Energy Efficiency and Cost Savings: The Benefits of LED Digital Signage

May 28, 2024

In today's world, businesses are always looking for ways to cut costs and be more energy efficient. One technology that offers both of these benefits is LED digital signage. LED stands for "light emitting diode" and refers to bright, energy-efficient lights that are increasingly being used in digital signage displays. 

Let's take a closer look at how LED digital signage can help your business save money and reduce its environmental footprint.

What is LED Digital Signage?

Digital signage refers to electronic displays that show information, advertising, and other messages. In the past, digital signage primarily used LCD (liquid crystal display) panels or projection systems. However, in recent years, LED has emerged as the leading technology for digital signage due to its superior brightness, efficiency, and durability.

Digital LED signage uses arrays of small, bright LED lights to display text, images, and video. The LEDs are typically arranged in a grid pattern, with red, green, and blue LEDs combined to create the full-color spectrum. By controlling which LEDs are illuminated, any color or image can 

be displayed on the LED digital signage display.

Some key advantages of digital signage LED technology include:

  • Very high brightness, even in direct sunlight
  • Excellent energy efficiency
  • Long lifespan (100,000+ hours)
  • Slim, lightweight displays
  • Ability to create seamless video walls

Because of these benefits, you increasingly see LED being used for all types of digital signage applications - from storefront window displays, to menu boards at restaurants, to massive video walls at airports and stadiums. LED is often the technology of choice in any place where bright, impactful digital signage is needed.

led digital sign with shopping inscription

Energy Efficiency of LED Digital Signage

One of the biggest advantages of LED digital signage is its excellent energy efficiency compared to other display technologies. LED lights are inherently very efficient at converting electricity into light. A typical LED is capable of turning 70% of the electricity it uses into light, whereas an incandescent bulb only converts about 10-20% into light, with the rest wasted as heat.

This makes a huge difference when you're talking about a large digital signage display that may use hundreds or even thousands of lights. Digital LED signage displays can produce the same amount of light as other technologies while using a fraction of the electricity.

For example, a 50-inch LED digital signage display may consume around 200 watts of power, compared to 350-500 watts for a similarly sized LCD display. Multiply that power savings across multiple displays running many hours per day, and it really adds up in terms of reducing your electricity bills and environmental impact.

Additionally, LED displays produce very little heat compared to other technologies. This means you don't have to use as much energy to cool the display and the surrounding area. In an indoor retail environment, for example, the reduced heat output of an digital signage LED display means your store's AC won't have to work as hard, saving even more energy.

Cost Savings of LED Digital Signage

The energy efficiency of LED digital signage translates directly into cost savings for your business. Electricity costs are a major expense for any company, so anything you can do to reduce power consumption will improve your bottom line.

As mentioned above, digital LED signage can cut the energy usage of your displays by 30-50% compared to LCD. This means ongoing savings month after month, year after year, in terms of lower electricity bills. For a business with multiple digital signage displays, this could add up to thousands of dollars per year in reduced energy costs.

But the savings go beyond just electricity. LED digital signage displays also boast an exceptionally long lifespan, meaning you won't have to replace them as often. A well-made LED display can last over 100,000 hours before its brightness starts to significantly diminish if a display is on for 12 hours per day, which translates to over 22 years of usable life!

In comparison, LCD displays and projectors typically last 30,000-50,000 hours before needing to be replaced. This longer replacement cycle for LED displays saves money on new equipment costs and the labor required to install new units.

LED digital signage displays are also generally very durable and low-maintenance. The solid-state nature of LEDs makes them resistant to impacts, vibrations, and temperature swings that can cause other displays to fail prematurely. You're less likely to incur costs for repairs or troubleshooting with digital signage LED displays.

When you add up all these factors - reduced energy costs, longer lifespans, and minimal maintenance - the ownership cost of LED digital signage is extremely attractive. You get the benefits of dynamic digital messaging with a significantly lower long-term cost compared to other display technologies. It's a win-win.

Choosing LED Digital Signage

If you're considering making the switch to LED digital signage or buying it for the first time, there are a few key specs and features to look for to ensure you're getting an efficient, high-quality product:

LED Type

Make sure the display uses high-quality LEDs from a reputable manufacturer like Cree, Nichia, or Epistar. Avoid no-name LEDs.

Pixel Pitch

This is the distance between pixels, measured in millimeters. The tighter the pixel pitch, the higher the resolution. For close-up viewing, look for a pitch under 2mm. For displays viewed at a distance, a pitch of 4-10mm may be sufficient.

Maximum Brightness

Check the max brightness, which is measured in nits. For indoor use, 1000-1500 nits is usually plenty. For window displays that get direct sun, you may need 3000-5000 nits. The higher the brightness, the more power the display will use.

Refresh Rate

This is how fast the display can change in Hz. Faster is better for displaying video. 3000+ Hz is ideal to avoid flickering.

Viewing Angle

This is the maximum angle where the display is still viewable. LEDs typically have very wide 160°+ viewing angles.


If using the LED digital signage outdoors, make sure it has a sufficient IP rating to protect against dust and moisture. IP65 or higher is recommended.

Energy Rating

To maximize efficiency, see if the LED display is EnergyStar or equivalent rated. This means it meets strict energy usage guidelines.

By checking these specs, you can ensure your new LED digital signage will deliver the efficiency, performance, and cost savings you expect. It's also wise to get a demo of the specific product you're considering and see it in person before committing.

led sign saying open

The Sustainable Choice

Ultimately, choosing LED digital signage is not only a smart financial decision for your business, it's also an environmentally responsible one. By slashing the energy usage of your digital signage, you're reducing your carbon footprint and helping combat emissions associated with electricity generation. You're getting all the benefits of impactful digital messaging while minimizing your environmental impact.

As consumers increasingly factor sustainability into their buying decisions, demonstrating your commitment to eco-friendly practices is just good business. Making the switch to LED signage, and highlighting the energy savings vs older tech, shows that your brand is forward-thinking and doing its part.

In an era where both economics and environmental concerns are paramount, digital LED signage truly offers the best of both worlds - a cost-effective, energy-efficient solution that will serve your communication needs for years to come. The LED revolution is here, and now is the time for your business to get on board by making the shift to this powerful, sustainable technology.

So, if you're looking to save money, reduce environmental impact, and communicate with maximum impact, LED digital signage may be the answer. The brilliant, efficient glow of LED displays is lighting the way to a brighter future - one message at a time.

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