Electronic Shelf Label Market Size, Share & Trends Analysis Report By Component, By Type, By Communication Technology, By Size, By Application, By Region, And Segment Forecasts, 2024 - 2030

Electronic Shelf Label Market Size & Trends

The global electronic shelf label market size was estimated at USD 1,485.10 million in 2023 and is expected to grow at a CAGR of 15.8% from 2024 to 2030. Electronic shelf labels (ESLs) are digital display systems that help retailers manage and update product pricing, information, and promotions in real-time. The growing adoption of digital technology in the retail industry to replace traditional paper labels on store shelves is expected to contribute to market growth. Automation is a growing trend in the U.S. retail sector. Retailers are focusing on improving overall customer experience & operational efficiency and streamlining inventory management. In March 2021, Walmart implemented a full automation solution to its Fulfillment Centers (FCs) and Distribution Centers (DCs) in Walmart DC in Cleburne, Texas.

In April 2023, Walmart announced its plan to make 65% of its stores to be fully automated by the end of 2026. In line with this development in May 2023, Walmart announced plans to adopt ESLs for its 500 stores within the next 18 months, which can support the market growth. According to a research paper released by the United States Postal Service Office of Inspector General in April 2023, the supply of paper products has fluctuated greatly. According to data provided by the Pulp and Paper Products Council (PPPC), North American printing and writing mills ran at 77% capacity in August 2023 compared to the same in 2022. Paper mills' reduction of production capacity resulted in increased prices of paper, which affected its derivate product supply.

Retailers and grocers significantly depend on paper labels for displaying content and pricing of their products. Electronic shelf labels help eliminate dependency on paper labels and such market dynamics can positively influence the market growth in the U.S. The U.S. is struggling with rising labor costs. According to the U.S. Bureau of Labor Statistics, compensation costs for private workers in the country increased by 5.1% and wages & salaries witnessed a rise of 4.3%. Growing labor costs are driving retailers and industry players to adopt automation, which is further contributing to the demand for ESLs as they eliminate labor requirements to change labels and are updated using cloud-based software.

Market Concentration & Characteristics

Prominent companies operating in market include VusionGroup, Zkong Networks, SOLUM, Pricer AB, Teraoka (Pty) Ltd, Displaydata Ltd, M2COMM, Opticon, RAINUS, SUNMI Technology Co., Ltd, ComQi, Hanshow Technology, SUNLUX IOT TECHNOLOGY(GUANGDONG) INC, Minewtag, MINEW, Ynvisible Interactive Inc., Delfi Technologies A/S, Sen Security Solutions, Infotek Software & Systems (P) Ltd, Ynvisible Interactive Inc., and Guangzhou Mengbian Information Technology Co., Ltd.

Companies are increasingly focusing on new product launches. For instance, in January 2023, Ynvisible Interactive Inc. launched their Large Format Electronic Shelf Label Display, which offers an easy-to-read solution that helps display pricing and product information.

In January 2024, Ligna Energy and Displaydata Ltd. entered into a strategic collaboration to develop new energy sources for powering ESLs. Under this collaboration, Displaydata Ltd. plans to shift from lithium-ion batteries to green supercapacitors developed by Ligna Energy for powering their electronic shelf displays.

Component Insights

Based on components, the market has been further segmented into displays, batteries, transceivers, microprocessors, and other components. Displays dominated the global market with a share of over 28.0% in 2023. Display components in ESLs are the primary means by which product information, prices, and promotions are presented to customers. Quality and clarity of displays directly impact the effectiveness of ESLs in providing real-time and accurate information, thus contributing to their high market share. Display component in ESL offers flexibility in terms of customization, thus contributing to its estimated growth rate of 16.0% over the forecast period.

Retailers can experiment with different layouts, fonts, and graphics to create a unique and brand-specific appearance. This customization capability enhances the overall visual appeal and effectiveness of ESL displays. Microprocessors are another key component having a significant share in the market. Microprocessors serve as the central processing units (CPUs) in ESLs, responsible for executing instructions, processing data, and managing various functions. They are responsible for receiving, processing, and storing this data, ensuring that the information displayed on electronic labels is accurate and up-to-date.

Type Insights

Based on types, the market is further segmented into LCDs, E-paper displays, and graphic E-paper displays. E-paper displays emerged as the dominant segment and accounted for the largest revenue share of over 62.0% in 2023. E-paper displays are known for their energy-efficient nature. Unlike traditional backlit LCDs, e-paper displays only consume power when content is updated. Once information is displayed, no power is required to maintain the image, contributing to longer battery life. The segment is also anticipated to register the fastest CAGR of 16.0% from 2024 to 2030.

E-paper displays provide high contrast and readability, even in well-lit environments. The reflective nature of e-paper makes it similar to traditional paper, reducing glare and ensuring that pricing & product information are easily visible to customers, contributing to the segment’s growth. LCDs are another sub-segment with a significant share in the market. LCDs are capable of displaying color, which can be advantageous when retailers want to present product information, promotions, or branding in a more visually engaging and dynamic manner.

