The retail sector is currently focusing on increased functional efficiency, improved physical store management efficiency, effective warehouse and inventory management, and exceptional omnichannel efficiency, owing to which retailers are increasingly deploying electronic shelf labels (ESLs) in their outlets and warehouses. The adoption of automated solutions, such as ESLs, helps retailers in saving efforts, time, and costs in-store management. These systems are useful in product information display and management, delivery and service scheduling, and consistent process execution at physical stores.
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Thus, the surging need for enhanced functional efficiency in the retail industry along with the growing focus of retailers on improving the shopping experience of customers will contribute to the electronic shelf label market growth during the forecast period (2021–2030). Accordion to P&S Intelligence, the market revenue stood at $800 million in 2020. Adoption of ESL system helps retailers increase their profit as the centralized control of this technology enables easy updates, facilitates time-saving, and ensures reliability.
Full-Graphic E-Paper-Based ESLs Dominate Market
In the recent past, retailers preferred full-graphic e-paper over liquid crystal display and segmented e-paper, due to its high energy efficiency and ability to project graphical objects. In addition to the retail outlets, such as specialty stores, supermarkets, non-food retail shops, and hypermarkets, the industrial sector also uses varying types of ESLs to enhance operational efficiency. ESLs used in the retail and industrial sectors are available in different display sizes— less than 3 inches, 3–7 inches, 8–10 inches, and more than 10 inches.
The communication technology segment of the electronic shelf label market is categorized into near-field communication (NFC), radio frequency, infrared, and others. Among these, the NFC category is expected to demonstrate the fastest growth during the forecast years, because NFC-enabled ESLs allow contactless and rapid data transfer between devices. In recent years, NFC technology has become an additional feature in several point of sale (POS) devices and smartphones, owing to which NFC-enabled ELSs are being increasingly adopted in retail stores to ensure efficient operations.
Near-Field Communication (NFC) Category to Grow at Highest CAGR during Forecast Period
In the preceding years, the North American region was the dominant user of ESLs, primarily on account of the largescale adoption of this technology among the expansive chains of retail stores, such as Wal-Mart. Additionally, the presence of favorable government initiatives facilitating the integration of automated products and encouraging technological developments across the retail sector also propels the adoption of ESLs in the U.S. and Canada. Owing to these reasons, North America will retain its dominant position in the upcoming years as well.
Whereas, the European electronic shelf label market is expected to exhibit the fastest growth throughout the forecast period, owing to the existence of a strong retail sector and the existence of eminent market players in the region. Moreover, the extensive labor cost in European nations will also boost the demand for ESLs in stores and warehouses in the region. The large-scale adoption of ESLs in retail outlets and warehouses helps retailers in achieving higher productivity and efficiency by minimizing human intervention.
Thus, the mounting focus of retailers on improved functional efficiency, on account of the rapid automation of the industry, is encouraging the adoption of ESLs across the world.
Europe to Grow Fastest during the Forecast Period
A number of factors, such as the soaring need for increased functional efficiency with real-time product positioning, accelerating automation and digitalization, and burgeoning demand for price optimization in the retail sector will steer the electronic shelf label (ESL) market growth during the forecast period (2021–2030). According to P&S Intelligence, the market generated $800 million revenue in 2020. Additionally, the lower time consumption and higher profits allowed by ESLs will catalyze the market growth in the forthcoming years.
One of the key growth drivers for the market is the rising automation rate in the retail industry owing to the increasing focus of retailers on enhancing the customer shopping experience. The surging requirement for smart automation solutions here can be attributed to the growing complexities in managing large retail stores and warehouses. ESL systems deliver flexibility and precision in store and warehouse operations, as they offer easy updates, time-saving, and reliability.
