Global Electronic Shelf Label Market 2017-2021

This market research report identifies players like Altierre, Displaydata, Pricer, SES-imagotag, and Teraoka Seiko to be the key vendors in the global ESL market. This research report also presents a detailed segmentation of the market by retail store format, wireless solution, distribution channel, and geography.

Overview of the global electronic shelf labels (ESL) market

Technavio’s market research analyst predicts the global electronic shelf labels (ESL) market to grow at a CAGR of 14% during the forecast period.  ESL systems in retail stores reduce the labor expenses significantly and aid in increasing the retailer's profit margin. These labels eliminate the requirement for staff to manually change pricing labels on store shelves as the product pricing on all ESL modules can be automatically updated. ESL systems have brought about significant changes to stores and have helped enhance the overall management process. ESLs have emerged as an alternative to the labor-intensive processes in retail stores and have also limited the need to print, sort, or replace paper labels during price changes, enabling labor and operational savings in stores. ESLs allow retailers to have complete control over price adjustments and ensure that the in-store prices always match the back-end database and the price at the checkout. ESLs not only increase accuracy and enhance customer satisfaction and loyalty but also reduce delays or queries about product pricing and loss of profits associated with human errors.

In terms of geographical segmentation, EMEA dominated the global ESL market in 2016 and will continue to maintain the lead during the forecast period. Much of the region’s growth can be attributed to the growth of hypermarkets such as Carrefour, Metro, and Tesco. The market is expected to witness massive demand for ESLs from retailers because ESL minimizes labor costs and augments the accuracy of price labeling. Moreover, product innovations such as NFC labels have prompted the replacement of the installed base and are attracting new customers, which is further fueling the demand for ESLs in the region.

Competitive landscape and key vendors

The global ESL market is extremely fragmented owing to the presence of several small and large vendors. Some of the large global vendors in the market include Pricer, SES-imagotag, and Displaydata. Intense competition prevails in the market, which has resulted in consolidation, wherein, smaller entities are being acquired by major players. The rapidly changing environment in the market has prompted vendors to constantly develop new solutions that require high levels of product development. Many major players in the market are also making huge investments in R&D for the innovation of new products.

Leading vendors in the market are -

• Altierre
• Displaydata
• Pricer
• SES-imagotag
• Teraoka Seiko

Other prominent vendors in the ESL market include Advantech US, E Ink, Eltrade, LG Innotek, NZ Electronic Shelf Labelling, Samsung Electro-Mechanics, Toshiba Global Commerce Solutions, and Wuxi Wei Feng Technology.

Segmentation by retail store format and analysis of the ESL market

• Supermarkets and hypermarkets
• Convenience stores, department stores, and mass merchant
• Drug stores and pharmacies

In 2016, most of the ESLs were sold through supermarkets and hypermarkets. The growing requirement to improve customer satisfaction, eliminate expenses, and enable stores to compete in a price-sensitive environment has resulted in an increase in the demand for ESLs. Also, factors like strong product portfolios, high inventory rates, and dynamic pricing policies are also driving the demand for ESLs among supermarkets and hypermarkets.

Segmentation by wireless solution and analysis of the ESL market

• Infrared
• Radio frequency
• Visible light technology

ESLs are primarily equipped with infrared wireless communications technology, which occupied the largest market share in 2015 and will continue to retain its position throughout the forecast period. The infrared solutions penetrate through walls and require a line-of-sight from the several transceivers present throughout the store. The radio frequency technology is the cheapest technology available; however, it requires additional transceivers and may interfere with the other radio signals in the store.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global ESL market?
• What are the key market trends impacting the growth of the global ESL market?
• What are the challenges to market growth?
• Who are the key vendors in the global ESL market?
• What are the market opportunities and threats faced by the vendors in global ESL market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global ESL market?

Technavio also offers customization on reports based on specific client requirement.

Related reports:

• Global Linerless Labels Market 2016-2020
• Global Smart Labels Market 2015-2019