The Global Market for Digital Cinema Projectors is Projected to Inch Up to US$524 million by 2020

Digital Transformation Maturity Dampens Growth in the Global Digital Cinema Projectors Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Digital Cinema Projectors market. The global market for Digital Cinema Projectors is projected to inch up to US$524 million by 2020, restrained to a large extent by digital transformation maturity and the ensuing decline in market opportunities. 

Digitization of projection technology in cinemas which began at the turn of the millennium, is now reaching completion. Conventional film based or 35mm projectors are now fully replaced with digital projectors in most movie theaters worldwide. Few of the initial push factors that drove the digitization trend included low cost production and distribution of movies in digital format; convenience associated with digital movie distribution; better picture quality of digitally produced movies; need for improving in-theater movie experience; and technological advancements; among others. The increasing number of multiplexes worldwide as against standalone cinemas over the last decade also played an instrumental role in powering initial growth in the market. Operational efficiencies, enhanced flexibility, and content innovation also represented benefits of digital cinema that encouraged widespread adoption among exhibitors.

Currently however, with penetration of digital cinema nearing maturity, demand for digital projectors is declining especially in the developed markets. In North America and Europe, in addition to saturation of digital projection systems, the erosion in growth/market value is also triggered by factors such as plateauing number of cinema screens and the ensuing decline in opportunities for new equipment sales; convenience of online movie downloads and emerging variety in entertainment alternatives; and decline in cinema attendance, declining number of frequent moviegoers and overall sluggishness in the movie theater industry. Also, the high ratio of screens to low demand for movies and the resulting decline in ROI on digital investments is negatively impacting investments in digital conversions by small theaters.

In this largely mature market, recovery in demand is forecast to be witnessed during the period 2018 through 2020, supported by replacement demand, which is expected to kick in by the year 2018. The next replacement cycle will be led by the emergence of 3D technologies, use of high frame rates, and 4K and laser projection. Several theaters will need to upgrade to the new innovations in digital cinema to survive in the industry. Other factors which will help spur long-term growth in the market include establishment of new movie screens and multiplexes in developing countries; and innovative developments in projection technologies. The commercialization and expected popularity of laser projectors will help offset the waning demand in the market. Existing drawbacks in 3D projection technology using Xenon-based light source in digital projectors will drive interest in laser projectors in the coming years.

As stated by the new market research report on Digital Cinema Projectors, Asia-Pacific represents the largest market worldwide, led by thriving film industry in several Asian countries, growing disposable incomes, and increased spending on leisure and entertainment. Rise in movie viewership, and growing penetration of cinemas in rural areas provide hope for growth in the region in the foreseeable future.

Major players covered in the report include Barco N.V., NEC Display Solutions Ltd., Sony Electronics, Inc., Ushio and Christie Digital Systems USA, Inc. among others.

The research report titled “Digital Cinema Projectors: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for digital cinema projectors in US$ terms for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific, Middle East & Africa and Rest of World.

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