Electronic Shelf Labels Market by Product Type (Fully Graphic E-paper Displays, LCDs, Segmented E-paper Displays), Application (Retail, Industrial), Communications Technology, Display Size, Component and Region - Global Forecast to 2028
Updated on : May 09, 2023
[269 Pages Report] The Electronic Shelf Labels Market in terms of revenue was estimated to be worth $1.5 billion in 2023 and is poised to reach $2.8 billion by 2028, growing at a CAGR of 13.8% from 2023 to 2028. Growing trend of retail automation, advent of 5G, and benefits offered by electronic shelf labels (ESLs) are the major factors driving the market growth for ESLs globally.
Electronic Shelf Labels Market Forecast to 2028
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Electronic Shelf Labels Market Dynamics
Driver: Growing trend of retail automation
Retail automation provides several benefits, such as product supply efficiency, seamless management of business platforms, improved efficiency in power supplies, and faster checkout in retail stores. In recent years, automation in the retail sector has increased significantly due to factors such as the development of new channels to supply goods and growing labor wages. The development of advanced retail solutions such as ESLs, self-checkout systems, and automated conveyors have tremendously gained traction as they not only provide an enhanced shopping experience to customers but also reduce costs for retailers. Customers globally are becoming price-sensitive and are more informed about the price, which has increased the need for seamless price adjustments, thereby driving market growth for retail automation solutions such as ESLs. The inclination of retailers toward reducing operational costs by reducing manual operations in stores is expected to create a surge in demand for ESLs in the next 5 years. Moreover, the increasing purchasing power of consumers and economic growth in emerging economies such as China, South Korea, Italy, etc., are facilitating the increased adoption of retail automation solutions globally.
Restraint: High installation and supporting infrastructure expenses
The installation of electronic shelf labels is extensively impeded by high costs related to technology. The installation of ESLs require the addition of electrified shelves that are compatible with ESLs, which, in turn, increases expenses. Moreover, retailers constantly analyze both benefits and the returns of solutions being integrated in stores. For an unorganized retail market especially in emerging economies, such as South Korea and India, the cost of technology is a major restraint as the deployment of these labels not only needs the supporting infrastructure, which calls for large investments but would also lead to lower return on investment (ROI). Although the adoption of ESLs offers many benefits such as dynamic pricing capabilities and reduced human efforts, the initial cost of ESLs is high and it might not be feasible for installation in all retail stores. Therefore, high installation expenses are likely to impede the market during the forecast period.
Opportunity: Constantly growing retail sector
The retail sector has evolved exponentially in the last few years, marked by growing awareness among consumers, a rise in disposable incomes, changing behavior, and the growing integration of online and offline retail formats. As shoppers become more demanding, retailers have had to innovate by transforming merchandise, marketing techniques, presence, and appeal to remain relevant for their customers. Technology will drive revolution going forward, and retailers must invest in tech infrastructure and work toward improving their facilities. From checkout-free to touch-free shopping, merchandising to transactions, technology will accelerate the industry, reducing physical interaction. The deployment of ESLs, thus, could see a major impact with the ongoing opportunities in the retail sector.
Challenge: Low labor costs in emerging economies
The availability of labor at low prices in emerging economies such as India, South Korea, China, and South Africa is significantly impeding the use of advanced retail solutions. The availability of abundant inexpensive workforce in these regions is expected reduce the economic value of advanced retail solutions. Furthermore, the use of retail automation solutions such as ESLs in retail stores needs upgrading of existing infrastructure, which significantly increases the total installation expenses. Moreover, the ESLs deployed in a retail space use near-field communicatrion (NFC), which is the preferable means of communication within the store, among other communication technologies. NFC-based applications and infrastructure are costly, and thus, retailers prefer manual operations across their stores rather than upgrading the stores with ESLs owing to availability of inexpensive workforce.
