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Demand for Digital Signage Display Market

Growing demand from the indoor-venue and hospitality markets has emerged as some of the biggest opportunity for revenue growth for manufacturers of digital-signage and professional displays, according to iSuppli Corp.

The indoor-venue segment accounts for 26 percent of the total digital signage and professional market revenue. iSuppli forecasts revenue for the indoor venue segment will achieve a Compound Annual Growth Rate(CAGR) of 8 percent to reach $3.8 billion by 2010, up from $2.8 billion in 2006.

The unit growth rate for the indoor-venue market looks even more positive, rising to 1.7 million units in 2010, up from 683,000 units in 2006, representing a CAGR of 26 percent.

In the hospitality segment, hoteliers are transitioning to using Flat Panel Displays (FPDs) in guest rooms and are providing targeted information and entertainment content for guests.

“How guests perceive their rooms can be more powerful than any other factors in terms of the way they view a hotel’s overall value,” said Sanju Khatri, principal analyst for projection and large-screen displays at iSuppli Corp. “Delivering a variety of in-room entertainment options may promote greater guest satisfaction, leading to repeat business.”

The lodging/restaurant segment of the hospitality market is expected to reach $1.1 billion in revenue by 2010, up from $1 billion in 2006. While revenue will remain relatively flat, unit shipments will more than double during this period due to a decline in prices and the perceived need by hoteliers to differentiate their brands.

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