Electronic Shelf Label Market Expected to Reach $3.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Electronic Shelf Label Market," The electronic shelf label market was valued at $825.06 million in 2021, and is estimated to reach $3.5 billion by 2031, growing at a CAGR of 15.5% from 2022 to 2031.

Electronic shelf label (ESL) is a type of dynamic display system used by retailers to display product information in retail stores. This system transmits product information that is updated in central server using low power radio frequency (RF) through the gateway. Shelf label is an emerging technology globally, which can help to remove paper labels and automatically change the price tag every week.

In addition, it also removes inconsistencies between cash and shelf resister price and enable flexibility to make immediate price changes. Furthermore, each electronic shelf label (ESL) system has LCD or E-ink display that shows price and UPC of the products. These labels eliminate discrepancies in selling price of products and display reliable pricing to customers. ESL system has a wide range of applications in various stores such as hypermarkets, supermarkets, non-food retail stores, and specialty stores.

According to the electronic shelf label market analysis, trending automation in the retail industry is the key factor that drives electronic shelf label market growth of the electronic shelf label industry. Moreover, necessity for more cost-efficient and less time-consuming alternative to paper labels and the surge in demand for digital price tag fuels the market growth. In addition, increase in operational efficiency with real-time product positioning, owing to utilization of electronic shelf label boosts the market growth.

However, high installation and infrastructure cost restrain the growth of electronic shelf label market size. Moreover, low return on investments is also expected to impede growth of the electronic shelf label market. Furthermore, deployment of electronic shelf labels in retail stores allows retailers to update prices on the shelves instantaneously. It also helps them run real-time promotions involving comparison shopping, promotional prices, and promotional information. These features of electronic shelf labels help retailers to gain an edge in the competitive retail market, increase sales, and reduce operational costs of the store.

The major companies profiled in the report include E Ink Holdings Inc., Diebold Nixdorf, Incorporated, Samsung Electro-Mechanics, Pricer AB, Displaydata Limited, Panasonic Corporation, NCR Corporation, M2Communication, SES-imagotag, CLEARink Displays Inc. and SoluM Co. Ltd.

KEY FINDINGS OF THE STUDY

• In 2021, the LCD segment was the major revenue contributor to the electronic shelf label industry, and is projected to grow at a notable CAGR of 14.55% during the forecast period.
• The displays and microprocessors segments together accounted for around 51.3% of the electronic shelf label market trends in 2021.
• The specialty stores segment is projected to growth at a CAGR of  17.26% during the forecast period.
• Europe contributed for the major electronic shelf label market share, accounting for more than 32.2% share in 2021.

Key players profiled in the report include E Ink Holdings Inc., Diebold Nixdorf, Incorporated, Samsung Electro-Mechanics, Pricer AB, Displaydata Limited, Panasonic Corporation, NCR Corporation, M2Communication, SES-imagotag, CLEARink Displays Inc. and SoluM Co. Ltd. Market players have adopted various strategies, such as product launch, collaboration& partnership, joint venture, and acquisition to expand their foothold in the electronic shelf label market.