Less than 3 inches display size to account for the largest share of the electronic shelf labels market during forecast period
The less than 3 inches segment accounted for the largest market share of in 2022, and a similar trend is expected in the future. The growth of this segment can be attributed to the rising demand for price automation from tier I and tier II retailers that rely on labels of these sizes to a large extent owing to a large number of retail offerings and SKUs available in the stores.
Radio Frequency to account for the largest share of the electronic shelf labels market from 2023 to 2028
Radio frequency (RF) segment accounted for the largest share of the electronic shelf labels market in 2022. RF is projected to dominate the market from 2023 to 2028. The stability offered by RF-based ESLs is a major factor contributing to the market growth of the segment. Moreover, these ESLs enable fully automated data transfer and possess an electronic memory that helps store information.
Electronic Shelf Labels Market by Region
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Europe is projected to account for the largest share of the electronic shelf labels industry from 2023 to 2028. Europe has been an early adopter of ESLs for retail and industrial applications. Moreover, the presence of several key market players offering ESLs and the growing labor costs in the region are some of the other factors contributing to the market growth. Retailers in Europe are extensively focusing on using automated retail solutions such as ESLs to significantly reduce operational costs in their stores.
Key Market Players
The electronic shelf labels companies such as SES-imagotag (France), SoluM Co., Ltd. (South Korea), Pricer AB (Sweden), Displaydata Limited (UK), and Teraoka Seiko Co., Ltd. (DIGI Group) (Japan).
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Report Metric |
Details |
| Expected value | $2.8 billion by 2028 |
| projected value | $1.5 billion in 2023 |
| Growth Rate | 13.8% |
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Market size available for years |
2019–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million/Billion, USD Thousand) |
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Segments covered |
By Component, By Product Type, By Communications Technology, By Display Size, and By Application |
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Geographies covered |
North America, Europe, Asia Pacific, and Rest of World |
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Companies covered |
The major players in the electronic shelf labels market are SES-imagotag (France), SoluM Co., Ltd. (South Korea), Pricer AB (Sweden), Displaydata Limited (UK), Teraoka Seiko Co., Ltd. (DIGI Group) (Japan), M2COMM (Taiwan), Opticon Sensors Europe B.V. (Netherlands), RAINUS (South Korea), Shanghai SUNMI Technology Co., Ltd. (China), and Hanshow Technology (China). |
Electronic Shelf Labels Market Highlights
The study segments the electronic shelf labels market based on component, product type, communications technology, display size, and application at the regional and global level.
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Aspect |
Details |
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By Component |
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By Product Type |
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By Communications Technology |
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By Display Size |
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By Application |
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By Region |
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Recent Developments
- In November 2022, Pricer strengthened its strategic partnership with StrongPoint, a leading grocery retailer that provides smart solutions for retail stores and distributes Pricer’s ESLs in Europe. The new agreement increases StrongPoint’s geographic scope to the UK and Ireland.
- In September 2022, SES-imagotag announced a partnership with Instacart, a leading grocery technology company in North America. The partnership enabled the integration of SES-imagotag’s ESLs and VUSION IOT retail cloud platform in grocery stores for an enhanced shopping experience.
- In August 2022, SoluM announced a partnership with Ekko GmbH, an Industry 4.0 SaaS platform. With this partnership, SoluM integrated Ekko’s platform with its ESLs to provide enhanced logistics capabilities in retail stores.
- In April 2021, Displaydata announced the launch of a new four-color e-paper ESLs. The newly launched ESLs are integrated with the E ink Spectra 3100 Display Platform. The newly launched ESL is available in black, white, yellow, and red colors.
- In October 2017, Teraoka Seiko announced the acquisition of IMSISPAL S.A., a leading provider of packaging and labeling solutions in Spain. With this acquisition, Teraoka Seiko aims to strengthen its market position in Spain.
Frequently Asked Questions (FAQ):
What is the current size of the global electronic shelf labels market?
The electronic shelf labels market is estimated to be worth USD 1.5 billion in 2023 and is projected to reach USD 2.8 billion by 2028, at a CAGR of 13.8% during the forecast period. Growing trend of retail automation, advent of 5G, and benefits of ESLs are some of the major factors driving the market growth for ESLs globally.
