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Electronic Shelf Labels Market Size, Share and Industry Analysis, By Type (LCD Based, E-Paper Based), By Communication Technology (Bluetooth Low Energy (BLE), Near Field Communication (NFC), Others), By End-Use (Hypermarket/ Supermarket, Non-Food Retail Stores, Specialty Stores, Others) and Regional Forecast, 2019-2026

Region : Global | Published Date: Mar, 2020 | Report ID: FBI102520

 

KEY MARKET INSIGHTS

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Advanced data analytics and shopper's engagement are accountable for the adoption of electronic shelf labels and related solutions. With the rising deployment of IoT and cloud infrastructure in retail, the industry is expected to boost the electronic shelf labels (ESL) demand during the forecast period. In January 2020, SES Imagotag developed the ‘VUSION’ ESL solution, functioning on the IoT cloud platform. This innovative solution is designed to enable retailers to improve Omni channel synchronization, real-time product positioning, and manage in-store efficiencies. The system positively impacts cloud monitoring of all ESL-related processes to ensure product availability and security.


MARKET TRENDS


Increasing Automation in the Retail Sector is a Growing Market Trend


Technological evolution in terms of automation of the retail sector is moving towards reducing in-store manual work along with improved operational efficiency. Advantageous features of ESL, such as dynamic & Omni channel pricing, aiding in the implementation of ESL solutions across all types of retail stores such as hypermarket, supermarket, specialty stores, and others. ESLs are not only used to update pricing but also to display promotions, competitor pricing, social reviews, product ingredients, source of origin, inventory levels, and automated currency conversion. An ESL system allows retailers to reuse price labels with affordable maintenance charges. Thus, ongoing automation trends will enable the ESL adoption in the forthcoming years.


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 Rising Retail Automation Owing to Evolving Customer Demands


Retailers in developing countries are getting more inclined towards adopting retail automation solutions capable of catering to the demands of a dynamically evolving customer base. The countries in the Asia Pacific and the Middle East & Africa are in the growth stage of retail sector automation, and thus has huge potential in retail infrastructure for ESL deployment. Improved customer satisfaction, reduction in shopping time, cost savings, and lowered wastage are among the key focus areas of the retail industry in developing countries. This results in improved customer experience, which in turn will boost the sales. Additionally, developing countries, such as Yemen, Sweden, China, Egypt, and South Korea, have also started to utilize the automation products in the retail sector, mainly due to high growth opportunities. 


MARKET DRIVERS


Pricing Regulations Projected to Promote Electronic Shelf Label Developments


Retailers in countries such as France and Japan are strictly fined for pricing label errors and incorrect information on labels. Such strict regulations in the area have engaged the retailers for the adoption of electronic shelf label solutions. Dynamic pricing facility and Omnichannel synchronization have enhanced electronic shelf label adoption, which also changes prices on-demand while following the regulatory obligations. Dynamic and agile pricing gives stores the ability to set up time-sensitive, local in-day deals. Additionally, digital price tags are also anticipated to provide a competitive advantage for retailers which is also boosting the growth of electronic shelf labels market.


Enhanced Functional Capabilities of ESLs to Aid Electronic Shelf Labels Market


Electronic shelf labels are deployed to increase customer engagement and reduce manual work. Capabilities such as reduction in-store management complexity and labor cost offered by ESL solutions will facilitate the growth of the electronic shelf labels market. Artificial intelligence is given to achieve the dynamic pricing updates on ESLs by the computer system. As automation is reshaping the retail sector's business model and value chain, there is a growing competition in the retail industry. This has pressurized the global industry margin and cost. Furthermore, the increasing emphasis of retailers on enhancing customer experience and engagement as well as delivering personalized services to the customers is contributing to electronic shelf labels market growth.


MARKET RESTRAINT


The Growing Popularity of Online Shopping and Customized Services to Restrict ESL Adoption


The extensive online shopping platforms such as Amazon, Flipkart, Alibaba are offering a variety of products at lower prices and discounts. Due to which consumers are getting more attracted towards online shopping rather than in-store or physical shopping. This, in turn, has led to the reduction of hypermarkets or retail stores. As the hypermarkets, supermarkets, grocery shops are the main adoption areas, growth in online shopping is expected to restrict the deployments of ESLs. Improvement in product availability, delivery services, shopping offers, and personalized services for the customers is highly favoring the demand for online shopping. The growth of online shopping is projected to have a high impact on electronic shelf labels market in the long-term.


