The global electronic shelf label (ESL) market size is projected to reach USD 2,857.6 million by 2027, exhibiting a CAGR of 20.8% during the forecast period. Increasing deployment of ESL solutions in retail stores is expected to the prime growth driver for this market, shares Fortune Business Insights™ in its report, titled “Electronic Shelf Label Market Size, Share & COVID-19 Impact Analysis, By Type (LCD based and E-paper based), By Technology (Vendor Facing Technology and Consumer Facing Technology), By End-use Industry (Hypermarket/ Supermarket, Non-food Retail Stores, Specialty Stores, and Others), and Regional Forecast, 2020-2027”. Electronic shelf label systems have been proven to elevate the efficiency in retail stores as these systems enable optimized buying and check-out processes, streamlining of e-commerce activities, smart management of stock, and reduction in labor costs. This emerging trend has opened wide opportunities for market players. For example, in 2019, US-based retail company, Kroger, partnered with Microsoft to develop EDGE (Enhanced Display for Grocery Environment) shelf, a proprietary technology that displays from every aisle and shelf in a store using sensors equipped with the Internet of Things (IoT) technology.
Strong Consumer Protection Laws to Propel the Market in Europe
Europe is expected to dominate the electronic shelf label market share during the forecast period owing to the stringent implementation of consumer protection laws in the European Union (EU). In France, for instance, the Consumer Code mandates businesses to clearly display price information of products. Such rules are pushing retail stores to install ESL systems to ensure price transparency. The region’s market size in 2019 stood at USD 304.0 million.
Latin America is expected to emerge as a major hub for this market on account of the large presence of physical retail stores and warehouses, especially in Brazil, Argentina, and Mexico. The market is anticipated to substantial gains in North America, with the growing trend of buy online and pickup in store (BIOPS).
Geographic Expansion via Collaborations to be the Top Growth Strategy for Key Players
The key players in this market are increasingly engaging in collaborations to strategically expand their presence and operations in lucrative, burgeoning regions. These collaborations are also allowing companies to diversify their offerings and cater to a wider set of consumers.
· July 2020: Pricer AB and the Canadian Tire Dealer Association (CTDA) inked a Master Framework Agreement, under which Pricer will be the exclusive supplier of electronic shelf label systems to the CTDA. Pricer will deliver the first tranche of the agreement, deploying ESL systems across 38 stores in the country.
· February 2020: Hanshow Technology and Switzerland-based Bison Schweiz AG signed a distribution agreement to collaboratively develop the markets in Switzerland and Germany. Under the partnership, the companies will combine Hanshow’s world-class ESL solutions with Bison’s top-grade ESL systems to lead the digitization trends in the European retail industry.