What the digital signage market looks like (so far) in 2013

An industry snapshot from Partner Research shows some roller-coaster activity in terms of shipments from the major hardware providers.

The opportunity for success in the interactive display market may be huge, but the supply chain for actual hardware to support it is experiencing growing pains, according to Partner Research.

The Georgetown, Ont.-based market research firm, which tracks business activity in digital signage, hotel TVs and more, recently released its Q1 2013 quarterly analysis. The report shows an overall 31 percent decline in shipments since the same time last year, or more than 13,500 units compared with more than 19,000 units.

Much like people who invest in the stock market, however, Partner Research suggested that those close to the interactive display industry should take the numbers with a grain of salt, riding out the bumps and looking at the long-term picture.

“The largest deployment in the history of the Canadian market, which was underway in Q1 2012, finished before Q1 2013 began,” Partner Research explained in its report. “The digital signage market is still in its infancy.  Similar peaks and valleys in the sales trend line are to be expected for several more years.”

Other takeaways from the report:

Keep thinking big: Partner Research said large format displays, designed to remain on for more than 14 hours a day and which usually include a three-year warranty, represent the fastest-growing category. This could suggest an appetite for significant screen sizes that can accommodate innovative new experiences with consumers.

Meet the market leaders: While LG led the market in terms of overall shipments, there are rivalries between categories. For example, Samsung leads the pack for 52-inch large format professional displays, and NEC is picking up steam in the LED video wall segment. Expect more competition (and opportunity for negotiation) as these vendors attempt to win more market share.

Keep categories in context: Partner Research’s quarterly analysis looks not only at the kind of hardware that powers interactive displays but also commercial televisions and in-room TV sets for hotels. The numbers from these segments may skew the overall outlook somewhat for the digital signage market. Best to look a bit more closely at particular segments than looking at the top-line figures.

Next step: Read the complete Quarterly Analysis of the Canadian Digital Signage and Hotel TV Market Industry Snapshot from Partner Research, and contact the firm with your questions at [email protected].