enter the industry, but is increasingly becoming segmented into a few leaders and a larger number of companies still working to create traction and critical mass. Webpavement was included in the initial 2002 and most recent study.
  • Over the next five years, cost-effective LCDs will be the most popular technology for digital signage applications because of their longevity, reliability, low power consumption, and attractive price point.

The study is available here. Price $14,995 US Dollars.


maccheesedog said...

and this study costs $15,000 because???

Webpavement Digital Signage said...

Check out the table of contents. You'll see that there is a wealth of information for those that have the capital to purchase the report.

It's good for retailers and other firms thinking of getting into the digital signage space. It also validates that digital signage is - in fact - an industry.

Whether we purchase the report is unknown at this point.

maccheesedog said...

If you are working for a cash starved company, customer signage provider or otherwise, it seems unlikely that you will have an extra $15K. On the other hand you do not need to be a rocket scientist or have a spare $15K to know whether this industry is going to explode or not.

If I were a customer and had the spare $15K I would install a pilot myself for less, learn firsthand, and get a promotion instead.

On that note, IMHO real world case studies have much more value than a real phat market research rpt anyway (e.g., same store sales lift, ROIs, ad revenue vs. store revenue models, brand reputation lift, etc)

just my 2 cents...