Market Research Report
In-Taxi Digital Signage Market - Growth, Trends, and Forecast (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||925244|
|Published||Content info||82 Pages
Delivery time: 2-3 business days
|In-Taxi Digital Signage Market - Growth, Trends, and Forecast (2020 - 2025)|
|Published: February 1, 2020||Content info: 82 Pages||
The In-Taxi Digital Signage Market is expected to register a CAGR of 3.62%.
The increasing advertising spending across the world and a growing number of taxis on the road are driving the taxi signage market. Advertising companies find advertising through LCD screens in a taxi as an efficient way of promoting their clients and engaging passengers throughout their ride by providing entertainment.
Taxi advertising is one of the most immediately recognizable kinds of outdoor advertising. Taxi ads are used by advertisers to make a huge impact on riders, other drivers, and even pedestrians. Taxi top ads, partial or full wrapped taxi ads, taxi trunk ads, or in-cab ads are some of the options available for the advertisers.
Additionally, taxi advertising is a constantly moving system, allowing the potential customers to view advertisements. Taxi advertising also lets companies reach out to customers rather than them reaching out to companies. They bring ads directly to riders. Taxi advertising is the perfect medium for brands to express their messaging in a fun, creative, and mobile way that allows them to make a huge impact on many people.
Growing Adoption of Entertainment Devices in Luxury Taxis
Currently, local and foreign tourists in both developed and developing nations are preferring luxury vehicles just for the experience, as owning them may not be feasible for most of them.
Several taxi service providers across the world have started offering luxury vehicles in their fleet, and competitive pricing is providing opportunities for these vehicles to be picked up by tourists.
Also, local taxi service providers and individuals who own exotic and premium cars are putting them up for hire for tourists. This trend is prominent in the United States and Western Europe. Tesla Model X, Audi, and BMW are some popular brands that are on offer.
In the United Arab Emirates, particularly Dubai, being a very popular tourist destination, the demand for luxury taxis have been increasing at a significant rate. Other lavish destinations in Western Europe, Macao, and Hong Kong, among others, are also expected to show considerable growth rate.
However, the market has been turbulent in this segment with few companies shifting their entire fleet toward budget offerings, due to higher demand from that segment. Additionally, the high cost of insurance and maintenance of these vehicles is also expected to hinder the market growth.
Increasing Digital OOH Advertising Spending Driving the Demand for In-Taxi Digital Signage Market
In 2018, the global advertising industry was valued at USD 543.73 billion, and by the end of 2019, it is expected to surpass USD 560 billion. North America had the largest market share, followed by Asia-Pacific.
Over the past few years, the out-of-home (OOH) advertising industry has created several opportunities for advertising agencies. Unlike other channels of advertising, OOH has the potential to reach active consumers as compared to traditional ways of advertising, such as Billboards.
With the increasing traffic and people spending more time outside home, out-of-home advertising is growing at a faster pace.
Although there are several OOH advertising methods, digital OOH advertising has gained a good pace over the past few years. DOOH includes digital screens and kiosks in buildings, airports, and shopping malls.
It is expected that, by the end of 2022, the digital OOH adverting sector may surpass the conventional OOH sector.
Studies by several research organizations across the world indicated that advertising through taxis creates more impact than a static billboard.
China and the United States dominate the global taxi signage market. With several hardware manufacturers in the country, the United States ranks first, followed by China.
Developing countries, such as India, Brazil, Thailand, Vietnam, etc., have also started installing LCD screens in upper-economical and luxury taxis. Earlier, the advertising companies in these countries depended on taxi wraps and roof-top screens.
As a result, the advertisements may remain active 21 times per shift and will be seen by around 30 people. Considering the number of shifts per day and the number of cabs in New York, a single advertisement could be seen approximately 1.2 million times per day.
Several such developments have taken place over the past five years. All these factors have collectively contributed to the growth of the taxi signage market.
There are several local and international companies that supply LCD display screens (tablets) for taxis. Samsung (Knox Customization), Apple, Verifone, Swipe Technologies, and Touchmedia are the significant players operating in this market.
Samsung through its Knox customization division developed software in its own tablets (LCD screens) for taxi service providers. The China-based TouchMedia has also provided software and hardware solutions for more than 50,000 taxis across seven major cities in China. These two companies lead the software segment of the market studied, along with 42 Gears Mobility Systems and Bona Phandle Media.
In the market studied, several startups are emerging as software providers and hardware suppliers for taxi service providers. Major emerging organizations include Cabby Tabby Technologies and Swipe Technologies.