Palm Springs | You can’t ignore AI, neither in IT nor in digital signage. No technology promises so much disruption, but the search for digital signage-specific use cases beyond GenAI still leaves many questions unanswered. At the invitation of invidis, 13 leading digital signage companies from North America met at the invite-only invidis Executive Lounge 2024.
The Coachella Valley in California with the desert towns of Palm Springs and Indian Wells is known for its beautiful golf courses, a tennis tournament and a lively queer scene. In summer temperatures, leading digital signage market participants met last weekend to exchange experiences at the end of the year. The invidis executive lounge is an annual invite-only meeting of digital signage business leaders to focus on global industry challenges in Europe, North America and starting 2025 in the Middle East.
The year 2024 was turbulent and the prospects with Donald Trump’s second presidency remain unpredictable. Over two days, America’s thought leaders discussed possible punitive tariffs, the effects of AI on digital signage, the status of M&A in North America, the boom in demand for retail media and the future roles of managed services. A broad range of topics for industry leaders with sometimes diverging views.
AI in digital signage
There was general consent that clear digital signage AI use cases have not yet emerged. The exception being GenAI, which has already revolutionized content creation just two years after launch. Nowhere is the AI revolution better measurable and monetizable than in agencies and creative departments.
Beyond generative AI, new use cases are emerging in network management, cyber security and the operation of digital signage. But to date AI tools are only indirectly used in productive applications.
But a lot is expected for the upcoming ISE where well-known manufacturers will present hardware solutions with integrated NPUs. The neural processor units (NPU) are considerably more efficient than Nvidia GPUs, as used by AWS, Google, Meta and Microsoft. In 2024 alone, the hyperscalers invested more than 120 billion USD in Nvidia GPUs. An investment that is desperately looking for viable business models.
State of the industry 2024 and outlook 2025
Many postponed projects restricted digital signage revenues of North American market players in 2024. The market provides a wide range in revenue developments – from very strong growth in the high double-digit percentage range, especially for innovative platform operators, to many providers with no growth or small losses.
The year 2024, which is now coming to an end, is shaping up to be another difficult year for digital signage in North America – similar to Europe. The overall market will probably only grow in the low to mid single-digit percentage range. The second half of the year in particular was more difficult than expected, also due to the unpredictable election outcome in November.
For 2025, the industry expects a noticeable increase in demand for digital signage again, provided that the threatened punitive tariffs do not have a negative impact on the import of digital signage hardware. The sword of Damocles of punitive tariffs is hanging over the market on products made in China and made in Mexico where the vast majority of screens, LED and players are manufactured.
The future of signage – Managed Services
Managed services are still relatively new in the digital signage market, but the potential is huge. The American managed service provider Sagenet is one of the few established providers in the market that already operates and maintains tens of thousands of displays on behalf of end customers. Availability of business-critical touchpoints is the most important driver for managed services, but so is cost reduction through economies of scale in the NOC and onsite service.
According to participants, sustainability has so far played no relevance in North America. Hardly any of the participants know of networks in which displays are switched off at night. Europe is leading the way here, also because energy costs in Europe are considerably higher.
The potential for managed services is there – all participants agreed on this. But it will still take some time before they are widely accepted in the market. And this despite lucrative business models. Managed service customers can certainly pay more for managed services on a monthly basis than for CMS subscriptions.
The calm before the storm in M&A?
M&A transactions continued to be rare in North America in the year that is coming to an end. Similar to 2023, investors and digital signage companies are still waiting for the big wave of takeovers.
The first half of the year is also expected to remain quiet, while the deal flow should increase again in mid-2025. The economic policy uncertainties in the USA are preventing many new transactions.
Retail Media Networks
The boom in demand for retail media networks is similar to that in Europe. Hardly any supermarket operator and many other specialty retailers are not interested in advertising displays at the point of sale. It remains to be seen to what extent the stormy interest in retail media networks will also convert into sales in 2025.
invidis will be back in 2025 invidis will be back in North America with an extended digital signage conference at Infocomm in cooperation with Avixa. Also another invidis executive lounge is planned for fall 2025 as the feedback from participants was unanimously positive. The mix of open industry discussions with peers, networking, outdoor activities and culture is a winning mix.