Who are the winners in the global electronic shelf labels market?
Companies such as SES-imagotag (France), SoluM Co., Ltd. (South Korea), Pricer AB (Sweden), Displaydata Limited (UK), and Teraoka Seiko Co., Ltd. (DIGI Group) (Japan), fall under the winners category.
What is the impact of recession on electronic shelf labels market?
During the recession, retail stores globally are expected to focus extensively on essential store operations and reduce investments related to advanced hardware and software solutions to reduce operational costs. Hence, the retail sector, and subsequently the markets in accordance with retail automation, such as the electronic shelf labels market, are expected to witness a marginally negative impact in 2023.
What are the opportunities pertaining to the electronic shelf labels market?
Constantly growing retail sector, and digital disruptions facilitating the adoption of advanced retail solutions are expected to provide growth opportunities for market players offering ESLs.
What are the strategies adopted by key players?
Partnerships, product launches and developments, expansions, acquisitions, joint ventures, and agreements are the major organic and inorganic growth strategies adopted by key players in the market.
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The research study involved 4 major activities in estimating the size of the electronic shelf labels market. Exhaustive secondary research has been done to collect important information about the market and peer markets. The validation of these findings, assumptions, and sizing with the help of primary research with industry experts across the value chain has been the next step. Both top-down and bottom-up approaches have been used to estimate the market size. Post which the market breakdown and data triangulation have been adopted to estimate the market sizes of segments and sub-segments.
Secondary Research
In secondary research, various secondary sources have been referred to for obtaining the information that was needed for the study. Various secondary sources that were used for the research include, corporate filings such as annual reports, press releases, investor presentations, and financial statements, trade, business, and professional associations, whitepapers, journals based on electronic shelf labels, certified publications, and articles from recognized authors and databases.
In the electronic shelf labels market report, the top-down as well as the bottom-up approaches have been used for the estimation of the global market size, along with several other dependent submarkets. The major players in the market were identified with the help of extensive secondary research and their presence in the market was determined using secondary and primary research. All the percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Primary Research
Extensive primary research has been conducted after understanding the electronic shelf labels market scenario through secondary research. Several primary interviews have been conducted with key opinion leaders from both demand- and supply-side vendors across 4 major regions-North America, Europe, Asia Pacific, and the Rest of the World. Approximately 25% of the primary interviews have been conducted with the demand-side vendors and 75% with the supply-side vendors. Primary data has been collected mainly through telephonic interviews, which consist of 80% of the total primary interviews; questionnaires and emails have also been used to collect the data.
After successful interaction with industry experts, brief sessions were conducted with highly experienced independent consultants to reinforce the findings of our primary research. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the report.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the market engineering process, both top-down and bottom-up approaches along with data triangulation methods have been used to estimate and validate the size of the electronic shelf labels market and other dependent submarkets. The research methodology used to estimate the market sizes includes the following:
- Identifying different stakeholders in the electronic shelf labels market that influence the entire market, along with participants across the value chain.
- Analyzing major manufacturers' electronic shelf labels (OEMs) as well as studying their product portfolios
- Analyzing trends related to the adoption of electronic shelf labels based on application
- Tracking the recent and upcoming developments in the market that include investments, R&D activities, product launches, collaborations, mergers & acquisitions, and partnerships, as well as forecasting the market size based on these developments and other critical parameters
- Carrying out multiple discussions with key opinion leaders to identify the adoption trends of electronic shelf labels
- Segmenting the overall market into various other market segments
- Validating the estimates at every level through discussions with key opinion leaders, such as chief executives (CXOs), directors, and operation managers, and finally with the domain experts at MarketsandMarkets
Market Size Estimation Methodology-Bottom-up Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the overall electronic shelf labels market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments, the data triangulation and market breakdown procedures have been used, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. The electronic shelf labels market size has been validated using both top-down and bottom-up approaches.
