Automation and IoT integration are driving the rapid growth of the electronic shelf label (ESL) market in retail, according to SNS Insider.

The ESL market size was $1.5bn in 2023 and is expected to reach $5.1bn by 2032, representing a CAGR of 14.75% from 2024 to 032.

The ESL market has grown rapidly due to the increasing demand for automation, enhanced retail experiences and accurate pricing. ESLs display promotions, product details and stock availability, improving operational efficiency and customer satisfaction.

The integration of IoT technology with ESLs has accelerated market growth. In 2023, about 30% of major US retail chains adopted ESL systems, driving the widespread adoption of IoT-enabled ESLs in the retail sector. These labels enable instant communication between the store’s central system and digital labels, improving inventory management and ensuring shoppers have up-to-date product information.

ESLs are especially beneficial in supermarkets and hypermarkets, where large product volumes make manual price updates cumbersome and error-prone. In 2023, the US retail supermarket industry was valued at $800bn, and ESLs help maintain accurate pricing and compliance with legal requirements, as demonstrated by major retailers such as Walmart and Carrefour.

Key players in the market include Advantech, Altierre, Displaydata, E Ink Holdings, Herbert Retail, M2Comm, Opticon Sensors, Diebold Nixdorf, Teraoka Seiko, Solum, SES-Imagotag and Samsung.

Out of ESL components, in 2023 displays held a 32% market share, offering eco-friendly, customisable pricing labels using e-ink or LCD technologies that reduce manual labour and errors. As retailers adopt dynamic pricing, the demand for high-quality, functional displays has grown.

Companies such as SES-Imagotag and Pricer use high-resolution, low-power e-ink displays in large retail chains for better visibility and efficiency, integrated with IoT systems for centralised pricing management.

The microprocessor segment is expected to grow rapidly from 2024 to 2032, driven by advancements in smart devices. These processors enable complex operations such as data processing and adaptive pricing, enhancing ESL functionality.

In 2023, LCDs dominated the market with a 60% share, offering visibility, transparency and the ability to display detailed pricing, product details and promotions. Retailers use wireless networks to update content in real time, enhancing adaptability and shopper engagement through colour options for discounts. Carrefour uses LCD ESLs in its stores to improve operational efficiency by reducing manual pricing errors.

E-paper displays will grow rapidly from 2024 to 2032, known for their energy efficiency, long battery life and readability. E-paper ESLs, seen in black-and-white or greyscale, are suitable for frequent price changes and outdoor use, as demonstrated by Amazon Fresh.

Europe led the ESL market in 2023 with a 38% share, driven by rapid automation adoption in retail. Major retailers such as Carrefour, Metro and Tesco have integrated ESL systems to enhance price accuracy and operational efficiency. The region’s focus on upgrading retail infrastructure and promoting digital technologies supports growth, with government initiatives encouraging ESL use in supermarkets and specialty stores. Companies such as SES-Imagotag and Pricer provide ESL products with real-time updates.

Meanwhile, the Apac region is set for rapid growth, fuelled by retail expansion in China, Japan and South Korea, and increased urbanisation. The region’s growing retail sector and interest in automation make it a key market for ESL technology, with companies such as Samsung and Displaydata driving this trend.

M2Comm has recently enhanced its Elsa ESL system, improving its wireless transmission technology and extending battery life. This development strengthens its position in smart retail, healthcare and industrial applications, offering businesses reliable, low-cost and easily deployable options for dynamic pricing and inventory management.

Solum has partnered with Central Group to introduce ESL technology across Thailand. Starting this year, ESLs will be deployed in major Bangkok supermarkets, offering real-time pricing, flexible campaigns and improved inventory management, even in Thailand’s demanding climate. This move marks a significant step in Solum’s expansion into south-east Asia, supported by its growing global sales network.

For a sample of the report, go to www.snsinsider.com/sample-request/1320.