Market Scenario
The global electronic shelf label market is projected to experience substantial growth over the next decade, with revenue expected to increase from US$ 1.13 billion in 2022 to US$ 6.51 billion by 2031, representing a remarkable CAGR of 23.8% during the forecast period of 2023-2031. This market growth is primarily driven by the increasing adoption of automation technologies in retail stores, as well as the growing demand for electronic shelf labels in developed and developing regions.
In addition, the market is also anticipated to witness a significant increase in volume, with a projected CAGR of 16.0% during the same forecast period. This is largely attributed to the rising trend of digitalization in the retail industry, which has led to an increased demand for innovative and efficient labeling systems that can provide real-time pricing and inventory information to customers.
Electronic shelf labels are an increasingly popular choice among retailers for displaying product information in their stores due to their cost-effectiveness and time-saving benefits. These labels are typically manufactured using a range of materials, including LED screens, batteries, security devices, control systems, and sensors, as well as wire, connectors, switches, and other components.
The LED screens are the most crucial component of electronic shelf labels as they display the product information in a clear and readable format. The batteries are responsible for powering the labels, and the security devices protect the labels from theft or tampering. The control systems and sensors enable the labels to communicate with the store's inventory management systems and update pricing and product information in real-time.
Market Dynamics
Increasing Demand for Retail Automation
One of the major factors responsible for the growth of the global electronic shelf label market is the increasing demand for retail automation globally. Automation in the retail industry has grown in popularity due to technological improvements, which have allowed retailers to streamline their operations, improve efficiency, and reduce costs. Electronic shelf labels are a key component of retail automation, as they enable retailers to manage pricing and product information in real-time, reducing the need for manual updates.
Adoption of NFC Technology
Another important factor contributing to the growth of the electronic shelf label market is the increasing adoption of Near Field Communication (NFC) technology. NFC is an embedded technology that uses proximity to simplify transactions, data sharing, and short connections. It is both energy-efficient and cost-effective, making it an ideal choice for electronic shelf labels. The usage of NFC in electronic shelf labels is increasing in the retail industry, and this trend is expected to continue, driving market growth.
Opportunities for Growth
The increasing adoption of advanced technology also creates a lucrative growth opportunity for the electronic shelf label market. With the introduction of new technologies such as AI, IoT, and cloud computing, electronic shelf labels can become even more sophisticated, enabling retailers to manage inventory, monitor sales, and improve customer experiences.
Challenges in the Market
While the electronic shelf label market is growing rapidly, there are some challenges that could impact this growth. One such challenge is the high installation costs and supporting infrastructure expenditure, which could make it difficult for retailers to justify the investment in electronic shelf labels. In addition, cheap labor costs in economically developing countries could also limit the market growth, as retailers in these regions may not see the need to invest in electronic shelf labels.
Market Segmentation
By Component:
The electronic shelf label market is segmented based on components into hardware and label management software. In 2022, the hardware segment held the largest market share due to its low cost as ESL manufacturers produce all the components in-house. However, the label management software segment is expected to grow at the highest CAGR during the forecast period, owing to the increasing demand for digital shelf solutions and real-time price updates.
By Display Type:
Based on display type, the market is segmented into full graphic E-Paper, LCD, and others. The full graphic E-Paper segment holds the highest market share in 2022 and is projected to dominate the market over the forecast period. It is available in multiple sizes and has a high-definition and paper-like appearance display, which provides better readability and clarity for customers.
By Communication:
The electronic shelf label market is segmented based on communication into infrared (IR) and Near Field Communication (NFC). In 2022, the infrared (IR) segment dominated the electronic shelf label market. However, Near Field Communication (NFC) is anticipated to grow at the highest CAGR over the forecast period as it allows devices to communicate with one another in a seamless manner, making it more convenient for customers.
By Power:
The market is segmented based on power into battery-powered and wireless charger. In 2022, the battery-powered segment held the largest market share due to its convenience and ease of use. However, the wireless charger segment is expected to project the highest CAGR during the forecast period as wireless charging technology is making rapid advancements.
By Color:
The market is segmented based on color into monochrome and multi-color. In 2022, the multi-color segment contributed the major share in the global electronic shelf label market due to its ability to display a variety of colors, graphics, and logos.
By Display Size:
The market is segmented based on display size into 3-6 inches, 7-10 inches, and others. In 2022, the 3-6 inches segment dominated the electronic shelf label market and is also expected to project the highest CAGR over the forecast period as they have the perfect display size and are also affordable.
