Market Summary:

The North America Electronic Article Surveillance (EAS) systems market size was significantly robust in 2020 and is expected to register a rapidly inclining revenue CAGR during the forecast period. Key factors such as technological advancements in surveillance systems, rising concerns about shoplifting, and increasing adoption of EAS systems are driving North America market revenue growth. Increasing focus on ensuring reduced losses due to theft and pilferage of products is a key factor supporting overall market growth.

Market Dynamics:
Drivers:

Electronic Article Surveillance (EAS) systems are deployed for optimization of store performance. EAS is a used in stores across the US and Cannada to prevent and deter shoplifting attempts and incidents. EAS system is used in outlets such as retail shops, supermarkets, pharmacies, cosmetic stores, and clothing outlets, among others. These systems comprise three primary components; electronic antenna, electronic tag, and deactivator.  

Shoplifting is one of the most common theft crimes in the US. EAS entails usage of technology to deter, detect, and stop theft attempts from stores. Electronic tags, stickers, or labels are attached to products or merchandise, and come in the form of disposable label tags or reusable hard tags. EAS system or Radio-Frequency Identification (RFID) system help store owners and assistants to catch shoplifters in the act, which serves well to discourage would-be thieves from attempting to take products and items without the tags or labels being scanned and registered on the computer system at the check-out or billing or cash counter in future. These attachments trigger an alarm system if attempts are made to take out or smuggle a product past detection gates installed at store entrances or exits. Along with these solutions, adoption of RFID EAS system is expected to open up more lucrative growth opportunities for players in the market as well as enable more efficient store and product management and tracking going ahead. 

Outlets are susceptible to inventory shrinkage with customer theft and employee theft leading the list, followed by clerical and administrative errors. These are the three top causes of shrink across retail operations of all types and sizes, and are not limited to any specific type or size of retail operations. The benefits and potential savings of installing EAS security systems and products outweigh the deployment cost. In addition, technological advancements have been steadily resulting in decreasing cost of security products and solutions, which is a key factor expected to continue to support revenue growth of the North America Electronic Article Surveillance Systems market going ahead. Furthermore, the retail environment is highly competitive, and factors such as good customer service and experience are crucial in ensuring satisfaction of existing customers and resulting loyalty to the store or outlet and staff. Deployment of EAS security systems can enable store personnel and staff to shift focus from monitoring potential shoplifters and product loss or security, and instead prioritize customer service, which is key to maximizing sales. Deployment also serves greatly to reduce pressure on staff related to maintaining a high level of vigilance in monitoring store and product security.

Stores often lose out on potential sales of high-value or premium products due to poor product visibility. High-value items and products as well as products that can be resold are primary targets of shoplifters. As a result, such products are commonly placed in cabinets or in a locked case or secure location to safeguard against theft. This also reduces visibility and even genuine customers may not have easy access to such items and products, which greatly hampers potential sale. In addition, besides limiting or reducing potential customer access and sale of such items, the cost to install lockable cabinets and displays, as well as staff to attend to customers wishing to explore purchase options in these settings would work up to a loss in the long term. Deployment of EAS systems helps substantially in ensuring product and merchandise safety and also encourages open display of high-value items and products, which increases visibility, encourages purchase decision, and drives store popularity among customers.

Restraints:

Adoption of EAS systems is relatively high and continues to increase in larger stores and outlets despite high initial setup costs. High cost for deployment, however, is acting as a restraint to adoption among a number of smaller retail shops and outlets. In addition, need for some amount of training is another factor deterring adoption. In addition, false alarms and easy availability of low-cost alternatives and used and refurbished EAS systems are factors expected to hamper market growth to a certain extent going ahead.

Majority of used EAS systems are sold when stores close down or if a store is being moved to a new location. Some companies buy old or end-of-life systems or remove fixtures from stores that are closed or closing. Companies also refurbish systems by using parts and components from a number of scrapped systems to build one working system. These systems, however, are offered with no warranty and could malfunction or break down without warning.

Market Insights:
Component Outlook:

Based on components, the North America market is segmented into electronic antenna, deactivator/detacher, and electronic tags. The electronic tags segment is expected to account for largest revenue share between 2021 and 2028. Electronic tags are either in hard tag or sticker form and play a vital role in minimizing incidents of shoplifting. These tags are attached to the product and are removed at the time of check out. Electronic tags are in high demand as they are easy to install and operate for store operators, but are difficult for shoplifters or thieves to deactivate. 

