Electronic Shelf Label Market Size Anticipated to Reach US$2,092 million by 2026, at a CAGR of 20.4% – Report by MarketsandMarkets™

Chicago, Oct. 28, 2022 (GLOBE NEWSWIRE) — The report “Electronic Shelf Label Market by Product Type (LCD, E-paper, Full-graphic E-paper), Communication (RF, IR, NFC), End User (Hypermarkets, Supermarkets, Specialty), Component, Display Size, and Geography (2021-2026)”, The electronic shelf label market is estimated to be worth USD 826 million in 2021 and projected to reach USD 2,092 million by 2026, at a CAGR of 20.4%. The digitalization of stores and prevalence of retail automation trend, cost-effective and less time-consuming alternative to paper labels, high demand for price optimization among retail stores, increased operational efficiency with real-time product positioning are some of the prominent factors for the growth of the electronic shelf label market globally.

The major players in the market with a significant presence across various geographies in the electronic shelf label market are SES-imagotag (Sweden), Pricer (France), Displaydata (UK), E Ink Holdings (Taiwan) and M2COMMUNICATION (Taiwan). The companies in the ESL market have adopted various strategies in such as introduction of technologically advanced products, integration of emerging technologies such as IoT, AI and machine learning, partnerships, collaborations, and acquisitions to grow in the ESL market. The organic and inorganic strategies have helped the players in the market to expand themselves globally with innovative offering in the electronic shelf label market.

Ask for PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=40815676

SES-imagotag (France) was founded in 2010 and has its headquarters in France. The company is one of the leading players providing IoT and digital solutions to the physical stores in the world. SES-imagotag provides several solutions to retailers across the world, which include electronic shelf labels, price optimization solutions, and other hardware devices and infrastructure. The company provides ESLs and associated software for retail businesses.

It sells its products through a network of distributors and resellers in Europe, Asia, Australia, North America, and South America. In 2014, the company formed a strategic financial alliance with Store Electronic System (France), and currently, it is operating as a subsidiary of Store Electronic System, SES (France). The range of products that the company offers include ESLs, store management software, infrastructure, accessories and mountings, and cloud platform. In addition, the company operates in various markets including food, consumer electronics, do-it-yourself (DIY), gardening, cosmetics, drugstore, fashion, digital signage, and industrial.

Pricer (Sweden) was founded in 1991 and is headquartered in Sweden. The company is a leading player in the retail automation market. The company helps retailers to solve key-challenges, which arise in stores such as meeting the new retail demands, improving store operations, and task management. It provides in-store digital shelf-edge solutions used for the electronic display of product information in retail stores. It offers a communication platform that supports both segment-based and pixel-based ESLs.

The company also provides services for intelligently communicating, managing, and optimizing the price and product information on the retail floor. The company’s core offering is built around the electronic shelf label technology using a unique and advanced optical wireless network system. Pricer’s customers include retailers operating in Europe, Latin America, Africa, and Japan. The solutions offered by the company improve its customers’ profitability by offering price optimization and margin control tools that help reduce personnel and printing costs. The primary sectors, which the company serves are DIY, electronics, groceries, and pharmacies. The company has an installed base of ~200 million electronic shelf labels installed in almost 17,000 stores across the world in more than 50 countries.

Browse in-depth TOC on “ Electronic Shelf Label Industry”

186 – Tables

68 – Figures

215 – Pages

Inquiry Before Buying: https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=40815676

Electronic Shelf Label Market Dynamics

Driver: Cost-effective and less time-consuming alternative to paper labels

The deployment of ESLs in retail stores enables retailers to update prices on the shelves instantaneously. It also helps them run real-time promotions involving comparison shopping, promotional prices, and promotional information. These features of ESLs help retailers to gain an edge in the competitive retail market, increase sales, and reduce the operational costs of the store. In addition, stores managing many stock-keeping units (SKUs) are likely to benefit from the deployment of ESLs as they provide an edge over paper labeling and are capable of supporting frequent changes in prices/promotions. Furthermore, the frequent replacement of many paper labels is a costly and lengthy process. The manual updating of labels consumes comparatively more time, with an associated probability of errors. Currently, in the emerging retail industry, the players are making efforts to look for solutions that can help them in increasing profitability and productivity, thereby pursuing effective management, controlled selling prices, and focused purchasing function.

Restraint: Lack of necessary infrastructure for wireless technology in developing regions

Retailers in developing regions are reluctant to invest in digital electronic tags as the operational cost of running modern retail is comparatively higher in developing countries such as India, Indonesia, Brazil, and African Countries. The ESL technology continues to be on the higher price range for Indian and African retailers as additional shelves that are “electrified” to accept ESL are not readily available from ESL vendors as cost-effective solutions. There is a lack of presence of ESL vendors in these countries as compared to the US, Europe, and China, resulting in the lower penetration of ESL in these regions.

Further, although wireless and display technologies have improved from technical and cost perspectives, the problems persist. Dead spots in the store may exist if wireless coverage is not wide enough, allowing updates to be missed by some tags and requiring intervention from store staff. Tags that are placed in challenging environmental conditions such as freezers will be more expensive or fail more often, requiring staff attention. While tags can now be much larger, it is likely that not all signage will be replaced by the digital solution, leading to staff managing 2 platforms. Extra tags will need to be kept on-site to accommodate failed tags. If there is a failure of the wireless system or the software program to update the tags, the tags will be frozen at one price and will not be updated. Resolving all these issues requires investments in advanced wireless technology, which comes is expensive and not feasible for most retail operators in developing regions.

Opportunity: Growth in emerging economies due to increasing retail automation

Over recent years, developing economies have emerged as promising retail automation markets. Retailers are successfully adopting retail automation solutions, such as ESLs, that can cater to the increasing number of middle-class consumers. Retail automation enables improved customer satisfaction, reduced shopping time, and lowered wastage, along with cost-saving. It also helps enhance customer experience and, subsequently, boost sales. The growth potential of the retail automation market in emerging economies is one of the major opportunities for the electronic shelf label market. Furthermore, automation products are prominently deployed in developed countries, whereas some developing countries, such as Egypt, Yemen, Sweden, China, and South Korea, have also begun to deploy automation products in the retail sector owing to the high growth opportunities they offer. Countries in Asia and the Middle East are in the growth stage in the retail automation market; therefore, they hold a huge space for ESL deployment in the retail infrastructure. These emerging markets are expected to drive the electronic shelf label market soon.

Ask for PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=40815676

Challenge: Low margins of retailers hindering deployment of automation technology in stores

The retails business is becoming more and more competitive, with several companies trying to cater to the increasing consumer demand. Fierce competition among companies has led to differentiated products being offered to consumers, and most of the time, the differentiation factor is the price of the product. Intense competition has resulted in price wars among retailers, which has degraded the margins for retail outlets. The race between offline and online retail channels has increased substantially, with end users moving toward online channels as they enrich their buying experience. Moreover, competitive pricing and deep discounting by online disruptors have added to the existing burden of reducing margins faced by the retailers. Reducing margins of retailers have blocked the way toward the automation of physical stores as infrastructure, components, and other devices require an upfront investment, which takes time to give significant returns. Reducing margins owing to fierce competition, low entry barriers in the retail sector, and the booming market for e-commerce are some of the major factors hampering the deployment of automation technology in stores.

Related Reports:

Digital Signage Market – Forecast to 2021-2026

Retail Automation Market – Global Forecast to 2023