Digital Signage Display Revenue to Grow at 20 Percent CAGR to 2016
FrameMedia’s SignChannel was mentioned in this article from Digital Signage Expo about both digital signage and digital picture frames:
Digital Signage Display Revenue to Grow at 20 Percent CAGR to 2016 07/11/2009
Despite a slowdown in the worldwide growth of flat panel displays (FPD), digital signage (i.e., public displays) is forecast to grow at a compound average growth rate of 20 percent to 2016 (Table 1), according to the latest results in the “Quarterly Worldwide FPD Forecast Report” from Austin, Texas-based DisplaySearch.
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Table 1: Top Five FPD Applications by Revenue Growth (Millions $US) |
|||
|
APPLICATION |
CAGR |
2009 |
2016 |
|
OLED TV |
140% |
$2 |
$2,371 |
|
e-Book |
49% |
$246 |
$1,684 |
|
Public Display |
20% |
$784 |
$2,994 |
|
Mini Note |
15% |
$1,168 |
$2,386 |
|
Digital Picture Frame |
11% |
$359 |
$1,300 |
Table 1 & 2 Source: DisplaySearch “Quarterly Worldwide FPD Forecast Report”
In contrast, after rising at a compound annual growth rate (CAGR) of 20 percent from 2000 to 2008, total flat panel display (FPD) sales revenues may rise only 1 percent each year from 2008 to 2016, according to the report (Table 2).
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Table 2: Top Five FPD Applications by Annual Revenue (Millions $US) |
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|
APPLICATION |
CAGR |
2009 |
2016 |
|
LCD TV |
0% |
$33,585 |
$37,117 |
|
Mobile Phone |
6% |
$12,813 |
$20,776 |
|
Notebook PC |
3% |
$7,632 |
$14,857 |
|
Desktop Monitor |
-6% |
$13,601 |
$12,429 |
|
Plasma TV |
-7% |
$4,219 |
$3,412 |
|
TOTAL FPD MARKET |
1% |
$82,599 |
$111,451 |
Additionally, the Q2 ‘09 forecast indicates FPD revenues will decline 20 percent from 2008 to 2009, as slack demand affects end-product markets in developed countries. Despite this, the outlook for 2010 is more positive, with an annual revenue growth of 13 percent in 2010, Display Search said.
“Despite the overall flat outlook for FPDs, there are some bright spots in the long-term for flat panel displays,” noted David Barnes, vice president of strategic analysis. “Hot applications such as OLED TV, eBook, mini-note PC (netbooks), digital picture frames and public displays (digital signage) are all driving demand.”
“We expect electrophoretic and OLED technologies will experience more growth than other display technologies will over the long term,” he added.
Flat panel revenue for the five FPD applications will provide strong growth opportunities for display manufacturers (Table 1). The “Quarterly Worldwide FPD Forecast Report” forecasts:
- OLED revenues from TV applications will increase at a CAGR of 140 percent from 2008 to 2016.
- Demand for electronic books will lift revenue of electrophoretic and similar display technologies at a 49 percent CAGR.
- Several technologies, TFT LCD in particular, support public display applications such as out-of-home advertising, which is forecast to grow 20 percent a year — reaching almost $3 billion in 2016.
- Mini-notes have become a hot new application, and DisplaySearch expects panel revenue for such products will rise 15 percent a year to more than $2 billion in 2016.
- Digital picture frames became a hot market in 2007, and this application may still support revenue growth of 11 percent per year. (Though the digital picture frame market is dominated by consumer demand, Scala entered into a partnership in March 2009 with Frame Media to provide software support for the company’s SignChannel, a platform designed to supply businesses with content for digital frames used for digital signage applications. — Ed.)
The DisplaySearch “Quarterly Worldwide FPD Forecast Report” details shipments of 23 display technologies for 36 applications by quarter from 2007 through 2016. Pivot tables provide clients with measures of display area, units, prices and revenue for each combination. The summary report evaluates trends from 1998 onwards.
(Crossposted at Wireless Picture Frames)
