Global Electronic Shelf Label Market - 2023-2030

Market Overview

The Global Electronic Shelf Label Market size reached US$ 3.7 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 14 billion by 2030. The market is growing at a CAGR of 16.9% during the forecast period 2023-2030.

ESLs enable retailers to update pricing and product information in real time, reducing the need for manual price updates and minimizing the risk of pricing errors. ESLs also enable retailers to offer personalized promotions and recommendations to customers based on their shopping behavior, enhancing the overall shopping experience. Governments across the globe are also taking steps to catalyze the growing market trend of ESL market shares. In 2019, the Indian government announced plans to launch a national electronic retail system that would include the use of ESLs.

Similarly, the Chinese government has been promoting the adoption of digital technologies in the retail sector through initiatives such as the "New Retail" strategy, which encourages retailers to use technologies such as ESLs to enhance the shopping experience.

As the retail industry undergoes constant transformation, the utilization of ESLs is expected to expand, presenting fresh market opportunities for both retailers and technology providers. The implementation of innovative technologies like ESLs is becoming more crucial for retailers who want to maintain their competitive edge.

The display component holds a significant market share of around 22% in the overall component segment of the global electronic shelf label market. Similarly, Asia-Pacific is the leading region in the market, capturing over 30% of the market share in the regional segment.

Market Dynamics

The Increasing Demand for Contactless Technology in the Wake of the COVID-19 Pandemic

One of the main drivers of ESL adoption has been the increasing demand for contactless technology in the wake of the COVID-19 pandemic. In many countries, governments have implemented social distancing measures to limit the spread of the virus, which has led to an increased demand for contactless payment and checkout systems. ESLs, which enable retailers to update prices and product information without the need for physical interaction, have become an essential part of the contactless retail experience.

In addition to the COVID-19 pandemic, the increasing popularity of online shopping has also been a major driver of ESL adoption. As more consumers shop online, retailers have been forced to find new ways to attract customers to physical stores. ESLs, which enable retailers to display real-time pricing and product information, can help to create a more engaging and interactive in-store shopping experience.

Thus, the increasing demand for contactless technology in the wake of the COVID-19 pandemic is considered a major driver boosting the market shares and opportunities of the global electronic shelf label market.

Lack of Infrastructure and Regulations in Certain Regions

The regulatory landscape remains a significant challenge for the global electronic shelf-label market. According to government statistics, the retail industry is one of the most heavily regulated industries globally, and compliance costs can be a significant burden for retailers of all sizes. In the U.S., for example, a 2019 report by the National Retail Federation found that retailers spend an average of US$ 10.4 billion per year on regulatory compliance, with smaller retailers disproportionately affected by compliance costs.

In the European Union, a 2018 survey by the European Commission found that regulatory compliance costs account for around 4% of turnover for small and medium-sized enterprises (SMEs), compared to 2.5% for larger firms. Despite this challenge, there have been several notable product launches in the market in recent years, with technology providers offering innovative solutions to help retailers comply with regulatory requirements more easily.

Moving forward, greater collaboration between retailers, technology providers, and regulators will be crucial to developing more streamlined and harmonized regulatory frameworks that support the growth of the global ESL market.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it with pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

Segment Analysis

The global electronic shelf label market is segmented based on product, component, store, communication technology and region.

Growing Awareness of the Negative Environmental Impact of Shipping Emissions on Air Quality and Public Health, Particularly in Densely Populated Port Areas

The displays segment in the global electronic shelf label market is expected to witness significant growth in the coming years, driven by a range of factors including the increasing adoption of ESL by retailers, the demand for high-quality displays and government regulations and initiatives. The growth of the display segment is expected to be further boosted by the launch of new products with improved features and functionalities, helping retailers enhance the in-store customer experience and increase sales.

For instance, in 2020, Pricer AB launched its new digital shelf-edge solution, PricerONE, which includes ESLs, electronic shelf-talkers, and interactive displays. The solution is aimed at helping retailers improve store operations and enhance the customer experience. Further, in some countries, the government has mandated the use of ESLs in certain retail sectors, such as supermarkets and hypermarkets. The respective fact is expected to drive the adoption of ESLs with high-quality displays in these sectors, further boosting the growth of the display segment in the ESL market.

Geographical Analysis

Increasing Adoption of ESL by Retailers, the Presence of Major ESL Manufacturers in the Region and Their Constant Introduction of New Products into the Regional Market

In North America, the ESL market is expected to grow at a significant pace in the coming years, driven by the increasing adoption of ESL by retailers in the region. Further, the presence of major ESL manufacturers in the region and their constant product launches also helps the market to attain a growing market trend in the region. For instance, in 2021, Altierre launched its third-generation ESLs, which feature improved battery life, faster refresh rates, and enhanced security features.

The new ESLs are expected to be popular among retailers in North America as they offer a range of benefits such as improved store operations and increased sales. In addition to the above factors, government regulations and initiatives are also expected to play a key role in driving the growth of the display segment in the North American electronic shelf label market.

Competitive Landscape

The major global players include: Ses-Imagotag, Pricer, Samsung Electro-Mechanics, E Ink Holdings, Display data, M2 Communication, Diebold Nixdorf, Opticon Sensors Europe, Teraoka Seiko and NZ Electronic Shelf Labelling.

Why Purchase the Report?

• To visualize the global electronic shelf label market segmentation based on product, component, store, communication technology and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of electronic shelf label market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping is available in Excel consisting of key products of all the major players.

The Global Electronic Shelf Label Market Report Would Provide Approximately 69 Tables, 72 Figures and 178 Pages.

Target Audience 2023

• Manufacturers / Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies