Screens are everywhere; they’re part of how we work, communicate and do business. As display hardware becomes cheaper and awareness increases, adoption continues to rise across retail, commercial and operational settings.
But the real challenge lies in the reality that many organisations do not know how to use their screens effectively. Displays are installed but often left on standby or running outdated, static, or wrongly formatted content. Businesses have the infrastructure, but they are not getting value from it. There is an opportunity to help businesses unlock more value from the screens they already have, and to better deploy more screens across their organisations with the right tools and a smarter approach to content.
Bridging the delivery gap
In many organisations, digital signage networks are operated from USB sticks, legacy media players or bundled apps that come with smart TVs. The result? Blank or outdated displays, misaligned content and frequent error messages.
The gap between what digital signage could do and what it usually delivers is wide. That gap has fuelled the proliferation of specialist digital signage software providers, with Invidis reporting several thousand providers active in the market. Many are focused on solving parts of the problem, but few offer the breadth of features, platform integrations, security standards and support services needed to serve global enterprises effectively.
“People are adopting digital signage software because they see the need to remotely manage and optimise a massively distributed, heterogeneous network of digital signage hardware types.”
Digital signage software vendor
The market opportunity for digital signage software is significant, valued at over £1 billion globally by Avixa, presenting a substantial opening for providers with a differentiated offer to gain share.
The scale of the opportunity
Digital signage is experiencing strong global growth. CIL’s analysis of the vended market across the UK and US mid-market and enterprise segments estimates 12% growth, with commercial environments and deskless worker settings expected to grow ahead of the wider market.
Falling screen costs and cloud infrastructure have removed major barriers to adoption. Businesses are now looking to digital signage not just for digital out-of-home advertising and enhancing the customer experience, but as a core part of internal communications and operational efficiency. The key driver in customer-facing environments is improving the customer experience, while in employee-facing settings like factories, warehouses and hospitals, it’s about boosting employee engagement and productivity.
What defines a standout platform?
Many organisations are first-time adopters of digital signage software or sophisticated content management tools, which makes customer education essential throughout the sales process. Requirements for software also vary widely. SMBs often favour out-of-the-box functionality, while enterprises typically demand customised solutions with deeper security, scalability and long-term support. As a result, enterprise buyers tend to prioritise platforms based on product depth, flexibility and service quality, whereas SMBs are usually more price-sensitive. Providers that understand these nuances and can support both use cases are well positioned to capture growth.
In a fragmented market, leading digital signage software platforms share some clear traits:
- High quality software, with a broad range of application integrations and investment in product innovation (e.g. AI capabilities)
- Strong sales and marketing capabilities, with effective lead generation activities (e.g. digital marketing, channel partnerships) and sales processes
- Enterprise support functions to ensure successful deployment and utilisation once implemented
What matters most is whether the platform is fit for real-world conditions: disjointed hardware estates, dispersed user bases and a constantly shifting content brief.
“You can differentiate through capability, but it’s not enough to demonstrate superior functionality. You must connect that functionality to what’s required to deliver the outcome the customer wants. Another differentiator is service and reach, especially for very large deployments.”
Digital signage software vendor
For investors, key factors to consider include a strong customer portfolio, recurring revenues and an experienced management team. The market remains highly fragmented, creating a significant opportunity for consolidation. Invidis forecasts that by the end of the decade, five to ten major providers will dominate half of the market for large-scale projects.
Investor watchouts
For all its promise, digital signage software is not a straightforward market to navigate. Buyers often do not fully understand the breadth of potential use cases or the value it can add across their business, requiring education from software vendors. Procurement often spans multiple functions, from IT to marketing, comms to HR. And for internal communications use cases, the ROI can be difficult to quantify.
The market is competitive. Screen manufacturers are bundling basic CMS tools with their screens. There is the possibility that large technology vendors such as Microsoft seek to use their position within enterprise workflows to expand their suites into signage, albeit this has not been the case in practice. Switching costs can be low for SMBs, making it harder for providers to defend their position than in the enterprise segment.
For investors, the fundamentals of the business still matter most. Is the platform tailored to best serve its specific use cases or is it stretching to serve everyone? Can the platform keep pace with evolving technology developments and customer needs? Is the go-to-market (GTM) model focused, resourced and reaching the right audience?
“Most companies have similar technology stacks, and features and benefits are very similar, so success often comes down to brand messaging and alignment. Companies that fail to invest in sales and marketing will likely be left behind.”
Software vendor
Winning in this market means picking a platform that has a flexible offering, clear routes to market, and a broad potential customer base.
Why now?
Digital signage is everywhere, and adoption continues to rise, but many organisations are not making the most of the screens they already have. Displays are often left on standby, running outdated content or managed in an ad hoc way. Businesses want those screens to work harder, to inform, engage and adapt in real time, but they’re not always set up to deliver
The digital signage software market remains highly fragmented. There are thousands of small, specialist vendors, most operating below scale, with no dominant global provider. That presents a clear opportunity: back a platform with the right foundations, professionalise its commercial approach and grow through product enhancement and smart consolidation.
The upsides are significant. There is huge potential to land and expand within existing accounts, capture untapped whitespace and bring much-needed scale to a market that remains underdeveloped. The businesses that move now have a genuine chance to lead.
CIL continues to monitor trends and activity in the digital signage space. If you would like to discuss key developments or strategic opportunities, please get in touch.
Sign up to our mailing list to receive our latest insights.