Electronic Shelf Label Market - Snapshot
Electronic shelf label (ESL) is an emerging system used for displaying product pricing and product information on shelves by using wireless communication networks such as radio frequency (RF) technology, and infrared (IR) technology to communicate with the back-end database. These labels help to eliminate the discrepancies in selling price of the products and displays reliable pricing to the customers. Moreover, it helps to enhance the operational efficiency of the store by eliminating the need to check and update paper labels. It also enables retailers to update pricing as frequently as needed and minimizes pricing errors for customers. With increasing applications in most end- use sectors, from organized retail stores to specialty stores, consumer electronics sector to drug stores/pharmacies, ESL systems have grown to become a necessity for nearly all stores dealing with electronic pricing and shelf management.
In more recent times, considerable technological advancement has taken place in the ESL market. Organized retail sectors and specialty stores widely use ESL systems for displaying products pricing on shelves. Rising demand from retailers for secure, fast, and cost efficient price labeling has augmented the demand for ESL systems. Growing adoption of store automation in retail stores across the world is primarily driving demand for ESL systems.This is anticipated to drive the market over the forecast period. Moreover,technological advancement and stringent regulations against misleading product prices is expected to fuel the ESLmarket in the near future. However, lack of awareness and usefulness of ESL systems, and high initial investment is projected to inhibit the growth of the market across the world. The ESL market is likely to reach a value of US$ 2,517.9 Mn by 2026 from US$ 497.7 Mn in 2017, expanding at a CAGR of 20.0% during the forecast period.
Based on component, the electronic shelf label market can be segmented into hardware, software and services. Hardware ESL system is the most effective way of displaying product pricing on shelves by using wireless communication networks. The hardware segment accounted for a significant market share globally in 2017 and is projected to hold its leading position over the forecast period. The hardware segment can be divided into labels (product) type and infrastructure. Labels type is further categorized into LCD ESL, segmented E-paper ESL, and full-graphic E-paper ESL. Under labels type, full-graphic E-paper ESL segment accounted for major share of the market due to its multi-color displays, high aesthetics, and wide visibility display. Full-graphic E-paper ESL is energy efficient and is able to project graphical objects such as callouts and logos that facilitate real-time product positioning. Thus, retailers are gradually adopting this label type. LCD ESL labels type sub-segment also accounted for prominent market share due to its low power consumption and bi-stable features. Infrastructure segment is sub-segmented into access points (transceivers & base stations) and handheld devices.
Software segment is projected to expand at a rapid pace during the forecast period. This segment is further bifurcated into pricing and shelf management software, and other digital infrastructure. Pricing and shelf management software sub-segment held the leading market share in 2017 due to its huge adoption rate among organized retailers.The services segment is categorized into support and maintenance, installation, and training and consulting. Among these, installation service sub-segment occupied major share of the global ESL market in 2017,whereas training and consulting sub-segment is projected to expand rapidly over the forecast period.
Based on communication technology, radio frequency (RF) technology segment accounted for the major share in the global electronic shelf label market in 2017 and is projected to maintain its position in the coming yearsdueto its extensive usage in diversified technology segments such as Wi-Fi, Bluetooth Low Energy, ZigBee, and Z-wave. This technology enables bi-directional communication by transmitting pricing and product information to the ESLs and simultaneously receives successful feedback updates. The market for NFC technology is expected to grow at a significant CAGR during the forecast period. It enables communication between tags and labels, and shoppers and store employees to examine the tags and labels manually.This technology is increasingly adopted in devices such as smartphones and POS systems. Thus, retailers are gradually integrating this technology with existing handheld devices to lower the overall installation cost of these labels. As a result, application of NFC technology in ESL systems is expected to witness potential growth in the coming years across the globe.
In terms of end-use, the global ESL market is categorized into organized retail stores, drug store/pharmacies, consumer electronics (standalone), and other specialty stores. Organized retail stores segment includes supermarkets & hypermarkets, and malls. The organized retail stores sector is the prominent user of ESL, while the other specialty stores sector is projected to expand at a rapid pace over the forecast period. The supermarkets & hypermarkets sub-segment accounted for a prominent share of the organized retail stores segment in 2017 due to rising adoption of self service, and is expected to expand steadily during the forecast period. Others specialty stores segment is another major retail store format in the ESL market and is expected to expand at a rapid pace over the forecast period. Other specialty stores segment is bifurcated into multi brand stores and company owned/brand stores. Among these, multi brand stores sub segment accounted for the major market share in 2017, whereas company owned/brand stores segment is projected to expand significantly over the forecast period.
The market in Europe is anticipated to contribute significantly to revenue in the near future due to a large base of existing users in the region. The market in North Americais anticipated to follow a similar trend between 2018 and 2026. Furthermore, the market in Asia Pacific and South America is likely to expand at a robust CAGR in the coming years.
Attracted by the progressively expanding ESL market and underlying embryonic demand, many retailers are driven to invest in advanced electronic shelf label hardware and software systems. Software developers and integrators and professional service providers across industries are strengthening their position in the ESL market. Product innovation and upgrade of research and development are constantly taking place in the ESLmarket. SES-imagotag is the global leader and specialized in digital price tag and shelf edge automation systems.
