Electronic Shelf Label (ESL) Market worth over $2 Bn by 2027

Electronic Shelf Label Market size is set to surpass USD 2 billion by 2027, according to a new research report by Global Market Insights Inc.
 

The growing global penetration of retail digitalization is likely to fuel the demand for ESLs. Retailers are focusing on maximizing profitability by ensuring improved customer satisfaction and reduced transaction times. ESLs enable customers to pay on the go by scanning the label using a smartphone, making instant payments using mobile wallets. This helps retailers to eliminate long queues at cash counters, in turn, enhancing customer convenience and reducing the hassle associated with lengthy transactions. Automated shelf labels improve pricing accuracy, reduce cost & time for price management, and allow dynamic pricing.
 

The coronavirus (COVID-19) pandemic has negatively impacted the ESL industry in the first half of 2020 due to the temporary closure of malls and hypermarkets, following the lockdowns imposed globally. Reduced footfall at retail stores due to stringent social distancing measures impacted the demand for ESLs from physical stores. However, the industry regained traction in the second half of 2020 led by relaxations on pandemic-related restrictions coupled with the reopening of stores. The improving market conditions in 2021 along with the rollout of vaccines that are resulting in the reopening of new malls and supermarkets will drive the ESL market demand.
 

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Increasing use of ESLs in warehouse environments to streamline operations

The segmented e-paper segment is projected to expand at over 9% CAGR through 2027 impelled by the growing adoption of digital technologies across warehouses and distribution centers. These labels feature durability with batteries lasting for a long time at room temperature. Market players offer innovative solutions for the development of segment e-paper ESLs. For instance, E Ink offers Active Matrix and Segmented Display prototyping kits to help engineers, designers, and product managers in the development of new ESL products.
 

Browse key industry insights spread across 356 pages with 569 market data tables and 36 figures & charts from the report, “Electronic Shelf Label (ESL) Market Size By Product (LCD ESL, Segmented E-Paper ESL, Full-Graphic E-Paper ESL), By Technology (Radio Frequency {RF}, Infra-Red {IR}, Near Field communication {NFC}), By Application (Industrial, Commercial [Hypermarket, Supermarket, Non-food Retail]), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027”, in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/electronic-shelf-label-esl-market
 

Rising number of hypermarkets adopting digital technologies

The growing popularity of hypermarkets in both developing & developed economies will boost the demand for ESLs. High customer traffic during peak hours poses challenges for hypermarkets to keep track of the inventory and the discounts offered on select products. Using ESLs, hypermarkets can change prices in real-time, depending on the customer footfall and design marketing strategies to attract more consumers by offering markdowns. ESLs help to attain an ideal omnichannel experience for consumer electronics vendors, facing intense competition from online players. Electronic labels operated from a central server also ensure that the price at the shelf matches the price at the checkout point.
 

Developed retail sector in Europe is adopting advanced technologies to ensure customer satisfaction

The electronic shelf label market in Europe is forecast to register growth rate of about 9% till 2027 propelled by the developed retail sector in the region. Retail digitalization has gained popularity over the past decade with retailers focusing on adopting advanced technologies to reduce the staff at physical stores. For instance, in August 2021, Herbert Retail announced that it is supplying electronic shelf labels to stores operated by Scotmid Co-op and Southern Co-op. Preliminary trials have already shown increased store efficiency, reduced paper wastage, enhanced store team morale, and improved pricing & product information compliance.

Introducing innovative products to capture a large market share forms a key strategy among players

The electronic shelf label industry is competitive with companies focusing on launching new solutions as per changing end-user demands. Industry participants are focusing on the increasing penetration of digitalization across the retail sector to launch innovative solutions.
 

Key players in the ESL market include Advantech Co. Ltd., Diebold Nixdorf, Samsung Electronics Co. Ltd., Pricer AB, NXP Semiconductors N.V., SES-Imagotag, E Ink Holdings Inc., SoluM Co. Ltd., DisplayData Limited, Herbert Ltd., LG Innotek, Opticon Sensors Europe B.V., and Hanshow Technology Co. Ltd.