Electronic Shelf Label (ESLS) Market size is set to grow by USD 1.64 billion from 2024-2028, Implementation of in-store technologies boost the market, Technavio

NEW YORK, July 19, 2024 /PRNewswire/ -- The global electronic shelf label (ESLS) market size is estimated to grow by USD 1.64 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 15.69% during the forecast period. Implementation of in-store technologies is driving market growth, with a trend towards rising number of strategic partnerships and alliances. However, growth in e-commerce industry poses a challenge. Key market players include Danavation Technologies Corp., Diebold Nixdorf Inc., Displaydata Ltd., E Ink Holdings Inc., LANCOM Systems GmbH, M2COMM, New Zealand Electronic Shelf Labelling, Opticon Sensors Europe BV, Panasonic Holdings Corp., Pricer AB, Rational Innovation, RSJ Software GmbH, S and K Solutions GmbH and Co. KG, Samsung Electronics Co. Ltd., Shenzhen Minew Technologies Co. Ltd., SOLUM Europe Gmbh, Teraoka Seiko Co. Ltd., troniTAG GmbH, VusionGroup, and Zhejiang Hanshow Technology Co. Ltd..

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Market Driver

The global Electronic Shelf Label (ESL) market is experiencing growth, leading vendors to concentrate on product innovation and the introduction of smart ESLs to capitalize on the market's potential. Strategic partnerships and alliances are a key focus for vendors, collaborating with technology providers, software developers, distributors, and other market participants. For instance, in 2023, Qualcomm Technologies, Inc. And SES-imagotag joined forces to develop new ESL technology based on Bluetooth SIG's ESL wireless standard. These collaborations enhance vendors' product offerings and expand their reach in various regions, contributing to market growth during the forecast period. 

Electronic Shelf Labels (ESLs) have become a trend in retail technology, with Radio Frequency Identification (RFID) and other connectivity technologies driving their proliferation. SES-imagotag and Hanshow Technology lead the market, benefiting from the surge in digitalization and automation in stores. Master Framework Agreements ensure regulatory support, while import-export and production analyses provide market insights. ESLs replace traditional paper labels, offering real-time product information, inventory status, special offers, and promotions. Battery-powered displays enable mobility and flexibility. SES-imagotag's legacy ESL solutions facilitate mobile payment and NFC for brand loyalty programs. Communication technologies like Bluetooth and QR codes enhance the shopping experience, enabling employees to access product details and manage order picking and replenishment. E-commerce integration and staff resources improve job satisfaction. Market regulations ensure accuracy in pricing and product information. Market niches and market dominance continue to shape the ESL landscape. 

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Market Challenges

• The e-commerce industry is experiencing significant growth due to advancements in communication networks, the increasing use of smartphones, and the digitalization trend. E-commerce retailers, such as Alibaba Group Holding, Amazon, eBay, Walmart, Flipkart, and Rakuten, are increasingly focusing on online retailing to cater to the growing demand for digital shopping. Technology-driven innovations like digital payments and digital advertisements are fueling the growth of e-commerce. However, the rise of e-commerce poses a challenge to the global electronic shelf label market as online retailers offer competitive prices, hindering the growth of traditional brick-and-mortar stores. Thus, retailers must adapt to remain competitive in the market.
• The Electronic Shelf Label (ESL) market in the retail sector is experiencing significant growth, driven by the need for real-time product information and automation. Traditional paper labels face challenges in providing up-to-date pricing and promotions, making ESLs an attractive alternative. Bluetooth and Near Field Communication (NFC) technologies enable seamless updates, while mobile payment facilitation enhances the shopping experience. However, challenges remain, such as the need for regulatory support and employee training. Legacy ESL solutions may require significant installation expenses and supporting infrastructure. Retailers in emerging economies with low labor costs offer opportunities for ESL deployments. Key Performance Indicators (KPIs) like order picking and replenishment efficiency have shown improvement with ESLs. Retail automation solutions like ESLs, 5G, and e-commerce are driving retail sector opportunities. Pilots and Proof of Concepts are underway at retailers like Carrefour, with vendors offering win-win solutions. ROI is a critical factor, with retailers seeking smart retail standards and a quick return on investment.

