Electronic Shelf Label Market - Growth, Trends, and Forecast (2019 - 2024)

The Electronic Shelf Label Market is segmented by Type of Product (LCD ESLs and E-paper ESLs), Component (Displays, Batteries, and Transceivers), Communication Technology (RF, IR, NFC, and VLC), Store Type (Hyper Markets, Super Markets, Non-food Retail Stores, and Specialty Stores), and Geography.

Market Snapshot

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Study Period:

2018-2024

Base Year:

2018

Fastest Growing Market:

Europe

Largest Market:

North America

CAGR:

21.42%

Key Players:

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Market Overview

The electronic shelf label market was valued at USD 478.6 million in 2018, and is expected to reach a value of USD 1.50 billion by 2023, witnessing a CAGR of 21.42% over the forecast period of 2019–2024. 

  • High accuracy and reduction in labor cost (compared to the conventional label changing) are boosting the growth of the market. These factors have significantly reduced the risk of human error by ensuring potential pricing compliances. The clients lose trust in a company, if the in-store prices do not align with the online display (as this is often the reality they encounter). Electronic shelf label helps to fix the price errors.
  • NFC penetration in the industry is expected to gain momentum over the coming years, owing to the increasing adoption of NFC technology in multiple devices, such as POS systems and smartphones. This allows the retailers to integrate these devices with the existing handheld devices for lowering the overall installation cost of these labels. This acts as a key driver for the growth of market.
  • However, the high initial investments required to set up these products in stores as well as less knowledge about the usefulness of the ESL system are the major restraining factors for the growth of the electronic shelf label market.

    The electronic shelf label market was valued at USD 478.6 million in 2018, and is expected to reach a value of USD 1.50 billion by 2023, witnessing a CAGR of 21.42% over the forecast period of 2019–2024. 

  • High accuracy and reduction in labor cost (compared to the conventional label changing) are boosting the growth of the market. These factors have significantly reduced the risk of human error by ensuring potential pricing compliances. The clients lose trust in a company, if the in-store prices do not align with the online display (as this is often the reality they encounter). Electronic shelf label helps to fix the price errors.
  • NFC penetration in the industry is expected to gain momentum over the coming years, owing to the increasing adoption of NFC technology in multiple devices, such as POS systems and smartphones. This allows the retailers to integrate these devices with the existing handheld devices for lowering the overall installation cost of these labels. This acts as a key driver for the growth of market.
  • However, the high initial investments required to set up these products in stores as well as less knowledge about the usefulness of the ESL system are the major restraining factors for the growth of the electronic shelf label market.

Scope of the Report

Electronic Shelf Label (ESL) is used by retailers to display product pricing on shelves. The product pricing is automatically updated (whenever the price gets changed) from a central control server. The ESL market based on store type is dominated by hypermarkets, owing to the complications associated with the manual management of such big stores. This factor is leading to the high rate of adoption of these labels in the hypermarkets.  

By Product
LCD ESLs
E-paper ESLs
By Component
Displays
Batteries
Transceivers
By Communication Technology
RF
IR
NFC
VLC
By Store Type
Hyper Markets
Super Markets
Non-food Retail Stores
Specialty Stores
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa

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Key Market Trends

NFC Mobile Payment is Owing to Increase the Market in Retail Sector

  • Due to increase in the NFC (Near Field Communication) enabled smartphone technology, the use of NFC in electronic shelf labels is growing in retail sector, as it is energy-efficient and cost effective. Near Field Communication (NFC) is embedded and uses proximity to create simplified transactions, data exchange, and brief connections. Prior to purchase, NFC-enabled smart packages and signage can provide timely product information and even real-time digital offer to the customers.
  • In retail, the NFC technology significantly adds up to standard ESLs, which display the price and facilitate the stock management by enabling price updates at any time. This simplifies the customer interactions via a simple tap on an NFC-enabled smartphone. 
  • A majority of the customers prefer NFC technology over other digital innovations, such as QR code, and Bluetooth beacon, due to its high speed and improved control on information. This NFC enabled devices help in collecting the details of customers, their shopping interests, and frequently purchased items. This facilitates personalized marketing and, thus, attracts customers to visit again. This factors helps in boosting the growth of the market.
  • Casino is a French supermarket that has used NFC tags in front of every product on the shop shelves. Customers can touch the tag with their phones and can view the product info or add the product to their mobile app’s basket. It also provides personalized prices and activates instant promotions.
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North America to Account for a Major Share

  • North America is the largest market for electronic shelf labels globally. The huge market in this region can be attributed to the vast presence of retail stores, both small and big, across the region. 
  • Moreover, favorable government initiatives in the US towards technological innovation and integration of automated products across all industry verticals, specifically in retail automation is boosting the demand for the market.
  • The US has been led by retail giants, such as Wal-Mart, driving the upsurge in activity, largely contributing to the market growth in the region. The country has been one of the largest logistics markets in the world. 
  • The industrial revolution in the US has created large data evolution capabilities to be used in the production processes and integration in supply chain management. The technology aids in enhancing the store operations further developing the industry, by which ESL will improve the performance efficiency of store operations.
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Competitive Landscape

The electronic shelf label market is highly fragmented, with many small retail chains and very few dominant retail brands. The retailers are adopting these solutions to make frequent changes in the prices of products by allowing the retailers to add promotional offers to attract customers. This factor is creating a rivalry among the competitors. The key players are E Ink Holding Inc., LG Corporation, Altierre Corporation, etc. the recent developments in the market are :

  • May 2019 - E Ink, the leading innovator of electronic ink technology, displayed its latest innovations in color displays, writing films, and new light transmissive films at SID Display Week 2019 from May 14-16, 2019 in San Jose. It enables electronic shelf labels to respond to the customer traffic patterns in an accurate manner.

Major Players

  1. E Ink Holding Inc.
  2. LG Corporation
  3. Altierre Corporation
  4. Displaydata Ltd
  5. Diebold Nixdorf

* Complete list of players covered available in the table of contents below

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Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 NFC penetration in POS and Smartphones

    4. 4.4 Market Restraints

      1. 4.4.1 High Initial Investments

    5. 4.5 Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. TECHNOLOGY SNAPSHOT

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Product

      1. 6.1.1 LCD ESLs

      2. 6.1.2 E-paper ESLs

    2. 6.2 By Component

      1. 6.2.1 Displays

      2. 6.2.2 Batteries

      3. 6.2.3 Transceivers

    3. 6.3 By Communication Technology

      1. 6.3.1 RF

      2. 6.3.2 IR

      3. 6.3.3 NFC

      4. 6.3.4 VLC

    4. 6.4 By Store Type

      1. 6.4.1 Hyper Markets

      2. 6.4.2 Super Markets

      3. 6.4.3 Non-food Retail Stores

      4. 6.4.4 Specialty Stores

    5. 6.5 Geography

      1. 6.5.1 North America

      2. 6.5.2 Europe

      3. 6.5.3 Asia-Pacific

      4. 6.5.4 Latin America

      5. 6.5.5 Middle East & Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Altierre Corporation

      2. 7.1.2 Diebold Nixdorf

      3. 7.1.3 Display data Ltd

      4. 7.1.4 E Ink Holding Inc.

      5. 7.1.5 LG Corporation

      6. 7.1.6 M2 Communication Inc.

      7. 7.1.7 Pricer AB

      8. 7.1.8 Samsung Electro-Mechanics Co. Ltd

      9. 7.1.9 SES-imagotag

      10. 7.1.10 Wincor Nixdorf AG

      11. 7.1.11 AdvanTech Inc.

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

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