Global Electronic Shelf Label Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Electronic Shelf Label Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Electronic shelf label is a kind of electronic display device placed on the shelf, which can replace the traditional paper price label. Each electronic shelf label is connected with the computer database of the shopping mall through wired or wireless network, and the latest commodity price is displayed on the screen of the electronic shelf label. Electronic shelf labeling actually successfully integrates the shelf into a computer program, getting rid of the condition of manually changing the price tag, and realizing the price consistency between the cashier and the shelf.

Market Overview:

The latest research study on the global Electronic Shelf Label market finds that the global Electronic Shelf Label market reached a value of USD 1413.3 million in 2022. It’s expected that the market will achieve USD 4807.67 million by 2028, exhibiting a CAGR of 22.64% during the forecast period.

Influence of COVID-19 Outbreak on Electronic Shelf Label (ESL) Industry Development

The coronavirus pandemic hampered the ESL market growth due to stringent lockdown measures imposed by government administrations globally. The temporary shutting of manufacturing plants hampered the global supply chains, in turn, impacting the overall market expansion. The overall market conditions worsened owing to the closure of industrial facilities, restrictions on public movement reduced footfall in retail stores, and hindrance in the international trade. The market has witnessed a decline in company sales and marketing activities, cancelled product launches, temporary business shutdowns and disruptions to supply chain and manufacturing activities. A considerable number of companies are still struggling due to manufacturing delays, which are mainly due to restrictions on raw materials and on-site labor. For some electronic shelf label manufacturers, due to social distancing measures and supply chain delays, the crisis has slowed down product delivery and has had a certain impact on revenue. Apart from production capacity, the several lockdown measures imposed by governments have led to the closures of retail stores. This has led to an unprecedented spike in e-commerce adoption, causing a dent in physical sales.
Some factories began to resume operation, however, enterprises need to protect the life and health of employees while operating production, such as purchasing masks, disinfectants and other epidemic prevention materials, disinfecting the working environment before and after production, and testing the body temperature of employees every day to ensure their health. These measures will increase production costs and affect the development of enterprises.

High Initial costs required to set up ESL

The asymmetry between price and value of electronic shelf label and customers' reluctance to pay premium are the biggest market development problems facing the electronic shelf label industry at present. In terms of price, customers think the current electronic shelf label is still too high. One-time investment in the early stage, the cost is high for customers, and the return on investment in the later stage is not obvious; In terms of value, customers think the intuitive value brought by electronic shelf label is still not enough.

Lack of skilled labor force

Talent shortage caused by insufficient talent reserve is the biggest obstacle for the retail industry to use new retail tools. It is an organizational barrier of industry nature. Enterprise staff with low education level are prone to problems when using electronic shelf labels. For example, when changing prices through handheld terminals, they do not follow the process, resulting in price change information is not uploaded to the server, and there is a mismatch between background information and front-end information display.

Increasing popularity of NFC-based payment techniques

Retailers in the market are focusing on adopting self-checkout systems that enable customers to pay instantly while shopping by scanning the ESL using their smartphones. Electronic labels enable customers to effortlessly attain product data and pay conveniently using NFC cards or mobile phones. Scanning the label leads the customer's smartphone to the product webpage for more information through built-in NFC. The customer can also make payments instantly, eliminating the need to stand in long queues at cash counters. The increasing focus of retailers on maximizing profitability using digital technologies will stimulate the acceptance of electronic labels.

Region Overview:

In global comparison, a significant portion of the revenue was generated in Europe (49.17% in 2022).

Company Overview:

SES-imagotag is one of the major players operating in the Electronic Shelf Label market, holding a share of 25.16% in 2023.

SES-imagotag

SES-imagotag is the world leader in smart digital labels and Retail IoT solutions for physical retail, serving over 300 large retailers around the world in Europe, Asia and America.

Pricer

Pricer is a leading global technology company serving the rapidly growing smart retail market with in-store digital solutions that enhance both store performance and the shopping experience. Through electronic shelf labels, advanced technology, such as optical wireless communication and AI, and continuous innovation, Pricer offers the foundation for in-store communication and efficiency. The industry-leading Pricer platform delivers benefits from 30years of deployment experience and is fast, robust, interconnectable and scalable.

Segmentation Overview:

As for product types, the Segmented e-Paper ESL segment held the largest market share in 2022.

LCD

LCD screen cost lower than electronic ink screen, suitable for dynamic display, full color optional, rich display effect. However, LCD has high power consumption, requires continuous power supply, limits the choice of application areas in the store, and poses security risks.

Segmented e-Paper ESL

An e-paper display is made up of capsules in a thin film, with each particle within the capsules emitting a different color and different electric charge. Electrodes are placed above and below the capsule film and when a charge is applied to an individual electrode, the color particle will move to either the top or the bottom of a capsule, allowing the ESL to display a certain color. E-paper generally uses infrared or radio communication technology to communicate from the transmitter to the tags.
Segmented displays are intended for applications where the display requirements can be met using predefined segments that can be turned on or off. This is similar to what one would see in a typical calculator with a numeric or alphanumeric display.

Full Graphic e-Paper ESL

A full-graphic e-paper ESL displays the price, QR code, barcode, and other messages on a single screen. In addition, full graphical e-paper ESLs are a key to gain customer attention and make the in-store communication dynamic.

Application Overview:

The market's largest segment by application is the segment Hypermarkets & Supermarkets, with a market share of 40.62% in 2022.

Key Companies in the global Electronic Shelf Label market covered in Chapter 3:

M2Communication
Hanshow
Teraoka Seiko Co., Ltd.
Pricer
Opticon Inc.
E Ink Holdings
SES-imagotag
SOLUM

In Chapter 4 and Chapter 14.2, on the basis of types, the Electronic Shelf Label market from 2018 to 2029 is primarily split into:

LCD
Segmented e-Paper ESL
Full Graphic e-Paper ESL

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Electronic Shelf Label market from 2018 to 2029 covers:

Hypermarkets & Supermarkets
Convenience Stores
Specialty Stores
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)