Get More Insights: Electronic Shelf Label Market Revenue Estimation and Growth Forecast Report
In recent years, the rising integration of near-field communication (NFC) technology in such systems has become a major trend in the electronic shelf label market, as it helps retailers in efficient stock management and price optimization. NFC-technology-based ESLs enable retailers to update product information, such as price, discounts, and special offers, by using smartphones and point-of-sale devices. This technology, therefore, allows for contactless and quick data transfer between devices, owing to which ESL manufacturers are focusing on the production of NFC-enabled devices.
The product type segment of the electronic shelf label market is categorized into liquid crystal display (LCD), segmented e-paper, and full-graphic e-paper. Among these, the full-graphic e-paper category generates the highest revenue, and it is also expected to demonstrate the fastest growth throughout the forecast period. This can be ascribed to the cost-effectiveness and high energy efficiency exhibited by full-graphic-e-paper-based ESLs, which also have the ability to project graphical objects on labels.
Globally, the North American electronic shelf label market generated the highest revenue in 2020 due to the booming demand for the ESL technology among the expansive chains of retail stores across the region. Moreover, the rising number of favorable government initiatives to support technological development and increasing adoption of automated products in retail stores will facilitate the market growth. Besides, the escalating demand for full-graphic e-paper displays and the mounting focus of retail giants on consumer-centric practices will drive the demand for ESLs in the continent.
Whereas, the European electronic shelf label market is expected to showcase the fastest growth during the forecast period. This will be on account of the presence of prominent market players and extensive growth in the retail industry. Additionally, the high labor cost in European countries is encouraging the adoption of ESLs in retail stores and warehouses as their incorporation increases the return for retailers by minimizing manual intervention.
Integration of NFC Technology is a Key Trend in the ESLs Market
Thus, the escalating automation rate across the retail sector and surging adoption of NFC-based ESLs will facilitate the market growth worldwide.
Chapter 1. Research Background
1.1 Research Objectives
1.2 Market Definition
1.3 Analysis Period
1.4 Market Data Reporting Unit
1.4.1 Volume
1.4.2 Value
1.5 Market Size Breakdown by Segment
1.5.1 Market Segmentation by Product Type
1.5.2 Market Segmentation by Communication Technology
1.5.3 Market Segmentation by Component
1.5.4 Market Segmentation by Display Size
1.5.5 Market Segmentation by End User
1.5.6 Market Segmentation by Region
1.5.7 Market Segment Analysis of Countries
1.6 Key Stakeholders
Chapter 2. Research Methodology
2.1 Secondary Research
2.1.1 Paid
2.1.2 Unpaid
2.1.3 P&S Intelligence Database
2.2 Primary Research
2.2.1 Breakdown of Primary Research, by Region
2.2.2 Breakdown of Primary Research, by Industry Participant
2.2.3 Breakdown of Primary Research, by Designation
2.2.4 Breakdown of Primary Research, by Company Type
2.3 Market Size Estimation
2.4 Data Triangulation
2.5 Currency Conversion Rates
2.6 Notes and Caveats
Chapter 3. Executive Summary
Chapter 4. Voice of Industry Experts/KOLs
Chapter 5. Market Indicators
Chapter 6. Definition of Market Segments
6.1 By Product type
6.1.1 Full-Graphic E-Paper
6.1.2 Segmented E-Paper
6.1.3 Liquid Crystal Display
6.2 By Communication Technology
6.2.1 Radio Frequency
6.2.2 Infrared
6.2.3 NFC
6.2.4 Others
6.3 By Component
6.3.1 Displays
6.3.2 Batteries
6.3.3 Transceivers
6.3.4 Microprocessors
6.3.5 Others
6.4 By Display
6.4.1 Less than 3 Inches
6.4.2 3 –7 Inches
6.4.3 8 – 10 Inches
6.4.4 More than 10 Inches
6.5 By End User
6.5.1 Industrial
6.5.2 Retail
6.5.2.1 Hypermarkets
6.5.2.2 Supermarkets
6.5.2.3 Specialty stores
6.5.2.4 Non-food retail shops
6.5.2.5 Others
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