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Acceptance of digital signage systems in India to open new ways for engaging customers

May, 2014

India’s digital signage systems market is in its nascent stage, but the market is witnessing promising growth. Growing retail sector, urbanization trend, increasing advertisement expenditure, improving public and private infrastructure, and associated benefits offered by digital signage systems are boosting its market in the country.

According to 6Wresearch, India digital signage systems market is projected to reach $524 million by 2019, at a CAGR of 25.8% during 2014-19. Until 2013, LCD display based signage systems have captured majority of the market share in the country. However, in the forecast period, LED display based signage systems are expected to witness highest growth rate amongst all display technologies. Displays with size, 32-40 inches have captured major share of the pie in the country.

Digital signage systems not only have an edge over conventional advertisement systems, but also have the ability to engage customers through its interactive communication medium. Gesture controlled signage systems are now also getting accepted in the country. Deployment of video walls is an emerging trend, which is gaining popularity at various corporate events, fashion shows, and mass concerts. Looking at high capital cost involved in video walls, rental business of these systems is also on the verge of evolution.

In India, companies are partnering with other companies to offer their solutions. For instance, Scala has formed a joint venture with Digfour Technologies and 3M Digital Signage has partnered with Enkay Technologies to explore new opportunities in the Indian Market.

Amongst all regions, Western region accounts for largest share in 2013 and is expected to lead in 2019 as well, due to growing penetration of organized retail and increasing infrastructure investments.

Transport sector is utilizing digital signage as a means of earning; screens are fixed onto moving trains for advertising particular product or solution. The market is gradually shifting towards interactive model, where customers can browse through the content by the means of touch or scroll, which is an effective tool for crowd management.

In India, there are not many companies operating in this space, but with growing opportunities, many new international players are expected to enter in the country over the next five years.

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