The global electronic shelf label market is expected to be worth 1062.74 billion USD in 2023. It is expected to grow at a CAGR of 13.2% during the forecast period and reach a value of 1975.43 billion USD by 2028.
Retailers' electronic shelf labels include an indicator that shows the product's price as well as any special deals. In a retail store, many electronic shelf labels are controlled by a server, which communicates with the ESLs via a wireless communication network. The ESL server sends price change data to an ESL displaying that product when the price of that product changes. When the ESL receives updated pricing data, it modifies the price information and updates the database. The product price displayed on an ESL is automatically updated anytime a price is modified, and it is commonly affixed to the front edge of a shop shelf.
With the advancement of retail digitalization comes the introduction of new products and services that are simple to use, adapt, and scale, benefiting customers more and more in an increasingly connected world. Retail establishments such as hypermarkets, supermarkets, and other retail outlets have embraced electronic shelf labels (ESLs). Retailers commonly employ an electronic shelf system to display the price of a product on the shelf as well as information about it. In addition to the benefits that ESLs bring to customers, the product also benefits merchants by lowering labor costs, maintaining pricing integrity, and allowing them to focus on inventory cost optimization.
Market Drivers:
The Growing demand for ESL-Enabled inventor management is expected to be the major driving factor in the Global Electronic Shelf Label Market during the Forecast Period. ESL appears to be a viable answer to the retail industry's out-of-stock dilemma. According to an analysis by the Institute of Grocery Distribution and IGD Services, the industry-wide out-of-stock rate is around 4.5 percent. Advanced ESLs that are coupled with users' smartphones and powered by advanced analytics are anticipated to improve inventory management operations. Similarly, increased adoption of vendor-managed inventory (VMI) and stock-keeping units (SKU) is expected to open up new opportunities for industry participants.
Growing interest for Retailers to Offer Enhanced In-Store Customer Experience is expected to be another major driving factor in the Global Electronic Shelf Label Market during the Forecast Period. Customers are requesting a more advanced digital and connected physical purchasing experience as the e-commerce industry continues to grow. According to the survey, the most important factor that customers want to be highlighted is pricing. This indicates that retailers are more likely to develop innovative approaches to strengthen consumer relationships by ensuring price and promotion accuracy across the board. The need for electronic shelf labels in retail outlets is predicted to increase as a result of these causes.
Market Restraints:
The High Expenditure Cost of installation and supporting infrastructures for the ESL technology is expected to be the major restraining factor for the Global Electronic Shelf Label Market during the Forecast Period. The cost of using ESL technology may appear prohibitive to unorganized merchants, as they must install additional electrified shelves to be eligible for ESL tags or to be compatible with ESLs, which increases installation costs. The cost of technology is a major restraint for an unorganized retail market in economically developing countries like South Korea and India because the deployment of these labels also necessitates the deployment of supporting infrastructure, which requires large investments from small and medium-scale retailers. Although the use of electronic price tags is advantageous, the initial cost of electronic price tags is high, and installation in all retail outlets is not practical. As a result, high installation costs are expected to stymie the market over the projection period.
REPORT COVERAGE:
REPORT METRIC |
DETAILS |
Market Size Available |
2022 to 2028 |
Base Year |
2022 |
Forecast Period |
2023 to 2028 |
CAGR |
13.2% |
Segments Covered |
By type, technology, End-use & Region |
Various Analyses Covered |
Global, Regional, and country Level Analysis; Segment-Level Analysis; DROC, PESTLE Analysis; Porter’s Five Forces Analysis, Competitive Landscape; Analyst Overview of Investment Opportunities |
Regions Covered |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
This research report on the global electronic shelf label market has been segmented and sub-segmented into the following categories.
Global Electronic Shelf Label Market - By Type:
The LCD-based segment is expected to have the dominant share in the Global Electronic Shelf Label Market during the Forecast Period. For ESL offerings, market participants are projected to favor e-paper. The companies hope to develop the e-paper ecosystem and increase the e-paper business through this collaboration. These e-papers will primarily be utilized for in-vehicle advertising and retail signage, among other applications. LCD devices are more expensive than e-paper, and so have a lower adoption rate. A Kindle Paperwhite, for example, costs USD 119, whereas a small iPad with a retina display costs USD 400. As a result, the LCD-based segment is expected to grow at a moderate rate.
Global Electronic Shelf Label Market- By Technology:
Vendor Facing Technology is expected to have the dominant share in the Global Electronic Shelf Label Market during the Forecast Period. During the projected period, the radio frequency segment is expected to have a significant market share, while the infrared technology segment is expected to rise at a rapid pace. ESL solutions based on infrared or radio frequency are available from market participants. Pricer AB, for example, provides in-store digital solutions based on infrared (IR) technology to improve store operations and customer experience. SoluM, on the other hand, offers radio frequency-based ESL solutions for 2.4 GHz and 900MHz RF systems.
Global Electronic Shelf Label Market - By End User:
The hypermarket segment is expected to have the dominant share in the Global Electronic Shelf Label Market during the Forecast Period. The difficulties of manually maintaining huge stores can be attributed to the expansion of this market. As a result, computerized shelf labels are becoming more widely used in hypermarkets to streamline shop operations. Hypermarkets may change prices and other product-related information in less time by using these labels. Electronic shelf labels aid in the seamless operation of large businesses by allowing for real-time product positioning.
Global Electronic Shelf Label Market- By Region:
Europe is expected to have the dominant share in the Global Electronic Shelf Label Market during the Forecast Period. Market expansion in the region is likely to be fuelled by government laws and regulations. In France, for example, the French Parliament passed a Consumer Code stating that the price of a product should be explicit and transparent to clients, including delivery and postal expenses. Failure to submit accurate price information by a business will result in severe fines.
Latin America is expected to register high growth in the Global Electronic Shelf Label Market during the Forecast Period. Brazil, Argentina, and Mexico are likely to have a significant market share in the area. Latin America is an emerging e-commerce market with a significant percentage of physical commerce. Price Smart, Cost-U-Less, Carrefour, Save-A-Lot, and Albert Heijn Zeelandia, among other international retail chains in the Caribbean, are set to generate new opportunities for market players across the area.
Middle-East and Africa are expected to see prominent growth in the Global Electronic Shelf Label Market during the Forecast Period. In the Middle East and Africa, rising smartphone usage and internet penetration are expected to drive market growth. Similarly, the Middle East's merchants have been compelled to study and implement new sales methods as a result of the steady transition to digitization ascribed to the advent of augmented reality (AR) and image recognition technologies. These characteristics are projected to aid market expansion throughout the area.
KEY MARKET PLAYERS:
Pricer AB, SES-imago tag, Display data Limited, Zhejiang Hanshow Technology Co., Ltd Opticon Sensors Europe B.V., Altierre Corporation, Teraoka Seiko Co., Ltd, E Ink Holdings Inc., Cest Co., Ltd., LG Innotek
RECENT HAPPENINGS IN THE MARKET:
Frequently Asked Questions
The Electronic Shelf Label Market is expected to grow with a 13.2% CAGR over the forecast period of 2023-2028.
European Countries are expected to have the largest market dynamic/share in the Global Electronic Shelf Label Market.
Growing demand for ESL-Enabled inventor management is expected to be the major driving factor of the Global Electronic Shelf Label Market.
By Type, Technology, End-Users, and Regions are the segmentations covered in the Global Electronic Shelf Label Market.
Ses-Imagotag, Altierre, Samsung Electro-Mechanics, E Ink Holdings, Display data, M2communication, Diebold Nixdorf, and Opticon Sensors Europe are some of the key companies.
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