Electronic Shelf Label Market Size (2024 - 2029)

The electronic shelf label market is projected to experience significant growth, driven by the increasing adoption of retail automation technologies in response to the expanding organized retail sector, particularly in developing countries. The market's expansion is further supported by the rise of e-commerce and the integration of advanced technologies in distribution centers. Despite the challenges posed by low labor costs in emerging markets and the high initial investment for automation, the demand for electronic shelf labels is expected to rise, fueled by advancements in automation and the decreasing costs of electronic goods.

Market Size of Electronic Shelf Label Industry

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Electronic Shelf Label Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 1.73 Billion
Market Size (2029) USD 3.33 Billion
CAGR (2024 - 2029) 13.90 %
Fastest Growing Market Europe
Largest Market North America

Major Players

Electronic Shelf Label Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Electronic Shelf Label (ESL) Market Analysis

The Electronic Shelf Label Market size is estimated at USD 1.73 billion in 2024, and is expected to reach USD 3.33 billion by 2029, growing at a CAGR of 13.90% during the forecast period (2024-2029).

The rise of numerous retail locations, including supermarkets and hypermarkets, has significantly impacted the retail business, driving demand for retail technology and gadgets such as digital shelf labels.

  • The growing trends in the retail sector are expected to contribute to the adoption of retail automation, including electronic shelf labels. For instance, according to US Census Bureau March 2022, total retail revenues in 2021 were roughly USD 6.6 trillion, an increase of around USD 1 billion from the previous year.
  • The rise of the organized retail sector in developing countries is one of the important drivers driving industry growth due to powerful macroeconomic variables and the spread of the internet in India and China. Retailers are implementing automated technologies like ESLs, which can successfully serve the growing middle-class customer base. Combined with cost savings, retail automation increases shorter checkout lines and customer satisfaction and lessens waste. Additionally, it aids in improving client experience, which raises sales. One of the key prospects for the industry for electronic shelf labels is the prospective rise of the retail robotics sector in developing nations.
  • With emerging e-commerce sector leaders implementing cutting-edge technology at distribution centers, the industry will expand over the forecast period. Due to the COVID-19 outbreak, several companies upgraded their storefronts by employing automated technology. Due to the employment of ESLs, merchants were allowed to reduce their operational expenses, labor costs, and labor time. Additionally, because of significant developments in automation technologies and the ongoing decline in the cost of electronic goods, the demand for ESLs has increased post COVID-19 and is expected to receive a boost over the forecast period.
  • However, emerging countries have a large pool of unemployed people, which lowers labor costs and lessens the need to invest in effective automation methods to decrease workloads. Additionally, the expensive initial expenditure needed to implement the technologies is expected to restrain market growth over the coming years.

Electronic Shelf Label (ESL) Industry Segmentation

Electronic Shelf Label (ESL) is used by retailers to display product pricing on shelves. The product pricing is automatically updated (whenever the price gets changed) from a central control server. The electronic shelf label market is segmented by Type of Product (LCD ESLs and E-paper ESLs), Store Type (Hyper Markets, Super Markets, Specialty Stores and Non-food Retail Stores), and Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

By Product
LCD ESLs
E-paper ESLs
By Store Type
Hyper Markets
Super Markets
Specialty Stores and Non-food Retail Stores
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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Electronic Shelf Label Market Size Summary

The electronic shelf label (ESL) market is poised for significant growth, driven by the increasing adoption of retail automation technologies across various sectors, particularly in supermarkets and hypermarkets. The demand for ESLs is being fueled by the expansion of organized retail in developing regions, where macroeconomic factors and internet penetration are creating a burgeoning middle-class consumer base. Retailers are leveraging ESLs to enhance customer experience, streamline operations, and reduce costs, which in turn boosts sales. The integration of near-field communication (NFC) technology with ESLs is further propelling market growth, as it facilitates seamless customer interactions and personalized marketing through quick and efficient data transmission. This technological advancement is expected to enhance retail operations and drive the adoption of ESLs in both developed and emerging markets.

North America stands as the largest market for electronic shelf labels, with a robust retail infrastructure and a high concentration of retail establishments. The region's market growth is supported by favorable government initiatives promoting technological innovation and automation in retail. Key players in the ESL market, such as E Ink Holdings Inc., Displaydata Ltd, and Samsung Electro-Mechanics Co. Ltd, are actively engaging in strategic initiatives like product launches and partnerships to strengthen their market presence. The market is characterized by fragmentation, with several vendors competing for market share. Recent developments, such as the introduction of advanced ESL solutions and the expansion into new regions like Southeast Asia, highlight the dynamic nature of the market and the ongoing efforts to enhance retail technology offerings.

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Electronic Shelf Label Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 NFC penetration in POS and Smartphones

    3. 1.3 Market Restraints

      1. 1.3.1 High Initial Investments

    4. 1.4 Industry Value Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product

      1. 2.1.1 LCD ESLs

      2. 2.1.2 E-paper ESLs

    2. 2.2 By Store Type

      1. 2.2.1 Hyper Markets

      2. 2.2.2 Super Markets

      3. 2.2.3 Specialty Stores and Non-food Retail Stores

    3. 2.3 Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-Pacific

      4. 2.3.4 Latin America

      5. 2.3.5 Middle East & Africa

Electronic Shelf Label Market Size FAQs

The Electronic Shelf Label Market size is expected to reach USD 1.73 billion in 2024 and grow at a CAGR of 13.90% to reach USD 3.33 billion by 2029.

In 2024, the Electronic Shelf Label Market size is expected to reach USD 1.73 billion.

Electronic Shelf Label Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)