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Segment Overview 

This electronic shelf label (esls) market report extensively covers market segmentation by 

1. Technology 
• 1.1 Radio frequency
• 1.2 Infrared
• 1.3 Others
2. Product 
• 2.1 LCD ESL
• 2.2 Full graphic e-paper ESL
• 2.3 Segmented e-paper ESL
3. End-user 
• 3.1 Supermarkets and hypermarkets
• 3.2 Convenience stores/department stores/mass merchants
• 3.3 Drug stores and others
4. Geography 
• 4.1 Europe
• 4.2 APAC
• 4.3 North America
• 4.4 Middle East and Africa
• 4.5 South America

1.1 Radio frequency- Radio frequency (RF) technology is a crucial innovation in Electronic Shelf Labeling (ESL) systems. RF communication enables real-time pricing and information updates across a store network without requiring line-of-sight or the need for physical contact. This technology operates on electromagnetic waves within a frequency range of 3 kHz to 300 GHz, making it unobstructed by human beings and common materials. Retailers prefer RF integrated ESLs due to their cost-effective installation and operational efficiency. Leading ESL vendors, such as SES-Imagotag, SoluM, and Teraoka Seiko, offer RF integrated ESL models like VUSION, Graphic Label, and InfoTag, respectively. The integration of RF technology with NFC and Bluetooth in ESLs expands their functionalities, enabling enhanced user engagement and data transmission capabilities. The low installation cost and ease of use make RF integrated ESLs a popular choice for retailers, driving market growth during the forecast period.

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Learn and explore more about Technavio's in-depth research reports

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Research Analysis

Electronic Shelf Labels (ESLs) are an essential component of retail automation, revolutionizing the way retailers manage pricing and inventory in their stores. The ESL market is experiencing a surge in digitalization due to the proliferation of technologies like 5G and the need for real-time, accurate pricing. Retailers are adopting ESLs to enhance the shopping experience, reduce labor costs, and improve brand loyalty. ESLs are not limited to large retailers; even small stores are embracing this technology. ESL market dynamics are influenced by installation expenses and supporting infrastructure. Communication technologies, such as Wi-Fi, Bluetooth, and RFID, enable seamless connectivity between ESLs and back-end systems. SES-imagotag is a leading player in this field, offering battery-powered displays with special offers and promotions capabilities. Inventory status updates in real-time help retailers optimize stock levels and minimize inaccurate pricing. The emergence of technologies like ESLs is transforming the retail sector in emerging economies, making it more competitive and efficient.

Market Research Overview

The Electronic Shelf Label (ESL) market is experiencing significant growth in the retail sector due to the surge in digitalization and automation in stores. ESLs, also known as digital price tags, offer real-time pricing and product information, replacing traditional paper labels. The market dynamics are driven by retail automation solutions, supporting infrastructure, and the proliferation of technologies like 5G, NFC, and Radio Frequency. Retailers in various store types are adopting ESLs to enhance their operations, offering benefits such as accurate pricing, brand loyalty, special offers, and promotions. Installation expenses and supporting infrastructure are key considerations for retailers, with ROI being a significant factor in their decision-making process. Emerging economies present opportunities for growth in the ESL market, with low labor costs making digitalization an attractive option. Communication technologies like Bluetooth and Wi-Fi are used for connectivity, enabling features like mobile payment facilitation and order picking. Market regulations and import-export analysis are important considerations for ESL vendors, with master framework agreements and pilot projects being common strategies for market entry. Trade regulations and production analysis also play a role in the market landscape. Inaccurate pricing, inventory status, and product details are addressed with ESL devices, providing a win-win solution for retailers and employees. Legacy ESL solutions are being replaced with newer technologies, offering improved functionality and staff resources for increased job satisfaction. Key Performance Indicators and smart retail standards are essential for measuring the success of ESL deployments, with Carrefour and other major retailers leading the way in ESL adoption. Overall, the ESL market offers significant opportunities for growth and innovation in the retail sector.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Technology
• Radio Frequency
• Infrared
• Others
• Product
• LCD ESL
• Full Graphic E-paper ESL
• Segmented E-paper ESL
• End-user
• Supermarkets And Hypermarkets
• Convenience Stores/department Stores/mass Merchants
• Drug Stores And Others
• Geography
• Europe
• APAC
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio