Electronic Shelf Label Market

Global Electronic Shelf Label Market Outlook

The global electronic shelf label market is estimated at USD 980 Million in 2022 and is forecast to reach USD 5.2 Billion by 2032, growing with a CAGR of 18.3% from 2022 to 2032.

Report Attributes	Details
Market size value in 2021A	USD 855 Million
Market value estimated in 2022E	USD 980 Million
Market forecast value in 2032F	USD 5.2 Billion
Global Growth Rate (2022-2032)	CAGR 18.3%
Europe Market Share in 2021	~38%
Europe Growth Rate (2022-2032)	CAGR 18.9%
Market Share of Top 5 Companies	~40%
Key Companies Profiled	Pricer AB Altierre Corporation SES-imagotag DisplayData Ltd. Solum Co. Ltd Teraoka Seiko Co., Ltd. M2Communication Hosting Hanshow Technology Co. Ltd LG Innotek Co., Ltd Diebold Nixdorf Opticon Sensors Europe B.V. MariElla Group

Fact.MR- a market research and competitive intelligence provider, foresee a thriving growth in electronic shelf label demand. The global electronic shelf label market is expected to grow at 18.3% CAGR during 2022-2032 and surpass the value of USD 5 Billion by the end of 2032. The global smart retail devices market is expected to be valued at USD 23 Billion by the end of 2022, however electronic shelf label market is likely to reach a valuation of USD 980 Million in 2022.

Retail industry has largely influenced by the growth of various retail outlets including supermarkets and hypermarkets, in turn pushing the demand for retail equipment and devices such as electronic shelf label. Moreover, retail automation trend under its digitalization, price optimization for retail stores, real time product positioning and increased operational efficiency tends to be major market drivers.

Increasing proliferation of Internet of Things (IoT) coupled with growing digitization in the retail sector continue to influence the growth of the market. Persistent growth in the retail sector has resulted in a meteoric expansion of retail outlets, particularly supermarkets and hypermarkets across key developed and emerging economies around the world. Electronic shelf labels, self-checking robots, self-checkout terminals and various similar technologies helped the retailers to escalate their profit margins in retail industry.

There is a direct correlation between several macroeconomic factors, most notably increasing urbanization, growth in GDP per capita and economic growth, and overall sales of goods and commodities, which is likely to fuel the demand for electronic shelf label. Moreover, expanding retail infrastructure is likely to offer potential growth avenues for manufacturers of electronic shelf label in the forthcoming years.

According to International Labour Organization (ILO), the trillion dollar retail industry is expected to remain pervasive maintaining strong growth in the coming years. This factor is expected to present potential growth avenues for manufacturers of electronic shelf label throughout the period of assessment, in turn contributing to the overall growth of the electronic shelf label market.

Electronic Shelf Label Market Historical Outlook (2017-2021) Vs. Forecast Outlook (2022-2032)

• North America based electronic shelf label market is expected to have a revenue share of 22% in 2022 and is likely to reach a valuation of USD 1.2 Billion by 2032 with a growth rate of 18.8%.
• The Europe region is presumed to hold market value of around USD 372 Million by the end of 2022 owing to high technology adoption rate.
• The LCD as product type is expected to be valued at USD 1.2 Billion by 2032 with a growth rate of 17.3%.
• By application, departmental store holds a growth rate of 17.5% with the market share of 29% by the end of 2032.
• Under application, convenience store segment is expected to hold market share of 18% in 2022 and is likely to reach a valuation of USD 839 Million by the end of forecast period.
• The e-ink segment in product type is expected to grow at a CAGR of 18.6% over the period of 2022-2032.

Market Trends

• The grocery sector market is anticipated to increase further which drives supermarkets and hypermarkets that use electronic shelf labels. In 2021, global retail sales accounted for USD 1,38 Trillion. Hyper stores stood second in rank after supermarkets with sales of USD 700 Billion. This signifies the demand for shelf labels in the forecast period.

• Australian competition and consumer commission has introduced regulations for businesses on how they should display the prices of products. As per these rules, businesses must state the total price of goods on it including taxes, duties, and pre-selected extra fees. Grocery retailers should display the unit price on displays as per these guidelines.

• This necessitates the single shelf price displays for products improving demand for electronic shelf labels which can be updated as per the change in taxes. The government focuses on the pricing management of supermarkets and the retail segment drives the demand for electronic shelf labeling.

How market is showing stellar growth in demand on the back of improved price management?

Electronic shelf label, a novel technology in the retail industry, offers efficient interoperability as compared to paper labels during dynamic price change. While promotions play a vital role in enhancing sales and brand value, companies need to carry out changes in the prices of commodities and goods at a dynamic pace.

