The global outdoor LED display market size was valued at USD 7.42 billion in 2021. It is expected to reach USD 17.89 billion by 2030, growing at a CAGR of 9.2% during the forecast period (2022–2030). Large hoardings known as outdoor LED displays are used to show live advertisements, images, and promotional videos, among other types of content. It is typically positioned in open-air and central areas such as boulevards, shopping malls, parks, and parking lots. In addition, the displays are made up of something called a light-emitting diode, or LED for short.
This type of semiconductor chip emits light of various colors at wavelengths within the visible spectrum. These displays use LEDs with high brightness, and they find widespread application in applications that take place outside. Some examples include live advertisements, billboards, video walls, and others. In addition, outdoor LED displays are created using a dual in-line package (DIP) technology, making them repellent to any weather. Additionally, the content displayed on the displays can be seen from a great distance, regardless of whether it is a day or a night.
Fabricating LEDs with varying color wavelengths on printed circuit boards is involved in these processes (PCBs). Both surface mounting devices and dual-inline packaging, abbreviated as DIP, are viable options for the type of packaging (SMD). These screens are durable and resistant to the damage caused by exposure to sunlight, pollution, and moisture. The increased adoption of LED display advertising by sponsors in entertainment shows, sports events, and exhibitions because of an increase in preference for LED display advertising over paper or poster-based advertising drives the growth of the market for outdoor LED displays. Nevertheless, the market's growth is hampered by several factors, including high initial investments and unstable demand.
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Increased Digital Advertisements to Impede the Market Growth
Companies are shifting their focus toward various outdoor media advertising platforms such as billboards, video walls, and other combinations of distinctive display designs available on the market. This happens because outdoor LED display provides distinctive display designs and customized solutions such as enhancing customer engagement with advanced pixel displays, mobile integration using QR codes, and other similar features. In addition, outdoor LED displays offer impact resistance, energy efficiency, and durability in digital advertising thanks to the growing trend toward interactive media, which is friendly to the environment. These benefits are made possible because LEDs are light-emitting diodes (LEDs). These factors are majorly responsible for the market's widespread adoption and use of outdoor LED displays by digital advertisers.
High Digital Sponsorships and Information Displays to Drive Market
The expansion of sports events and exhibitions, seminars, ceremonies, and other similar events are the primary factors for the market for outdoor LED displays. The sponsors can more effectively present information about their company's products and reach a larger audience at a lower cost in the market as they advertise and display consumer information. In addition, outdoor LED displays provide a viable source for displaying dynamic data, which is much simpler to manage than static data, and the flexibility to implement immediate changes in the displays while the events are taking place. It is anticipated that the market will see an increase in demand for outdoor LED displays due to these factors.
High Power Efficiency to Favor Market Growth
The outdoor LED displays provide several built-in benefits, including exceptional readability, light in a much narrower spectrum than other illumination sources, energy efficiency, a minimum operational price, and long life. It is anticipated that these will cut down on electronic power losses and increase the market's usage of outdoor LED displays that are used competently. In addition, using outdoor LEDs for advertising, promoting sporting events and brands, and other types of events is a highly innovative and cost-saving way to promote these types of events.
High Installation and Investment Cost to Hinder Market Growth
An outdoor LED display requires expensive manufacturing and raw material acquisition as a starting point, which has an expensive installation cost and an expensive entry point into the market. The growth of the outdoor LED display market is constrained by the higher initial capital cost basis of outdoor LED displays compared to conventional lighting technologies. In addition, even though their operational costs are low, which places them in a league of their own when differentiated from conventional display counterparts, the initial high cost of manufacturing and installation of outdoor LED displays is a factor holding back the expansion of the market.
Alternative Designs for LED Advertisements to Boost Market Opportunities
The advertising industry needs innovative designs for displays that are efficient in terms of both energy consumption and financial outlay. Additionally, even when the data is contradictory, advertisers can simultaneously display several interactive advertisements, consumer information, and event statistics. This opens enormous opportunities in various industries, including sports, event management, transportation, etc. As a result of these elements, it is anticipated that the market for outdoor LED displays will have a wide range of opportunities for growth and development in the years to come.
The global outdoor LED display market is segmented by type and application.
Based on type, the global outdoor LED display market is divided into surface mounted and individually mounted.
The individually mounted segment is the highest contributor to the market, growing at a CAGR of 8.9% during the forecast period. The surge in demand for displays with a longer lifespan and high durability is driving the growth of the individually mounted segment. The lamp pins of individually mounted displays are joined with welding, which provides higher durability and is suitable for both mild and harsh outdoor LED displays currently on the market.
In addition, the demand for advanced screen displays in automation industries, which allow workers to view magnified automobile parts from a distance, is becoming one of the most important factors driving growth in the market. In addition, LED displays that are individually mounted offer several benefits, including displays that are clear and bright as well as a reduction in the amount of heat generated. The market's most prominent trends are increasing demand for commercial displays and characteristics such as high-density packaging and high production rates with enhanced brightness. Moreover, surface-mounted LEDs are widely used in residential and industrial lighting systems and personal electronic devices such as televisions, LED screens, vehicles, and projectors.
Based on application, the global outdoor LED display market is divided into billboards, mobile LED displays, perimeter boards, traffic lights, and video walls.
The billboards segment is the highest contributor to the market, growing at a CAGR of 8.2% during the forecast period. With numerous designs for displaying billboards, billboard advertising is becoming one of the most prominent market trends. Billboards can show multiple advertisements simultaneously, whereas their print counterparts can only show one at a time, leading to market expansion. Due to their low cost and capacity to display information twenty-four hours a day, seven days a week, billboards are also used by businesses to advertise and announce the launch of new products.
In contrast, the increased construction of skyscrapers and tall buildings in densely populated areas presents enormous opportunities for erecting billboards, as many people can view them simultaneously. Increased demand for displaying in-game messages, sports brand advertisements, and sponsor messages drives the expansion of the perimeter board display market. In contrast, the increase in sports events and the expansion of commercial advertising are anticipated to create lucrative opportunities to adopt perimeter board displays in the coming years.
The global outdoor LED display market is segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
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Asia-Pacific is the highest revenue contributor and is estimated to reach USD 5.94 billion by 2030, with a CAGR of 10.5% during the forecast period. The increased population in Asia-Pacific has resulted in a large crowd for billboards placed on the side of roads, buildings, and other areas, which is why billboard displays account for the largest share of outdoor LED displays. In addition, many businesses in this area make significant investments in billboard advertising, contributing to the market's expansion.
On the other hand, mobile LED displays have also established a solid foothold in the market because they offer viable opportunities for door-to-door advertising in this massively populated region. Additionally, there will probably be a rise in demand for outdoor LED displays used at sporting events and mega-events because Asia-Pacific is quickly becoming a dominant force in the world of sports. It is anticipated that this will create lucrative opportunities for the region's rapid outdoor LED display market development.
North America held the largest market share in the global outdoor LED display market because of the region's well-established commercial advertising network and the quick expansion of the consumer information display sector. Europe accounts for the second-largest market share.
The major global outdoor LED display market players are
May 2022- Daktronics Delivered Homerun for Arkansas Travelers Outfield Video Display. Daktronics (NASDAQ-DAKT) of Brookings, South Dakota, has partnered with the Arkansas Travelers to deliver more than 2,100 square feet of digital video display space.
March 2022- Leyard and BIAD has built a “digital building + digital audio/video” ecosystem. The Beijing Institute of Architectural Design (BIAD) and the group reached a strategic cooperation agreement.