Technology Type Outlook:

Based on the type, the North America market is segmented into magneto-harmonic systems, acousto-magnetic systems, Radio Frequency (RF) systems, and microwave. Among these, the radio frequency segment is expected to account for significant revenue share throughout the forecast period. These systems are sensitive, work with thin EAS labels, and have a wide detection range. The radio frequency systems are inexpensive and are widely used for various applications including clothing stores, supermarkets, pharmacies, and apparel stores.

Application Outlook: 

The North America EAS systems market is segmented into supermarkets, apparel stores, cosmetics/pharmacy, and fashion accessories stores based on application. The supermarkets segment is expected to account for substantially large revenue share during the forecast period. With increasing number of supermarkets across the globe, the chances of shoplift is also increasing. Thus, to reduce the number of thefts, and monitor large areas, there has been an increase in adoption of EAS systems in supermarkets. 

North America Market Outlook:

The market in North America is expected to account for largest revenue share in the North America EAS systems between 2021 and 2028. Factors such as rising incidents of thefts and associated security concerns, increasing adoption of EAS systems, and availability of advanced systems are fueling market growth. As per September 2020 estimations, there are currently 27 million shoplifters in the US, which translates to one in 11 Americans steal from stores and retailers. Shoplifting in the US depends on the value of property stolen, and can be charged as a misdemeanor or a felony offense.

In Canada however, charges and conviction are permanently viewable on a shoplifter’s criminal record, unless the person was a minor at the time of incident. In addition, the charge, arrest, and fingerprinting are still available as a matter of public record in Canada even if the person was not convicted of shoplifting. Despite the stringent laws in Canada, shoplifting is the most common form of theft in the country. The EAS systems market in Canada is expected to account for second-highest revenue share in the North America market over the forecast period, owing to increasing deployment of these security systems, driven by rising incidents of theft and shoplifting following the demand-supply disruption resulting from the COVID-19 pandemic, and technological advancements resulting in reducing costs of these systems and robust competition in the EAS systems market.

Competitive Landscape:

Sentry Technology Corp, Checkpoint Systems Inc., Tyco Retail Solutions, Tekno Electro Solutions, Ketec Inc., ALL-TAG Security Americas Inc., Hangzhou Century Co., Ltd, Nedap N.V., Universal Surveillance Systems and Tag Co., Johnson Controls, Sentry Custom Security, Feltron Security Systems, Shopguard Systems, Agon Systems, and Takachiho Koheki are some key players operating in the overall EAS systems market.

Major market players are focusing on developing various strategies such as mergers and acquisitions, partnerships, collaborations, and new product launches to expand their product base and strengthen their market footprint. 

Segments Covered in the report:

This report offers historical data points and forecasts and revenue growth at regional and country-level, and provides analysis, industry trends, and consumption pattern details for each region, major country, and segment from 2018 to 2028. The North America EAS systems market report includes industry trends, drivers, restraints, opportunities, threats, market strategies, segment revenue, and revenue share contribution by each country in the region. In addition, the report offers industry analysis and competitive landscape, company financials, and impact analysis. The report includes a detailed view of the North America EAS systems market along with changing dynamics and trends, scenarios, detailed market and regional and country segmentation, regional and country landscape, analysis and evaluation, major investments, product offerings, product launches, and details of historical, current, and projected revenues.

 

For the purpose of this report, Reports and Data has segmented the North America EAS systems market based on component, type, application, and region and countries:

Component Outlook (Revenue, USD Million; 2018-2028)

  • Electronic Antenna
  • Deactivator/Detacher
  • Electronic Tag

Technology Type Outlook (Revenue, USD Million; 2018-2028)

  • Magneto-Harmonic
  • Acousto-Magnetic
  • Radio Frequency
  • Microwave

Application Outlook (Revenue, USD Million; 2018-2028)

  • Supermarkets
  • Apparel Stores
  • Cosmetics/Pharmacy
  • Fashion Accessories Stores

Region Outlook (Revenue, USD Billion; 2018 – 2028)

  • North America
    • US
    • Canada
    • Mexico
    • Rest of North America

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