Media Players, PCs and Displays Drive Nearly $5 Billion in Revenue for Digital Signage

Contributing to this strong growth was an increase in shipments for screens smaller than 30 inches.

Austin, Tx. (June 27, 2012) - IMS Research, recently acquired by IHS Inc. (NYSE:IHS), estimates that hardware supporting digital signage such as media players, PCs, displays and LED Video arrays generated nearly $5.5 billion in revenue during 2011. The new IMS Research study, The World Market for Digital Signage - 2012 Edition, also forecasts continued growth for this equipment at a combined compound annual growth rate (CAGR) of 8.5 percent through 2016.


Displays continue to drive the majority of shipments and revenues for the industry when cinema projectors are excluded. IMS Research estimates that during 2011, LCD and plasma displays shipping worldwide for digital signage generated revenues of nearly $2.7 billion, representing 22.5 percent growth over 2010. Contributing to this strong growth was an increase in shipments for screens smaller than 30 inches, replacement of CCFL with LED backlit and thin bezel displays, as well as an increased demand for touchscreens. LED Video display (or module) revenue grew due to increased investment in sporting venues and outdoor digital advertising. Media players and PCs contributed nearly $1 billion.

Shane Walker, author of the study and director of IMS Research's Consumer Electronics Group, stated: "While screen sizes around 42 inches continue to comprise the majority share of screens, we expect sizes over 50 inches to increase to a 27 percent share due to increased usage in verticals such as airports and retail. Smaller screen sizes are also experiencing increased uptake in the restaurant, education and hospitality verticals. These small screens increasingly have built-in media players with Ethernet or Wi-Fi connectivity."

Regarding media players and PCs, Walker continued: "In general, there is a trend toward smaller form factors for PCs, with many manufacturers designing units intended to be embedded within a display. Amongst the display manufacturers we spoke with, a common rate of share for displays with a PC expansion slot was 15 percent to 20 percent of their product line. Some reported PC attach rates into these displays above 10 percent."

Thin bezel share (bezels less than 9mm) increased to 13 percent in 2011 from five percent in 2010. Similar to growth expectations for larger screen sizes, IMS Research forecasts this share to increase to 23 percent by 2016, especially as the cost differential continues to narrow. A contributor to this growth will simply be the replacement of existing wide or narrow bezel video walls with thin bezel displays. Despite these growth expectations, thin bezel display shipments will remain minor through the forecast. This is due to the fact that 50 percent of digital signage sales still come from SMBs with limited need for video walls. Similarly, large format touch screen share grew to nine percent during 2011. IMS Research expects significant growth to continue during 2012.

The World Market for Digital Signage - 2012 Edition is IMS Research's third edition study on the digital signage market and is the most comprehensive analysis of the industry available. This edition features updated forecasts for displays (including LCD, PDP, OLED and LED Video), media players, PCs, software, digital cinema projectors, M2M cellular modules, touch-enabled displays (in both large and small formats), installation services, installation management, and advertising revenues. New to this edition is the inclusion of NFC-enabled cellular handsets, which are forecast for use primarily in payment and ticketing applications, and gesture recognition as an advanced UI for displays. Historical data is presented for 2011 along with forecasts through 2016 for all equipment, software and advertising revenue.

About The World Market for Digital Signage - 2012 Edition Report:
This is IMS Research's third edition study on the digital signage (DOOH) market, and is the most comprehensive analysis of the industry available. This edition features updated forecasts for displays (including LCD, PDP, OLED and LED Video), media players, PCs, software, digital cinema projectors, M2M cellular modules, touch-enabled displays (in both large and small formats), installation services, installation management, and advertising revenues. New to this edition is the inclusion of NFC-enabled cellular handsets, which are forecast for use primarily in payment and ticketing applications, and gesture recognition as an advanced UI for displays. Historical data is presented for 2011 along with forecasts through 2016 for all equipment, software and advertising revenue.

In addition to the equipment and software analysis, an estimate for worldwide digital signage installations is included. Part of this analysis includes display orientation, level of networking (discrete, one-site, and multi-site), and data delivery method (LAN, Internet, satellite, or other method). Regional and certain country-level splits are also presented, as well as 13 verticals including retail, air and ground transport, hospitality, education, exhibition, stadium, financial, medical, and QSR. Key players in the industry are noted within the 2011 market share tables for displays, LED video arrays, media players and software suppliers.

About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today's business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 6,000 people in more than 30 countries around the world.

About IMS Research (www.imsresearch.com)
IMS Research, recently acquired by IHS (NYSE: IHS), is a leading supplier of market research and consultancy to over 2500 clients worldwide, including most of the world's largest technology companies. Established in the UK in 1989, IMS Research now has dedicated analyst teams focused on the factory automation, automotive, communications, computer, consumer, display, financial & ID, LED & lighting, medical, power & energy, solar PV, smart grid and security markets. Currently publishing over 350 different syndicated report titles each year, these in-depth publications are used by major electronics and industrial companies to assess market trends, solve marketing problems, and improve the efficiency of their businesses.

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