SEGMENTATION


By Type Analysis


Electronic/E-Paper based ESL projected to lead the market throughout the forecast period


At present, electronic paper displays are often adopted by retailers compare to LCD based ESL. Features such as readability, excellent visibility, low power consumption, high-quality display, and much more characteristics had augmented the popularity of electronic paper-based shelf labels in the last decades. Moreover, e-paper displays can also be integrated with QR code readers and barcode functions effectively than with traditional LCD ESLs. Apart from this, multi-colored options of e-paper display enhance their significant adoption in shelf labeling applications. Due to advancements introduced in the LCD’s, the segment is expected to grow up by 2022 and then showcase a constant growth rate during the forecast period. Installation of small e-paper display labels enables retailers to focus on helping customers and sales. E-paper displays are further categorized into fully graphical e-paper display, and segmented e-paper display; among these, fully graphic e-paper technology is projected to dominate the electronic shelf labels market throughout the forecast period. E ink Holding company developed a new colored e-paper display named ‘print display’ in December 2019. Along with previous features, this displays uses power only when it is needed to refreshing the screen. 


By Communication Technology Analysis


Adoption of Near Field Communication Technology to Account for Maximum Share


By communication technology, the electronic shelf labels market segmented into Bluetooth Low Energy (BLE), Near Field Communication (NFC), and others such as wireless LAN, beacons, etc. A variety of competitors offers ESL solution with NFC, BLE, and other indoor positioning & communicating technologies such as Zig-Bee, RFID/IR-based systems. Ultimately, retailers adopt a technology with low cost and high performance, and supportability. Due to the increasing popularity of smartphone-enabled Near Field Communication (NFC) technology, penetration in ESL is also rising in the retail sector.


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This technology is reliable for data exchange across multiple connections. NFC-integrated digital signage and smart price tags can provide product information with real-time digital offers to the customers. The technology plays a vital role in electronic display market growth, which facilitates price changing with inventory management and stock management by allowing price updates at any time, simplifying the customer interactions via a simple tap on an NFC-enabled smartphone.


Additionally, high speed and improved control of information led to NFC technology over other technologies. Bluetooth low energy (BLE) is a conventional communication technology which has moderate communication range and minimum battery consumption. Still, BLE technology deliver limited location granularity if compared to NFC. Whilst, wireless LAN is ubiquitous in brick-and-mortar retail for the provision of fast internet access to the customer. Consequently, WiFi technology based shelf labels also stimulated the adoption of ESLs.


By End-Use Analysis


Electronic Shelf Labels Majorly Adopted by Hypermarket / Supermarkets


Global electronic shelf label market based on the end-user industry includes hypermarket/ supermarket, non-food retail store, specialty stores, and others. Of these, hypermarket and supermarket only occupy nearly half of the market share. ESL adoption trend in non-food retail stores has the potential to diminish labor activities across the store from which optimized labor-cost store management can be achieved. Several specialty retail stores like grocery shops, electronic shops are expected to push the growth of the electronic shelf label market in the forecasting period.


REGIONAL ANALYSIS


North America Electronic Shelf Labels Market, 2018 (USD Million)

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Geographically, the market is segmented across five major regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.


The outcomes based on our research indicates Europe holds the largest share in the global electronic shelf label market. In Europe, France showcases about 50.0% penetration of the ESL adoption due to local stringent pricing regulations. Europe and North America are the regions where the number of supermarkets and hypermarkets are high compare to other regions. The hypermarket and supermarket are projected to see high adoption for the ESL’s. Also, the significant presence of key market players in the European region is expected to drive the electronic shelf label market. Being technologically advanced geographical regions Europe and North America collectively are the largest shareholders of the ESL market.


Similarly, the Asia Pacific is estimated to witness a healthy growth in electronics shelf label implementation. Rapid technological advancements and growing retail automation are expected to supplement the market growth during the forecast period in Asia Pacific. Among the major Asian countries, Japan showcases the healthy adoption of the ESL systems as the country ranks top in automation. China which is one of the largest Asian country in terms of population and development, is expected to contribute largely to the market growth. Along with Japan and China, South Korea, Taiwan, and other countries are also contributing to the market growth. Within Latin America, technological developments and the presence of leading retail chain is expected to enhance ESL market penetration.


KEY INDUSTRY PLAYERS


SES-imagotag Focusses on The Strategic Partnership with Qualcomm Technologies to Develop Retail IoT Solution



  • SES-imagotag collaborated with Qualcomm Technologies for the development of low-power and enhanced security connectivity solutions, which is designed for backing the implementation of IoT technologies in retail stores.

