The Electronic Shelf Labels Market is estimated to be valued at US$ 1,025.4 Mn in 2022 and is expected to exhibit a CAGR of 16.06 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Electronic shelf labels (ESLs) are used by retailers to digitally display product pricing labels on shelves, and are a more advanced version of traditional paper price tags. ESLs allow retail store associates to change product pricing and promotions remotely in real-time from a back-office computer through wireless connectivity. This saves labor costs and accelerates the promotional updating process compared to manually printed labels.
Market key trends:
The adoption of electronic shelf labels is gaining momentum owing to the ongoing trend of connected retail revolution. Retailers are increasingly adopting smart technologies such as ESLs, beacons, sensors and indoor positioning systems to offer connected shopping experiences to customers. ESLs allow retailers to instantly update product prices, promotions and other details on shelves through centralized remote network management. This helps retailers in faster inventory management, flexible pricing, dynamic customization of shelf contents and enhanced customer engagement. The real-time data and insights from ESL systems also support predictive inventory planning and optimization of store layouts for maximizing sales conversions.
Porter’s Analysis
Threat of new entrants: The electronic shelf labels market requires high initial investments for setting up production facilities and R&D. This poses high entry barriers for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of several players providing electronic shelf labels. However, switching costs associated with replacing the existing infrastructure limits their power.
Bargaining power of suppliers: Component manufacturers have low bargaining power due to the presence of numerous substitute components. The threat of forward integration by buyers also restricts suppliers' influence.
Threat of new substitutes: Substitute technologies such as handheld scanners can replace electronic shelf labels to some extent. However, electronic shelf labels are more convenient for real-time pricing and inventory updates.
Competitive rivalry: Intense competition exists among the major players to gain market share.
SWOT Analysis
Strengths: ESL systems allow real-time pricing updates and improve inventory management. They eliminate printing and price tag labour costs.
Weaknesses: High initial installation cost and requirement of replacing existing labels are major constraints. Network connectivity and software issues can disrupt operations.
Opportunities: Growth in retail automation, development of interactive ESL, and expansion in developing countries present opportunities.
Threats: Changing consumer preference toward online shopping poses a threat. Technology obsolescence is another challenge.
Key Takeaways
The electronic shelf labels market is expected to witness high growth at a CAGR of 16.06% over the forecast period due to rising implementation of retail automation solutions across industries. The growing adoption of ESL among grocery retailers to enhance price accuracy and update pricing in real-time is the key driver.
Regionally, North America dominated the market with over 30% share in 2022 owing to widespread adoption among leading retailers for customer convenience. Asia Pacific is anticipated to exhibit the fastest growth during the analysis period. Proliferation of supermarkets and hypermarkets along with rising foreign direct investments from global players is likely to boost the regional market.
Key players operating in the electronic shelf labels market are SES-Imagotag, Pricer AB, Displaydata, Opticon Sensors Europe B.V, Samsung Electro-Mechanics, NZ Electronic Shelf Labelling, M2Communication, Diebold Nixdorf, Altierre, Teraoka Seiko, Advantech US, E Ink, Toshiba Global Commerce Solutions, SESimagotag, E-Ink, Wuxi Wei Feng Technology, and Cicor. Major players are focused on new product launches, partnerships, and mergers & acquisitions to strengthen their position.
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