Electronic Shelf Label Market Analysis

Electronic Shelf Label Market Analysis

The U.S. full graphic e-paper ESL market size was USD 85 million in 2020 led by the high demand for ESLs from the growing e-commerce sector adopting advanced technologies at distribution facilities to streamline operations and timely dispatch of items to ensure customer satisfaction.

As e-commerce players deal with large quantities of goods at their storage centers, manual labeling techniques become time-consuming. The wrong price may result in dispatch delays, consumer grievances, and higher operating expenses. Full graphic e-paper ESLs ensure crystal clear readability even in dim lighting conditions. ESLs that convert traditional warehouses into a connected digital space will showcase increasing demand during the forecast timeframe.

The NFC technology is expected to observe 10% growth rate through 2027 on account of the increasing popularity of NFC-based payment techniques. Retailers in the market are focusing on adopting self-checkout systems that enable customers to pay instantly while shopping by scanning the ESL using their smartphones.

Electronic labels enable customers to effortlessly attain product data and pay conveniently using NFC cards or mobile phones. Scanning the label leads the customer's smartphone to the product webpage for more information through built-in NFC. The customer can also make payments instantly, eliminating the need to stand in long queues at cash counters. The increasing focus of retailers on maximizing profitability using digital technologies will stimulate the acceptance of electronic labels.

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In Germany, industrial application in the electronic shelf label market is estimated to attain a CAGR of 12% during 2021 to 2027 owing to the strong industrial sector in the region, adopting advanced technologies. The increasing usage of IoT technology in industrial facilities to improve asset tracking will influence the adoption of electronic labels for shelf labeling. The advent of Industry 4.0 has resulted in the increasing penetration of connected devices that can be controlled remotely through a single platform

Electronic rack labels are a noteworthy factor in attaining an optimized inventory control and management system. The ESL system in current modern warehouses is integrated into a centralized system that includes local servers, centralized servers, and base stations. A wireless network is integrated, enabling wireless connectivity between the ESL and the central system. This also enables authorities to update inventories in real-time. Increasing penetration of IoT in the industrial sector in Germany will propel the industry expansion.

Asia Pacific electronic shelf label market held over 30% of revenue share in 2020. The expanding retail sector in countries including India, China, South Korea, Japan, and Singapore will contribute significantly to the acceptance of ESLs, in turn, augmenting the industry demand. The growing popularity of hypermarkets, which is attributed to the improving economic conditions will accelerate ESL demand. Retailers launching a chain of stores and adopting digital solutions to control their operations through a single platform will further impel the industry value. With retailers focusing on improving customer satisfaction with the use of advanced technologies that ensure fast check-outs.