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Frost & Sullivan Expects A 15% Growth Rate in the Australian Digital Systems Signage Market by 2020 - Retail chains, shopping centres, telecommunications, banking and fast foods are fastest growing segments -
Frost & Sullivan Expects A 15% Growth Rate in the Australian Digital Systems Signage Market by 2020


PRZOOM - /newswire/ - Sydney, Australia, 2015/06/17 - Retail chains, shopping centres, telecommunications, banking and fast foods are fastest growing segments -

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A better market understanding of the benefits of digital signage solutions has seen Australia’s digital signage market evolve from just replacing a poster with a screen five years ago, to now incorporating a wide range of features including interactivity. Businesses are integrating digital signage features into their digital services and it is becoming an integral component of the wider digital content ecosystem.

The Australian digital signage market, which includes sale of digital signage displays, media players, software and content management, has displayed stronger growth over the past 12 to 24 months; a trend envisaged to continue over the next few years.

The new Australian Digital Signage Systems Market 2015 report by Frost & Sullivan’s states that overall, the digital signage systems market grew by 12.1% during 2014 to reach $133 million. It is predicted to grow at a CAGR of 13.9% from 2015 to 2020. Growth is forecast to increase from 12.4% in 2015 to 15% by 2020 due to increasing market opportunities across a wide range of segments, especially in the financial services and outdoor segments, along with a high proportion of larger rollouts.

Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice, Frost & Sullivan said,“Retail is one of the fastest growing markets for digital signage in Australia with most major Australian retail chains and shopping centres having installed some form of digital signage systems. Other fast growing retail segments include telecommunications, banking and fast food chains.

Over the last couple of years, outdoor signage saw large scale digital signage rollouts deployed in the public transport sector; such as in train stations in major cities CBD’s and at international and domestic airports in Australia. Opportunities remain in public locations using billboard signage instead of digital signs.

In the corporate sector, digital signs, including high-definition video walls, are being deployed in CBD office towers, foyers, lifts and car parks. There has been strong demand from tier one financial institutions and banks, and the tier two banking sector has had strong momentum over the last 12 months.

“The digital signage systems market is moving from outsourcing hardware, software and services components to an internally managed, lower cost, cloud based business system that is part of a wider digital services and marketing ecosystem. It is also evolving from being proprietary-based to an become an open, multi-functional platform environment. It is transitioning from a CAPEX to an OPEX driven market model; driven by specialist IT service providers that manage the entire digital signage deployments from the concept stage to account management, project management and ongoing maintenance. Previously, smaller AV integrators drove the market, whereas now, major providers offering digital signage solutions like Telstra, NEC and Entwined Solutions offer a wide range of services across a broader digital ecosystem,“ Harpur said.

Traditional IT service providers and telcos have significant capability and potential to expand into the digital signage sector. “Due to their ability to control and monitor all elements of the network, including mobile, apps and carriage, telcos could potentially be leading media providers for Australian businesses. Telstra is developing partnerships across the entire value chain of digital signage.” added Harpur.

Convergence is growing in retail between in-store technologies, proximity-based mobile marketing, touch interactivity and digital signage. Data collected and analysed from strategically placed in-store sensors allows predictive analytics applications to instantaneously modify advertising content based on audience demographics. Multi-sensory experiences such as incorporating audio and aromas can be deployed to enhance the consumer experience and complement digital signage. Smartphones can extend the experience by providing supplementary information or targeted advertising. Proximity beacon functionality is now being pre-installed into digital signage system rollouts locally by IT service providers.

Audrey William, Head of ICT Research, Frost & Sullivan Australia & New Zealand said,“About ten major companies compete in the Australian digital signage systems display market. Samsung and NEC are the top two providers and account for around two thirds of the overall market. However, established market participants are experiencing significant pressure on pricing; especially at the lower end of the market, from cheaper Korean and Chinese manufacturers.“

“The Australian digital signage systems software market is highly fragmented. Around ten companies have significant market presence. Scala, through its distributor Techmedia, has the leading market share in Australia. Specialist cloud digital providers such as Appspace, Mandoe Media and CoolSign are emerging and offer broader software solutions and IT service providers are partnering with these companies to deliver cloud based services. Appspace and Google have potential to make significant inroads into the market, while specialist hardware vendors run the risk of losing market share if they do not expand to provide broader end-to-end solutions that incorporate both software and other IT services for digital media services,“ added William.

The Australian digital signage systems market benefits from growth driven significantly by declining hardware prices. Brands and advertisers increasingly value investments in digital media channels, including digital signage, due to its ability to reach larger audiences at point of sale in the retail sector or at the point of transit on public transport or at airports. CIO’s are now given budgets for digital solutions with a rationale that they understand the value of digital signage software and applications. Advertising agencies now include digital signage solutions in their business solutions and are active players, especially in the digital out-of-home segment.

On market constraints, Harpur said,“Network operators are constrained by the lack of availability of consistent bandwidth to stream high quality content in high definition. Audience standardised metrics to justify ROI to retailers is lacking and many retailers will not implement digital signage unless ROI can be directly measured. Privacy is a major issue with digital signage rollouts using facial recognition via sensors and cameras.

Frost & Sullivan's Australian Digital Signage Systems Market 2015 forms part of the Frost & Sullivan Australia and New Zealand Cloud, Data Centre and Infrastructure 2015 research program. All research services included in this subscription provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. If you are interested in more information on these studies, please send an e-mail with your contact details to Donna Jeremiah, Corporate Communications, at djeremiah[.]

About Frost & Sullivan
Frost & Sullivan (, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? Contact us: Start the discussion.

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Frost & Sullivan Expects A 15% Growth Rate in the Australian Digital Systems Signage Market by 2020

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