Electronic Shelf Label Revenues to Exceed US$6.2 Billion by 2030 Amid Retailers' Response to a Shrinking Workforce
Retailers increasing spend on advanced technologies to improve operating models as labor forces dwindle and costs rise
NEW YORK, April 3, 2024 /PRNewswire/ -- In retail stores, technology is being increasingly leveraged to enhance customer experiences, improve product availability, and address labor challenges head-on. According to global technology intelligence firm ABI Research, Electronic Shelf Label (ESL) revenues worldwide are expected to surpass US$6.2 billion by 2030.
"Retail stores incorporate a lot of manual processes. Workers are required to ensure shelves are stocked, inventory is managed, the store is clean, and customers are supported. With a dwindling labor force, retailers are struggling to deliver to all areas effectively. As a result, technologies that remove the time-consuming tasks from associates such as ESLs and inventory scanning robots are receiving strong investment, with many retailers deploying the technologies chain wide following successful pilot projects," explains Ryan Wiggin, Supply Chain Management & Logistics Industry Analyst at ABI Research.
Europe has led the charge with ESLs, currently with the highest installed base at almost 600 million ESLs. The region also hosts the two largest ESL vendors, SES-imagotag and Pricer, holding a combined market share of over 60%. However, increasing interest in North America and a sharp growth of smaller ESL vendors based in Asia is shifting the market, with a higher CAGR in shipments expected across these two regions at 16.1% and 27.7% respectively.
The inventory scanning robot market is dominated by North America with over 75% of deployments in 2023. Brain Corp completed its national rollout of robots with Sams Club, and Simbe recently expanded its partnership with SpartanNash to bring the robots to 60 additional stores.
Micro-fulfillment experienced a drop from the initial hype, but global investment in Micro-Fulfillment Centers (MFCs) is expected to surpass US$5 billion by 2030 as retailers steadily explore and invest in MFCs to deliver on curbside and online fulfillment. Grocery is a prominent industry for MFC investment, and many retailers have established partnerships with key automation companies to deliver on their MFC strategies, such as H-E-B with AutoStore, Tesco with Dematic, and Hy-Vee with Takeoff Technologies.
"Technologies deployed by a grocery chain will not be the same as a big-box retailer, or a cosmetics store, meaning there is not a one size fits all approach when it comes to retail digitalization. ABI Research expect retailers spending on advanced technologies to continue to grow over the coming years, with a broad range of technologies finding their niche in particular segments as they tackle the most pressing pain points," concludes Wiggin.
These findings are from ABI Research's Retail Technologies: Electronic Shelf Labels (ESLs), Inventory Scanning Robots, and Micro-Fulfillment Centers (MFCs) report. This report is part of the company's Supply Chain Management and Logistics research service, which includes research, data, and ABI Insights.
About ABI Research
ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.
ABI Research是一家全球性的技术情报公司，拥有得天独厚的优势，充当终端市场公司和技术解决方案提供商之间的桥梁，通过提供独家研究和专业性指导，推动成功的技术实施和提供经证明可吸引和留住客户的战略，无缝连接这两大主体。
For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
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SOURCE ABI Research
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