Johannesburg | Hardware costs in digital signage are rising sharply, driven by unprecedented memory price increases and global supply pressures - forcing the industry to rethink its technology strategies. Yet amid this disruption, AI-driven demand and new competitive dynamics are creating one of the most transformative - and exciting - periods the market has ever seen. An op-ed by Florian Rotberg.
Op-Ed: The Most Exciting Worst Times Ever to Procure Hardware
Long-haul flights have become my preferred time for reflection. Somewhere between continents, disconnected from the constant flow of emails and meetings, patterns begin to emerge. Over the past four weeks – from DSS Europe in Munich to Infocomm in Las Vegas, and through dozens of one-to-one conversations across EMEA and the Americas – the same question kept resurfacing: Where is the digital signage industry really heading?
On the surface, the mood is surprisingly upbeat. There is energy, there is momentum, and above all, there is opportunity. The reshuffling of market dynamics following the decline of Stratacache has opened doors. At the same time, AI is injecting new relevance and urgency into digital signage deployments. Many industry players speak with optimism – sometimes cautiously, sometimes convincingly. Yet beneath this optimism lies a very different reality.
A Perfect Storm for Hardware
The structural fundamentals are anything but reassuring. Geopolitical tensions remain high, tariff regimes remain unpredictable, and global logistics costs continue to weigh heavily on supply chains. But the most significant – and arguably most disruptive – factor facing the industry today is the rapid escalation in hardware costs.
Memory pricing has become the epicenter of this shift. Within just one year, memory prices have surged dramatically – by as much as fivefold in some cases. Media players, long considered a commodity component in digital signage deployments, are suddenly turning into premium assets.
Major manufacturers are already signaling that this is not a temporary anomaly. Lenovo recently suggested that memory prices may never return to pre-crisis levels, pointing instead to a “new normal” expected to solidify by the end of the decade. Meanwhile, leading PC manufacturers are locking in long-term supply agreements for DDR5 memory – securing inventory for up to five years at today’s elevated prices.
At the same time, demand is softening. Lenovo has reportedly reduced motherboard orders for 2026 production by as much as 60%, a clear indicator that the market is bracing for prolonged pressure.
Rethinking Digital Signage Infrastructure
For the digital signage sector, rising hardware costs are forcing a fundamental rethink of architecture and deployment strategies. One immediate consequence is a pivot toward SoC solutions eliminating the need for separate media players. While they may not match the performance of dedicated PCs, they are increasingly “good enough” for many use cases.
Similarly, there is renewed interest in older, more affordable technologies such as DDR4 memory, as well as in less-demanding operating systems. Vendors are also exploring highly optimized, signage-specific appliances designed to minimize compute requirements while maintaining reliability.
Another emerging approach is the consolidation of computing power. Instead of distributing workloads across multiple media players, companies such as Samsung and Intel are promoting SoC edge server architectures – centralizing compute-intensive tasks, including AI processing, at the site level.
At the same time, many operators are simply extending the lifecycle of existing hardware. Replacement cycles that once spanned five to seven years are quietly stretching longer, as businesses wait for price stabilization that may not arrive anytime soon.
Displays: A Temporary Safe Haven
Interestingly, the surge in hardware costs has not yet fully impacted display pricing. Intense competition – particularly driven by global market shifts from China and North America toward Europe – has so far contained price increases. However, this stability may prove temporary.
While memory accounts for only a small portion of the bill of materials (BOM) in standard signage displays, its share rises significantly – up to 10–15% – in interactive touchscreens. As demand for such solutions grows, the cost pressure will inevitably surface in pricing structures.
AI: Opportunity Meets Constraint
At the same time, the industry faces a paradox. AI is rapidly transforming digital signage into a far more dynamic and valuable medium. From real-time personalization to advanced analytics and immersive experiences, AI is expanding the role of signage within the broader digital ecosystem. But these capabilities come at a cost – literally.
AI workloads demand significantly greater computing power, precisely at a time when hardware is becoming more expensive and less accessible. This tension is accelerating another long-standing trend: the shift toward cloud-based architectures.
Cloud computing allows organizations to offload processing from local hardware, reducing dependence on expensive on-site infrastructure. While on-premise solutions will remain relevant in certain verticals the broader trajectory is clear.
A Structural Shift, Not a Cycle
For more than two decades, the digital signage industry has benefited from a reliable trend: hardware becoming better, faster, and cheaper with each generation. This assumption has shaped business models, deployment strategies, and even innovation cycles. That era may be over – at least for the foreseeable future.
Rising hardware costs are not just a temporary disruption; they signal a structural shift that will require adaptation across the value chain. Vendors must innovate beyond traditional hardware-centric models. Integrators must rethink system architectures. Operators must become more selective, more strategic, and more agile in their investments.
The Most Exciting Worst Time
Paradoxically, what feels like the worst time to procure hardware may also be one of the most exciting periods the industry has ever seen.
Demand for digital signage is growing rapidly, driven by the increasing importance of customer experience in enterprise environments. Companies like Salesforce, Walmart, and Amazon are setting new benchmarks for digital engagement – and physical spaces are no exception.
This creates massive opportunities – but also invites new competition. IT integrators, cloud providers, and software-driven players are entering the space, challenging traditional incumbents to evolve.
Digital signage is no longer just about screens and media players. It is becoming a critical layer in the broader digital infrastructure of enterprises.
Reinvent or Fall Behind
The industry is at an inflection point. Rising hardware costs, AI-driven demand, and shifting competitive dynamics are converging to reshape the market. Success will depend less on scale and more on adaptability, innovation, and the ability to integrate into complex IT ecosystems.
Yes, procuring hardware today may feel like navigating a perfect storm. But for those willing to rethink, reinvent, and embrace new architectures, this moment also holds unprecedented potential.
Exciting times for digital signage.
