Increasing proliferation of Internet of Things (IoT) coupled with growing digitization in the retail sector continue to influence the growth of the electronic shelf label market. Persistent growth in the retail sector has resulted in a meteoric expansion of retail outlets, particularly supermarkets and hypermarkets across key developed and emerging economies worldwide. Report foresees that the demand for electronic shelf label is projected to expand at a stellar pace with a CAGR of 21.5% in terms of value throughout the period of forecast, 2018-2026. Sales of electronic shelf label are estimated to cross US$ 1,700 Mn by end of 2026 on the back of surging growth in the retail sector worldwide, says the report.
There is a direct correlation between several macroeconomic factors, most notably increasing urbanization, growth in GDP per capita and economic growth, and overall sales of goods and commodities, which is likely to fuel the demand for electronic shelf label. Moreover, expanding retail infrastructure is likely to offer potential growth avenues for manufacturers of electronic shelf label in the forthcoming years.
Sales of electronic shelf label using the ZigBee technology are estimated to increase at high rate, largely contributing to the overall sales of these devices across retail stores. According to a report, sales of electronic shelf label with ZigBee technology in 2017 were around US$ 150 Mn and are likely to expand to cross a billion-dollar milestone by end of the forecast period. Increasing use of ZigBee technology for low cost and low power wireless networks coupled with higher convenience quotient associated with network distribution and monitoring have further pushed the adoption of the technology in electronic shelf labels. Likewise, Wi-Fi technology adoption in electronic shelf label is also projected to expand at a high rate during the period of forecast, however, high cost associated with Wi-Fi technology is likely to confine its use in the forthcoming years.
Demand for E-Ink electronic shelf labels is expected to witness an impetus on the back of low power consumption and paper-like readability. Sale of E-Ink based electronic shelf label (ESL) is expected to cross US$ 1,400 Mn by end of 2026 owing to their benefits including wide viewing angles, superior optical performance and multi-color options. On the contrary, LCD displays are also gaining steam with fast-paced evolution of display technology coupled with cheaper, smarter and more efficient micro-displays. Cost effectiveness of LCD displays is expected to auger well for their sales during the period of assessment.
Supermarkets and hypermarkets are expected to remain lucrative revenue pockets for manufacturers for electronic shelf label, according to the report. Sales of electronic shelf label in supermarkets and hypermarkets are expected to grow at a meteoric pace throughout the period of assessment, on the back of increasing number of these retail outlets worldwide. Convenience stores are also expected to pave potential growth pathways for electronic shelf label manufactures in the coming years, significantly contributing to the overall growth of the electronic shelf label market.
Regulations linked with use of electrical and electronic equipment across several regional markets is likely to challenge the growth in adoption of electronic shelf label, says the report. Preliminary complexity associated with their use is the waste management of these devices at the end of their service life. Regulations on import of WEEE (Waste Electrical and Electronic Equipment) owing to presence of hazardous components such as cadmium, lead and mercury, which is expected to hinder the growth of the electronic shelf label market during the forecast period.
Sales of electronic shelf label are likely to remain concentrated in the developed countries of Europe, especially, France, Germany and the United Kingdom. Demand for electronic shelf label in Europe is largely driven by price compliance that has resulted in retailers adopting the technology to avoid penalties. Moreover, demand for electronic shelf label in China is projected to expand at a higher rate during the period of forecast closely followed by North America, says report.
These insights are based on a report on Electronic Shelf Label Market by Fact.MR