By Store Type:
The electronic shelf label market is segmented based on store type into hypermarkets, supermarkets, convenience stores, and others. In 2022, the fashion & apparel segment held the largest market share in the electronic shelf label market due to the growth of online stores and the e-commerce industry. However, the grocery/general retail segment is expected to grow at the highest CAGR over the forecast period, owing to the increasing demand for automation in the retail industry.
By Retail Format:
The market is segmented based on retail format into hypermarket, supermarkets, convenience stores, and others. In 2022, the hypermarket segment dominated the electronic shelf label market owing to the growing adoption of digital technologies in the retail sector. Moreover, the hypermarket segment is anticipated to grow at the highest CAGR during the forecast period due to its ability to offer a variety of products and services to customers.
Regional Analysis
The electronic shelf label market is segmented by region, and Europe held the largest share of the market in 2022. Europe is one of the leading markets for electronic shelf labels due to the region's highly developed retail infrastructure and the high adoption rate of automation in the retail industry. Additionally, the presence of a large number of retail chains in Europe, especially in countries such as France, Germany, and the United Kingdom, has led to the growth of the electronic shelf label market in the region. The region also has a high demand for energy-efficient and sustainable products, and electronic shelf labels fit this requirement well.
On the other hand, North America is projected to witness the highest CAGR over the forecast period. The growth of the electronic shelf label market in North America can be attributed to the region's highly developed retail industry. The presence of leading retail giants in North America, such as Walmart, Target, and Costco, with higher customer interest and advanced technological adoption, is a major driver for the electronic shelf label market in the region.
Furthermore, the availability of processing machinery in the region is relatively easy, which makes it easier for electronic shelf label manufacturers to operate and expand their business. The North American region has also shown a high preference for automation in the retail industry, which is expected to drive the market growth for electronic shelf labels in the region.
List of Key Companies Profiled:
Segmentation Overview
Following are the different segments of the Global Electronic Shelf Label Market:
By Component:
By Display Type:
By Communication:
By Power:
By Color:
By Display Size:
By Store Type:
By Retail Format:
By Region:
| Report Attribute | Details |
|---|---|
| Market Size Value in 2022 | US$ 1.13 Billion |
| Expected Revenue in 2031 | US$ 6.51 Billion |
| Historic Data | 2018-2021 |
| Base Year | 2022 |
| Forecast Period | 2023-2031 |
| Unit | Value (USD Bn) |
| CAGR | 23.8% (2023-2031) |
| Segments covered | By Component, By Display Type, By Communication, By Power, By Color, By Display Size, By Store Type, By Retail Format, By Region |
| Key Companies | Acuity Brands Inc., Eaton, Wolfspeed, Dialight PLC, General Electric Company, Heliospectra AB, Hubbell Incorporated, Nichia Corporation, OSRAM GmbH, Panasonic Corporation, Phillips Lighting Holding B.V., Samsung, Savant Systems Inc., Sharp Corporation, Virtual Extension, Zumtobel Group AG, Other Prominent Players |
| Customization Scope | Get your customized report as per your preference. Ask for customization |
ESL is a wireless, paperless, accurate technique that allows retailers to instantaneously update price changes on the shelves and checkout stands of one or multiple stores.
The ESL process involves the use of a liquid crystal device that replaces paper shelf labels at the retailer’s shelf edge.
ESL management system helps store chains in strategic and dynamic price management as this system includes hardware like base stations, transceivers, and electronic shelf labels.
Estimated market size of the global electronic shelf label market was US$ 1.13 billion in 2022.
Europe held the major share in terms of revenue, in the global electronic shelf label market in 2022.
Factors such as increasing demands for retail automation and increasing adoption of NFC technology drive the growth in the global electronic shelf label market.
High installation cost and supporting infrastructure expenditure and cheap labor costs in economically developing countries is a restraining factor that inhibits the growth of the market.
The label management software segment is expected to project the highest CAGR over the forecast period in the electronic shelf label market.
UK held the major share in the Europe electronic shelf label market in 2022.
The increasing adoption of advanced technology creates a lucrative growth opportunity for the market.
Component, display type, communication, power, color, display size, store type, retail format, and region are covered in the global electronic shelf label market.
NZ Electronic Shelf Labelling, Panasonic Corporation, NCR Corporation, M2Communication, Diebold Nixdorf, SES-imagotag, Pricer AB, E Ink Holdings, Displaydata, Samsung Electronics Co. Ltd, Opticon Sensors Europe BV, and Teraoka Seiko among others.
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| Report ID: AA0622272 
