Sales of large-format displays (LFDs) in Western Europe (WE) during 2020 were significantly affected by the pandemic and there have been little signs of recovery in early Q1 2021, according to the latest data published by Context.
Declining sales reflected the impact of lockdown measures as LFDs are heavily used in public settings. On the positive side, sales of interactive displays remained relatively stable and have begun to grow in the last few months.
In early Q1 2021, increased demand for cheaper LFDs coupled with reduced average selling prices (ASPs) helped to drive sales growth at the cost of revenues: overall sales declined by −1% year-on-year while revenues fell by more than −6%.
Sales of displays whose ASPs fell noticeably – those with 75″ and 65″ screens – grew in early Q1 but, in the meantime, those of more mainstream models with 55″ screens continued to fall.
Lockdown put brakes on an LFD market that was thriving in 2019; however, the last twelve months have also shown that collaboration is vital to deliver results during a pandemic, notes Context. This has resulted in sales of interactives screens quickly returning to pre-pandemic levels once companies established new ways of working.
By Q4, these models were in higher demand and the trend has continued into early Q1 with +37% year-on-year growth in volume sales and +12% growth in revenues.
“It appears the pandemic has accelerated modernising and digitalisation in education as well as business; classrooms across Europe are being equipped with collaboration tools as schools and universities develop creative learning approaches for remote- and hybrid-learning environments,” says Dominika Koncewicz, senior analyst at Context.
“The challenges these ways of working pose for both teachers and students require new hardware and software. Despite economic slowdowns and shrinking government budgets, many countries have realised that investment in public education is now more important than ever.”
Sales of touchscreen displays designed for collaboration and classroom use more than doubled in Italy and Spain during early Q1 2021. Distributors in the UK, Germany and France saw less spectacular – but still good – increases (10- 15%). Price drops again played an important role in spurring demand, with significant reductions in the prices of many popular interactive displays – in some cases, models cost as much as −20% less than in 2019.
“The outlook for the industry is positive, despite the difficult environment which means the pace of recovery may remain slow,” adds Koncewicz. “There are opportunities for the LFD industry as lockdowns gradually ease, societies begin to reopen, and the world finds out what the new normal will be.
“Digital signage will definitely be an effective tool for many restaurants, shops and large venues facing challenges such as safe and efficient communication and indoor traffic management. LFDs and interactive screens are likely to become integral parts of public spaces: necessities rather than novelties. The sector therefore has a good chance of making a full recovery – especially if current opportunities to innovate and contribute are fully realised.”