Electronic Shelf Labels Market is Estimated to Witness High Growth...

Electronic Shelf Labels Market is Estimated to Witness High Growth Owing to Digital Signage and Real-Time Pricing Trends

Posted 2023-11-06 12:07:57

The Electronic Shelf Labels Market is estimated to be valued at US$ 97.92 Mn in 2023 and is expected to exhibit a CAGR of 16.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Electronic shelf labels, also known as electronic price labels, are used in retail stores to display product pricing and other information on store shelves in real-time. They enable changes in price and product information electronically without physically printing new labels. ESLs improve store operations, reduce pricing errors, and enhance customer experience by allowing real-time changes to pricing and product information.

Market key trends:
One of the key trends driving growth of the electronic shelf labels market is the rising adoption of digital signage and real-time pricing strategies by retailers. ESLs allow retailers to change and update pricing information in real-time on store shelves based on factors such as daily/weekly discounts, location-based pricing, pricing to match competitors, promotional pricing for loyalty programs, etc. This helps retailers maximize sales and profits by optimizing product pricing. ESLs also provide the ability to display additional product information such as nutrition information, ingredients, care instructions, and sustainability claims. This enhanced product information improves the shopping experience for customers. Furthermore, ESLs enable inventory management through automated electronic updates to shelf tags, thus improving store operations efficiency for retailers.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is medium as high capital investment is required for manufacturing. However, no major patents or government licenses are required which provides opportunities to new entrants in the long run.

Bargaining power of buyers: The bargaining power of buyers is high as the market has numerous global vendors providing electronic shelf labels at competitive prices. Buyers can easily switch between vendors.

Bargaining power of suppliers: The bargaining power of suppliers is medium as major raw materials like display panels, microchips are supplied by large global players. However, the cost of switching suppliers is also low.

Threat of new substitutes: The threat of new substitutes is low as electronic shelf labels provide unique advantages over traditional paper labels in terms of pricing updates and inventory management.

Competitive rivalry: Intense due to presence of global giants.

SWOT Analysis
Strengths: Ability to frequently update pricing in real-time. Enhanced inventory management and better store operations.

Weaknesses: High initial investment requirements. Limited battery life requiring frequent replacements.

Opportunities: Growing retail sector globally. Increasing adoption in developed markets of North America and Europe.

Threats: Short product life cycles requiring continuous innovations. Technological glitches can impact brand image.

Key Takeaways
The Global Electronic Shelf Labels Market Size is expected to witness high growth, exhibiting a Cagr Of 16% over the forecast period, due to increasing demand for operational efficiency and enhanced customer experience in retail stores.

Regional analysis: North America dominates the global ESL market currently, accounting for over 30% of the market share in 2023, due to strong retail infrastructure and early adoption among major retailers in the US and Canada. The Asia Pacific region is expected to growth the fastest, exhibiting a CAGR of around 18% during the forecast period, with China and India emerging as highly lucrative markets.

Key players operating in the Electronic Shelf Labels market are SES-Imagotag, Pricer AB, Displaydata, Opticon Sensors Europe B.V, Samsung Electro-Mechanics, NZ Electronic Shelf Labelling, M2Communication, Diebold Nixdorf, Altierre, Teraoka Seiko, Advantech US, E Ink, Toshiba Global Commerce Solutions, SESimagotag, E-Ink, Wuxi Wei Feng Technology, and Cicor. They are focused on new product launches and partnerships to consolidate their market presence.