Electronic Shelf Labels Market in the US 2017-2021
About Electronic Shelf Labels
An ESL is a system used by retailers to display the price of the product on the shelf and the information related to it. An ESL is usually attached to the front edge of a retail shelf. It uses LCD or similar technology for displaying the product information. The product price displayed on an ESL is automatically updated whenever the price is changed. This change can be made with the help of a communication network based on infrared, radio frequency, or visible light technology. The ESL market in Europe, the Middle East, and Africa (EMEA) is growing at a significant pace with a high penetration of ESLs in supermarkets and a rise in labor costs. The increase in the demand for ESLs from countries such as France, Germany, Poland, the UK, and Spain is also driving the market.
Technavio’s analysts forecast the electronic shelf labels market in the US to grow at a CAGR of 20.04% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the electronic shelf labels market in the US for 2017-2021. To calculate the market size, the report considers the revenue generated from maintenance and upgradation of ESLs is not included in the market size.
Technavio's report, Electronic Shelf Labels Market in the US 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Electronic Shelf Labels Market in the US 2017-2021
Technavio recognizes the following companies as the key players in the electronic shelf labels market in the US: Altierre, Displaydata.com, Pricer, SES-imagetag, and Teraoka Seiko.
Other Prominent Vendors in the market are: ESL market include Advantech, E Ink, Eltrade, LG Innotek, NZ Electronic Shelf Labeling, SAMSUNG ELECTRO-MECHANICS, S o l u M Toshiba Global Commerce Solutions, and Wuxi Wei Feng Technology.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is growing demand for smart ESLs. The demand for smart ESLs is growing across the world, which provides an opportunity for ESL players in the US to sell their smart ESLs to retailers operating in the country. For instance, Pricer offers smart ESLs. Smart ESLs enable retailers to add more data to the labels, including promotional messages, promotional discounts, and stock information that boost the sales and improve the in-store experience.”
According to the report, one driver in market is premiumization through product and feature innovation. With the rapid growth of the retail market in the US, players operating in the country's ESL market are now focusing on developing ESLs with innovative features. For instance, retailers are adding NFC-enabled labels or QR codes to link customers to respective sites, online marketing campaigns, reviews, or social media. The growing internet reach and smartphone penetration rates are transforming the way retailers operate. Due to the emergence of various digital channels, consumers today are more connected, better informed, and demand for better services. To adapt to these changes and leverage them, retail stores need to reinvent themselves by adopting digital technology and assist consumers at the POS. Adopting the omni-channel strategy might also prove to be beneficial for retailers.
Further, the report states that one challenges in market is industry moving toward affordable solutions. The price of ESLs has come down drastically. The average cost of an ESL is $6. Many players in the market are investing in R&D for the development of low-cost ESLs due to the growing competition among the existing players in the market. The revenue model of most vendors is dependent on partnerships. If any player in the market is entering a partnership with retailers, then that player has the potential to make a profit. The players should sell high-quality ESLs to make profit, as the price of ESLs is low. This creates a price challenge for players. Profit will happen only through the partnerships with the leading retailers in the US.
Altierre, Displaydata.com, Pricer, SES-imagetag, Teraoka Seiko, ESL market include Advantech, E Ink, Eltrade, LG Innotek, NZ Electronic Shelf Labeling, SAMSUNG ELECTRO-MECHANICS, S o l u M Toshiba Global Commerce Solutions, and Wuxi Wei Feng Technology.