Communication Technology Insights

On the basis of communication technologies, the global industry has been further categorized into radiofrequency (RF), infrared, near-field communications (NFC), and others. The RF sub-segment dominated the communication technology segment, in terms of revenue, and accounted for the largest share of over 46.0% in 2023. The RF communication technology enables wireless connectivity between ESLs and central management systems.

Furthermore, it supports real-time updates of information enabling retailers to adapt quickly to changing market conditions, implement dynamic pricing strategies, and provide accurate product information to customers. The infrared sub-segment is expected to register a CAGR of 15.7% over the forecast period. Infrared communication can offer high data transfer speeds. Infrared communication can be secure, especially in situations where a direct line of sight is required for transmission. This characteristic might make it suitable for secure data transfer in ESL systems.

Size Insights

Based on size, the market is further categorized into ≤3 inches, 3 to 7 inches, 7 to 10 inches, and ≥10 inches. The ≤3 inches sub-segment dominated the market and accounted for the highest share of over 47.0% in 2023. The ≤ 3-inch-sized devices help optimize retail shelf space. They can be seamlessly integrated into shelves without obstructing the visibility of the products, ensuring a neat and organized appearance. Furthermore, they are more cost-effective to manufacture and can contribute to overall cost savings for retailers, especially when many labels are required.

The ≥ 10-inch sub-segment is expected to register the fastest CAGR of 16.0% over the forecast period. Larger display sizes offer more space for presenting detailed product information, promotional content, and images. This enhanced visibility can contribute to a more engaging and informative shopping experience for customers which is contributing to its high growth rate.

Application Insights

Based on application, the global industry has been further categorized into retail and industrial. The retail application segment dominated the market and accounted for the largest revenue share of over 83.0% in 2023. The retail sector is focusing on improving customer experience, streamlining operations, and improving pricing accuracy, which is contributing to the high adoption of ESLs in retail applications.

The retail application segment is also expected to register the fastest CAGR of 16.0% from 2024 to 2030. Since retailers are focusing on the automation of their operations, ESLs are being adopted by big retail players to reduce their operational costs. Electronic shelf labels streamline pricing management processes, eliminating the need for manual price updates. Retailers can centrally control and update prices across multiple shelves and stores simultaneously, reducing the time and labor involved in traditional paper label changes, thus contributing to its high growth rate in retail application.

Regional Insights

The electronic shelf labels market in North America is characterized by the growing popularity of store automation and fluctuations in paper availability due to the high demand for boxes. This is driving retailers in North America to include ESLs instead of normal paper labels. Rising labor costs are another factor contributing to ESL growth. For instance, in October 2023, Wester Canada-based leading grocery wholesale company, Associated Grocers finalized JRTech Solutions to supply SmartTAG Color, electronic shelf labels (ESL).

U.S. Electronic Shelf Label Market Trends

The U.S. electronic shelf label market accounted for the largest share of over 35.0% on account of significant competition from the e-commerce sector. Food retailers in the U.S. faced unprecedented challenges during the COVID-19 pandemic, which compelled retailers to include technological solutions in their operational facilities post-COVID. Furthermore, growing online purchasing trend in the U.S. forced retailers to include solutions that can reduce man-hours, thus contributing to the market growth.

The electronic shelf label market in Canada is expected to progress with a CAGR of 13.2% over the forecast period. This is due to the rising interest of the grocery retail sector in Canada in ESLs. These labels help manage pricing for perishable goods, reduce waste through optimized inventory management, and enhance overall efficiency in grocery operations.

Europe Electronic Shelf Label Market Trends

Europe electronic shelf labels market accounted for the largest share of over 37.0% in 2023. The competitive nature of the European retail market encourages innovation and adoption of advanced technologies. Retailers looking for a competitive edge are more likely to invest in ESLs to enhance their operations and customer offerings. Self-checkout kiosks setup trend is seen to be growing among European grocery chains which can positively influence demand for electronic shelf labels. In January 2024, Sweden-based ITAB Shop Concept AB entered into an agreement with a leading European grocery chain to set up 7,200 self-checkout kiosks for their stores in countries, such as Germany, Belgium, Slovakia, Slovenia, Switzerland, Austria, Czech Republic, the Netherlands, and Spain. The development of self-checkout kiosks can contribute to the requirement of ESLs to provide customers with the required information.

The electronic shelf label market in Germany is projected to have significant growth in the coming years. In February 2023, Germany-based Zoo & Co. Oldenburg, a pet products supplies store announced its decision to implement electronic price labeling by installing ESL manufactured by Delfi Technologies A/S. The reason for installing these components was to relieve staff from the manual task of changing shelf labels. According to the Industrial Association of Pet Care Producers, the pet supplies market in Germany is experiencing an upward trend which can present a positive growth opportunity for the market.