Prominent players in the ESL market and profiled in the study include Altierre Corp., Displaydata Ltd., Pricer AB, SES-imagotag, E Ink Holdings, Inc., Teraoka Seiko Co., Ltd. and many others.
Electronic Shelf Label Market: Overview
This comprehensive report titled Electronic Shelf Label Market -Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018 – 2026, by Transparency Market Research, analyzes and provides growth forecast for the electronic shelf label market at the global and regional level.The report provides analysis for the period 2016–2026, wherein 2018 to 2026 is the forecast period and the base year is 2017. An in-depth and unbiased market assessment has been made to offer readers insightful and accurate analysis. The report emphasizes on all the major trends that play a key role in the growth of the electronic shelf label between 2018 and 2026. It also focuses on market drivers, restraining factors, and opportunities of the electronic shelf label market during the forecast period.
The report includes a detailed ecosystem analysis and opportunity analysis, which is focused on providing an extensive view of the global electronic shelf label market. Porter’s Five Forces analysis is also provided to understand the competitive scenario in the market. The study incorporates attractiveness analysis of the electronic shelf label market, in which segments such as hardware, software, and services are benchmarked based on their market size, growth rate, and attractiveness in terms of opportunity.In order to provide a complete analysis of the overall competitive scenario in the electronic shelf label market, attractiveness analysis of every geographic region mentioned in the reporthas been provided.
An overview of the electronic shelf label market detailing key trends and dynamics has been included to providea clear understanding of market ecosystem forces. The dynamics include impact analysis of drivers and opportunities and market restraining factors of the electronic shelf label market. Additionally, the report provides analysis of business strategies adopted by market leaders. Trends and services related to electronic shelf label along with their applications have also been explained in the report.
Global Electronic Shelf Label Market: Scope of the Report
The study provides a decisive view on the global electronic shelf label market, broadly segmentedbased on componentinto hardware, software,and services; based on communication technology intoradio frequency (RF), infrared (IR), near field communication (NFC), and beacon; and in terms ofend-useinto organized retail stores, drug store/pharmacies, consumer electronics (standalone), and other specialty stores. Further, the report provides a detailed breakdown of the electronic shelf label market across North America, Europe, Asia Pacific, Middle East & Africa, and South America, thus providing valuable insights at the micro and macro levels.
The report highlights the competitive scenario within the electronic shelf label market, ranking all the major players according to key recent developments and their geographic presence. The insights into the electronic shelf label market are a result of our extensive primary interviews, secondary research, and in-house expert panel reviews. These market estimates have been analyzed by considering the impact of different economic, political, social, legal, and technological factors.
The market in North America has been segmented into the U.S., Canada, and Rest of North America. Furthermore, the market in Europe has been analyzed across France, Germany, the U.K., and Rest of Europe. The electronic shelf label market in Asia Pacific has also been segmented at country level into India, China, Japan, and Rest of Asia Pacific. The Middle East & Africa region covers GCC countries, South Africa, and Rest of Middle East & Africa. Similarly, South America includes Brazil and Rest of South America. This report provides all the strategic information required to understand the electronic shelf label market along with component, communication technology, and end-use of electronic shelf labels.
Global Electronic Shelf Label Market: Research Methodology
The research methodology is a perfect combination of primary research, secondary research, and expert panel reviews. Secondary sources such as annual reports, company websites, SEC filings and investor presentations, internal and external proprietary databases, statistical databases, relevant patent and regulatory databases, market reports, government publications, World Bank database, and industry white papers are usually referred to develop a preliminary understanding of the market.
Primary research involves telephonic interviews, e-mail interactions, and face-to-face interviews for detailed and unbiased reviews of the electronic shelf label market across geographies. Primary interviews are usually conducted on an ongoing basis with industry experts and participants in order to obtain the latest market insights and validate existing data and analysis. Primary interviews offer new and fresh information on important factors such as market trends, market size, competitive landscape,growth trends, etc. These factors help validate and strengthen secondary research findings. Moreover, the data collected and analyzed from secondary and primary research is again discussed and examined by our expert panel.
Global Electronic Shelf LabelMarket: Competitive Dynamics
The research study includes profiles of major companies operating in the global electronic shelf label market. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. Some of the key players in the electronic shelf label market are Altierre Corp., Displaydata Ltd., Pricer AB, SES-imagotag, E Ink Holdings, Inc., and Teraoka Seiko Co., Ltd. among others
The electronic shelf label market has been segmented as follows:
Global Electronic Shelf Label Market
- Labels (Product) Type
- LCD ESL
- Segmented E-paper ESL
- Full-graphic E-paper ESL
- Access Points (Transceivers & Base Stations)
- Handheld Devices
- Labels (Product) Type
- Pricing and Shelf Management Software
- Other Digital Infrastructure
- Support and Maintenance
- Training and Consulting
By Communication Technology
- Radio Frequency (RF)
- Infrared (IR)
- Near-Field Communication (NFC)
- Organized Retail Stores
- Supermarkets& Hypermarkets
- Drug Store/Pharmacies
- Consumer Electronics (Standalone)
- Other Specialty Stores
- Multi Brand Stores
- Company-owned/Brand Stores
- North America
- The U.S.
- Rest of North America
- The U.K.
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East &Africa
- GCC Countries
- South Africa
- Rest of Middle East &Africa
- South America
- Rest of South America