Electronic Shelf Labels Market Is Estimated To Witness High Growth Owing To Opportunity Of Increased Marketing And Advertising Efforts

Electronic shelf labels (ESLs) are digital displays that are attached to physical shelving in retail stores to display product prices and other information. ESLs allow retailers to frequently update pricing and product information in stores remotely via wireless networks without the need to manually print and switch out paper shelf labels. This offers convenience to retailers and prevents pricing errors. The adoption of ESLs also enables innovative marketing and advertising efforts through digital signage right next to products.

The global Electronic Shelf Labels Market is estimated to be valued at US$ 97.92 million 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 Opportunity:

One of the major opportunities driving the demand for electronic shelf labels is their ability to enable innovative marketing and advertising efforts through digital signage. ESL displays allow retailers to change product advertisements and promotions in real-time centrally. This facilitates capturing customer attention and influencing purchase decisions right at the point-of-purchase. Dynamic pricing and promotions displayed on ESLs can boost impulse purchases. Additionally, ESLs provide a platform to broadcast informative and engaging content to customers, creating a unique in-store shopping experience. The real-time programmability of ESLs is expected to be leveraged extensively by retailers for churning innovative marketing strategies, driving the adoption of electronic shelf labels over the forecast period.

Porter's Analysis

Threat of new entrants: The electronic shelf labels market requires high initial investments for infrastructure setup and technology which poses a barrier for new players. Additionally, established companies have advantages of economies of scale and brand loyalty that deters new competition.
Bargaining power of buyers: Buyers in the form of retailers have moderate bargaining power given the availability of alternatives. However, switching costs associated with replacing existing infrastructure limits their influence on pricing to some extent.
Bargaining power of suppliers: The presence of numerous component manufacturers limits the bargaining power of individual suppliers in this market. This allows buyers to negotiate better prices from alternative sources.
Threat of new substitutes: There exists a low threat of substitution as electronic shelf labels provide capabilities like real-time price updates and inventory management that are difficult to replicate through alternate means.
Competitive rivalry: The market is moderately competitive with the presence of several global and regional players. Players differentiate through technological innovations, pricing, and customer relationship management strategies.

SWOT Analysis

Strengths: Electronic shelf labels provide advantages like centralized price management, enhanced inventory tracking and better store operations. They also help reduce labor costs associated with manual pricing.
Weaknesses: High initial investments and replacement costs pose affordability challenges for small retailers. Technical glitches or malfunctions could disrupt retail operations.
Opportunities: Growth in organized retail and e-commerce provides scope for wider ESL adoption. Integration of IoT and edge computing capabilities can enhance the value proposition.
Threats: Economic slowdowns may curb technology investments. Stiff competition from alternative solutions can slow market demand. Regulatory hurdles for certain ESL technologies need to be addressed.

Key Takeaways

The Global Electronic Shelf Labels Market Growth is expected to witness high over the forecast period of 2023 to 2030. 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.

Asia Pacific region is projected to grow at the highest CAGR during the forecast period due to robust growth in organized retail sector, increasing digitization of retail operations and rising investment by retailers for automation across emerging countries like India, China, Japan and South Korea. North America also hold significant market share owing to prominent presence of key players and rising adoption of advanced technologies by retailers.

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. SES-Imagotag leads the market with its comprehensive product portfolio while other global players compete on technological innovations, pricing and customer support strategies.

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