The main objectives of this study are as follows:
- Define, analyze, and forecast the electronic shelf labels market, in terms of value, segmented based on component, product type, communications technology, display size, application, and region
- Define, analyze, and forecast the electronic shelf labels market, in terms of volume, based on display size
- Forecast the market size for various segments with respect to 4 main regions: North America, Europe, Asia Pacific, and Rest of the World
- Provide detailed information regarding the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the electronic shelf labels market
- Study the complete value chain and related industry segments, and perform a value chain analysis for the market
- Strategically analyze the micromarkets with respect to individual growth trends, prospects, and contributions to the total market
- To analyze industry trends, pricing trends, patents and innovations, and trade data (export and import data), regulatory environment, Porter’s five forces analysis, case studies, key stakeholders & buying criteria, technology trends, the market ecosystem, and key conferences and events related to the electronic shelf labels market
- Analyze opportunities in the market for various stakeholders by identifying the high-growth segments of the market
- Strategically profile the key players and comprehensively analyze their market position in terms of ranking and core competencies, along with detailing the competitive landscape for the market leaders
- To analyze competitive developments such as product launches/developments, expansions, acquisitions, and research and development (R&D) activities carried out by players in the electronic shelf labels market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Country-Wise Information:
- Analysis for additional countries (up to 5)
Company Information:
- Detailed analysis and profiling of additional market players (up to 5)
Outlook and Growth Electronic Shelf Labels and Digital Price Tags Market
The digital price tag or electronic price tag market is closely connected to the electronic shelf labels (ESL) market. ESLs are digital displays that show pricing information on shelves in retail environments, and they are typically wirelessly connected to a central server that can update the pricing information in real-time. This allows retailers to easily and quickly update prices, promotions, and other product information.
Similarly, digital price tags or electronic price tags are also digital displays that can show pricing information for products in a retail environment. These displays can be attached to individual products, rather than placed on shelves, and can also be wirelessly connected to a central server that updates pricing information in real-time.
The connection between these markets is driven by the need for retailers to streamline their pricing and promotional strategies. ESLs and digital price tags offer a more efficient and accurate way to update pricing information compared to traditional paper tags or labels. They also allow retailers to quickly implement promotions or price changes, which can help them remain competitive in a fast-moving retail environment.
As a result, the adoption of ESLs and digital price tags is expected to continue to grow, and many retailers are likely to invest in these technologies to improve their operations and increase their sales. This is driving innovation in both the mobility electronic shelf labels and digital price tag markets, and we can expect to see new and advanced technologies emerge in the future.
How Digital Price Tag or electronic price tag is going to impact the electronic Shelf labels market?
The emergence of digital price tags or electronic price tags is likely to impact the electronic shelf labels (ESL) market in several ways:
Increased competition: With the availability of digital price tags, retailers now have another option for displaying pricing information in their stores. This increased competition could lead to price pressures on ESL providers, who may need to offer more competitive pricing or enhanced features to remain competitive.
Differentiation: ESL providers may need to differentiate themselves from digital price tag providers by offering additional features, such as the ability to display more detailed product information or provide in-store navigation assistance.
Market expansion: The availability of digital price tags may also lead to an expansion of the overall market for electronic displays in retail environments. As retailers become more comfortable with digital displays, they may be more likely to adopt ESLs or other types of digital displays in their stores.
Consolidation: The emergence of digital price tags could also lead to consolidation in the ESL market, as smaller providers may struggle to compete with larger, more established players.
Some futuristic growth use-cases of Digital price tag market?
The digital price tag market is rapidly evolving, and there are many potential growth use-cases that could shape its future. Here are some futuristic growth use-cases of digital price tags:
Personalization: Digital price tags could be used to personalize pricing and promotions based on individual shopper behavior, preferences, and purchase history. For example, a digital price tag could display a personalized discount for a shopper based on their previous purchases.
Augmented reality: Digital price tags could be combined with augmented reality (AR) technology to create interactive shopping experiences. Shoppers could use their smartphones or AR-enabled glasses to view additional product information, see how products look in different colors or styles, or access reviews and ratings.
