According to a new report published by Allied Market Research, titled, “Electronic Shelf Label Market By Product Type, Component, Display Size, Communication Technology, and Store Type: Opportunity Analysis and Industry Forecast, 2020–2027”, the electronic shelf label market size was valued at $624.7 million in 2018, and is projected to reach $2.40 billion by 2027, growing at a CAGR of 15.9% from 2020 to 2027.
Electronic shelf label (ESL) is a type of dynamic display system used by retailers to display product information in the retail store. This system transmits the 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 remove the paper labels and automatically change the price tag every week. In addition, it also removes inconsistencies between the cash and shelf resister price and enable the flexibility to make the immediate price changes.
Furthermore, each electronic shelf label (ESL) system has the LCD or E-ink display that shows the price and UPC of the product. These labels eliminate the discrepancies in selling price of the products and display reliable pricing to the customers. The ESL system has a wide range of applications in various stores such as hypermarkets, supermarkets, non-food retail stores, specialty stores, and others.
The trending automation in the retail industry is the key factor that drives the electronic shelf label market growth. Moreover, the necessity for more cost-efficient and less time-consuming alternative to paper labels fuels the market growth. In addition, increased operational efficiency with real-time product positioning due to the utilization of electronic shelf label boost the market growth. However, high installation and infrastructure cost restrain the market growth. Moreover, low return on investment is also expected to impede the growth of the electronic shelf label market.
LCD based electronic shelf labels secured highest revenue share in 2019, owing to its power intensive and color pattern features. However, full graphic e-paper segment is projected to witness highest growth rate
owing to its advance features such as multi-color displays, wide visibility, and high aesthetics.
In January 2019, SES-imagotag established partnership with Ossia to develop wireless charging smart digital labels. Wireless charging is a key enabler for extensive use of retail IoT solutions such as smart electronic shelf labels. Label lifetimes can expand their capacity of coin cell batteries through wireless power.
Moreover, Europe is the major revenue contributor, owing its roll out of consumer protection cooperation regulation that provides protections against the scams and misleading product information and price. The Asia-Pacific electronic shelf label market is expected to grow at the highest CAGR during the forecast period, due to higher customer interest, easy availability of processing machinery, high growth of full graphic e-paper display, and increase in popularity of non-food retail store.
Key Findings of the Study:
By communication technology, the radio frequency segment contributed the maximum market share in 2018, and is expected to maintain its lead throughout the forecast period.
By product type, the full-graphic E-paper segment is expected to grow at the highest CAGR during the forecast period.
By region, Asia-Pacific is expected to grow at the highest CAGR during the forecast period and is projected to dominate the electronic shelf label market share in the future.
The key players profiled in the ESL market report include Pricer, SES-imagotag, Samsung Electro-Mechanics, E Ink Holdings, Displaydata Limited, Altieer Corporation, Diebold Nixdorf, Incorporation, Clearink Display, Panasonic Corporation, SoluM Co. Ltd., and NCR Corporation. These key players have adopted strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to enhance their position in the electronic shelf label industry.