by Electronic shelf labels (ESLs) enable retailers to update pricing and product information in real-time without the need for manual label printing and replacement. ESLs integrate wireless communication technologies to connect with central servers via Wi-Fi or radio frequency signals, allowing store associates to update pricing and information from a back-office computer. The global adoption of ESLs has steadily grown as retailers seek to streamline operations and enhance the consumer shopping journey through features such as dynamic pricing, inventory tracking, and targeted promotions. ESLs seamlessly and accurately reflect changing retail data across all store locations.
The global Electronic Shelf Labels Market is estimated to be valued at US$ 97.92 Mn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
One of the key trends driving growth in the electronic shelf labels market is the increasing adoption of ESLs by large retail chains. Major retailers such as Walmart, Target, Kroger, and Carrefour have begun installing ESLs across hundreds of store locations to automate pricing and information updates. For instance, Walmart has deployed over 12 million ESLs globally as of 2022 to seamlessly integrate pricing and promotion changes. Additionally, advances in ESL technologies are supporting wider adoption. New generation ESLs provide colorful, high-resolution displays and longer battery lives of over 10 years with infrequent changes.improved technologies reduce maintenance and power consumption costs. Furthermore, the rising popularity of dynamic pricing in retail is boosting demand for ESLs that can adjust prices in real-time based on factors like inventory levels, sales performances, and competitor prices. This trend allows retailers to precisely manage pricing strategies.
Porter’s Analysis
Threat of new entrants: Low as this is an established market with key players operating globally. The presence of economies of scale and brand loyalty makes it difficult for new players to enter and gain market share.
Bargaining power of buyers: Moderate as branded labels have strong brand recognition. However, buyers can negotiate for price discounts depending on the order quantity.
Bargaining power of suppliers: Moderate. Key players have influence over suppliers but suppliers also have the option to supply other players. Supplier industry is largely fragmented.
Threat of new substitutes: Low. Electronic shelf labels provide real-time data to consumers and retailers have invested substantially in these technologies. There are no cost-effective substitutes available currently.
Competitive rivalry: High. Key global players compete intensely on pricing, product features, quality, and service. Players focus on new product launches and strategic partnerships to gain market share.
Key Takeaways
The global Electronic Shelf Labels Market Growth is expected to witness high growth. The global Electronic Shelf Labels Market is estimated to be valued at US$ 97.92 Mn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030.
Regional analysis: North America dominates the market currently due to high retail automation. However, Asia Pacific is expected to grow at the fastest pace during the forecast period driven by growing retail sector in countries such as China and India. Large retail chains are adopting ESL technologies to enhance customer experience.
Key players operating in the Electronic Shelf Labels market are DuPont Nutrition (International Flavors & Fragrances Inc.), BIOPROX, Biena Inc., Chr. Hansen Holding A/S. Key players focus on product innovations and strategic partnerships to capitalize on growth opportunities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
