Global OOH to grow at $47,100.5 million in 2031
By Felicia Nwosu
The global Out-Of-Home (OOH) advertising market has been projected to to grow at $47,100.5 million in 2031, at a Calculated Annual Growth Rate (CAGR) of 4.6 percent. This is according to insights and analysis made available by Research and Markets, world’s largest market research store platform.
In the analysis, Research and Markets said that the sector was valued at nearly $26,426.0 million in 2021, having increased at a compound annual growth rate (CAGR) of 5.3% since 2016. The market was also expected to grow at a CAGR of 7.3% from 2021, as it pivoted to reach $37,602.5 million in 2026.
Following the outcome of its research, it indicated that the changes in growth in the periods under review were accelerated by rapid economic growth in emerging markets, rise of globalization, rise in transit advertising and rapid technology development.
On the other hand, it stated that several other factors that negatively affected growth in the historic period was increasing spend on alternative advertising mediums, COVID-19 pandemic and increase in internet penetration.
It noted further, “Going forward, rising urbanization, adoption of programmatic digital display advertisements, increase government spending on out-of-home advertising and growing digital out-of-home advertising will drive growth. Factors that could hinder the growth of the out-of-home advertising market in the future include volatile costs, skilled workforce shortages, rise in digitization and stringent regulations.
Dissecting the analysis on the basis of products and segments of the OOH market, it revealed some of the market growth drivers. The billboard market was the largest segment of the out-of-home advertising market segmented by type, accounting for 42.5% of the total in 2021. Going forward, the street furniture segment is expected to be the fastest growing segment in the out-of-home advertising market segmented by type, at a CAGR of 9.7% during 2021-2026.
Also, the static and digital segmented were listed among the market movers that helped the sector to record huge market growth three years ago. The static market was the largest segment of the out-of-home advertising market segmented by platform, accounting for 54.8% of the total in 2021. Going forward, the digital segment is expected to be the fastest growing segment in the out-of-home advertising market segmented by platform, at a CAGR of 11.6% during 2021-2026.
Meanwhile, irrespective of previous performance across the globe, future business outlook appears appealing with immense opportunities in the sector.
“Asia-Pacific was the largest region in the global out-of-home advertising market, accounting for 46.5% of the total in 2021. It was followed by North America, Western Europe, and then the other regions. Going forward, the fastest-growing regions in the out-of-home advertising market will be Eastern Europe and South America, where growth will be at CAGRs of 12.9% and 11.3% respectively. These will be followed by the Middle East, and Africa where the markets are expected to grow at CAGRs of 10.2% and 9.6% respectively, during 2021-2026.”
According to Research and Markets report, the sector is also affected with the fact that it operates a highly fragmented market with a large number of players. The top ten competitors in the market made up to 43.28% of the total market in 2021. JCDecaux Group was the largest competitor, followed by Clear Channel Outdoor Holdings, Inc, Lamar Advertising Company, OUTFRONT Media Inc, Focus Media Information Technology, Stroer SE & Co KGaA , Daktronics Inc, oOh!media Limited, APG SGA, and Exterion Media Group.
Future predictions also envisages that enormous opportunities in the out-of-home advertising market segmented by type will arise in the street furniture segment, which will gain $5,409.03 million of global annual sales by 2026.While that of segment by platform will arise in the digital segment, which will gain $8,694.22 million of global annual sales by 2026,then segmented by end-user industry will arise in the others segment, which will gain $5,010.21 million of global annual sales by 2026.The out-of-home advertising market size will gain the most in The USA at $2,545.95 million.
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