The retail sector is currently focusing on increased functional efficiency, improved physical store management efficiency, effective warehouse and inventory management, and exceptional omnichannel efficiency, owing to which retailers are increasingly deploying electronic shelf labels (ESLs) in their outlets and warehouses. The adoption of automated solutions, such as ESLs, helps retailers in saving efforts, time, and costs in-store management. These systems are useful in product information display and management, delivery and service scheduling, and consistent process execution at physical stores.
Thus, the surging need for enhanced functional efficiency in the retail industry along with the growing focus of retailers on improving the shopping experience of customers will contribute to the electronic shelf label market growth during the forecast period (2021–2030). Accordion to P&S Intelligence, the market revenue stood at $800 million in 2020. Adoption of ESL system helps retailers increase their profit as the centralized control of this technology enables easy updates, facilitates time-saving, and ensures reliability.
In the recent past, retailers preferred full-graphic e-paper over liquid crystal display and segmented e-paper, due to its high energy efficiency and ability to project graphical objects. In addition to the retail outlets, such as specialty stores, supermarkets, non-food retail shops, and hypermarkets, the industrial sector also uses varying types of ESLs to enhance operational efficiency. ESLs used in the retail and industrial sectors are available in different display sizes— less than 3 inches, 3–7 inches, 8–10 inches, and more than 10 inches.
The communication technology segment of the electronic shelf label market is categorized into near-field communication (NFC), radio frequency, infrared, and others. Among these, the NFC category is expected to demonstrate the fastest growth during the forecast years, because NFC-enabled ESLs allow contactless and rapid data transfer between devices. In recent years, NFC technology has become an additional feature in several point of sale (POS) devices and smartphones, owing to which NFC-enabled ELSs are being increasingly adopted in retail stores to ensure efficient operations.
In the preceding years, the North American region was the dominant user of ESLs, primarily on account of the largescale adoption of this technology among the expansive chains of retail stores, such as Wal-Mart. Additionally, the presence of favorable government initiatives facilitating the integration of automated products and encouraging technological developments across the retail sector also propels the adoption of ESLs in the U.S. and Canada. Owing to these reasons, North America will retain its dominant position in the upcoming years as well.