The Forecast of Electronic Shelf Label Market (2020 - 2025)
The Electronic Shelf Label (ESL)Market is segmented by Type of Product (LCD ESLs and E-paper ESLs), Store Type (Hyper Markets, Super Markets, Specialty Stores and Non-food Retail Stores), and Geography.
The electronic shelf label market was valued at USD 690 million in 2019, and is expected to reach a value of USD 2036.8 million by 2025, witnessing a CAGR of 21.19% over the forecast period of 2020-2025.
High accuracy and reduction in labor cost (compared to the conventional label changing) are boosting the growth of the market. These factors have significantly reduced the risk of human error by ensuring potential pricing compliances. The clients lose trust in a company, if the in-store prices do not align with the online display (as this is often the reality they encounter). Electronic shelf label helps to fix the price errors.
NFC penetration in the industry is expected to gain momentum over the coming years, owing to the increasing adoption of NFC technology in multiple devices, such as POS systems and smartphones. This allows the retailers to integrate these devices with the existing handheld devices for lowering the overall installation cost of these labels. This acts as a key driver for the growth of market.
However, the high initial investments required to set up these products in stores as well as less knowledge about the usefulness of the ESL system are the major restraining factors for the growth of the electronic shelf label market.
Electronic Shelf Label (ESL) is used by retailers to display product pricing on shelves. The product pricing is automatically updated (whenever the price gets changed) from a central control server. The ESL market based on store type is dominated by hypermarkets, owing to the complications associated with the manual management of such big stores. This factor is leading to the high rate of adoption of these labels in the hypermarkets.