June 18, 2024

The Global Electronic Shelf Labels Market Is Driven By Digitization In Retail Industry

Electronic shelf labels or ESLs are digitally updated price displays attached to shelves and products. They allow retailers to change product pricing and information digitally instead of traditional paper labels. ESLs improve pricing accuracy as they eliminate errors from manual label printing and placement. They also enable efficient price changes and promotions through centralized wireless management systems. ESLs help retailers reduce labor costs associated with label printing and replacement. They provide flexibility to change pricing in real-time based on demand, supply and ongoing promotions. This ability to digitally manage pricing helps retailers optimize inventory and profitability.

The global Electronic Shelf Labels Market is estimated to be valued at Us$ 97.92 Mn in 2023 and is expected to exhibit a CAGR Of 10% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

 

One of the key trends in the electronic shelf labels market is the growth of internet of things (IoT) technology. IoT enables connectivity of devices over the internet for seamless data transmission and management. IoT integrated ESL systems provide real-time product information updates to retailers and manufacturers. They help track inventory levels across stores in real-time. IoT also allows ESL systems to retrieve additional product information like ingredients, certifications, reviews etc. directly from manufacturer databases. This enhances the shopping experience for customers. Growth of IoT is expected to further drive the adoption of advanced ESL solutions among retailers.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is low. Setting up manufacturing facilities for electronic shelf labels require large capital investments and resources. Established brands have significant economies of scale and brand recognition advantages over new entrants.

Bargaining power of buyers: The bargaining power of buyers is moderate. Buyers have several options for electronic shelf labels from various manufacturers at competitive prices. However, switching costs are relatively high for buyers as it involves integration with existing IT infrastructure and processes.

Bargaining power of suppliers: The bargaining power of suppliers is low to moderate. The electronic shelf label market is dominated by a few large suppliers globally along with the presence of smaller component manufacturers. Suppliers depend largely on a few electronic shelf label manufacturers for business.

Threat of new substitutes: The threat of new substitutes is moderate. Technological developments may lead to substitutes like digital signage. However, electronic shelf labels offer unique advantages of real-time labeling and integration with inventory management systems.

Competitive rivalry: The competitive rivalry is high. The global electronic shelf label market is fragmented with the presence of numerous global and regional players. Players compete based on technology, product features, pricing, customer service and support.

Key Takeaways

The Global Electronic Shelf Labels Market Demand is expected to witness high growth over the forecast period. The global Electronic Shelf Labels Market is estimated to be valued at US$ 97.92 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030.

Regional analysis

North America is expected to hold the largest share of the global Electronic Shelf Labels market during the forecast period. This is attributed to the increasing adoption of advanced technologies in retail stores and supermarkets in the US and Canada. The Asia Pacific market is projected to grow at the highest CAGR during the forecast period owing to growing retail automation and digitization in major countries such as China and India.

Key players

Key players operating in the Electronic Shelf Labels market are Pricer AB, SES-imagotag, Samsung Electro-Mechanics, Displaydata Limited, and M2Communication.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it