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The Electronic Shelf Label (ESLs) Market size is estimated to increase by USD 1.64 billion between 2023 and 2028 and is forecast to grow at a CAGR of 15.69%. Market expansion hinges on various factors, notably the integration of in-store technologies, advancements in the Internet of Things (IoT) ecosystem, and the proliferation of retail outlets. The implementation of in-store technologies enhances the overall shopping experience by offering innovative solutions such as smart shelves and cashier-less checkout systems. Furthermore, the development of the IoT ecosystem enables seamless connectivity between physical and digital retail spaces, facilitating personalized shopping experiences and efficient inventory management. With the rising number of retail outlets, there is an increased accessibility to products and services, driving consumer engagement and market. Together, these factors contribute to the dynamic evolution of the retail landscape, shaping the future of the industry.
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The market is witnessing rapid growth driven by the increasing adoption of retail automation and advancements in connectivity technologies like 5G. As the retail sector embraces ESL solutions, there is a growing demand for innovative ESL devices that offer real-time inventory status and product details. Retailers are leveraging ESL technology to enhance customer experiences, improve operational efficiency, and capitalize on market opportunities.
The development of the IoT ecosystem is driving the market. The IoT is a system consisting of interconnected appliances or devices embedded in electronic systems, sensors, software, online platforms, and networks. The rising adoption of IoT devices and developments in network compatibility and related technologies are driving the adoption of ESLs.
However, the global market has a very dense ecosystem that includes the providers of sensors, software and hardware, applications, platforms, and network technology. In the past several years, there have been various developments on the market that aim at creating a healthy ecosystem of Internet of Things devices. The growing development of the IoT ecosystem will have a positive impact on the growth of the global market during the forecast period.
The introduction of advanced ESL solutions is a primary trend in the market. Displays of information on products, such as prices, price promotions, and product information are carried out using ESLs in the electronic shelf label (ESLs) market. These devices incorporate various technologies, such as infrared, radio frequency, and NFC, to provide product information to customers. As regards product prices under market conditions, modern technology enables retailers to set them.
Moreover, some retailers are using analytics to understand the conduct of customers and revise the prices of products accordingly. To raise the customer base and sales, several companies are developing advanced solutions through which retailers can optimize the prices of products.
The growth in the e-commerce industry is a major challenge for the market growth. E-commerce is a platform through which commercial transactions are carried out electronically on the Internet. Online retailers offer goods and services over the Internet through their websites. Presently, e-commerce is growing at a rapid pace because of the developments in communication network infrastructure, increasing penetration of smartphones, and the rise in digitalization.
Moreover, online shopping websites offer products at lower prices compared to brick-and-mortar stores. Thus, online shopping has become increasingly popular with consumers. The growth in the overall market is impeded by this. Therefore, the booming e-commerce industry will limit the growth of the global electronic shelf-label market during the forecast period.
The market share growth by the radio frequency segment will be significant during the forecast period. Radiofrequency is a wireless communication technology that uses electromagnetic waves to automatically scan, identify, and track tags attached to products. The fact that radio frequency is free from a requirement of sight, which will eventually reduce the cost of infrastructure and enable ESLs to deliver information uninterruptedly has been an important factor in its widespread adoption.
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The radio frequency segments showed a gradual increase in the market share of USD 507.80 million in 2018 and continued to grow by 2022. Radio frequency cannot be blocked by human beings and objects such as paper, rubber, and copper. Hence, as opposed to other technologies, e.g. infrared, near-field communication, or IoT, it is more effective.
The demand for LCD ESLs is high because of their low power consumption, high picture quality, low response time, and attractive design. The LCD ESL has a battery life of up to 10 years. As a result, they are preferred to LCD ESLs by the majority of retailers. Companies are increasing their product offerings to take advantage of the increased demand for high-performance LCD ESL. The incorporation of advanced technologies such as radio frequency, Wi-Fi, Bluetooth Low Energy (BLE), and NFC has enhanced the capabilities of LCD ESLs, which will drive the growth of the market in focus growth through the segment during the forecast period.
Supermarkets are self-service stores that offer a variety of products, such as groceries, food and beverages, and household products, which are systematically arranged on shelves. Hypermarkets are usually greater than supermarkets and sell a greater variety of products, such as electronic goods, groceries, furniture, food, and toys. Products are systematically displayed on shelves with price tags in supermarkets and hypermarkets, enabling shoppers to compare products and make knowledgeable purchasing decisions. To display product information, supermarkets, and hypermarkets utilize smart shelves with ESLs. Many retailers are opening new supermarkets and hypermarkets to expand their geographical existence and offer a wide variety of products to customers under one roof. The growth of the global market during the forecast period.
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Europe is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the major reasons for the dominance of Europe in the global market is the higher concentration of major retailers in the region. Europe is home to leading retail companies such as Carrefour, Metro, Schwarz Group, Aldi, Ahold Delhaize, Tesco, and IKEA. Also, the retail operators in the region are early adopters of ESLs. As a result of an increasing number of shops and the adoption of in-store technologies, such as electronic reading units, self-service check points, or smart shelves, the market in Europe is expected to show strong revenue growth. The adoption rate of ESL in countries such as France, the UK, Denmark, Sweden, Germany, and Switzerland is high. Such factors will increase the market growth in this region during the forecast period.
The industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Danavation Technologies Corp - The company offers electronic shelf labels such as Digital Smart Label 2.1, 2.9, and 1.8.
Diebold Nixdorf Inc. - The company offers electronic shelf labels such as Vusion 1.6, Vusion 2.2 and Vusion 4.2.
Displaydata Ltd. - The company offers electronic shelf labels such as Chroma Aeon 37, Aura Aeon 21, and Aura Aeon 29.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
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The Market witnesses historic growth driven by the proliferation of technologies, enhancing efficiency and accuracy in pricing, thereby increasing consumer satisfaction. A surge in digitalization and automation in stores contribute to an enhanced customer experience, with the rising expansion of e-commerce offering opportunities for market growth. However, challenges include high initial implementation costs and infrastructure compatibility issues. Recent developments underscore the market's scope, highlighting its dynamic nature amidst technological advancements and evolving consumer demands.
ESL solutions address challenges such as inaccurate pricing and inefficient inventory management associated with traditional paper labels. With battery-powered displays and connectivity technologies like Near Field Communication (NFC) and Quick Response (QR) codes, Brand loyalty, ESL devices enable retailers to update product information and display special offers in real time. The market landscape depends on the Win-win solution, Proof of Concept, Pilots, Vendor, and Key Performance Indicators. The market dynamics are further influenced by factors such as installation expenses, supporting infrastructure, and regulatory support. Retailers are seeking ESL deployments that offer a strong return on investment (ROI) while complying with market regulations and smart retail standards. With ESL deployments becoming a key component of modern retail stores, the market is poised for significant growth as retailers prioritize job satisfaction, staff resources, and efficient order picking and replenishment processes.
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Market Scope |
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Report Coverage |
Details |
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Page number |
190 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 15.69% |
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Market growth 2024-2028 |
USD 1.64 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
13.22 |
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Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 37% |
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Key countries |
France, US, Germany, China, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
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 dynamics |
Parent market analysis, Market forecasting, market growth and trends, market forecast, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Product
8 Market Segmentation by End-user
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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