by Electronic shelf labels (ESLs) are digital displays that are attached to retail shelves and seamlessly updated in real-time through wireless communication. ESLs display product and pricing information directly on the retail shelves to enable effortless changes in pricing and marketing strategies. ESL systems help retailers reduce costs associated with printing and stickering paper labels while improving inventory management and the overall customer experience. Traditional paper shelf labels require manual updates and relabeling which is labor intensive and prone to errors. ESLs automate this process and allow retailers to change prices remotely on a large number of shelves simultaneously.
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 10% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Growing adoption of advanced retail technologies: The proliferation of advanced technologies across the retail landscape such as IoT, RFID, and analytics is expected to drive the demand for ESL systems. Modern retailers are increasingly turning to digital solutions to streamline operations, maximize profitability, and differentiate their customer experience. ESLs offer an innovative technology that fulfills these objectives.
Fluctuating prices:
One of the key drivers mentioned in the heading is fluctuating prices of products which necessitates efficient price updates. ESL systems enable dynamic pricing strategies and instant price adjustments based on factors such as demand, competition, and seasonal trends. This boosts sales and maximizes margins for retailers. Traditional paper labels cannot support variable and frequent price changes which further promotes the adoption of ESLs.
The driver of fluctuating prices and growing adoption of advanced technologies are expected to boost the electronic shelf labels market size over the forecast period. Retailers are incorporating innovative digital solutions to optimize processes.
Segment Analysis
The global electronic shelf labels market is dominated by the retail segment. The retail segment accounted for around 70% share of the total market in 2022. Electronic shelf labels help retailers in managing inventories and pricing in real-time. This reduces manual efforts and helps in faster decision making. Being networked, electronic shelf labels also allow centralized price management for multiple stores from a remote location, thereby reducing operational costs for retailers.
PEST Analysis
Political: There are no significant political risks affecting the electronic shelf labels market globally. Most countries support technology adoption in retail for improved efficiency.
Economic: The global economic growth has increased purchasing power and retail sales. This is driving larger retailers to invest in technology solutions like electronic shelf labels for remaining competitive. Replacement of older labels also contributes to continuous market demand.
Social: Customers today expect a seamless in-store shopping experience with accurate product information and pricing. Electronic shelf labels help retailers meet these rising customer expectations and preferences for connectivity and convenience.
Technological: Advancements in electronic paper display, wireless communication, and battery technologies have made electronic shelf labels more affordable and viable for medium and small retailers. The growing emphasis on IoT and connected solutions is also propelling the demand for electronic shelf labels.
Key Takeaways
The Global Electronic Shelf Labels Market Demand is expected to witness high growth over the forecast period of 2023 to 2030, expanding at a CAGR of around 10%. 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 10% over the forecast period 2023 to 2030.
Regional analysis shows that North America currently dominates the market due to strong retail infrastructure and early technology adoption among large retailers. Europe is also a major market, led by countries such as Germany and UK. The Asia Pacific electronic shelf labels market is forecast to witness fastest growth, led by China, India, and other developing Asian countries with expanding modern retail sector.
Key players operating in the electronic shelf labels market are Pricer AB, SES-imagotag, Samsung Electro-Mechanics, E Ink Holdings, Displaydata, M2COMM, Diebold Nixdorf, Opticon Sensors Europe B.V., Altierre, and LINTEC Corporation. Key players such as Pricer, SES-imagotag, and Samsung capture a major share due to their extensive product portfolio and global sales network. Pricer, in particular, is a market leader with a strong focus on the European market. SES-imagotag is growing rapidly supported by its partnerships with large retail chains in Europe and Asia.
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.
