Digital Signage Industry Outlook in Latin America 2019
REPORT 2019 ECONOMIC PERFORMANCE AND OUTLOOK KEY ASPECTS OF DIGITAL SIGNAGE INDUSTRY IN CHARTS COMPANIES PERSPECTIVES BY REGION TOP 50 DIGITAL SIGNAGE 2019 RANKING SUCCESS STORIES OF THE COMPANIES OF THE TOP 50
All rights reserved. It is not allowed the total or partial reproduction of this work, nor its incorporation into a computer system, nor its transmission in any form or by any means (electronic, mechanical, photocopy, recording or others) without previous and written authorization of the owners of the copyright. Infringement of these rights may constitute an offense against intellectual property. Original title: TOP 50 empresas latinoamericanas de Digital Signage - Report 2019 1st edition: May 2019 Research and writing: Ana María Mejía Angel AVI Latinoamérica Editor: Richard Santa Editorial Direction: Duván Chaverra Proofreading and style correction: Craig Alan Cottrell Design and layout: Panamericana Formas e Impresos S.A Printed in Colombia by Panamericana Formas e Impresos S.A
Table of contents Top 50 Digital Signage Companies in Latin America: How is it done?..........................4 Introduction ..................................................................................................................6 Chapter 1: Key aspects of D.S. Industry in charts ........................................................8 Most popular D.S. Segments ...................................................................................8 Most Common Brands ...........................................................................................10 Types of D.S. Solutions ..........................................................................................11 D.S. Equipment Imports by region and companies ...............................................12 D.S. Equipment Imports by origin country ............................................................13 Chapter 2: The Entrepreneurs perspectives ...............................................................15 Mexico ...................................................................................................................16 Central America and The Caribbean......................................................................21 Andean Region.......................................................................................................24 Brazil........................................................................................................................29 Southern Cone........................................................................................................31 Chapter 3: Top 50 Digital Signage Companies 2019 .................................................34 Mexico....................................................................................................................35 Central America and The Caribbean .....................................................................36 Andean Region.......................................................................................................37 Brazil........................................................................................................................38 Southern Cone........................................................................................................39 Chapter 4: Stories of the first places in the Top 50 D.S. Latin American Companies 2019 ....................................................................................................40 Mexico: SSL Digital ................................................................................................42 Central America: MediaChannel.............................................................................44 Andean Region: Enmedio.......................................................................................46 Southern Cone: Convergencia Digital....................................................................48 Chapter 5: Economic Outlook for the Latin American Regions...................................50 Infographic: Exports and Trade Balance in Mexico and Central America 2018.....54 Mexico, Central America and The Caribbean........................................................56 Infographic: Exports and Trade Balance in South America 2018 ..........................63 Andean Region.......................................................................................................64 Brazil and Southern Cone.......................................................................................68 Index of references......................................................................................................74
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Top 50 Digital Signage Companies in Latin America: How is it done? AVI Latinoamérica presents, for the first time, a ranking with the list of companies in the region that manage digital signage networks, which have been included in the Top 50 Digital Signage Companies in Latin America. This ranking was born as an initiative that has also been successfully carried out by other international economic media, which, through information gathered about each company, include some of the most important companies in the region or countries to which they belong. It’s important to detail the methodology we used for this report. A complete compilation of information was made in order to consolidate a list of 50 of the most outstanding companies in Latin America, divided into five sub-regions (Mexico, Central America and the Caribbean, Andean Region, Brazil, and the Southern Cone).
For this, the nominations made by the manufacturers and distributors of many of the world’s most prestigious brands of Video and Digital Signage systems were taken into account, as well as a detailed monitoring by the team of AVI Latinoamérica journalists, relying on consultants and expert professionals with extensive knowledge of the industry. Subsequently, through a survey conducted online with each of these companies, they were asked about the number of digital signage displays they manage, along with complementary information that helps us understand how this segment of the region’s AV industry is behaving. With this information, we determined the hierarchy and ranked each of the 50 participant companies in the ranking, divided into 10 companies in Mexico, 10 in Central America, 10 in the Andean Region, 10 in Brazil, and 10 more in the Southern Cone. You can also nominate your company by writing to editorial@avilatinoamerica.com.
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METODOLOGY 1
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Mexico 10 IDENTIFICATION Central America 10 AND Andean Region 10 APPLICATION Brazil 10 COMPANIES OF THE COMPANIES Southern Cone 10
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COMPILATION OF INFORMATION FROM COMPANIES
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RANKING OF THE COMPANIES
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RANKING AND / OR LOCATION OF BUSINESS INFORMATION ACCORDING TO THE ABOVE VARIABLES
Manufacturers Resellers Experts Associations
Number of managed screens in 2018
100%
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Introduction The advance of technologies and innovations for the Latin American AV industry continues without stopping. Of course, out of this the digital signage business is one of the most benefited, allowing for the creation of solutions with virtual and augmented reality, which will become one of the most popular trends in 2019, along with the Internet of Things (IoT), sensory experiences with aromas, and content interaction. However, this industry, like many others, faces obstacles to its growth, counting among them the economic circumstances of countries, because D.S. is an “equipment purchase-intensive” business, as Sebastián Obregón, CEO of the Colombian D.S. company Enmedio, expresses, for which the devaluation suffered by countries such as Argentina, Colombia and Venezuela slow down its growth. However, as will be seen in this report, digital signage
entrepreneurs can overcome this and, furthermore, be successful in their business, even creating some of the largest projects in the region. Regarding the global and regional economy, 2019 will be a year of economic uncertainties, mainly due to the commercial tensions between the United States and China, which caused the UN Economic Commission for Latin America and the Caribbean (ECLAC) to review the Latin American GDP growth prospects for 2018 at 1.2%, projecting a growth of only 1.7% in 2019. This comes to add to the uncertainty surrounding the implementation of economic policies after the 2018 election season in many Latin American countries, which “could discourage investment in the future and undermine the region’s growth prospects”, as said by the International Monetary Fund.
TARGET AUDIENCES
• D.S. industry business people. • D.S. equipment manufacturers and distributors. • Market analysts and researchers. • Government and financial institutions. • Investors. • End users.
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However, Latin American trade, despite the difficult moment for the Argentine and Venezuelan economies, which have suffered contractions of -2.6% and -45%, respectively, has continued its growth in 2018, as reported by the World Trade Organization, with exports to September of that year growing 1.1%, and imports with increases of 5.5% in South America. The Top 50 Latin American Digital Signage Companies – Industry Report 2019 analyzes how this economic prospect would impact the industry country by country, from the perspective of entrepreneurs that were part of the Top 50 of Latin American D.S. Companies ranking, made by AVI Latinoamérica.
Included in this report is key information regarding the industry, such as figures of imports made by companies in each country, the most-used brands of equipment and components in the region, the segments with the highest investment in Digital Signage projects, in addition to the 2018 sales figures of many of the D.S. companies that appeared in the 2019 ranking, along with their detailed contact information. This report will provide readers with a complete overview of this region’s D.S. industry, with the stories of their work trajectory, successful projects, and their comments and recommendations on trends and investment opportunities, as told by the business people interviewed for this document.
MAIN SEGMENTS OF DIGITAL SIGNAGE IN AMERICA LATINA 7.0% 7.5%
15.6%
12.1% 21.6%
36.2%
AIRPORTS AND TRANSPORTATION BANKS AND CORPORATE COMMERCE AND RETAIL RESTAURANTS AND HOTELS EDUCATION AND HOSPITALS OUTDOOR AND OTHER APPLICATIONS
Source: Information supplied by interviewed Digital Signage entrepreneurs in Latin America.
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CHAPTER 4
THE FIRST OF THE TOP 5O DIGITAL SIGNAGE LATIN AMERICAN COMPANIES 2019
For the Digital Signage Latin American companies, being in the first place of each region in this Top 50 is an important recognition for their constant effort and dedication. That’s why we invited them to share their experiences in the industry and their comments on new trends and interests of potential customers, for each of the Latin American regions, along with their success stories.
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