Reykjavik | Iceland is booming as a tourist destination – whether it’s the Northern Lights in winter, the midnight sun and stunning landscapes in summer, or the unique mix of active volcanoes and glaciers. A record number of visitors is expected in 2025, and KEF Airport is getting ready with a major terminal expansion and modernization. As part of this upgrade, the airport invested in state-of-the-art Flip Chip dvLED technology, achieving an impressively fast return on investment.
Icelanders are not many, with a population of barely 400.000, and almost everyone knows each other. Nonetheless, the country is setting new standards in more than one area of technology – geothermal energy, biotechnology, and, surprisingly to some, also digital signage. When it comes to airport-based DooH, the new LED installations at Keflavik International Airport (KEF) are a frontrunner.
The rapidly expanding airport on the outskirts of Reykjavik is being modernized at great expense. KEF Airport plans to invest one billion euros over the next few years to transform itself into a world-leading mid-sized airport. It has become a key hub for air travel between North America and Europe, with 30 percent of transferring flight passengers. This year, KEF expects more than 8 million passengers, including 2.3 million foreign visitors.
The first completed extension includes a new baggage claim area with an integrated walk-through travel retail store. This is where tourists first step onto Icelandic soil and wait for their luggage in a space designed in Nordic style.
It’s an ideal spot for Digital-out-of-Home – an engaged audience with a positive, holiday mindset open to information. KEF Airport’s operator, Isavia, installed sixteen top-quality 200” dvLED screens across four baggage belts. Additionally, two larger LED walls were placed on side panels of a wall. The Icelandic company Ofar and its Audio Video Solutions team led the installation.
Unlike many other airports, KEF decided against standard 16:9 LCD displays and in favor of Flip-Chip-based dvLEDs. The selection of this state-of-the-art LED technology and against traditional dvLEDs inspired other airports like Copenhagen Kastrup and one of the largest airports in the world. In recent months, all three airports selected the Flip-Chip LED solution from Sharp/NEC, a long-established airport digital signage expert – with Copenhagen even going for COB flip-chip instead of SMD.
Breakthrough for Flip Chip
The three projects at European airports are a sign of a rapidly changing market. Market researcher Futuresource expects Flip Chip LED to reach the tipping point in 2025. For the first time, sales of Flip-Chip LED will exceed those of traditional LED, which use wire bonds to connect the LED chip to the substrate – often a source of resistance and heat.
Even if they still dominate in terms of installed square meters, investments in Flip-Chip will surpass the older SMD technology this year for the first time. The significantly better image quality (especially black levels), higher resolution and lower power consumption make Flip-Chip superior. And in the long run, COB will clearly become the dominant technology choice for indoor DooH.
The tipping point for DooH in baggage claim areas at airports is particularly interesting. Passengers are typically much closer to the screens mounted above the baggage belts than to the ceiling-hung flight information displays (FIDS). Plus, they spend more time in the area. This creates an ideal setting for advertisers.
The new DooH installation in Iceland proves the point clearly – its network of 16+2 arrival screens has been fully booked throughout the year. Available DooH inventory was even optimized to cater the demand of advertisers. Isavia expects their LED Investments to pay off quickly and the ROI will likely drive further investment in KEF airport as well as other airports across Europe.
Investment in trusted relationships and brands
Another noteworthy trend is the increasing presence of established visual solutions brands in the LED market. More and more retailers, DooH media owners, and system integrators trust LED solutions from major digital signage brands. With experience from the early days of LED, both integrators and end-users are now applying lessons learned from managing and maintaining LED systems throughout their full lifecycle.
While no-name or self-imported LED solutions may seem cost-effective at first (in terms of CAPEX), the long-term advantages of sourcing from established global digital signage brands become clear over years of operation – especially as the number of LED touchpoints grows worldwide. Choosing an LED supplier is not just a purchasing decision; it’s an investment in a reliable, long-term partnership.
A global service and warranty network is essential for business-critical LED screens – something that many integrators struggle with when using self-imported products or managing their own spare parts. Recent rankings of the largest LED manufacturers highlight this shift, as well-known and established visual solution brands are increasingly replacing lesser-known Chinese manufacturers.
In addition, technological innovations such as remote device management, IoT integration, and AI features are becoming more software-driven. These technologies benefit greatly from the scale and stability of large, well-established visual solution ecosystems.
In times of rising global political uncertainties, trusted suppliers are even more important – especially in security-relevant industries like airports. In contrast to the commoditized display business, LED modules of different manufactures are not interchangeable. This makes it essential to choose suppliers who are financially stable, reliable, and committed to long-term product availability.
