North America Electronic Shelf Label Market share worth over USD 350 million in 2019 and is expected to grow at a CAGR of 10% from 2020 to 2026.
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According to the U.S. Department of Commerce, consumers spent USD 199.4 billion online with the U.S. retailers during July to September 2020, a rise from USD 145.4 billion for the same quarter in 2019. The changing customer preferences toward online retail have resulted in increasing competition among brick & mortar retailers, supporting the adoption of ESL for enhancing customer experience and increasing sales revenue. Retailers, such as discounters, department stores, specialty stores, and convenience stores, have increased their reliance on ESL technology. In July 2019, Loblaws Inc., a Canadian supermarket chain, entered into an agreement with SoluM to deploy ESL tags in its 2,800 stores.
The rising need for increasing in-store operational efficiency in retail stores is positively impacting the market demand. The implementation of an electronic shelf label system allows retailers to save time and actively guide customers in the store. ESL system helps store chains in dynamic and strategic price management and automatically updates price display. With retailers focusing on improving consumers’ shopping experience, the demand for ESL to keep pace with product inventory and ensure right merchandise will increase.
Wide viewing angle, three-color displays, and support for customization including brand logos and graphic content of full graphic e-paper ESLs will drive their market growth. These systems are compatible with barcodes and QR code tags, improving the POS/retail experience. Retailers use these systems to display graphic content and information, enhancing customer attention and in-store communication. The players in the industry are introducing innovative full graphic e-paper display that ensures high readability in all lighting conditions. For instance, Diebold Nixdorf, Incorporated, a financial and retail technology company based in the U.S., is offering radio-controlled full graphical e-paper ESLs that allow simultaneous price updates on POS terminals and shelves in stores.
Reliability, ease-of-use, and increased security offered by IR-enabled ESL systems will boost the market growth. This technology has the ability to transmit 90,000 updates in an hour and can be used as bi-directional communication. IR technology is sensitive and can receive & transmit more efficiently compared to the other technologies. The adoption of IR technology in ESL tags reduces interference with other radio frequency devices present in large retail stores. The advent of light-based infrared technology in ESL devices will further propel the segment growth.
Commercial applications are estimated to dominate the ESL market over the forecast time period. The systems are witnessing high adoption among supermarkets in the U.S. to display product prices in stores. For instance, in June 2018, The Kroger Company, one of the largest supermarket chains in the U.S., deployed Enhanced Display for Grocery Environment (EDGE) at 16 test stores located across Ohio state in the U.S. The retail giant partnered with Microsoft Corporation to store and process volumes of data generated by digital shelves in Microsoft Azure.
The key market players operating in the North America electronic shelf label market include E Ink Holdings Inc., Herbert Retail Limited, Diebold Nixdorf, Incorporated, Advantech Inc., Samsung Electronics Co. Ltd., and Pricer AB. The players are focusing on strategic collaborations to launch new products and strengthen their industry presence. The players are incorporating AI and Bluetooth technology for differentiating their products and remaining competitive in the market.