The global electronic shelf label (ESL) market is set to grow by $1.64bn from 2024 to 2028, according to market watcher Technavio.

The market is estimated to see a CAGR of almost 15.69% during the forecast period. Implementation of in-store technologies is driving market growth, with a trend towards a rising number of partnerships and alliances.

However, growth in the ecommerce industry poses a threat.

Key market players include Danavation Technologies, Diebold Nixdorf, Displaydata, E Ink, Lancom Systems, M2Comm, New Zealand Electronic Shelf Labelling, Opticon Sensors, Panasonic, Pricer, Rational Innovation, RSJ Software, S&K, Samsung Electronics, Shenzhen Minew Technologies, Solum, Teraoka Seiko, TroniTag, Vusion and Zhejiang Hanshow Technology.

The global ESL market is experiencing growth, leading vendors to concentrate on product innovation and the introduction of smart ESLs to capitalise on the market’s potential. Partnerships and alliances are a key focus for vendors, collaborating with technology providers, software developers, distributors and other market participants.

For instance, in 2023, Qualcomm and SES-Imagotag joined forces to develop ESL technology based on the Bluetooth SIG’s ESL wireless standard. These collaborations enhance vendors’ product offerings and expand their reach in various regions, contributing to market growth during the forecast period.

ESLs have become a trend in retail technology, with RFID and other connectivity technologies driving their proliferation. SES-Imagotag and Hanshow Technology lead the market, benefiting from the surge in digitalisation and automation in stores.

Master framework agreements ensure regulatory support, while import-export and production analyses provide market insights. ESLs replace traditional paper labels, offering real-time product information, inventory status, special offers and promotions. Battery-powered displays enable mobility and flexibility.

SES-Imagotag’s legacy ESL technology facilitates mobile payment and NFC for brand loyalty programmes. Communication technologies such as Bluetooth and QR codes enhance the shopping experience, enabling employees to access product details and manage order picking and replenishment. Ecommerce integration and staff resources improve job satisfaction. Market regulations ensure accuracy in pricing and product information. Market niches and market dominance continue to shape the ESL landscape.

The ecommerce industry is experiencing significant growth due to advancements in communication networks, the increasing use of smartphones and the digitalisation trend. Ecommerce retailers, such as Alibaba, Amazon, eBay, Walmart, Flipkart and Rakuten, are increasingly focusing on online retailing to cater to the growing demand for digital shopping. Technology-driven innovations such as digital payments and digital advertisements are fuelling the growth of ecommerce. However, the rise of ecommerce poses a challenge to the global ESL market as online retailers offer competitive prices, hindering the growth of traditional brick-and-mortar stores. Thus, retailers must adapt to remain competitive in the market, says the report.

The ESL market in the retail sector is experiencing significant growth, driven by the need for real-time product information and automation. Traditional paper labels face challenges in providing up-to-date pricing and promotions, making ESLs an attractive alternative. Bluetooth and NFC technologies enable seamless updates, while mobile payment facilitation enhances the shopping experience.

However, problems remain, such as the need for regulatory support and employee training. Legacy ESL products may require significant installation expenses and supporting infrastructure.

Retailers in emerging economies with low labour costs offer opportunities for ESL deployments. KPIs such as order picking and replenishment efficiency have shown improvement with ESLs. Retail automation such as ESLs, 5G and ecommerce are driving retail sector opportunities.

Pilots and proofs of concept are underway at retailers such as Carrefour. RoI is a critical factor, with retailers seeking smart retail standards and a quick return on investment.

RF technology is a crucial innovation in ESL systems. RF communication enables real-time pricing and information updates across a store network without requiring line-of-sight or the need for physical contact. This technology operates within a frequency range of 3kHz to 300GHz, making it unobstructed by human beings and common materials.

Retailers prefer RF-integrated ESLs due to their cost-effective installation and operational efficiency. Leading ESL vendors, such as SES-Imagotag, Solum and Teraoka Seiko, offer RF integrated ESL models such as Vusion, Graphic Label and InfoTag, respectively. The integration of RF technology with NFC and Bluetooth in ESLs expands their functionalities, enabling enhanced user engagement and data transmission capabilities. The low installation cost and ease of use make RF integrated ESLs a popular choice for retailers, driving market growth during the forecast period.

A snapshot of the report can be found at www.technavio.com/report/electronic-shelf-label-market-industry-analysis.