The UK electronic shelf label market is primarily driven by the growing adoption of ESL by retail players in the country to reduce paper and ink consumption and focus on sustainable display packaging initiatives. On February 15, 2024, Lidl announced to introduce ESL across all its stores in the UK to reduce ink and paper consumption and contribute to carbon reduction. Lidl targets to replace paper labels at all its stores by the end of 2024.

Asia Pacific Electronic Shelf Label Market

The electronic shelf labels market in Asia Pacific held a significant revenue share in 2023 owing to high demand from the electronics retail sector. Customer expectations are dynamic, which is driving the retail sector players in the region to embrace Industry 4.0, which is an integration of intelligent digital technologies into industrial and manufacturing processes. It encompasses automation, robotics, Big Data, and IoT networks. The adoption of technologies under Industry 4.0 by retail players presents positive growth opportunities for the ESLs market.

China electronic shelf label market held a significant share of over 30.0% in 2023 due to the presence of key product manufacturers. In addition, China has experienced significant growth in its retail sector, including the expansion of modern retail formats, such as supermarkets, hypermarkets, and convenience stores. An increasing number of retail outlets creates a demand for technologies that improve operational efficiency.

The electronic shelf label market in Japan is expected to progress with a CAGR of 14.5% over the forecast period. This is due to growing emergence of zero-waste generation supermarkets. These supermarkets implement technologies that reduce dependence on materials, which contribute to waste generation. For instance, in September 2022, Totoya, Japan’s first zero-waste supermarket included ESLs, POS registers, self-service scales, and systems to support its 'Bring Your Own Container' (BYOC) initiative. Such growing trends can contribute to market growth.

Central & South America Electronic Shelf Label Market

The Central & South America electronic shelf label market is projected to grow at a significant rate over the forecast period. As countries in this region witness rapid urbanization and modernization of retail infrastructure, there is a growing interest in adopting technologies like ESLs to enhance operational efficiency. The retail landscape in Central & South America is diverse, comprising a mix of traditional markets, independent retailers, and modern retail chains. ESLs can cater to the needs of various retail formats.

The electronic shelf label market in Brazil accounted for the largest share of 32.0% in 2023. Unmanned retail trend is getting popular in Brazil which requires registering a credit card online. For instance, Muffato GO Unmanned Supermarket in Brazil deploys sensor technology and related intelligent hardware devices in its stores. Selection or repositioning of goods by customers provides data to shelves, which helps supermarkets monitor the behavior of customers in product purchasing. Electronic shelf labels were provided by Hanshow Technology.

Middle East & Africa Electronic Shelf Label Market

The electronic shelf label market in Middle East & Africa is experiencing growth on account of the expanding retail sector in the region. Growing consumer spending capacity in Middle Eastern countries and the high-end shopping experiences offered by supermarkets in these countries are attracting a significant level of tourists. The adoption of electronic shelf labels can help provide updated information to consumers presenting a positive outlook for electronic shelf labels.

The electronic shelf label market in UAE is likely to have considerable growth due to growing adoption of ESLs in multi-brand electronics retail stores across UAE. The country is known for quality electronics and smartphone purchasing at sold at discounted prices in retail centers. In addition, the Dubai Shopping Festival, an annual event attracts a lot of customers both local as well as international. This has driven major electronics retail centers to adopt electronic shelf labels to provide updated prices to consumers.

Key Electronic Shelf Label Company Insights

This market exhibits consolidation as well as fragmentation characteristics with major players having a significant global presence. There are also regional players catering to specific countries or regions. These companies often have a wide range of products, extensive customer bases, and a strong market share. New product launches and collaboration with end users are key initiatives undertaken by market players.

• In September 2023, Shenzhen Minew Technologies Co., Ltd in strategic collaboration with Nordic Design Partner launched Minew’s STag58P, an electronic shelf label for medical, warehousing, smart office, and retail applications. This new product uses Bluetooth 5.4 nRF52833 SoC that allows the pricing of thousands of products to be updated simultaneously

• In January 2023, VusionGroup previously known as SES-imagotag group entered into acquisition discussions with France-based data analytics company, In the Memory. With this acquisition, VusionGroup can improve its data management capabilities

Electronic Shelf Label Market Report Scope

Global Electronic Shelf Label Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the electronic shelf label market report on the basis of component, type, communication technology, size, application, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2030)

  • Displays

  • Batteries

  • Transceivers

  • Microprocessors

  • Others

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • LCDs

  • E-paper Displays

  • Graphic E-paper Displays

• Communication Technology Outlook (Revenue, USD Million, 2018 - 2030)

  • Radio Frequency

  • Infrared

  • Near-field Communications

  • Others

• Size Outlook (Revenue, USD Million, 2018 - 2030)

  • ≤ 3 Inches

  • 3 to 7 Inches

  • 7 to 10 Inches

  • ≥ 10 Inches

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Retail

  • Industrial

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

    • Southeast Asia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa