The electronic shelf label market was valued at USD 799.1 million in 2020, and is expected to reach a value of USD 2343.86 million by 2026, witnessing a CAGR of 21.19% over the forecast period of 2021 - 2026.
- High accuracy and reduction in labor cost (compared to the conventional label changing) are boosting the growth of the market. These factors have significantly reduced the risk of human error by ensuring potential pricing compliances. The clients lose trust in a company, if the in-store prices do not align with the online display (as this is often the reality they encounter). Electronic shelf label helps to fix the price errors.
- NFC penetration in the industry is expected to gain momentum over the coming years, owing to the increasing adoption of NFC technology in multiple devices, such as POS systems and smartphones. This allows the retailers to integrate these devices with the existing handheld devices for lowering the overall installation cost of these labels. This acts as a key driver for the growth of market.
- However, the high initial investments required to set up these products in stores as well as less knowledge about the usefulness of the ESL system are the major restraining factors for the growth of the electronic shelf label market.
Key Market Trends
NFC Mobile Payment is Owing to Increase the Market in Retail Sector
- Due to increase in the NFC (Near Field Communication) enabled smartphone technology, the use of NFC in electronic shelf labels is growing in retail sector, as it is energy-efficient and cost effective. Near Field Communication (NFC) is embedded and uses proximity to create simplified transactions, data exchange, and brief connections. Prior to purchase, NFC-enabled smart packages and signage can provide timely product information and even real-time digital offer to the customers.
- In retail, the NFC technology significantly adds up to standard ESLs, which display the price and facilitate the stock management by enabling price updates at any time. This simplifies the customer interactions via a simple tap on an NFC-enabled smartphone.
- A majority of the customers prefer NFC technology over other digital innovations, such as QR code, and Bluetooth beacon, due to its high speed and improved control on information. This NFC enabled devices help in collecting the details of customers, their shopping interests, and frequently purchased items. This facilitates personalized marketing and, thus, attracts customers to visit again. This factors helps in boosting the growth of the market.
- Casino is a French supermarket that has used NFC tags in front of every product on the shop shelves. Customers can touch the tag with their phones and can view the product info or add the product to their mobile appâ€™s basket. It also provides personalized prices and activates instant promotions.
North America to Account for a Major Share
- North America is the largest market for electronic shelf labels globally. The huge market in this region can be attributed to the vast presence of retail stores, both small and big, across the region.
- Moreover, favorable government initiatives in the US towards technological innovation and integration of automated products across all industry verticals, specifically in retail automation is boosting the demand for the market.
- The US has been led by retail giants, such as Wal-Mart, driving the upsurge in activity, largely contributing to the market growth in the region. The country has been one of the largest logistics markets in the world.
- The industrial revolution in the US has created large data evolution capabilities to be used in the production processes and integration in supply chain management. The technology aids in enhancing the store operations further developing the industry, by which ESL will improve the performance efficiency of store operations.
The electronic shelf label market is a fairly fragmented market with a few vendors occupying a large share. The key players are E Ink Holding Inc., LG Corporation, Altierre Corporation, etc. the recent developments in the market are :
- May 2019 - E Ink, the leading innovator of electronic ink technology, displayed its latest innovations in color displays, writing films, and new light transmissive films at SID Display Week 2019 from May 14-16, 2019 in San Jose. It enables electronic shelf labels to respond to customer traffic patterns in an accurate manner.
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