IMS Research estimates that hardware supporting digital signage such as media players, PCs, displays and LED Video arrays generated nearly $5.5 billion in revenue during 2011. That’s huge as it means the hardware-only portion (not even counting the software portion of the DS market) is already larger than the entire education AV market!

The new IMS Research study, “The World Market for Digital Signage — 2012 Edition,” also forecasts continued growth for this equipment at a combined compound annual growth rate (CAGR) of 8.5 percent through 2016.

Displays continue to drive the majority of shipments and revenues for the industry when cinema projectors are excluded. IMS Research estimates that during 2011, LCD and plasma displays shipping worldwide for digital signage generated revenues of nearly $2.7 billion, representing 22.5 percent growth over 2010. Contributing to this strong growth was an increase in shipments for screens smaller than 30 inches, replacement of CCFL with LED backlit and thin bezel displays, as well as an increased demand for touchscreens. LED Video display (or module) revenue grew due to increased investment in sporting venues and outdoor digital advertising. Media players and PCs contributed nearly $1 billion.