PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1629196
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1629196
The Electronic Shelf Labels Market was valued at USD 1,491.5 million in 2023, growing at a CAGR of 16.00% from 2024 to 2032.
Electronic shelf labels (ESLs) transform retail by dynamically displaying configurable product information, pricing, and details via wireless connectivity to a central management system. Unlike paper labels, ESLs allow for real-time, automated updates, which are great for sales events or price revisions. Energy-efficient designs, which incorporate technologies such as e-ink, ensure longer battery life or power-efficient operation. These characteristics increase agility, streamline processes, and improve consumer experiences in retail settings.
Electronic Shelf Labels Market- Market Dynamics
Increasing demand for ESL-Assisted Intelligent Inventory Management.
The increasing complexity of operating large warehouses or retail stores has spurred demand for efficient inventory management. ESL is showing promise as a solution to the retail industry's out-of-stock problem. According to research studies conducted by the Institute of Grocery Distribution and IGD Services, the industry-wide out-of-stock rate is around 4.5%. Improvements in more complex ESLs, which are linked to customers' cell phones and powered by advanced analytics, should speed up the smart inventory management process. Similarly, market participants should prepare for new opportunities because VMI and SKU are expected to be employed considerably more broadly in the future. According to an analysis by the Institute of Grocery Distribution and IGD Services, the industry's out-of-stock rate is at 4.5%.
Advanced ESLs integrated into users' cell phones and powered by advanced analytics are expected to improve smart inventory management operations. Similarly, increased adoption of vendor-managed inventory (VMI) and stock-keeping units (SKU) is expected to open up new prospects for industry players.
Electronic Shelf Labels Market- Key Insights
Our research analyst estimates that the global market will develop at a CAGR of approximately 16.00% from 2024-2032.
According to Component segmentation, the Batteries Component will dominate the market share by 2023
In 2023, Fully Graphic E-paper segment was the most popular product segmentation.
Hardware now dominates the Electronic Shelf Labels business, according to Offering segmentation.
Infrared was the most dominant Communication Technology segment.
The 7 to 10-inch category is projected to display the highest CAGR in the electronic shelf label industry in Display Size segmentation.
On the basis of region, Europe was the leading revenue generator in 2023
The Global Electronic Shelf Labels Market is divided into six segments: Component, Product, Offering, Communication Technology, Display Size, End-User and region.
The market is divided into four segments based on Display Size: less than 3 Inches, 3 to 7 Inches, 7 to 10 Inches, and More Than 10 Inches. The 7 to 10-inch category is likely to exhibit the greatest CAGR in the electronic shelf labels market during the forecast period owing to its exceptional visibility and versatility. These displays strike the ideal combination of compact design and ample display surface, making them appropriate for a wide range of retail applications. Because of its portability, shops may successfully use the surfaces to show product information, pricing, forthcoming promotions, contactless information via QR codes, and other aspects, all without interfering with the store's design.
The market is classified into three segments based on Product: Liquid Crystal Displays (LCDS), Segmented E-Paper, and Full Graphic E-Paper. During the projected period, the Fully Graphic E-paper display type accounts for the greatest market share in the electronic shelf labels market. These displays, with their paper-like appearance and low power usage, outperform traditional LCD and LED technology in almost every regard. These displays outperform segmented or partial graphic e-paper display options and can display rich graphics, animations, and high-resolution images. Their power utilisation efficiency and ability to keep images without a steady source of electricity make them excellent for use in devices that require minimal power.
Electronic Shelf Labels Market- Geographical Insights
Geographically, this market encompasses the Middle East, and Africa, Latin America, Asia Pacific, North America, Europe. These zones are further split based on which countries bring business. In 2023, Europe's electronic shelf labels market held the biggest share. The competitive character of the European retail sector promotes innovation and the adoption of new technologies. Retailers seeking a competitive advantage are more inclined to invest in ESLs to improve their operations and service offerings. The trend of installing self-checkout kiosks in European grocery stores is expected to increase, which will boost demand for electronic shelf labels. In January 2024, Sweden-based ITAB Shop Concept AB signed an agreement with a major European supermarket chain to install 7,200 self-checkout kiosks in stores across Germany, Belgium, Slovakia, Slovenia, Switzerland, Austria, the Czech Republic, the Netherlands, and Spain. The advent of self-checkout kiosks can help meet the necessity for ESLs to offer customers the necessary information.
In 2023, the electronic shelf labels market in Asia Pacific had the highest growth rate owing to strong demand in the electronics retail sector. Customer expectations are changing, prompting regional retail sector companies to embrace Industry 4.0, which involves the integration of sophisticated digital technology into industrial and manufacturing processes. It includes automation, robotics, big data, and IoT networks. The deployment of Industry 4.0 technology by retail operators creates good growth potential for the ESL industry.
The competitive landscape of the Electronic Shelf Labels (ESL) Market is characterised by a mix of established players and new entrants, with innovation and strategic partnerships helping them to grab market shares. The dominant players include VusionGroup, SOLUM, Pricer, Displaydata Ltd., and Teraoka Seiko Co., Ltd., with advanced ESL solutions that help retailers achieve efficiency in retail and engage their customers. These companies invest heavily in research and development in order to improve label technology, including integrating wireless communication and digital price tags that can be updated in real time. Moreover, new entrants are increasing competition in the market as they focus on niche applications and cost-effective solutions. The competitive dynamics will be expected to change as more retailers begin adopting ESL systems to streamline operations and enhance pricing accuracy. Companies will continue to look for ways to differentiate their offerings and expand their market presence.
In February 2024, Pricer collaborated with PaperShell to bring about change in the electronics business. We intend to create ESX Electronic Shelf Labels made entirely of bio-based materials and free of fossil components. The effort is part of a complex strategy for defining sustainability in the electronics industry.