Market Trends of Electronic Shelf Label Industry
This section covers the major market trends shaping the Electronic Shelf Label Market according to our research experts:
NFC Mobile Payment is expected to boost market growth
- In retail, near-field communication (NFC) technology significantly adds up to standard ESLs, which display the price and facilitate stock management by enabling price updates at any time. This simplifies customer interactions via a simple tap on an NFC-enabled smartphone.
- Customers may easily access product information via electronic labels and make simple payments using NFC or mobile devices. Using built-in NFC, reading the label directs the customer's phone to the goods homepage for further details. Additionally, the consumer may pay instantaneously, doing away with the requirement to wait in line at cash registers. Electronic labeling will become more widely accepted as merchants emphasize employing digital technology to maximize profits.
- A majority of customers prefer NFC technology over other digital innovations, such as QR codes, and Bluetooth, due to its high speed and improved control of information. These NFC-enabled devices help collect customer details, shopping interests, and frequently purchased items. This facilitates personalized marketing and, thus, attracts customers to visit again. This factor helps in boosting the growth of the market.
- NFC technology is expected to increase because it enables quick and instantaneous data transmission among devices, which drives companies to include it in goods. Numerous smartphones and point-of-sale (POS) systems now use NFC tech as an added function. The need for NFC-enabled ELSs is primarily driven by the growing use of NFC in mobile devices like smartphones, making POS payments faster and improving retail operations.
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North America to Account for a Major Share
- North America is the largest market for electronic shelf labels globally. A large number of retail establishments, both small and large, that are spread out over the region may be credited for the enormous market there. Retails, such as Walmart, have been driving the uptick in activity and significantly boosting market development in the area.
- There are numerous businesses in the North American region, particularly in the United States, and multiple retailers exist. For instance, although CVS Health had 9,939 locations across the US in 2021, Dollar General has more than 17,000 locations across 46 states. Additionally, there are nearly 9,000 7-Eleven locations nationwide.
- Growth in the region's retail industry is expected to create opportunities for product adoption. For instance, according to the National Retail Federation, revenues from all retail outlets in the United States will exceed USD 4.86 trillion in 2022.
- Moreover, favorable government initiatives in the United States towards technological innovation and integration of automated products across all industry verticals, specifically in retail automation, are boosting the market demand.
- The industrial revolution in the United States has created significant data evolution capabilities to be used in the production processes and integration in supply chain management. The technology aids in enhancing store operations, further developing the industry, by which ESL will improve the performance efficiency of store operations.
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