Smart Shelf Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Smart Shelf Market is segmented by Component (Hardware (IoT Sensors, RFID Tags and Readers, Electronic Shelf Labels (ESL), Cameras), Software, Service), Application (Inventory Management, Pricing Management, Content Management, Planogram Management), and Geography.

Market Snapshot

Smart Shelf Market
Study Period: 2020-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: Europe
CAGR: 24.9 %

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Market Overview

Smart Shelf Market is expected to register a CAGR of over 24.9% during the forecast period 2022 - 2027. Furthermore, COVID-19 has increased the demand in retail for software and solutions to connect the physical environment to the remote server. The COVID-19 pandemic has transformed digital technology and remote working practices. In retail, it has become critical to monitor and keep track of inventory, planogram, pricing and offers, and product content management in real-time, which has influenced the adoption of smart shelves.

  • Smart shelves are electronically connected shelves used in retail outlets to track inventory. Smart shelves use a combination of digital displays, RFID tags, and sensors to provide detailed product information, cross-selling recommendations, and marketing. They also provide retailers with valuable insights into customer shopping patterns and preferences.
  • The adoption of enhanced inventory control by retailers to create smarter restocking decisions and real-time arrangements, as well as the use of automation and intelligence solutions by retailers to deliver better shopping experiences to customers, are two major factors driving the smart shelves market.
  • For Instance, in June 2022, Avery Dennison introduced a new dual-frequency RFID inlay for industrial and healthcare applications. Avery Dennison's dual-frequency (DF) range of RFID inlays offers combined NFC (high frequency) and RAIN RFID (ultra-high frequency) functionality, reportedly offering cost-effective item-level tagging in a slimmed-down form factor when compared to using two separate, single-frequency inlays.
  • The majority of the customers prefer NFC technology over other digital innovations, such as QR codes, and Bluetooth beacon, due to its high speed and improved control of information. These NFC-enabled devices help collect customer details, shopping attractions, and frequently bought items. This facilitates personalized marketing and, thus, attracts customers to visit again. This factor helps in boosting the growth of the market.
  • For instance, in December 2021, LED iBond International developed new vertical farming technology to make equipment more smart, sustainable, and convenient for retail use. The company agreed to supply smart shelves for a patented new load carrier trolley with UNI-TROLL Europe ApS and TPS Rental Systems Ltd. The trolley is intended to be used as a mobile vertical farming solution for the growth and maintenance of fresh herbs and microgreens, as well as crop farming, transportation, and storage.
  • Further, the 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, view the product info, or add the product to their mobile app’s basket. It also provides personalized prices and activates instant promotions.

Scope of the Report

Retailers use Smart Shelf to display product pricing on store shelves, and there is a central control server that automatically updates the product pricing (when the price changes). Smart shelves use sensors, digital displays, and RFID tags to deliver detailed product information, marketing and cross-selling recommendations, and insights into retailers' customer preferences and shopping patterns. The study includes applications in Inventory Management, Pricing Management, Content Management, and Planogram Management, among others, in various geographies. The impact of Covid-19 on the market and affected segments are also covered under the scope of the study. Further, the disruption of the factors impacting the market's growth in the near future has been covered in the study regarding drivers and restraints.

By Component
Hardware
IoT Sensors
RFID Tags and Readers
Electronic Shelf Lables (ESL)
Cameras
Software
Service
By Application
Inventory Management
Pricing Management
Content Management
Planogram Management
Other Applications
By Geography
North America
United States
Canada
Europe
United Kingdom
Germany
Italy
France
Rest of the Europe
Asia Pacific
China
India
Japan
South Korea
Australia and New Zealand
Rest of the Asia Pacific
Latin America
Brazil
Mexico
Rest of the Latin America
Middle East and Africa

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Key Market Trends

Inventory Management is Expected to Show Significant Growth

  • Smart Shelves is a new technology quickly gaining traction among manufacturers, retailers, and consumers. In addition, most retail industries started adopting smart inventory management systems to save time and cost. The advanced solutions speed up the development of smart shelves technology and allow it to be implemented in supermarkets or retail stores. For instance, in May 2022, Vimaan Robotics launched an end-to-end inventory system. The company used artificial intelligence and computer vision to monitor goods entering and leaving warehouses via its StorTRACK and DockTRACK Pallet and Parcel systems.
  • The growing number of stores will boost inventory management in the future. According to Capital Requirements Regulation on July 2021, Sales in physical stores in the United Kingdom reached a value of 308 billion British pounds, which is quite high compared to the previous year.
  • In January 2022, Vantiq introduced the next generation of smart retail development platforms. The Smart Retail Development Framework will be available in late Q1 or early Q2 of 2022. It has joined forces with IBM, Infosys, and others to create a low-code retail development platform designed to encourage innovation. These developments will further drive the segment and studied market.
  • Industries are looking for smart inventory management systems to provide organizations with better visibility into inventory levels, item location, forecast demand, expiration dates, and so on, which appears to drive market growth in the future.
  • For instance, in April 2021, AGC Inc., a global glass, chemicals, and high-tech manufacturer, developed the Smart Inventory System for automated raw material management. The Group will promote the handing down of technology and skill among workers and expects to reduce annual labor hours by 1,000. AGC is considering expanding this system to other plants in the future, focusing on the domestic glass business in Japan.
Smart Shelf Market

