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(Medical-NewsWire.com, August 04, 2022 ) According to a new market research report titled “Electronic Shelf Label Market by Product Type (E-Paper, LCD), Display Type (Full Graphics, Black&White), Component (Hardware, Software), Communication Technology (NFC, Wi-Fi), End User (Retail, Automotive Retail), and Geography — Global Forecast to 2028”, published by Meticulous Research®, the electronic shelf labels market is expected to grow at a CAGR of 21.8% from 2021 to 2028 to reach $2.57 billion by 2028.
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Electronic Shelf Labels (ESL) are low-power-consuming display tags used mostly in the retail industry to display product prices and information. ESLs display information using electronic paper (E-paper), liquid crystal display (LCD), or thin-film transistor (TFT) technologies. ESL tags are centrally controlled and display pricing information, product information, competitor pricing, and advertisements. These tags are used as an alternative to paper tags in retail facilities. ESL tags are mainly used in the retail sector; however, hospitality, travel & tourism, automotive retail, and corporate, among other sectors, are also turning to electronic shelf labels due to their cost-effectiveness and efficiency.
Stringent environmental regulations concerning the use of paper, the rising trend of retail automation, and the higher efficiency and time savings offered by ESLs compared to traditional paper labels are the factors driving the growth of the electronic shelf labels market. However, the high cost of installing ESL infrastructure is expected to restrain market growth in developing regions. Advancements in retail technologies and the availability of real-time product information and prices, with the use of Augmented Reality and Artificial Intelligence, are projected to provide significant growth opportunities for the vendors operating in this market. Also, the reluctance to deploy automated technology among low-margin retailers is expected to create challenges for the market's growth.
The Impact of COVID-19 on the Electronic Shelf Label Market
The outbreak of COVID-19 had a huge impact on the retail and other industrial verticals. The pandemic caused a widespread economic breakdown across several countries, trade routes, and the global supply chain. Due to lockdowns and country-wide shutdowns of physical stores, the e-commerce sector increased to meet the demand for essential items. Lockdowns severely impacted consumers as well as manufacturers. Although the period of lockdown and restrictions was limited, several markets and industries were forced to observe a slowdown in the annual growth rate. This also impacted the supply chain due to lack of supply and extreme demand as consumers were panic buying, government restrictions were imposed, and lack of labor.
Electronic shelf labels enabled retailers to update prices automatically, in real-time across stores, eliminating tedious and error-prone manual work. With ESLs, retailers increased their pricing efficiency and accuracy, optimized click and collect, and simplified replenishment. Store operators quickly reacted to market prices and easily synchronized pricing to keep up with the online competition. ESLs allowed customers to see the correct price and get personalized, in-depth product information, creating a seamless in-store and online shopping experience with price transparency.
The pandemic also impacted the psychology of consumers towards the purchase of goods and where to buy them from. Consumers are changing their spending patterns to purchase less expensive products to save more money, which is expected to reduce the footfall of physical retail stores and indirectly reduce the growth of the electronic shelf labels market.
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Several retailers took the opportunity of the pandemic to deploy ESL in their stores. From the third quarter of 2020, the manufacturing of ESL recovered much faster. The retail industry is expected to recover steadily due to the increased need for automation, stringent government regulations regarding the environment, and the use of paper, minimizing human interaction and contact. Among a few major retailers, Walmart, in its retail chains in the U.S. and Canada, is planning to transform its stores from paper labels to electronic labels by the end of 2021. While most consumers in developed countries are still hesitant to re-visit physical stores and prefer e-commerce, consumers in developing regions, such as China, India, and Brazil, have started visiting the retail stores after relaxation from the government.
Key Findings in the Electronic Shelf Label Market Study:
The electronic shelf labels market is segmented based on product type, display type, component, communication technology, end user, and geography. The study also evaluates industry competitors and analyzes the market at the country level.
Based on product type, the electronic shelf labels market is segmented into e-paper, LCD, and TFT. The e-paper segment is expected to account for the largest share of the electronic shelf labels market in 2021. The large share of this segment is mainly attributed to the advantages of e-paper ESLs, such as their lower costs and power consumption and simpler design compared to other technologies. Moreover, the paper-like readability of e-paper ESLs, and their versatility of display (full graphics and black & white) drive the demand for e-paper-based electronic shelf labels. Moreover, the e-paper electronic shelf labels segment is expected to witness significant growth during the forecast period 2021-2028.