Sustainability: Digital price tags could be used to reduce waste and promote sustainability. Retailers could eliminate the need for disposable paper price tags, which would reduce their environmental impact. Additionally, digital price tags could be used to display information about the environmental impact of products, such as their carbon footprint.
Data analytics: Digital price tags could be used to collect and analyze data on shopper behavior and preferences. Retailers could use this data to optimize pricing and promotions, improve product placement and inventory management, and create personalized shopping experiences.
Contactless payments: Digital price tags could be integrated with contactless payment systems, allowing shoppers to pay for products directly from the tag. This would streamline the checkout process and reduce the need for shoppers to interact with traditional cash registers or checkout counters.
Industries That Will Be Impacted in the Future by Digital Price Tags
Digital price tags have the potential to impact several industries beyond just retail. Here are a few examples:
Healthcare: Digital price tags can be used in the healthcare industry to track inventory levels and prices of medical supplies, medicines, and equipment in hospitals and clinics. This can help streamline supply chain management and reduce errors in pricing.
Hospitality: In the hospitality industry, digital price tags can be used in hotels to display real-time pricing and availability of rooms, amenities, and services. This can provide guests with more accurate and up-to-date information and help hotels optimize their pricing strategies.
Logistics and transportation: Digital price tags can be used in logistics and transportation to track inventory levels, prices, and shipping information of products and goods. This can help streamline supply chain management and improve the efficiency of logistics operations.
Agriculture: In the agriculture industry, digital price tags can be used to track inventory levels and prices of crops, fertilizers, and other agricultural products. This can help farmers optimize their pricing strategies and improve their supply chain management.
Manufacturing: Digital price tags can be used in the manufacturing industry to track inventory levels and prices of raw materials, components, and finished products. This can help manufacturers optimize their supply chain management and improve their production processes.
Growth Opportunities and Key Challenges for Electronic Price Tags in the Future
Growth Opportunities:
Increasing Adoption of Digital Technologies: The increasing adoption of digital technologies in various industries is expected to drive the growth of the electronic price tag market. The demand for digital price tags is expected to grow as more retailers, hospitals, and other industries look to digitize their operations.
Rising Demand for Automation: The growing demand for automation in various industries is expected to boost the growth of the electronic price tag market. Electronic price tags can help automate pricing and inventory management, reducing the need for manual intervention and improving efficiency.
Growing E-commerce Industry: The e-commerce industry is growing rapidly, and electronic price tags can help online retailers automate pricing and inventory management, providing a seamless shopping experience for customers.
Increased Customization and Personalization: Electronic price tags can be customized to display different types of information, such as pricing, product information, and promotions. This can provide a personalized shopping experience for customers and help retailers improve customer engagement.
Key Challenges:
High Initial Investment: The initial investment required to implement electronic price tags can be high, which can be a major challenge for smaller retailers and businesses.
Limited Market Penetration: The market penetration of electronic price tags is still relatively low, which can be a challenge for companies looking to expand their offerings in this space.
Limited Compatibility: Electronic price tags may not be compatible with all types of products and industries, which can limit their adoption in certain markets.
Privacy and Security Concerns: Electronic price tags can raise privacy and security concerns, particularly in industries such as healthcare, where patient data must be kept confidential.
Generating Response ...
Growth opportunities and latent adjacency in Electronic Shelf Labels Market
The increasing use of electronic shelf labels in hypermarkets, supermarkets, and specialty stores is gaining traction day by day. I would like to understand the growth rate and product type preferred in these stores. I would like to know the deciding factors for the selection of these particular product types in these stores.
I am interested in understanding the market penetration of electronic shelf label's in North America, especially in the US and Canada. Does your report cover the companies based out in this region and their market share w.r.t to the other companies ?
I would like to know about the major communication technologies in ESL and their market share as well. Has this information been included in your report? I am also interested in knowing the competitive landscape for this market.
we need cheaper solutions