Indoor signage is a much larger market, accounting for 72% of the volume output whilst outdoor signage accounted for 28%. Overall PoS/signage demand is forecast to grow by 0.8% annually to 2020 with indoor signage growing on average by 1.2% at the expense of outdoor, which will show average declines of 0.4%. The growth of digital displays is set to have a market impact upon outdoor printed PoS/signage. Total output is expected to reach 13.6 billion square metres, valued at $49.8 billion by 2020.
FIGURE 0.1 Global printed PoS/signage output by product, 2014 (million m2)
Source: Smithers Pira
The Future of Signage in an Electronic World to 2020 presents an overview of the factors influencing demand for printed signage. The report discusses significant trends and technological developments in the market and quantifies and segments the global market by volume and value, providing both historical and forecast figures from 2010 to 2020.
Asia currently dominates the market, accounting for 48% of all volume output in 2014. This region is expected to increase its share to 54% by 2020, according to the report. Latin America is the only other region to show output growth to 2020, with an annual growth rate of 1.5%. Overall printed PoS/signage growth is expected to be concentrated in emerging markets, with India and China showing the greatest prospects for growth to 2020. Western European and North American countries have suffered declines to 2015 and are expected to continue to decline in the forecast period.
General indicators that influence the demand for printed signage include economic growth (GDP and disposable income) and population growth. The fastest growing economies, such as emerging Asian economies and Africa’s fast growing population, are likely to provide growth opportunities for signage.
The retail industry requires high volumes of printed signage, much of which has a short life span. Therefore retail trends have a significant impact on printed signage demand. Grocery retail has the highest concentration of printed signage. Global retail sales totalled over $22 trillion in 2014, of which some 6% was through e-commerce sales. The growth in retail sales is currently highest in India, Indonesia, China and Russia (at least until recently) respectively. Africa’s fast growing population will provide good retail opportunities. Large retailers will look towards other emerging markets such as the MINTs (Mexico, Indonesia, Nigeria and Turkey) with new interest in the near future.
Factors influencing signage industry trends include the nature of PoP suppliers, compliance, the effect of print management, globalization, and signage in the wider context of advertising. As quality has improved, the use of imported PoP has grown, particularly in countries like the UK, which often sources permanent displays from China. Awareness of PoP advertising as a marketing tool is growing among brand owners and FMCG companies.
The use of digital media and signage has been increasing among retailers and for advertising purposes in indoor and outdoor locations. Digital platforms are becoming one of the most powerful sources of display and advertising, and their uptake poses a threat to the printed signage market. Worldwide revenue for digital signage equipment, software, services and media is predicted to total around $17 billion by 2017. The US has the biggest market share, followed by Europe. Asia Pacific is the fastest growing market with the largest scope for growth. Other emerging markets are also likely to achieve above-average growth.
The Future of Signage in an Electronic World to 2020 is available now for £4,200. For more information, please contact Stephen Hill on +44 (0)1372 802025, or via e-mail at firstname.lastname@example.org