The Global Electronic Shelf Label Market was valued at US$ 1,025.4 Mn in 2022 and is expected to exhibit a CAGR of 16.06% over the forecast period to reach US$ 3,376.2 Mn by 2030. Europe held the largest revenue share in the global electronic shelf label market in 2022, according to Electronic Shelf Label Market Report, By Technology Type (IR, RF, and NFC), By Product Type (LCD, Full graphic e-paper ESL, Segmented e-paper ESL), By End Use (Supermarket & Hypermarket, Convenience stores & departmental stores, and Others), and By Region (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa). Increasing cost of labor in developed economies of Europe and North America has led to significant demand for retail automation products which can reduce cost and time invested in manual shelf labelling. This is expected to be among the prominent factors driving the growth of electronic shelf label market. High overall costs of paper tags and labels, time required for updating labels, large amount of waste generation, high probability of human errors, and increasing requirement of retailers to upgrade prices to attract customers are the major drawbacks of conventional methods of shelf labelling. ESLs can be utilized to address these drawbacks and create an interactive consumer environment in stores, which can enhance the sales. These factors are expected to create strong growth prospects for the electronic shelf label market over the forecast period.
Global Electronic Shelf Labels Market: Drivers
ESLs are cost-effective and eco-friendly alternatives
Unlike paper-based labels that need to be discarded and replaced when prices change, ESLs can be updated remotely and reused for an extended period of time. This eliminates the need for repeated label printing, resulting in cost savings and reduced waste.
In 10 August 2021, Scotmid and Southern Co-op have decided to expand the use of electronic shelf labelling (ESL) technology to a total of 23 stores. Following successful trials at one store each in December, Scotmid and Southern Co-op will now implement ESLs in an additional 10 and 11 stores respectively, with plans for further installations in the future.
Global Electronic Shelf Labels Market: Opportunities
Growth in online-to-offline (O2O) retail:
With the rise of online shopping, the demand for O2O retail experiences is increasing. ESLs can play a key role in O2O retail by providing customers with real-time pricing and inventory information in physical stores, similar to the online shopping experience.
Global Electronic Shelf Labels Market: Restraints
Limited battery life:
ESLs are powered by batteries that require periodic replacement, which can be a time-consuming and costly process. The limited battery life of ESLs can also result in downtime if the batteries are not replaced in a timely manner.
Market Trends
NFC technology is being increasingly adopted
The adoption of NFC technology is on the rise due to its ability to facilitate fast and seamless data transfer between devices, prompting companies to integrate it into their products. Many smartphones and point-of-sale (POS) systems now come equipped with NFC technology as an added feature. The increasing use of NFC in mobile devices, particularly smartphones, has led to a growing demand for NFC-enabled electronic shelf labels (ESLs), which can accelerate POS payments and enhance retail operations.
Rising demand for ESLs in the healthcare sector
The healthcare sector is increasingly adopting electronic shelf labels (ESLs) to improve patient safety and reduce medication errors. ESLs provide real-time information on drug dosages, expiration dates, and other critical information. Some of the key drivers of the rising demand for ESLs in the healthcare sector include:
Improving patient safety ESLs can help reduce medication errors by providing real-time information on drug dosages, expiration dates, and other critical information. This can improve patient safety and reduce the risk of adverse drug events.
Enhancing inventory management ESLs can provide real-time inventory management data, enabling healthcare providers to track medication usage, expiration dates, and inventory levels. This can help prevent stockouts, reduce waste, and improve supply chain efficiency. Covid-19
Impact Analysis:
The COVID-19 pandemic has had a significant impact on the global electronic shelf labels (ESLs) market. While the pandemic has negatively impacted some industries, the ESL market has seen increased demand due to the changing consumer behavior and the need for contactless retail experiences. Some of the key impacts of COVID-19 on the ESL market include:
Increased demand for contactless shopping experiences: The pandemic has led to increased demand for contactless shopping experiences, with consumers seeking to minimize physical contact with products. ESLs can enable contactless price updates and reduce the need for physical price tags, thereby minimizing the risk of virus transmission.
Growing adoption of curbside pickup and delivery: The pandemic has also led to increased adoption of curbside pickup and delivery services, as consumers seek to avoid crowded stores. ESLs can provide real-time inventory management data, enabling retailers to fulfill orders more efficiently and accurately..
Global Electronic Shelf Labels Market: Competitive Landscape
Major players operating in the global electronic shelf label market include SES-Imagotag, Pricer AB, Displaydata, Opticon Sensors Europe B.V, Samsung Electro-Mechanics, NZ Electronic Shelf Labelling, M2Communication, Diebold Nixdorf, Altierre, Teraoka Seiko, Advantech US, E Ink, Toshiba Global Commerce Solutions, Wuxi Wei Feng Technology, and Cicor.
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Key Takeaways:
This report provides in-depth analysis of the electronic shelf label market, its market size (US$ Million) and Compound Annual Growth Rate (CAGR (%)) for the forecast period: 2023 – 2030, considering 2022 as the base year
It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by the leading players
It profiles leading players in the global electronic shelf label market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
Insights from this report would allow marketers and management authorities of companies to make informed decision with respect to future product launches, end user upgrades, market expansion and marketing tactics
The global electronic shelf label market report caters to various stakeholders in this industry, including investors, product manufacturers, distributors and suppliers for electronic shelf label market, research and consulting firms, new entrants and financial analysts
Various strategy matrices used in analyzing the electronic shelf label market would provide stakeholders vital inputs to make strategic decisions accordingly
Global Electronic Shelf Labels Market: Recent Developments
In May 2021, Swedish ESL manufacturer Pricer announced the launch of a new ESL platform, Pricer Display. The platform enables retailers to update pricing and product information in real-time and includes features such as integrated cameras for product recognition and automatic product placement detection.
In March 2021, French ESL manufacturer SES-imagotag announced a partnership with JD.com, a leading Chinese e-commerce company, to provide ESL solutions for JD.com's physical stores in China. The partnership aims to improve in-store efficiency and enhance the shopping experience for customers.
In January 2021, E Ink Holdings, a leading supplier of electronic paper displays, announced the launch of a new line of ESLs, the E Ink Spectra™ 3100 series. The new ESLs feature improved color and contrast, enabling retailers to display product information and promotions more effectively.
