WEYMOUTH, Mass. — InfoTrends/CAP Ventures released a new study focused on the growing opportunities for electronic displays and narrowcasting networks in commercial environments. The study entitled "The North American Commercial Digital Display Market" provides detailed research, forecasts and analysis on the commercial market for display technology and services.
According to study data, narrowcasting revenue is currently valued at $452 million. InfoTrends/CAP Ventures expects this market to experience a compound annual growth rate of more than 20 percent, reaching $1.3 billion by 2009.
At the same time, however, the market sizing and forecast show that the largest single revenue component for this industry is and will continue to be external advertising revenues. An additional $161 million in advertising revenues were generated in 2004, and this amount is expected to increase at a CAGR of 40 percent to reach $857 million in 2009.
"This study builds on our landmark narrowcasting report that was released in 2002," noted Norman McLeod, a project manager at InfoTrends/CAP Ventures. "Since this report was released, there have been dramatic advances in display technology, network infrastructure, components, and software for creating, managing, distributing, and displaying digital images and video content."
The study revealed that sales of hardware, software, installation and integration services, and support for all commercial display applications totaled nearly $1.7 billion in 2004. For networked display systems in retail and public spaces, network operation/management services and advertising revenues generated an additional $413 million.
Over the next five years, according to the study, cost-effective LCDs will be the most popular technology for digital signage applications because of their longevity, reliability, low power consumption and attractive price point.
Research for this study consisted of a series of in-depth interviews with key industry players, users, and prospects, extensive secondary research, vendor profiles, and a series of structured surveys.
The surveys were conducted between September and December 2004. Responses came from 882 managers working at advertising agencies, media companies, retailers, consumer goods manufacturers, and related companies, as well as corporate/IT managers.