Based on display type, the electronic shelf labels market is segmented into full graphics, black & white, and segmented. The full graphics segment is expected to account for the largest share of the electronic shelf labels market in 2021. The large share of this segment is mainly attributed to the growing usage of full-graphics displays in supermarkets and electronic stores due to their ability to showcase a wide range of colors such as red, yellow, black, and white which makes them more appealing. Moreover, full-graphics ESLs can also be used for scheduling and feature multiple pages depending on the amount of information.
Based on component, the electronic shelf labels market is segmented into hardware and software. The hardware segment is expected to account for the largest share of the overall market in 2021 and expected to grow at the highest CAGR during the forecast period. The large share of this segment is mainly attributed to the larger proportion of hardware (display screens, batteries, controllers, gateways, railings, brackets, and other accessories) used in overall ESL systems. The hardware costs constitute nearly 90–95% of the overall system cost.
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Based on communication technology, the electronic shelf labels market is segmented into NFC, Wi-Fi, Bluetooth, and RFID. The NFC segment is expected to account for the largest share in 2021and is expected to grow at the highest CAGR during the forecast period. NFC technology allows product prices to be updated at any time through the use of NFC-enabled smartphones, simplifying customer interactions.
Based on end user, the electronic shelf labels market is segmented into retail, automotive retail, manufacturing, and other end users. The retail segment is expected to account for the largest share of the overall electronic shelf labels market in 2021. The factors helping the dominance of this segment include advancements in retail automation, rising need to minimize human interactions & contacts, and retailers' growing preference for ESLs over paper-based labels. The retail industry is a leading end-user of ESL, with over 60% of the deployments in this sector. Retailers use an ESL system for displaying product pricing on shelves. The product pricing is automatically updated whenever a price is changed from a central control server. However, automotive retail is subjected to showcase the highest CAGR during the forecast period. The rapid growth of this segment is mainly attributed to the use of ESLs by dealership stores, such as new car dealerships, used cars dealerships, luxury car dealerships, motorcycle and bike stores, and others to effectively manage their customers, provide accurate and detailed pricing and attract more consumers.
Geographically, Europe is expected to account for the largest share of the global electronic shelf labels market in 2021. The government has subjected a consumer protection law in the European Union (EU) to adopt retail automation in the region. For instance, in France, the Consumer Code mandates businesses to display price information on their products. In addition, advertisements are prohibited to directly or indirectly incite excessive consumption behaviors or the wasting of energy & natural resources. The increasing proliferation of the Internet of Things (IoT) coupled with growing digitization in the European retail sector is one of the major factors driving the European electronic shelf labels market. However, Asia-Pacific is expected to witness the fastest growth during the forecast period. The factors attributed to the high growth of this region are macroeconomic factors such as penetration of high-speed internet services in countries such as South Korea and China, shifting lifestyles, and the growing organized retail sectors are boosting the necessity of in-store automation, which is further expected to boost the growth of ESLs in the Asia-Pacific region. Also, retailers are taking initiatives for the deployment of ESLs in stores.
The key players operating in the global electronic shelf label market are Teraoka Seiko Co., Ltd. (Japan), Displaydata Limited (U.K.), M2COMM (Taiwan), Mariella Labels OY (Finland), Opticon Sensors Europe B.V. (Netherlands), Pricer AB (Sweden), RAINUS Co., Ltd. (South Korea), SES-imagotag SA (France), SoluM Co., Ltd. (South Korea), Store Intelligence Inc. (U.S.), Zhejiang Hanshow Technology Co., Ltd. (China), Diebold Nixdorf Incorporated (U.S.), NZ Electronic Shelf Labelling (New Zealand), CLEARink Displays, Inc. (U.S.), and E Ink Holdings Inc. (Taiwan) among others.
To gain more insights into the market with a detailed table of content and figures, click here: https://www.meticulousresearch.com/product/electronic-shelf-label-market-5214