The Electronic Shelf Labels (ESL) are digital displays attached to store shelves that display the product price and other information without the need for printed paper labels. ESLs obtain pricing and product information via wireless communications from a central server and can automatically update pricing in real-time from a central server. This provides various advantages to retailers such as easy pricing updates, reduced labor costs, improved pricing accuracy, and better inventory management. ESLs are increasingly being adopted by large retail chains and hypermarkets globally to modernize operations and enhance customer experience through dynamic and timely product information.
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:
The heading “Electronic Shelf Labels Market is Expected to be Flourished by Increasing Adoption of Digitalization in Retail Sector” refers to increasing adoption of digital technologies like ESLs in retail stores as a driver for market growth. One of the major driver for increasing adoption of ESLs by retailers globally is the need for more efficient inventory and price management. As retail operations expand in size and complexity, ESLs provide retailers an automated solution to update pricing in real-time according to stock levels and ongoing promotions across multiple stores and aisles simultaneously with minimal manual labour. ESLs also help reduce manual errors in pricing and support compliance with pricing and advertising laws through centralized control of product pricing. This improves pricing accuracy and consistency, enhancing customer experience. Further, ESLs enable dynamic pricing strategies through real-time updates in response to competitor prices, demand and other factors, improving sales optimization.
Segment Analysis
The Electronic Shelf Labels market has two key segments – batteries and batteries-free. The batteries segment dominates the market currently with over 70% share as most retailers prefer battery powered labels due to their reliability during power outages. However, the batteries-free segment is projected to witness highest growth during the forecast period due to advantages of zero battery replacement and environmental friendliness.
PEST Analysis
Political: Regulations around e-waste disposal can impact the batteries segment negatively. However, supportive policies for adoption of energy efficient technologies would boost the batteries-free segment.
Economic: High initial installation cost remains a barrier, although payback period is 1-2 years due to savings on re-labeling labor. Growth in organized retail and stricter compliance norms are driving adoption.
Social: Rising consumer preference for seamless shopping experience and ability to check prices on the go is a key driver. Educational campaigns can increase awareness about ESL benefits.
Technological: Emergence of IoT, beacon technology, and retail analytics is expanding ESL applications beyond pricing into personalized promotions and inventory management. Advancements in power harvesting will accelerate batteries-free adoption.
Key Takeaways
The Global Electronic Shelf Labels Market Growth is expected to witness high over the forecast period supported by rapid expansion of organized retail sector globally. 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.
Regionally, North America dominated historically led by early adopters like Walmart, however Asia Pacific region is expected to surpass and emerge as the fastest growing market led by China, India and other developing countries.
Key players in the global market include SES-Imagotag, Pricer AB, Samsung Electro-Mechanics, and E Ink. SES-Imagotag has emerged as the global leader with over 50% market share attributed to its innovative VUSION retail IoT platform for ESL, predictive analytics, and asset tracking. Pricer is a major provider in Europe and India while Samsung dominates in Southeast Asia. The market is also witnessing rising adoption of private label solutions from Tier 2 Chinese players like Wuxi Wei Feng targeting small retailers for affordable pricing.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it