Digital Signage Business Climate Index For Q3 Finds Big Players Growing While Smaller Firms May Be Struggling

November 22, 2024 by Dave Haynes

German language content partners invidis have released the findings of its latest quarterly Business Climate Index, suggesting market sentiment is improving, even though actual sales are just poking along.

The Q3 invidis Digital Signage Business Climate Index (DBCI) shows increasing optimism among industry participants. The status quo index rose from 29.29 to 42.89 in Q3, while the future outlook index increased from 27.86 to 51.35.

While these numbers suggest growing confidence in the market, it looks different on the ground. LCD display sales, which make up most of the market, have been flat for almost two years. LED displays are growing in double digits, but their volume isn’t enough to offset the LCD segment’s stagnation.

The market is splitting into two distinct groups. Large integrators and CMS providers are performing well:
– CMS providers with SaaS models are growing 10-15%;
– Major integrators are achieving 5-10% growth;
– These larger companies are expanding both organically and through acquisitions.

Meanwhile, smaller and medium-sized enterprises are struggling. Most are seeing flat or declining revenues, and the gap between them and larger players continues to widen.

What’s driving this divide? Recurring revenue appears to be key. CMS providers with stable SaaS income are showing consistent growth. Large integrators can leverage their scale and resources to weather market challenges and take advantage of consolidation opportunities.

Overall, the digital signage market will likely end 2024 with single-digit growth. While the industry expects a stronger fourth quarter – traditionally the best performing period – the year’s overall performance highlights how company size and business models increasingly determine success.

invidis does these quarterly, based on input submitted by companies. The feedback is a bit EU-centric but invidis has been pushing to get insights from oher regions, notably the biggest digital signage market, the U.S.