Big, bigger, market leader: digital signage software providers need a large installed base to keep their platform up to date. The invidis Software Ranking shows who has the most active licenses.
In the digital signage software industry, size matters: Developing and maintaining modern platforms require significant capital. Tech stacks evolve rapidly, pushing established digital signage CMS providers to regularly update or recreate their products. Typically, a complete overhaul is needed every 8 to 10 years, costing around 1.5 to 2 million euros.
Modern cloud-based solutions on AWS, Azure, and Google Cloud are cheaper, making it easier for new providers to enter the market. While not groundbreaking, these solutions suffice for standard deployments. Despite consolidation and exits, the market has maintained a four-digit number of participants for years.
However, it’s widely understood that software providers need at least 100,000 active licenses to stay viable. Market leader Stratacache boasts an installed base of over 2.5 million, although not all licenses operate under the SaaS model.
Note on the software ranking
The invidis Software Ranking 2024 exclusively counts active licenses. While the calculation proved to be more complex and could differ from previously published figures, it provides a realistic reflection of market developments.
The sales model challenge
Many ISVs struggle with direct sales in the long term. Indirect sales through partners and distribution are slow to scale, although they yield acceptable average license prices. Support, especially across different time zones and languages, is often financially unfeasible for smaller providers. An exception is Intuiface, which has established a successful direct sales model in the international digital signage industry.
Big players will prevail
The industry is undergoing consolidation, a process only briefly interrupted by the pandemic. We are once again seeing great interest and rising company valuations. By the end of the decade, we anticipate 5 to 10 major players dominating half of the market for large projects. In addition, however, there will still be hundreds of specialists and regional champions. The road towards one standard software is still a long one.
More on signage software in the yearbook
Software has become central to the digital signage ecosystem in recent years, which is why the invidis Yearbook 2024 focuses entirely on this topic. Download the yearbook for free to learn about AI in software, IT security, and the new platform economy.
Disruption and change
The global digital signage market will be undergoing its largest transformation yet in the next three to five years. Long-awaited consolidation will result in a few globally significant providers and dozens of specialists. In the long-tail business, hundreds of small providers will persist in their efforts and may even find temporary success. Sales will become more professionalized, and major tenders will only be won by leading providers – either ISVs or integrators with their own software – due to IT security and certification requirements.