  • The developed SES-imagotag’s platform named ‘VUSION’ influences cloud monitoring of all Electronic Shelf Label related operations to ensure ultra-secure infrastructure. The company takes a step ahead to enhance the intelligence of the present solution by integrating it with the IoT platform.


Key Players Focusing on Enhancing Product Efficiency


The key electronic shelf labels manufacturers are focusing on surging need to eliminate price checks and override in situations. The present retail industry requires tools, that guarantee improved store operations and task management while providing insights about store performance. The leading market players are offering scalable and reliable optical wireless communications systems. The innovative electronic shelf labels are fast and display agile performance, consume lesser energy compared to other communication systems, and have industry-leading battery life.


Moreover, the newly designed electronic shelf labels utilize only e-paper displays and radio communication. These ESL displays not only the price but also much product-related information. These can be integrated with other advanced retail devices such as foot traffic counters, digital signs, and camera surveillance, among others.


List of Key Companies Profiled:



  • ARKSCAN, LLC 

  • Diebold Nixdorf, Incorporated.

  • Displaydata Limited

  • E Ink Holdings Inc.

  • LG Corporation

  • M2COMM

  • New Zealand Electronic Shelf Labelling

  • NXP Semiconductors.

  • Opticon Sensors Europe 

  • Pricer

  • SAMSUNG 

  • Teraoka Seiko Co., Ltd.


KEY INDUSTRY DEVELOPMENTS:



  • December 2019 - Baltics, RIMI (part of ICA Group), the largest retailer, has signed a contract with StrongPoint, which is a reseller of pricer company to supply Electronic Shelf Labels to its stores.


FUTURE OUTLOOK


Rapid digital transformation in the retail industry is observed to be a key factor driving the electronic shelf label market. ESLs are significantly improving the customer in-store experience. As a result, the market sees a growing opportunity in the coming years. The key market players are mainly focused on expanding their product portfolio to cater to the demands of end-users. However, the retailers in the emerging markets are less likely to invest in advanced technologies due to the high operational cost. Technological advancements in disruptive technologies such as IoT, artificial intelligence, big data analytics are expected to create unprecedented market opportunities in the coming years.


REPORT COVERAGE


The Electronic Shelf Labels Market report offers qualitative and quantitative insights along with the detailed analysis of market size & growth rate for all possible segments in the market.  Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape.


An Infographic Representation of Electronic Shelf Labels Market

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Key insights provided in the report are the adoption trends of ESL by individual segments, recent industry developments such as mergers & acquisitions, consolidated SWOT analysis of key players, partnerships, Porter’s five forces analysis, business strategies of leading market players, key industry trends, macro, and micro-economic indicators.


Report Scope and Segmentation














































 ATTRIBUTE



 DETAILS



Study Period



  2015-2026



Base Year



  2018



Forecast Period



  2019-2026



Historical Period



  2015-2017



Unit



  Value (USD million)



By Type




  • LCD Based

  • E-Paper Based

    • Segmented E-Paper

    • Graphic E-Paper





By Communication Technology




  • Bluetooth Low Energy (BLE)

  • Near Field Communication (NFC)

  • Others (WiFi, Beacon, etc.)



By End-Use Industry




  • Hypermarket/ Supermarkets

  • Non-Food Retail Stores

  • Specialty Stores

  • Others



By Region




  • North America (U.S. and Canada)

  • Europe (UK, Germany, France, Italy, Scandinavia, and Rest of Europe)

  • Asia Pacific (Japan, China, Korea, Australia, Southeast Asia and Rest of Asia Pacific)

  • Middle East & Africa (South Africa, GCC and Rest of the Middle East & Africa)

  • Latin America (Brazil, Mexico and Rest of Latin America)



Frequently Asked Questions

As per our (Fortune Business Insights) study, the global market is predicted to reach USD 1,850.7 Mn by 2026 with a CAGR of 17.8% (2019 -2026)

Retail stores, as well as large retail supply chain, is the leading adoption area for the electronic shelf label.

In 2018, the global market was USD 499.9 Mn, and it is anticipated to reach USD 1,850.7 Mn by 2026, reflecting a CAGR of 17.8% during the forecast period from 2019 to 2026.

In the ESL, graphical e-paper based type of electronic shelf label is the leading segment. Low cost and compact size of display enhance the display readability and shopping engagement of the customers contributing in the growth of the market.

The rising retail industry automation is one of the prime driving factor of the market

Some of the key electronic shelf labels manufacturers are SES Imagotag, Pricer, M2M Communication, Displaydata Limited, and E Ink Holdings Inc

Electronic Shelf Labels Market Size, Share and Global Industry Trend Forecast till 2026
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