Electronic Shelf Label (ESL) Market size worth over $2bn by 2026

Electronic Shelf Label Market size is set to surpass USD 2 billion by 2026, according to a new research report by Global Market Insights, Inc.
 

Growing demand for less time-consuming and cost-effective alternatives to paper labels is fueling the market growth. Changing buying behavior and brand switch decisions of consumers during in-store purchases will drive the rapid adoption of electronic shelf labels among store owners. Unplanned in-store purchase decisions are predominantly based on price. Stores are ensuring that pricing and promotional messaging remain customer-centric, which will be easy to see and compel. This advertising and pricing strategies are expected to encourage purchase and customer retention.

 

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The rise in the demand from retail owners to increase customer engagement and focus on all time-of-day promotions are propelling the electronic shelf label market growth. The value-added purchase information including QR codes, cost per unit, and suggestions offered by the labels during product sales is proliferating its adoption in the retail sector. The advent of technologies, such as NFC, AI, and IoT, coupled with increasing penetration of the internet across the globe is driving innovations in the label.
 

Governments across the globe have imposed lockdown due to COVID-19 pandemic. This has restricted in-store purchases and increased home delivery options. The rising trend of home delivery is adversely impacting the market growth. The economic impact of the growing outbreak is shifting from the service-driven sector, such as hotels and restaurants, to the manufacturing sector. This has resulted in the shutdown of electronics manufacturing factories and disruption in the supply chain, negatively impacting other stakeholders of the industry. Uncertainties related to the reopening of factories and backlogs created in the global supply chain are anticipated to hinder the ESL market.
 

LCD segment offers energy efficiency advantage to retail owners

Global electronic shelf label (ESL) market

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The LCD ESLs accounted for about 40% electronic shelf label (ESL) market share in 2019 and is anticipated to hold its dominance in the forecast timespan. LCD technology offers several features that include enhanced resolution, image sharpness, and reduction in radiation. It displays price in very big characters, which are clear & legible, optimizing price display for faster reading. LED flash is additionally provided in LCD to display information related to goods inventory, promotions, & shelf life.
 

LCDs consume approximately 50% to 66% energy that CRT monitors require, thereby facilitating energy-savings. LCD monitors also generate high peak intensity, providing a brighter image. High peak intensity is due to the constant backlight in LCD panels that illuminates the screen. This makes LCD labels a preferred choice for use in brightly lit areas in stores. Low power consumption in LCDs is also an important feature, boosting its market demand. The cost-effectiveness of the labels will also boost its market demand.
 

Browse key industry insights spread across 290 pages with 569 market data tables and 27 figures & charts from the report, “Electronic Shelf Label Market Size By Product (LCD ESL, Segmented E-Paper ESL, Full Graphic E-Paper ESL), By Technology (RF, IR, NFC), By Application (Industrial, Commercial [Hypermarket, Supermarket, Non-Food Retail]), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/electronic-shelf-label-esl-market
 

An upsurge in the demand for RF & IR technology enables labels to offer uninterrupted signal transfer

The RF-based segment is expected to witness a CAGR of 8% through 2026. Communication technologies play a vital role in the global market. They enable two-way communication between the label tags and the core software or between the label tags and consumers. Both types of communication are crucial for efficient operations and stable revenue streams.
 

The IR technology-based electronic shelf label (ESL) market is anticipated to observe around 9% growth till 2026. The technology features high directionality by identifying precise identification of the source. As different sources emit radiation with varying frequencies, the risk of data being diffused is eliminated. Furthermore, infrared radiation is not harmful to human beings and hence can safely be implemented in labels.
 

Rapid growth of industries adopting latest innovative technologies will support the ESL market growth

The industrial sector held a major market share in the year 2019 and is set to expand at more than 10% from 2020 to 2026. The improving economic conditions globally have led to a rise in the number of small & medium-scale industries globally. The manufacturing and logistics industries are using advanced technologies to ensure operational efficiencies in facilities or plants. Moreover, growing IIoT trend across the globe will further boost the adoption of the labels across end-use sectors.
 

Smart Manufacturing and IIoT are the latest and fastest-growing divisions of ISA (The International Society of Automation) that will help its members grow technically. In the industrial sector, digital signage enhances critical operations of a manufacturing process. The flexible system can display alerts, information or metrics on machines or shelves and simultaneously enable direct communication to ordering systems through integrated activity buttons. Electronic shelf labels improve daily processes and reduce costs of using paper solutions.
 

Robust electronics sector of Japan and China to support the adoption of electronic shelf label

The Asia Pacific electronic shelf label market accounted for over 30% revenue share. The market growth can be attributed to strong electronics sector in Japan, South Korea, and China, aiding in the deployment of advanced electronic solutions.
 

The ESL market will witness a rise in South Korea due to rapid growth in the retail sector across the region. The Manufacturing Innovation Strategy 3.0 is an initiative to widely upgrade the manufacturing industry in South Korea. The purpose of Strategy 3.0 is to innovate the manufacturing process, to expand smart factories, and develop core technologies related to smart manufacturing.
 

Market players are collaborating with technology providers to introduce robust products

Industry players are focusing on strategic alliances with local distribution channels to expand their geographical region. For instance, in February 2020, Hanshow Technology partnered with Bison Schweiz AG to co-develop for the Swiss and German market, integrating Bison’s ESL Manager with Hanshow’s ESL. The interactive NFC and AI technology enables seamless payment and helps retailers to design an innovative marketing campaign for in-store buyers.
 

Major players in the electronic shelf label market include Samsung Electronics Co., Ltd., Teraoka Seiko Co., Ltd., E Ink Holdings Inc., Herbert Retail Limited, M2COMM, Opticon Sensors Europe B.V., Diebold Nixdorf, Incorporated, Displaydata Limited, SoluM, SES-imagotag, Advantech Inc., and Altierre Corporation.
 

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