According to a recent study from market research firm Graphical Research, the global electronic shelf label market size is set to register significant growth during the forecast timeframe. The thriving retail sector and the demand for real-time price adjustments will boost the global electronic shelf label (ESL) market value. Moreover, the trend for IoT and ESL-supported dynamic price adjustment and low maintenance will help stakeholders boost RoI.
Retail stores have exhibited increased traction for advanced technologies to boost customer service. For instance, the U.K. retail sales observed a 3.5% surge in 2019 vis-à-vis the preceding year. The expanding footprint of digitalization across the retail sector will bode well for leading companies vying to expand their market uptake. In terms of revenue, the global electronic shelf label market is forecast to witness a substantial gain by 2026.
Some of the regional trends which are likely to have an influence on the global outlook are delineated below:
LCD-based ESLs to propel revenue stream in North America
The electronic shelf label market uptake of LCD-based electronic shelf labels will be noticeable in the convenience stores, pharmacies, and hypermarkets in the U.S. and Canada. The advanced product will boost RoI for small and medium retail firms. Besides, the manufacturers are rendering high-quality components for long battery life. For instance, STMicroelectronics is providing STM32L and STM8L microcontrollers which provide direct control of the LCD display modules and extended battery life.
End-users are also likely to exhibit traction for NFC-enabled ESL systems to negate pricing errors. It is worth noting that technology plays an invaluable role in updating prices through a simple tap on an NFC-enabled smartphone. With the trend for contactless payments expanding, North America is likely to be a happy hunting ground for stakeholders vying to bolster electronic shelf label market revenue.
ESL suppliers to eye commercial applications in North America
Commercial application is likely to come up as a lucrative portfolio for ESL suppliers in North America. The technology has set the trend in supermarkets to gain a competitive edge in the market. For instance, the Kroger Company apparently used enhanced display for grocery environment (EDGE) at 16 test stores in June 2018 across Ohio in the U.S.
Stakeholders will boost investments in the U.S. in the wake of the adoption of automation in the retail sector. The tendency to reduce OPEX and enhance efficiency will work in favor of the global ESL industry outlook. Notable demand for advanced technologies and the trend to boost customer experience will solidify the position of the U.S. in the industry.
Full graphic e-paper ESLs to gain an uptick in Europe
A palpable trend for full graphic e-paper ESLs to provide wide viewing angles and enhanced visibility will continue to remain in the mix in the landscape. With the high readability in all lighting conditions and long battery life, the ESLs will gain ground in the U.K., Denmark, and Germany. Expanding footfall of automation across the commercial and industrial sectors is the testimony of a robust electronic shelf label market outlook in the region.
Leading companies are gearing to inject funds in IR-enabled ESLs for the technology boosts fast connectivity and sustainability. IR ESLs are sought-after in applications that demand advanced functionalities, longevity, and reliability. Heightened competition among retailers to use the latest technologies will propel ESL adoption in Europe.
NFC technology to boost revenue stream in Europe
Considering the trend to facilitate instant price updates at any time, retailers in the EU and the U.K. have shown traction for the NFC technology. With the rise in NFC-enabled smartphones, demand for ESLs which can interact digitally with other NFC-enabled devices has surged in the past several years.
The trend for electronic shelf labels in the industrial sector will remain instrumental in Germany, France, Sweden, and Italy. The electronic shelf label market presence of IoT technology will be palpable in the industrial sector to leverage automation. The application of ESL technology will continue to surge in the industrial sector, driving the market size expansion in the region.
Segmented E-paper ESL to be sought-after in APAC
With the robust adoption of IoT technology among retail enterprises in India, China, and Australia, segmented E-paper ESL products are likely to gain traction in the region. Segmented E-paper ESL is highly desirable in racks, shelves, and bins. It is worth noting that the labels provide reliability in room temperatures with durability in hostile environments.
APAC is also likely to exhibit traction for full graphic e-paper ESL to bolster price and promotion deployment strategy, speed, agility, and speed in the retail sector. The product is said to provide bi-directional encrypted radio protocol, long battery life, and ease of installation & maintenance. The full graphic e-paper ESL segment in APAC witnessed a considerable share in 2019 and will expand considerably by 2026.
ESL deployment in supermarkets in the Asia Pacific
Considering the upsurge in the number of supermarkets in the emerging economies in APAC, the adoption of ESL in the end market will continue to be witnessed for the next few years. The trend for IoT will potentially bolster product adoption. For instance, KKR & Co. Inc. and Rakuten acquired a majority stake from Walmart in Seiyu to boost digitization in Japan.
With the trend for smartphones with NFC technology soaring, NFC-enabled ESL is gaining considerable ground in the Asia Pacific. The emerging economies are witnessing the integration of NFC in smartphones as retailers gear to boost customer satisfaction. Retailers are likely to adopt NFC technology to streamline the transaction of goods and services.