Electronic Shelf Label Market

Electronic Shelf Label Market Outlook (2024 to 2034)

The global electronic shelf label market size is projected to generate a turnover of US$ 1.4 billion in 2024 and climb to a value of US$ 7.53 billion by the end of 2034. The market has been evaluated to expand at a noteworthy 18.3% CAGR from 2024 to 2034.

The retail industry is influenced by the expansion of various retail outlets such as supermarkets and hypermarkets, driving demand for retail equipment such as electronic shelf labels. Trend toward retail automation, fueled by digitalization, price optimization for retail stores, real-time product positioning, and enhanced operational efficiency, serves as a major market driver. Increasing adoption of the Internet of Things (IoT) and growing digitization in the retail sector continue to drive market growth.

Sustained growth of the retail sector is leading to the expansion of retail outlets, especially supermarkets and hypermarkets, across key developed and emerging countries worldwide. Technologies like electronic shelf labels, self-checking robots, self-checkout terminals, and similar innovations aid retailers in boosting profit margins of market players.

Key Market Growth Drivers

• Sales of electronic shelf labels are significantly influenced by improved customer satisfaction during in-store shopping.
• Benefits such as accurate pricing and enhanced workflow optimization are contributing to increased employee and customer satisfaction, prompting retail stores to embrace advanced devices to boost daily footfall.
• Electronic shelf labels and other display solutions effectively convey promotional offers to customers, impacting their purchasing decisions. This functionality drives demand for such devices due to the efficient customer service they deliver, establishing them as crucial sales tools for retailers globally.
• Growing utilization of ZigBee technology for cost-effective, low-power wireless networks, combined with its enhanced convenience in network deployment and monitoring, is accelerating its adoption in electronic shelf labels.
• ESLs enable dynamic pricing methods that allow retailers to adjust prices based on demand, time of day, or competitive pricing, helping them maximize revenue and competitiveness, thereby contributing to the expansion of the electronic shelf label market size.
• One trend boosting the adoption of electronic shelf labels is the retail industry's increasing shift toward automation and the Internet of Things (IoT), providing valuable information for inventory control and consumer behavior analysis within smart store ecosystems.
• Expansion of the industrial labeling and data collection industries is also fueled by the rising adoption of electronic shelf labels in the retail industry.

Report Attribute	Detail
Electronic Shelf Label Market Size (2024E)	US$ 1.4 Billion
Forecasted Market Value (2034F)	US$ 7.53 Billion
Global Market Growth Rate (2024 to 2034)	18.3% CAGR
Western Europe Market Share (2024E)	27.8%
North America Market Value (2024E)	US$ 363.3 Million
LCD Segment Value (2034F)	US$ 3.11 Billion
ZigBee Segment Value (2034F)	US$ 3.32 Billion
Key Companies Profiled	Pricer AB; Altierre Corporation; SES-imagotag; DisplayData Ltd.; Solum Co. Ltd.; Teraoka Seiko Co., Ltd.; M2Communication Hosting; Hanshow Technology Co. Ltd.; LG Innotek Co., Ltd.; Diebold Nixdorf; Opticon Sensors Europe B.V.; MariElla Group.

How are Electronic Shelf Labels Contributing to Efficient Price Management in Retail?

“Electronic Shelf Labels Minimizing Pricing Errors in Stores”

Electronic shelf labels, a pioneering technology in retail, offer superior interoperability compared to paper labels during price fluctuations. While promotions significantly boost sales and brand value, there is a need for adjustments to product prices.

Electronic shelf labels streamline price updates, enhancing pricing management control efficiently. In addition, they mitigate pricing errors in stores, thereby fostering market expansion. Amidst fierce retail competition, agile price adjustments are crucial to drive product sales, fueling demand for straightforward, cost-effective solutions like electronic shelf labels in the retail landscape.

Which Major Challenge Do Retailers Face in Maintaining ESL Systems?

“Requirement of Regular Software Updates and Maintenance”

ESL systems require regular software updates, ongoing maintenance, and dependable technical support to ensure maximum operational efficiency. Retailers may struggle with these continuous needs, especially if they lack expertise in maintenance and troubleshooting the systems.

Relying heavily on external suppliers for assistance can sometimes lead to issues such as poor service or slow response times, which can disrupt store operations. These maintenance and support requirements are hindering the long-term use of this technology in retail settings, thus hindering electronic shelf label market growth.

Country-wise Insights

In 2024, Western Europe is set to account for 27.8% of the global electronic shelf label market share. Followed by Germany, Italy and France are expected to hold prominent positions in the European market.

Why is Utilization of Electronic Shelf Labels High in the United States?

“Focus of Retailers on Automation and Efficiency Improvements”

Attribute	United States
Market Value (2024E)	US$ 303 Million
Growth Rate (2024 to 2034)	18.3% CAGR
Projected Value (2034F)	US$ 1.62 Billion

Retailers in the United States are increasingly focused on modernizing their establishments to enhance operational efficiency and maintain leadership in the industry, which is a key electronic shelf label market trend in the country. Many are incorporating electronic shelf labels (ESLs) into these updates to automate and streamline their price management systems.

ESLs enhance precision and significantly reduce labor by facilitating immediate price updates, eliminating the necessity for manual price tag adjustments. This automation ensures pricing accuracy and currency, boosting store productivity and enhancing the shopping experience for customers. Ultimately, it helps merchants stay ahead in a fiercely competitive market.

What’s Led to Germany becoming a Lucrative Market for Electronic Shelf Label Suppliers?

“Enhanced e-Ink Displays and Seamless Integration of ESLs with Store Management Systems”

Attribute	Germany
Market Value (2024E)	US$ 72.1 Million
Growth Rate (2024 to 2034)	18.3% CAGR
Projected Value (2034F)	US$ 388.6 Million

Increasing demand for electronic shelf labels in Germany is primarily fueled by the country's reputation for technological innovation and adoption. German retailers are increasingly drawn to these labels because of advancements in labeling technology, including durable batteries, improved e-ink displays, and seamless integration with existing store management systems.

Technological advancements align with Germany's focus on precision and efficiency in retail operations, enhancing the reliability, functionality, and user-friendliness of ESLs. As a result, German businesses are increasingly adopting ESLs to modernize their stores, increase efficiency, and enhance the overall shopping experience for consumers.

Category-wise Insights

Based on application, the market is segmented into supermarkets & hypermarkets, convenience stores, departmental stores, specialty stores, and pharmacies. Demand for electronic shelf labels in supermarkets & hypermarkets is projected to rise at a significant pace on the back of the higher inclination of these retail outlets toward automation products and equipment. Electronic shelf labels offer a higher convenience quotient in this application across the entire merchandise line.

What are the Advantages of LCD Electronic Shelf Labels over e-Ink Labels?

“Vivid Color Displays and Enhanced Visibility Offered by LCD ESLs”

Attribute	LCDs
Segment Value (2024E)	US$ 580.7 Million
Growth Rate (2024 to 2034)	18.3% CAGR
Projected Value (2034F)	US$ 3.11 Billion

Compared to e-ink labels, LCD electronic shelf labels account for higher sales because of their vivid color displays and improved visibility. LCD ESLs are perfect for marketing and emphasizing special deals since they provide vibrant, attention-grabbing pictures that draw customers in more successfully.

e-Ink displays are usually unable to show the same variety of information as LCD panels, including animations and films. Retailers hoping to offer a more dynamic and engaging shopping experience find LCD ESLs more appealing because of their increasing visual appeal and adaptability.

Why is ZigBee Technology Particularly Suitable for Large Retail Settings?

“ZigBee Enabling Efficient Wireless Communication and Minimal Power Consumption”

Attribute	ZigBee
Segment Value (2024E)	US$ 615.7 Million
Growth Rate (2024 to 2034)	18.4% CAGR
Projected Value (2034F)	US$ 3.32 Billion

Efficient and reliable wireless communication offered by ZigBee is driving its increasing adoption for integration with electronic shelf labels. Because ZigBee technology consumes minimal power, it significantly extends the battery life of ESLs, reducing maintenance costs and downtime for stores. Its robust networking capabilities also ensure scalability and easy integration, making it ideal for large retail environments.

ZigBee's secure communication protocol ensures accurate transmission of product information and price updates, enhancing the overall effectiveness and efficiency of ESL systems. Given its energy efficiency, reliability, and ease of integration, ZigBee technology is highly favored in the market.

Competitive Landscape

Key players in the electronic shelf label market are progressively directing their focus toward strengthening distribution channels and working out active marketing strategies. They are focusing on enhancing the functionality and reliability of ESL systems, integrating advanced technologies like ZigBee for efficient wireless communication and energy savings.

• In June 2024, Walmart announced plans to roll out digital shelf labels (DSLs) at 2,300 of its locations over the next two years, following the success of a trial program at one of its Texas locations. The store will be able to use a mobile app to adjust pricing on the shelf using the labels, which were created by Vusion Group.
• In April 2024, E Ink, the company that produces ePaper technology, joined forces with a number of its ecosystem partners to develop the next generation of electronic shelf label (ESL) technology. In addition to working with system integrator SOLUM to create ESL technology, E Ink is cooperating with Realtek Semiconductor (Realtek), Integrated Solutions Technology (IST), and Chipbond Technology Corporation (Chipbond) to develop a System on a Panel architecture.
• In February 2024, RivieraWaves Bluetooth 5.4 IP was licensed by SKAIChips Co. Ltd., an innovator in low-power wireless technologies for the Fourth Industrial Revolution, to develop an Electronic Shelf Label (ESL) IC, according to a statement released by Ceva, Inc., the leading licensor of silicon and software intellectual property that enables Smart Edge devices to connect, sense, and infer data more reliably and efficiently.
• In February 2024, the Italian food retailer Prezzemolo & Vitale (P&V) decided to work with Pricer to implement digital shelf labels in all of its London, United Kingdom, locations.
• In December 2023, Pricer and StrongPoint entered into a partnership to offer Pricer Plaza, a cloud-based platform, and electronic shelf labels to Norwegian retailer Felleskjopet Rogaland Agder. All of the 'BondeKompaniet' stores run by Felleskjopet will use the new ESL and Pricer Plaza system.

Fact.MR provides detailed information about the price points of key manufacturers of electronic shelf labels positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Electronic Shelf Label Market Research

• By Product Type :

  • LCDs
  • e-Ink

• By Technology :

  • ZigBee
  • BLE
  • Wi-Fi

• By Application :

  • Supermarkets & Hypermarkets
  • Convenience Stores
  • Departmental Stores
  • Specialty Stores
  • Pharmacies

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa