Electronic Shelf Label Market Size, Share, Growth & Industry Analysis, By Type (LCD and E-Paper Based), By Display Size (Less Than 3 Inches, 3-6 Inches, and More than 6 Inches), By End Use (Industrial and Retail), and Regional Analysis, 2024-2031

Electronic Shelf Label Market Size

Global Electronic Shelf Label Market size was recorded at USD 1,134.0 million in 2023, which is estimated to be at USD 1,324.9 million in 2024 and projected to reach USD 4,568.2 million by 2031, growing at a CAGR of 19.34% from 2024 to 2031. The integration of Internet of Things (IoT) and artificial intelligence (AI) technologies is revolutionizing retail operations, significantly increasing the adoption of electronic shelf labels (ESLs). In the scope of work, the report includes products offered by companies such as E Ink Holdings Inc., Displaydata Ltd, Samsung Electro-Mechanics Co. Ltd, Pricer AB, Panasonic Corporation, VusionGroup, Teraoka Seiko Co., Ltd., NZ Electronic Shelf Labelling, Silicon Laboratories, Hanshow Technology, and others.

IoT enables ESLs to connect to a network, allowing retailers to remotely manage and update pricing information in real-time. AI algorithms analyze vast amounts of data collected by ESLs, providing valuable insights into consumer behavior, inventory levels, and pricing trends. This integration empowers retailers to implement dynamic pricing strategies, optimize inventory management, and personalize the shopping experience.  By leveraging IoT and AI, retailers are aiming to enhance operational efficiency, improve pricing accuracy, and maintain competitiveness in dynamic retail landscape.

Moreover, the integration of ESLs with IoT and AI facilitates innovative retail experiences. These include personalized promotions, targeted advertising, and predictive analytics, thereby enhancing customer engagement and fostering loyalty. Electronic shelf labels (ESLs) are digital devices used in retail stores to display product pricing and information electronically. Unlike traditional paper price tags, ESLs utilize electronic displays, typically employing either LCD or e-paper technology. LCDs offer vibrant colors and high resolution, while e-paper displays mimic the appearance of ink on paper, providing excellent readability, particularly in bright lighting conditions.

ESLs come in various display sizes to accommodate different product types and shelf configurations. They find applications across a wide range of industries, including grocery stores, department stores, pharmacies, and electronics retailers. In addition to displaying prices, ESLs showcase product promotions, advertisements, and other relevant information, thereby enhancing the overall shopping experience for customers.

Analyst’s Review 

The global electronic shelf label market is witnessing significant growth, driven by various factors such as the pressing need for operational efficiency, increased adoption of IoT and AI technologies, and the rising trend of dynamic pricing strategies. As the market expands, key players are strategically positioning themselves to capitalize on emerging opportunities and address existing challenges. These players are focusing on deploying innovative strategies to maintain competitive advantage. One of the primary imperatives for key players is the continuous enhancement of ESL solutions to meet evolving customer demands and technological advancements. This involves investing in research and development to introduce new features such as enhanced display capabilities, improved connectivity, and advanced analytics functionalities.

Additionally, players are prioritizing strategic partnerships and collaborations to expand their market presence and reach new customer segments. Furthermore, there is a growing emphasis on sustainability, with players focusing on developing eco-friendly ESL solutions to align with increasing environmental awareness among both consumers and retailers. Key players in the ESL market are actively adapting their strategies to navigate the evolving landscape and foster growth.

Electronic Shelf Label Market Growth Factors

The electronic shelf label market is experiencing a growing emphasis on real-time pricing and dynamic pricing strategies, driven by the need for retailers to uphold competitiveness in an evolving marketplace. Real-time pricing allows retailers to adjust prices instantly in response to various factors such as demand fluctuations, competitor pricing, and inventory levels. Dynamic pricing strategies involve setting prices based on various parameters such as time of day, seasonality, and customer demographics, with the aim of maximizing revenue and profitability. ESLs enable retailers to implement these strategies effectively by providing a platform for automated price updates across multiple stores in real-time. By adopting real-time pricing and dynamic pricing strategies, retailers are striving to enhance their pricing accuracy, optimize margins, and capitalize on revenue opportunities, thereby enhancing profitability in the market.

The initial high investment costs associated with the implementation of ESL systems presents a major challenge to market development, potentially hindering its widespread adoption. While ESLs offer long-term benefits such as labor cost savings, pricing accuracy, and operational efficiency, their implementation necessitates significant investment in hardware, software, and infrastructure. This initial capital outlay deters small and medium-sized businesses from adopting ESL technology.

Moreover, the total cost of ownership, including maintenance, training, and ongoing support, adds to the financial burden. However, it is essential to recognize that the ROI of ESL systems often surpasses the initial investment over time, as they contribute to cost savings, improved sales, and enhanced customer satisfaction. Despite the initial cost barrier, the growing recognition of the long-term benefits of ESLs is leading to increased adoption across the retail industry.

• In April 2023, Trevi chose Pricer’s electronic shelf label solution for in-store automation and communication, as part of its digitalization strategy implemented by JRTECH Solutions.

Electronic Shelf Label Market Trends

There is a notable shift towards e-paper displays in the electronic shelf label market, mainly fueled by the rising need for improved energy efficiency and sustainability. Unlike traditional LCD displays, e-paper technology consumes minimal power, allowing ESLs to operate for extended periods without requiring frequent battery replacements. This energy-efficient design reduces operational costs and aligns with environmental initiatives aimed at minimizing carbon footprint.

Additionally, e-paper displays offer excellent readability even in direct sunlight, ensuring clear visibility of product information for shoppers. As retailers increasingly prioritize sustainability and eco-friendly solutions, the adoption of e-paper ESLs is expected to continue to grow. Furthermore, advancements in e-paper technology are driving down costs and improving display quality, making it a viable alternative to traditional LCD displays for ESL applications.

Segmentation Analysis

The global electronic shelf label market is segmented based on type, display size, end use, and geography.

By Type

Based on type, the market is categorized into LCD and e-paper based. The e-paper based segment captured the largest market share of 63.22% in 2023. E-paper technology offers significant advantages over traditional LCD displays in terms of energy efficiency, readability, and durability. This makes e-paper based electronic shelf labels (ESLs) highly desirable for retailers seeking cost-effective and sustainable solutions.

Additionally, the increasing adoption of ESLs across various industries, including retail, healthcare, and hospitality, has fueled the demand for e-paper based ESLs due to their versatility and compatibility with different environments. Furthermore, advancements in e-paper display technology have led to improvements in display quality, battery life, and cost-effectiveness, further thereby boosting the growth of the segment. The ability of e-paper based ESLs to address the evolving needs of retailers while offering efficient and reliable display solutions has propelled its dominance in the ESL market.

By Display Size

Based on application, the market is divided into less than 3 inches, 3-6 inches, and more than 6 inches. The 3-6 inches segment is anticipated to witness the highest growth, depicting a robust CAGR of 21.70% over the forecast period. ESLs in the 3-6 inches are well-suited for displaying product information, pricing, and promotions on standard retail shelves, making them a popular choice among retailers seeking to enhance customer engagement and improve operational efficiency.

Additionally, the increasing adoption of ESLs across various retail sectors, including grocery stores, pharmacies, and convenience stores, is resulting in rising demand for ESLs of this size range to meet the diverse needs of different product categories. Furthermore, advancements in display technology have led to the development of more compact and cost-effective ESL solutions within the 3-6 inches range, thereby fueling the growth of the segment. The versatility, scalability, and affordability of ESLs are facilitating their adoption across a wide range of retail applications, thereby contributing to the growth of the segment over the forecast period.

By End Use

Based on end use, the market is classified into industrial and retail. The retail segment garnered the highest revenue of USD 763.5 million in 2023. Retailers are increasingly recognizing the need to enhance operational efficiency, pricing accuracy, and customer experience to remain competitive in the dynamic retail landscape. ESLs offer a cost-effective solution for retailers to achieve these objectives by automating price updates, reducing labor costs, and providing real-time product information to customers.

Additionally, the rising trend of omnichannel retailing and the growing importance of in-store digital experiences are augmenting the demand for ESLs among retailers looking to integrate online and offline shopping channels seamlessly. Furthermore, the scalability and versatility of ESLs make them suitable for a wide range of retail applications, including grocery stores, department stores, specialty stores, and others, thereby supporting the growth of the segment.

Electronic Shelf Label Market Regional Analysis

Based on region, the global electronic shelf label market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The North America Electronic Shelf Label Market share stood around 32.45% in 2023 in the global market, with a valuation of USD 368.0 million. The region boasts a mature retail landscape charaterized by the significant presence of large retail chains and supermarkets, which are early adopters of ESL technology. These retailers recognize the value of ESLs in improving pricing accuracy, operational efficiency, and customer experience, thereby bolstering widespread adoption across the region. Additionally, the presence of leading ESL vendors and technology providers in North America has facilitated the availability of advanced ESL solutions tailored to the needs of local retailers. Moreover, regulatory initiatives promoting sustainability and eco-friendly practices in retail operations have further spurred the adoption of ESLs in North America, facilitating regional market progress.

Asia-Pacific is poised to experience significant growth, registering a staggering CAGR of 21.23% over the forecast period. The rapid expansion of the retail sector in Asia-Pacific, fueled by rising disposable incomes, rapid urbanization, and changing consumer preferences, is propelling demand for ESLs among retailers seeking to improve operational efficiency and enhance the in-store shopping experience. Additionally, the growing penetration of e-commerce and omnichannel retailing in the region underscores the need for ESLs to integrate online and offline sales channels seamlessly.

Moreover, government initiatives promoting digital transformation and the increased adoption of smart retail technologies are creating favorable regulatory environments for ESL deployment in countries across Asia-Pacific. Furthermore, advancements in ESL technology and increasing affordability are making ESLs more accessible to retailers of all sizes in the region, solidifying Asia-Pacific's position as the major market for electronic shelf labels.

Competitive Landscape

The global electronic shelf label market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Companies are implementing impactful strategic initiatives, such as expanding services, investing in research and development (R&D), establishing new service delivery centers, and optimizing their service delivery processes, which is are likely to create new opportunities for market growth.

List of Key Companies in Electronic Shelf Label Market

• E Ink Holdings Inc.
• Displaydata Ltd
• Samsung Electro-Mechanics Co. Ltd
• Pricer AB
• Panasonic Corporation
• VusionGroup
• Teraoka Seiko Co., Ltd.
• NZ Electronic Shelf Labelling
• Silicon Laboratories
• Hanshow Technology

Key Industry Developments 

• April 2024 (Collaboration): E Ink, in collaboration with Realtek, Integrated Solutions Technology, and Chipbond Technology Corporation, is partnered to develop a System on Panel (SoP) architecture for next-generation electronic shelf labels with SOLUM, aiming to achieve sustainability through reduced material usage, lower power consumption, and streamlined production processes.
• February 2024 (Launch): Lidl GB unveiled a significant operational transformation by transitioning from traditional paper pricing tags to Electronic Shelf Labels (ESL). This strategic shift is projected to achieve an annual reduction of over 206 tonnes of carbon emissions by reducing paper and packaging usage, in addition to a substantial decrease in ink consumption.

The Global Electronic Shelf Label Market is Segmented as:

By Type

• LCD
• E-Paper Based

By Display Size

• Less Than 3 Inches
• 3-6 inches
• More than 6 Inches

By End Use

• Industrial
• Retail

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America