Electronic Shelf Label Market Research Report: By Product Type (Full-Graphic E-Paper, Segmented E-Paper, Liquid Crystal Display), Communication Technology (Radio Frequency, Infrared, Near-Field Communication), Component (Displays, Batteries, Transceivers, Microprocessors), Display Size (Less than 3 Inches, 3–7 Inches, 8–10 Inches, More than 10 Inches), End User (Industrial, Retail) - Global Industry Analysis and Growth Forecast to 2030

Market Overview

The global electronic shelf label (ESL) market generated ~$800 million revenue in 2020, and it is expected to grow at a significant rate during the forecast period (2021–2030). The major factors responsible for the growth of the market include the digitalization and automation of the retail industry, higher profits and lower time consumption allowed by such products, rising demand for increased functional efficiency with real-time product positioning, and high demand for price optimization among retail stores.

The COVID-19 pandemic, characterized by the imposition of multiple lockdowns, had a negative influence on the electronic shelf-label market. The restrictions on transportation activities and closing of manufacturing plants affected the growth of the industry. The imposition of lockdowns also led to the closure of retail shops, which had shifted consumers from the retail to e-commerce platform, which has resulted in a reduction in physical transactions, thus a lower demand for electronic shelf labeling systems.

Full-Graphic E-Paper-Based ESLs Dominate Market

The market is categorized into full-graphic E-paper, segmented E-paper, and liquid crystal display (LCD), based on product type. Of these, the full-graphic E-paper category holds the largest share in the market, and it is expected to grow at the highest CAGR during the forecast period. This growth can be credited to the ability of full-graphic E-paper ELSs to project graphical objects and high energy efficiency. LCD devices are costlier than E-paper variants; hence, less adopted.

Near-Field Communication (NFC) Category to Grow at Highest CAGR during Forecast Period

The market is divided into radio frequency, infrared, NFC, and others, on the basis of communication technology. Among these, the NFC technology is to be the fastest-growing category, as it allows contactless and fast data transfer between devices, thereby encouraging manufacturers to offer this technology in their products. The NFC technology has become an additional feature in various smartphones and Point of Sale (POS) devices. The demand for NFC-enabled ELSs is being propelled by the increasing adoption of NFC in handheld devices such as smartphones, which assists in faster transactions at the PoS, thus leading to efficient store operations.

Europe to Grow Fastest during the Forecast Period

The European market for electronic shelf labels is expected to grow the fastest during the forecast period due to the presence of leading industry players and rapid growth in the retail sector across the region. The high labor cost in European countries is an important factor supporting the industry growth, as the adoption of these electronic labels increases the return for retailers by minimizing human involvement.

North America to Hold Largest Market Share during Forecast Period

Globally, North America held the largest regional market share in 2020 due to the rising demand for this technology among the expansive chains of retail stores, such as Wal-Mart, across the region. In addition, the favorable government initiatives to increase technological development and integration of automated products across the retail industry will lead to the highest market revenue generation here over the forecast period.

Integration of NFC Technology is a Key Trend in the ESLs Market

ELS manufacturing companies are continuously developing new and innovative products in response to the increasing demand for them across the globe. The integration of the NFC technology with ELSs allows retailers to update information, such as price, special offers, discounts, and other product details, by using NFC-enabled smartphones. This helps retailers in price optimization and efficient stock management.

Surge in Automation Rate in Retail Sector is Boosting the Market Growth

Retailers are taking various initiatives to enhance the consumer shopping experience. The increase in the complexity in managing large warehouses and retail stores is driving the need for smart automation in the retail sector. The ELS system delivers precision and flexibility in store operations. Centralized control allows easy updates, reliability, and time saving. As a result, various retailers are adopting ESL systems to gain an advantage over their competitors, thereby driving the ESL market.

Increased Functional Efficiency Will Fuel Growth of ESL Market

Effective inventory and warehouse management, physical store management efficiency, and omnichannel efficiency have eased the work of retailers. This has been possible owing to the automation of the retail industry. This encourages retailers to opt for automation system to save the costs, efforts, and time in managing the store. Automated systems are useful in service and delivery scheduling, display product information and management it, and consistent process execution.

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Market Players Involving in Partnerships to Gain Significant Position

The global electronic shelf label market is fragmented in nature. Some of the key players are Pricer AB, SES-imagotag, Samsung Electro-Mechanics Co. Ltd., E Ink Holdings Inc., Displaydata Limited, Altierre Corporation, Diebold Nixdorf Incorporated, CLEARink Displays Inc., Panasonic Corporation, SoluM Co. Ltd., and NCR Corporation.

In recent years, players in the electronic shelf label market have been involved in partnerships in order to attain a significant position. For instance:

• In April 2021, E Ink Holdings Inc. partnered with DATA MODUL AG to become a reseller, focusing on the U.S. and European industrial, IoT, medical, and retail industries.
• In November 2020, E Ink Holdings Inc. began a partnership with Yes Optoelectronics（Group) Co. Ltd. to develop ELSs. This partnership focuses on product manufacturing, research and development (R&D) in E-paper-related components and key materials, and marketing and sales support.

Some of Key Players in the Electronic Shelf Label Market:

Market Size Breakdown by Segments

The global electronic shelf label market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Product Type

• Full-Graphic E-Paper
• Segmented E-Paper 
• Liquid Crystal Display

Based on Communication Technology

• Radio Frequency
• Infrared
• Near-Field Communication (NFC)

Based on Component

• Displays
• Batteries
• Transceivers
• Microprocessors

Based on Display Size

• Less than 3 Inches
• 3–7 Inches
• 8–10 Inches
• More than 10 Inches

Based on End User

• Industrial
• Retail
  • Hypermarkets
  • Supermarkets
  • Non-food retail shops
  • Specialty stores

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa