Digital Signage Biz To Boom

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Close on the heels of a cheery forecast for ad revenue for digital out-of-home media, another research firm is forecasting comparable growth in the nuts-and-bolts end of the business, including making, installing and managing digital signage. Together, the two forecasts suggest digital out-of-home will not only survive the current economic downturn, but see a significant boost in the future.

According to the forecast from ABI Research, the overall U.S. market for digital signage software, hardware, installation and management services is poised to grow from $641 million in 2008 to $1.4 billion by 2013, an increase of almost 120% in five years.

Spread out evenly over this period, that equals a cumulative annual growth rate of about 17% per year. However, given the vertigo-inducing economic plunge now underway, average growth rates will probably be lower in the next one to two years, and higher thereafter.

Overall, Quinn sized the digital out-of-home advertising market at $2.43 billion in 2008, up 11% from $2.19 billion in 2007. According to Quinn, the market tripled in size from 2002-2007. In the years to come, the forecast has ad revenue growing at a cumulative annual growth rate of 12% from 2007-2012, which puts it just under $3.9 billion in 2012.