[THE INVESTOR] The growing global digital signage market is becoming a new battlefield for Korean tech giants Samsung Electronics and LG Electronics, each vying to gain the upper hand.

The shipment volume of digital signage displays in the global market is forecast to grow from 4.4 million in 2015 to 7.7 million units by the year of 2020, according to a recent report by market research firm IHS.

The signage market will grow 8.3 percent per year on average, the market researcher forecast. 

“Public display growth in the first quarter of 2016 was fueled by higher unit shipments of 32-inch and 49-inch displays and a rapid shift toward larger sizes in the education and corporate market,” IHS said.

Spearheading the market growth were Samsung and LG.

Samsung, which rules the world’s digital signage sector with a 28.1 market share as of 2015, has been ramping up its investment in the display business. It acquired YESCO Electronics, a US light-emitting diode manufacturer, in March, aiming to expand the gap between runner-ups including LG.

LG, which took up around 10.3 percent of market share, the third largest, in the global signage sector, has recently put focus on rolling out signage products including organic light-emitting diodes, which boast better picture quality and energy efficiency than liquid crystal display-based products.

“With the tumbling TV market due to a prolonged global economic stagnation, the relatively new signage business has been emerging as a new revenue source,” a market watcher said.

The types of digital signage include public displays, public display TVs and consumer TVs, used in public spaces or for commercial purpose.

The most popular category is 60-inch to 69-inch displays, while the fastest growing is 70-inch to 79-inch category in the education and corporate collaboration verticals, the company said.

By Kim Young-won (wone0102@heraldcrop.com)