February 25, 2024
Electronic Shelf Label Market

Electronic Shelf Label Market Growth Connected with IoT Adoption as one line heading

The global Electronic Shelf Label Market is estimated to be valued at US$ 1,025.4 Mn in 2022 and is expected to exhibit a CAGR of 16.06 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Electronic shelf label (ESL) systems consist of electronic displays attached to retail shelves or fixtures that display product and pricing information without the need for paper price tags. ESL reduces the need for manual label changes and allows remote control and monitoring of shelf edge systems from the back office and distribution networks. ESL displays product and pricing information digitally and allows automatic price updates without human intervention. This reduces labor costs and errors related to manual label changes. The product information on ESLs can be wirelessly updated in real-time from a central control server allowing dynamic pricing changes.

Market key trends:

The integration of ESL systems with IoT technologies is a key trend in the market. IoT enabled ESL systems allow bidirectional communication between ESL displays, IoT edge devices and centralized control servers. IoT enabled ESL provide real-time visibility of inventory levels at each shelf and automatic updates of pricing and availability information online based on stock levels. IoT connectivity also enables predictive analytics of sales trends and automated reordering. IoT enabled ESL make retail operations more efficient by optimizing inventory management and enhancing consumer experience through seamless digital promotion of products and prices. The growing adoption of IoT solutions in retail is driving the demand for IoT integrated ESL systems.

Porter’s Analysis

The threat of new entrants: The electronic shelf labels market has medium threat of new entrants as the key players have already established strong distribution channels and brand presence. However, new technologies can disrupt the market.

Bargaining power of buyers: Buyers have medium to high bargaining power due to the presence of various competitors providing substitutable products. Buyers can negotiate on pricing and demand various offers from sellers.

Bargaining power of suppliers: Electronics components are available from various suppliers globally at competitive prices. Hence suppliers have low bargaining power.

Threat of new substitutes: Substitutes like paper price tags pose low threat as electronic shelf labels provide real-time pricing updates and better inventory management.

Competitive rivalry: The electronic shelf labels market witnesses high competitive rivalry among the key global players due to their strong distribution networks and wide product portfolios.

Key Takeaways:

The global electronic shelf labels market is expected to witness high growth, exhibiting CAGR of 16.06% over the forecast period 2023 to 2030, due to increasing demand for efficient inventory management and real-time product pricing from retailers.

Regional analysis: North America dominates the electronic shelf labels market currently owing to the presence of major players and rapid adoption of technology across retail sectors for improved customer experience in the region. Asia Pacific is expected to witness the fastest growth due to growing retail industry and expanding middle-class population in countries like China and India.

Key players: Key players operating in the electronic shelf labels market are 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, SESimagotag, E-Ink, Wuxi Wei Feng Technology, and Cicor. SES-Imagotag leads the market with its wide product portfolio and global presence.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it