Electronic Shelf Label (ESL) Market Size By Product (LCD, Segmented e-paper, Full Graphic e-paper), By Technology (Radio Frequency, Infrared), By Application (Hypermarkets, Supermarkets, Non-food Retail Stores), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, Russia, France, India, China, Japan, Mexico, Brazil), Growth Potential, Competitive Market Share & Forecast, 2016 – 2024

Published Date: January 2017 | 90 Pages | Report ID: GMI1136 Report Format: PDF

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Industry Trends

Electronic Shelf Label (ESL) Market size was around USD 270 million in 2015, and is expected to register gains at over 18% CAGR from 2016 to 2024.

Europe Electronic Shelf Label Market size, by product, 2012-2024 (USD Million)
 Europe Electronic Shelf Label Market size, by product, 2012-2024 (USD Million)

Rising demand for automation in the retail sector and the replacement of conventional paper tags is driving the global electronic shelf label market size. The capability to facilitate dynamic product allocation, and high return on investment are forecast to provide stable growth prospects over the forecast timeline.

Next generation advancements, such as real time product positioning for development of interactive in-store environments will generate revenue over the forecast timeframe. Easy availability of retail staffers to perform these tasks manually is likely to hamper the overall industry demand. Manufacturers need to comply with directives to meet the electronic waste generation, recovery, collection and recycling guidelines; the resultant operational overhead may present a potential challenge to electronic shelf label manufacturers.

Electronic Shelf Label Market, By Product

Full graphic e-paper electronic shelf label (ESL) market is expected to grow over at 19% CAGR through 2024, and remain the leading segment over the coming years. This can be attributed to its low power consumption, multi-color displays, wide ranged visibility and integration of additional features. LCD accounted for over 40% of the ESLmarket share in 2015. These products will have considerable demand in price sensitive regions such as the Middle East and Asia Pacific owing to low unit costs.

The introduction of advanced technologies for faster communication and declining cost of electronic products are expected to drive the electronic shelf label market over the forecast timeframe.

Electronic Shelf Label Market, By Technology

RF communication platform accounted for over 50% of the overall ESLmarket share in 2015. This can be credited to its ease of use in varied technology segments that include Bluetooth low energy (BLE), ZigBee, Wi-Fi, and Z-wave. Low cost and increased security from surrounding interference will drive IR technology adoption. Pricer AB is the key participant providing price labels based on this communication platform.

Advanced labels are featured with unique flash capability, real time bi-directional responsive systems, long battery life, merchandising accessories, and indoor mapping and navigation system. These characteristics provide improved operational scalability, latency, robustness, speed, and security for the users, which will boost the electronic shelf label market size from 2016 to 2024.

Electronic Shelf Label Market, By Application

Hypermarkets occupied over 45% of the overall ESL market share in 2015 owing to high inclination towards automated equipment and products. The segment consists of extensive retail facilities that sells wide range of products under one roof including full grocery lines and general merchandize. Supermarkets are estimated to account for 30% of the electronic shelf label market size by 2024 and register considerable gains over the forecast timeline. Non-food retail stores and specialty stores will also exhibit high growth.

ESL installation and operations require dedicated infrastructure, such as of transceivers, base stations and connections, to transfer and update prices from database to the electronic labels across the store. High technology cost, technical glitches due to lack of expertise and its dependency on dedicated infrastructure could challenge ESLmarket growth during the forecast timeframe.

Electronic Shelf Label Market, By Region

Stringent government norms for the protection of consumers against misleading product prices will favor the industry growth. S.I. No. 639 of 2002 European Communities (Requirements to Indicate Product Prices) Regulations has defined rules for licensed premises, restaurants, cafes, hotels, etc. in Europe. These rules state the obligation for display of prices to be marked or displayed on shelves to be inclusive of all the factors. Similar directives in several other regions are likely to favor the electronic shelf label market size.

The presence of regulations for protection against improper product pricing in Europe, North America, and Asia Pacific are also likely to favor the industry growth.

Competitive Market Share

SES Imagotag and Pricer AB are the key players in the electronic shelf label market. Other industry participants include E Ink Corp., LG Innotek, Wincor Nixdorf, Displaydata, M2Communication, Altierre, CEST, and SoluM. Industry participants focus on collaborations and partnerships, and invest significantly in R&D to introduce new products. Brand value plays a vital role owing to which outsourced manufacturing is trending and intensifying the competition. New participants intend to gain majority of the business share, thereby reducing the brand value of their competitors.

Ultra-low power operability and increased ability for price change per time slots are likely to result in significant adoption rates. Software-automated solutions can be used to update online prices along with in-store products prices, offering increased usability.

Electronic Shelf Label Industry Background

Raw material suppliers provide several customized components for manufacturing. Customized components are used to manufacture different sizes of ESLs suitable for distinct applications and assembled into one ASIC. The former implementation was done on a 4-bit microcontroller, which has been upgraded to an 8-bit microcontroller for enhanced functionalities of the next generation ESLs.

Manufacturers perform the assembling task of these units, which are then brought down in the market directly or through other distribution channels. However, most of the manufacturers have started to outsource their manufacturing process to regional players for stronger geographical presence. They also provide and aid in installing the software to comply with the retailers’ demands, which increases the total costs. The manufacturing cost is a major factor in the overall pricing and plays a major role in the performance of the electronic shelf label market.

What Information does this report contain?

Historical data coverage: 2013 to 2015; Growth Projections: 2016 to 2024.
Expert analysis: industry, governing, innovation and technological trends; factors impacting development; drawbacks, SWOT.
6-7 year performance forecasts: major segments covering applications, top products and geographies.
Competitive landscape reporting: market leaders and important players, competencies and capacities of these companies in terms of production as well as sustainability and prospects.

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