Technavio analysts forecast the global display market for retail applications to post a CAGR of more than 15% by 2020, according to their latest report.

The display market for retail applications is mainly driven by the increasing number of retailers that are adopting touchscreen technology to attract customers, who have undergone many upgrades.

Technavio’s lead research analyst Sunil Kumar Singh says, “Displays are used to exhibit data or information. They are referred to as retail displays when used in retail applications like POS systems, kiosks, ATMs, and digital signage. They can be both touch-enabled and non-touch displays.”

According to the new report by Technavio, retail display market is segmented into touchscreen retail displays and non-touchscreen retail displays, whereby the adoption of touchscreen retail displays is much higher compared to non-touchscreen retail displays.

Geographically, APAC leads the global retail display market with more than 44% of the total market. China contributes the largest part of the revenue in this region, accounting for about 47% of total revenue generated there.

Technavio’s market research analysts have identified the following three factors as the driving forces behind the growth of the global retail display market:

  • Rising adoption of interactive digital signage
  • Demand for user-friendly interfaces
  • Growing adoption of touch-enabled display devices

Rising adoption of interactive digital signage

The new report by Technavio emphasizes the rising adoption of interactive digital signage by vendors to attract the attention of users on a large scale. They are introducing interactive touch displays to make a drastic change in user experience. Interactive digital signage displays enhance users' engagement with the content, leaving a stronger impact on their minds. They allow end-users to interact with the content via touch screens, body sensors, and QR codes through smartphones.

“Interactive displays will help users collect and analyze customer data, which may be used to offer special discounts, coupons, and other incentives. For instance, Samsung has developed IP-addressable displays and put digital signage players on screen to eliminate the need of a separate player to display content. The company is addressing digital signage needs across multiple form factors, moving away from the prevalent notion that displays should be considerably large,” says Technavio’s lead research analyst Sunil Kumar Singh.

Demand for user-friendly interfaces

“User-friendly display devices such as kiosks have become popular among consumers visiting retail outlets, with touchscreens being the most preferred interface. An interface is designed according to a consumer’s requirement for better functionality. Therefore, many retailers are adopting touchscreen displays in their stores to assist customers and enhance their shopping experience,” says Technavio’s lead research analyst Sunil Kumar Singh.

In 2015, Nada Yada, a Swedish interactive technology company, provided in-store multi-touch displays to retail chain Hemtex. Most retailers nowadays are using single-touch displays, while multi-touch interfaces have yet to be optimized for the sector. Hence, growing demand for user-friendly interfaces such as touchscreens is expected to drive the retail display market in the coming years.

Growing adoption of touch-enabled display devices

The latest report by Technavio states that to remain competitive amid rapid growth in the e-commerce sector, brick-and-mortar retailers have increased their interactions with consumers through IT kiosks and digital signage. These touch-enabled kiosks in retail outlets are allowing consumers to browse through stock and order products. Some outlets are using touch-enabled tables to display their product range.

Sunil Kumar Singh, a lead research from Technavio’s Hardware and Semiconductor research team says, “Intel introduced a multi-touch intelligent digital signage concept for displaying customized ads in an outlet back in 2010, while Planar Systems has a number of innovative display technologies for retailers.”

According to Technavio analysis, retailers will rapidly adopt such concepts as they try to narrow the gap between their business model and that of e-commerce players. Demand for touchscreen displays has increased globally in the retail sector and will help drive the market in the coming years. It will also be easier for smartphone and tablet users to interact with the display system to make use of services, which could lead to an increase in store footfalls.

Browse Related Reports:

  • Global Touchscreen Market 2015-2019
  • Global Capacitive Touchscreen Market 2015-2019
  • Global Interactive Display Market 2015-2019

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