Latin America Digital Signage Solution Market Size, Share & Trends Analysis Report By Solution (Software, Services), By Deployment Mode (On-Premise, Cloud-Based), By Industry (Retail, Hospitality, Transportation, Healthcare, Education, Media and Entertainment, BFSI, Others) and By Country(Brazil, Mexico, Argentina, Chile, Colombia, Rest of LATAM) Forecasts, 2022-2030

Market Overview

The Latin America digital signage solution market size was valued at USD 1,133 million in 2021 and is projected to reach USD 2,946 million by 2030, registering a CAGR of 11.03% during the forecast period 2022-2030.

Companies use digital signage software to create specific advertisements and visual interpretations of images by combining visual aids with audio or images with videos. Users can also use this software as an interface between themselves and interactive digital signage displays. Companies typically use digital signage to display text, animated or video messages for sales, advertising, and marketing purposes. It is a remotely managed digital display. Digital signage software creates audience engagement experiences by connecting networks of digital signs, kiosks, mobile devices, websites, and Internet-connected devices. Lower administration costs and the ability to run time-sensitive advertisements are among the several advantages of this system.

Vendors in the region can change the displays and messages more quickly and reach potential customers cost-effectively and efficiently with digital signage. Furthermore, managing it is easier compared to traditional advertisements. Digital signs provide real-time information on products and availability, offer interactive data, and display enticing photos and videos.

Highlights

• Content Management systems dominate the market by software type.
• Installation services dominate the market by Service type.
• The retail segment dominates the market by Vertical.

Market Dynamics

Latin america digital signage solution market drivers:

Increasing digitalization

In recent years, technical progress, the development of the internet, growing awareness among consumers, and increasing globalization have driven significant progress in the digitalization trend in the Latin American region. Digitalization is causing significant impacts on business operations in the industry, society, and the working environment through emerging technology trends such as the Internet of Things, AI, data analytics employing Big Data, and AR (Augmented Reality). The United Nations Economic Commission of Latin America and the Caribbean reported that almost 62% of Latin American and Caribbean households had access to fixed broadband connectivity in 2021. The recent growth indicates a positive outlook for developing digital infrastructure in the area, although it is significantly below developed regions such as North America and Europe.

GSMA states that mobile Internet penetration can increase a country's GDP by 1.2% with a 10% increase, while a 10% increase in digitalization can generate 1.9% in GDP growth. Latin American countries are expected to be encouraged by such stats to accelerate their digitization efforts further, creating a favorable scenario for the studied market.

Latin america digital signage solution market restraints:

Security concerns

Security concerns significantly restrain the growth of the digital signage solution market in Latin America. Data privacy, cybersecurity, unauthorized access, content management, and physical security are concerns. Businesses and organizations can ensure the security of their digital signage solutions by implementing strong passwords, encryption, and regular updates. It is also critical to work with trusted vendors and partners who have experience in secure digital signage solutions.

Latin america digital signage solution market opportunities:

Evolving display technologies

During the forecast period, the market can experience lucrative opportunities due to electronic giants' inclination towards large-screen displays and evolving display technology such as micro-LED and quantum dots. New display technologies such as OLED, transparent, interactive, 4K and 8K, flexible, and outdoor displays offer businesses opportunities to create innovative and engaging digital signage solutions to enhance customer experiences and improve communication.

Regional Analysis

Brazil holds the largest market share. Latin America includes Brazil, which ranks among the largest countries. The rising rate of urbanization is increasing the demand for digital signage solutions, which is thriving in the country's business infrastructure. The World Bank reported that Brazil's degree of urbanization was about 87.32% in 2021. Using digital signage solutions can expand the reach of end users in metropolitan regions to accommodate the expanding population in the area. Explanations for digital signage are essential for increasing communication efficacy.

The government in Brazil is taking several initiatives to expand the digital infrastructure in the country, making digitization a prevailing trend. For instance, Cisco and the Brazilian government have worked together for years to develop the networking infrastructure required to support digital solutions. Furthermore, EBC, a public communications company in Brazil, ranked the country as the second most advanced country in the field of digital government globally in 2021, rising five positions. The increase in retail outlets and shopping malls in the country also drives the demand for digital signage systems. The Brazilian Association of Shopping Centers (Abrasce) reported that 620 malls existed in Brazil in 2022, generating nearly BRL 160 billion (about USD 30.8 billion) in sales. Top retailers in Brazil, such as Renner, C&A, Carrefour Hypermarket, Extra, Magazine Luiza, Casas Bahia, Drogasil, Droga Raia, and others, are adopting digital advertising solutions. Brazilian shopping centers aim to combine traditional and digital mall signage to provide patrons with an immersive experience, which is expected to boost the market studied.

Segmental Analysis

The Latin America digital signage solution market is segmented based on Software type, service type, and vertical.

The Software type segment is further segmented into Edge-Server software and content management systems.

The Content Management system segment dominated the market and is expected to register a CAGR of 11.15% over the forecast period.

The segment can be bifurcated by service type into Installation services, Maintenance, and support services. 

The Installation services segment dominated the market and is expected to grow at a CAGR of 10.54% during the forecast period.

Based on vertical, the market is sub-segmented into Retail, Corporate, BFSI, Education, Government, Transportation, Entertainment, Hospitality, and industrial.

Retail is expected to dominate the market, registering the highest CAGR of 10.94% over the forecast period.

Recent Developments

• February 2023- NoviSign Digital Signage opened a new office in Costa Rica to better serve the expanding Latin American market and expand its operations.
• April 2023- NEC utilized carbon nanotubes to develop the world's first highly sensitive uncooled infrared image sensor.