Europe is Expected to Hold the Significant Market Share

  • The region's retail industry is seeing an increase in demand for smart devices such as RFID tags and labels, smart shelves, mobile computers, POS terminals, signal-receiving devices, customer service appliances such as shopping guide robots, and self-service terminals. These smart devices track and identify items and control inventory applications expected to drive market growth in the future.
  • The retail industry in Europe has experienced rapid growth in recent years. This expansion is attributed to key players such as Pricer, SES Imagotag, Opticon Sensors, and Cicor. The high penetration of electronic shelf labels in the regional retail business, particularly in countries such as France, Italy, Belgium, Germany, and other European countries, is expected to drive the growth of smart shelves in the region.
  • For instance, in April 2021, E Ink Holdings, the significant innovator of electronic ink technology, announced the release of the four-color E Ink SpectraTM 3100, a next-generation ink platform for Electronic Shelf Labels (ESL) and retail signage.
  • However, in September 2021, Opticon and Nowi, two major retail industry leaders,  announced a collaboration on new Electronic Shelf Label solutions for improved in-store customer experience and as a sustainable alternative to traditional smart retail systems. By combining Nowi's Energy Harvesting Power Management IC (PMIC), the NH2, with PV cells on an Opticon Electronic Shelf Label powered by a battery, it is possible to make it 'Energy Autonomous' or self-powered.
  • Moreover, Retailer and Unified Retail Planning specialists aim to optimize and automate hypermarket’s forecasting and replenishment for warehouses and stores ‘real’ is one of the significant food retailers in Germany which provides 80,000 items within its assortment consisting of fresh produce, a core range of ambient food products, personal care items, electronics, and sports articles. These initiatives by retailers in the region further boost the studied segment and the market.
Smart Shelf Market

Competitive Landscape

The Smart Shelf Market is moderately fragmented because of the presence of several global companies. Some of the key players are Avery Dennison Corporation, AWM Smart Shelf, Huawei Technologies Co. Ltd, Dreamztech Solutions Inc., E Ink Holdings Inc., Focal Systems Inc., Happiest Minds Technologies Limited, and many others. Key players in this market are introducing new innovative products and forming partnerships and collaborations to gain competitive advantages.

  • August 2021- Avery Dennison has completed its USD 1.45 billion acquisition of Vestcom, a provider of shelf-edge communications and specialized marketing and labeling services to the retail industry. Vestcom will contribute to the advancement of Avery Dennison's strategies, including the acceleration of smart label adoption, by bringing new assets to drive similar automation and data management offerings to synthesize and streamline store-level data and deliver item-specific, price-integrated, and promotional messaging at the shelf edge.
  • March 2021- Reliance Retail has finalized the Smart Bazaar retail store brand for the locations where the Future Group's Big Bazaar outlets previously operated. Reliance Industries' retail unit plans to open its stores in approximately 950 properties that it had subleased to the Future Group but had taken possession of due to nonpayment of rent. These developments further boost the studied market.

Recent Development

  • November 2021- ADNOC Distribution, the UAE's largest fuel convenience retailer, launched the next-generation retail experience, the ADNOC Oasis store, which is fully autonomous, contactless, and cashier-less. It provides a new, advanced cashless, contactless payment system and an AI-enhanced shopping environment.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Adoption of Enhanced Inventory Management

      2. 5.1.2 Growing Demand for Real-Time Stock Information and Inventory Management in the Retail Sector

    2. 5.2 Market Challenges

      1. 5.2.1 Privacy Concerns Regarding Inbuilt Data Tags

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Component

      1. 6.1.1 Hardware

        1. 6.1.1.1 IoT Sensors

        2. 6.1.1.2 RFID Tags and Readers

        3. 6.1.1.3 Electronic Shelf Lables (ESL)

        4. 6.1.1.4 Cameras

      2. 6.1.2 Software

      3. 6.1.3 Service

    2. 6.2 By Application

      1. 6.2.1 Inventory Management

      2. 6.2.2 Pricing Management

      3. 6.2.3 Content Management

      4. 6.2.4 Planogram Management

      5. 6.2.5 Other Applications

    3. 6.3 By Geography

      1. 6.3.1 North America

        1. 6.3.1.1 United States

        2. 6.3.1.2 Canada

      2. 6.3.2 Europe

        1. 6.3.2.1 United Kingdom

        2. 6.3.2.2 Germany

        3. 6.3.2.3 Italy

        4. 6.3.2.4 France

        5. 6.3.2.5 Rest of the Europe

      3. 6.3.3 Asia Pacific

        1. 6.3.3.1 China

        2. 6.3.3.2 India

        3. 6.3.3.3 Japan

        4. 6.3.3.4 South Korea

        5. 6.3.3.5 Australia and New Zealand

        6. 6.3.3.6 Rest of the Asia Pacific

      4. 6.3.4 Latin America

        1. 6.3.4.1 Brazil

        2. 6.3.4.2 Mexico

        3. 6.3.4.3 Rest of the Latin America

      5. 6.3.5 Middle East and Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Honeywell International Inc.

      2. 7.1.2 Huawei Technologies Co. Ltd

      3. 7.1.3 Trax Technology Solutions

      4. 7.1.4 PCCW Solutions Limited

      5. 7.1.5 Samsung Electronics Co., Ltd.

      6. 7.1.6 AWM Smart Shelf

      7. 7.1.7 Happiest Minds Technologies Limited

      8. 7.1.8 E Ink Holdings

      9. 7.1.9 Avery Dennison Corporation

      10. 7.1.10 Intel Corporation

      11. 7.1.11 NXP Semiconductors N.V.

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

  9. 9. FUTURE OF THE MARKET

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Frequently Asked Questions

The Smart Shelf Market market is studied from 2020 - 2027.

The Smart Shelf Market is growing at a CAGR of 24.9% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2021.

Honeywell International Inc., Huawei Technologies Co. Ltd, Trax Technology Solutions, PCCW Solutions Limited, Samsung Electronics Co., Ltd. are the major companies operating in Smart Shelf Market.

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