The market worth for electronic shelf labels (ESL) is estimated at USD 826 million in 2021. By 2026, the market is expected to reach USD 2,092 million at a CAGR of 20.4%.

• The pandemic has indeed pushed forward the electronic shelf labels market.
• Rapid digitalization of retail stores and prevailing automation trends are to be thankful for this upward trend.

Market Size By Region

The growth of the ESL market is attributed to mainly two factors – cost-effectiveness and improved retailing efficiency.

Asia Pacific

In the APAC region, the retail sector is pacing up organized operations. In other words, more and more retail stores are establishing store chains. And evidently, it’s this growth in the organized development that’s boosting the market size. Although the exact data for market value in the APAC region is not available, the market is still expected to grow moderately.

Europe

So far, the European region is amongst the earliest markets that embraced ESLs. Developed countries like Germany and France are leading a significant share in the ESL market. The ESL market value for Europe stands at over USD 304 million.

North America

North American countries are still embracing ESL technology. Apart from the US, there are not many players in the American continent. Still, the growth is expected to be moderate for the region.

Upcoming Trends

Covid-19 is believed to be the key driving force in the growth of the ESL market. Key manufacturers like Ses-imagotag (France) are creating new-age IoT retail devices to cope with the effects of the pandemic. The market now seems to be improving, thanks to consumers and retailers’ changing perceptions.

NFC Interface

One of the most significant driving forces for ESLs in the post-pandemic world is contactless transactions. Have you ever heard of near-field communications? Well, the technology is quite popular with smartphone users. Nonetheless, advanced ESLs feature NFC technology to simplify communications with buyers. As a result, the shoppers and buyers can simply align their intelligent devices with the label and access all the information. From pricing to nutritional information, everything is available at just a click of a button.

Branding And Advertising

Another factor that is greatly helpful to the retail business is the ease of in-store marketing. Most of the ESL displays are dynamic and can feature ads for relevant products. In other words, it becomes easier for retailers and marketers to advertise products before the buyers. Imagine the impact it could have on buyers when they are out shopping. Of course, the outcomes are more likely positive.

Simplified POS

Connectivity features like QR codes or NFCs are also simplifying the payments process. Buyers can now scan and pay in a matter of seconds without having to wait for billing and payments in a long counter queue.

The Takeaway

In the post-pandemic world, retail experiences are bound to change. Consumers are already shifting from in-store experiences to online shopping. Retailers need to come up with savvy strategies to compete with the growing e-commerce market. And electronic shelf labels could be the solution to offer consumers a similar experience.