With electronic shelf label it becomes convenient to carry out price up gradations at a rapid pace providing seamless control on pricing management. Moreover, electronic shelf label reduces pricing errors in stores. With increasing competition in the retail sector, it becomes imperative to carry out pricing variations to complement sales of commodities. This has resulted in increasing demand for convenient, less complicated and cost efficient solutions such as electronic shelf label in the merchandise space, consequently fueling demand for electronic shelf label.

How increased customer and employee satisfaction to complement sales?

The sales of electronic shelf labels are largely influenced with enhanced customer satisfaction during store shopping. The advantages like errorless pricing coupled with optimization in store workflow has resulted in increased employee and customer satisfaction which has pushed retail stores to adopt these novel devices in a bid to increase customer footfall every day.

Moreover, with electronic shelf label and other display solutions, promotional offers are easily communicated to customers, which is influencing their purchasing decision. This aspect has fueled the demand for such devices on the back of efficient customer service they deliver, making them a vital sales funnel for retailers worldwide.

How ZigBee and Wi-Fi technology is supporting the growth of market?

The sales of electronic shelf label using the ZigBee technology is estimated to increase at high rate, largely contributing to the overall sales of these devices across retail stores. The ZigBee technology is expected to grow at CAGR of 20.4% over the forecast period.

The increase in use of ZigBee technology for low cost and low power wireless networks coupled with higher convenience quotient associated with network distribution and monitoring have further pushed the adoption of the technology in electronic shelf labels. Likewise, Wi-Fi technology adoption in electronic shelf label is also projected to expand at a high rate during the period of forecast, however, high cost associated with Wi-Fi technology is likely to confine its use in the forthcoming years.

Country Wise Analysis

What are the driving factors of electronic shelf label in U.S?

U.S is considered as the largest market share holder for electronic shelf labels in North America region with the total valuation of USD 162 Million in 2022. The rich demand in this region can be endorsed to the huge presence of retail stores, both big and small, around the globe.

The U.S has been steered by retail titans such as Walmart, increasing the upsurge in activity, mostly contributing to the growth of the market in the region. Also, promising initiatives by the U.S government towards modernization and technological innovation of products across all the industry verticals, especially in automation of retail, is increasing the sales for electronic shelf label.

Why Italy is a pivot point for electronic shelf label manufacturers?

Italy is expected to hold the prominent position in the Europe region. The rules & regulations by Italian government is projected to increase the sales across the region. For example, the parliament of French has implemented a French Consumer Code (FCC) that shows the price of product should be transparent and clear to the consumers, integrating postal and delivery charges.

The failure of any company in order to provide the correct information regarding price will result in high penalties. Italy is expected to grow at a CAGR of 19.4% over the forecast period.

Segment Wise Analysis

How supermarket and hypermarket to remain prominent segment as application in the market?

The demand for electronic shelf label in supermarkets and hypermarkets is expected to rise at a significant pace on the back of higher inclination of these retail outlets toward automation products and equipment. Electronic shelf label offer higher convenience quotient in this application across the entire merchandise line. Meteoric growth of the retail sector around the globe has resulted in a momentous increase in the number of such stores over the last decade. This leads to hold a market share of 42% in 2022 and is expected to reach a valuation of USD 2.3 Billion by the end of 2032.

The sales of electronic shelf label in supermarkets and hypermarkets since the past few years have witnessed a significant boost, and the trend is likely to continue in the years to follow. Against this backdrop, supermarkets and hypermarkets are likely to remain a lucrative business opportunity for key stakeholders during the period of forecast.

Which segment in product type is likely to witness accelerated growth?

The demand for e-ink electronic shelf labels is expected to witness an impetus on the back of low power consumption and paper-like readability. The sale of e-ink based electronic shelf label is expected to cross USD 3.3 Billion by end of 2032 owing to their benefits including multi-color options, superior optical performance and wide viewing angles. On the contrary, LCD displays are also gaining steam with fast-paced evolution of display technology coupled with cheaper, smarter and more efficient micro-displays. Cost effectiveness of LCD displays is expected to auger well for their sales during the period of assessment. LCD displays is expected to grow at a CAGR of 17.3% over the period of 2022-2032.

Competitive Landscape

Fact.MR has profiled the following key electronic shelf label manufacturers in its report are Clearink Display, Diebold Nixdorf Incorporation, Display Data Ltd, E Ink Holdings Inc, Hanshow Technology Co. Ltd, M2Communication, NCR Corporation, Panasonic Connect Europe GmbH, Pricer AB, SES-imagotag, Solum Co. Ltd., and Teraoka Seiko Co. Ltd and TroniTag GmBH.

The manufacturers in the electronic shelf label market are progressively fluctuating their focus towards strengthening distribution channel and working out active marketing strategies.

Key Segments Covered

• By Product Type

  • LCD
  • E-Ink
  • Others

• By Technology

  • ZigBee
  • BLE
  • Wi-Fi
  • Others

• By Application

  • Supermarket and Hypermarket
  • Convenience Store
  • Departmental Store
  • Specialty Store
  • Pharmacies