In the constantly changing landscape of retail, Electronic Shelf Labels (ESLs) distinguish themselves as a revolutionary technology, altering the way product pricing and consumer information are conveyed. As we step into 2024, the outlook for ESLs is extremely positive, fueled by an expanding market responding to the increasing demand for efficiency, adaptability, and enhanced customer interactions. In fact, PR Newswire shared that, “North America is the largest market for electronic shelf labels globally. The huge market can be attributed to the vast presence of retail stores, both small and big, across the region.”
The grocery, hardware, warehousing, and retail sectors are witnessing a paradigm shift in how they approach pricing, inventory management, and customer engagement, thanks to the innovative applications of ESLs. With the market poised for continued growth, businesses are recognizing the strategic importance of adopting ESL technology to stay competitive and meet the evolving demands of today’s tech-savvy consumers.
“The North America smart labels market size reached US$4.3 Billion in 2022. Looking forward, the publisher expects the serviceable available market to reach US$ 8.9 Billion by 2028, exhibiting a growth rate (CAGR) of 13% during 2023-2028,” according to a Research and Markets report .The total available market opportunity is expected to be worth 32.9 billion globally.
The market for ESLs is expanding at an unprecedented rate, reflecting a global shift towards automation and digitalization in the retail sector. Danavation® is a notable player in this arena with our Digital Smart Labels™ solution. With our focus on innovation, Danavation® has been gaining traction and acquiring new customers across various industries, including grocery, hardware, warehousing, and retail spaces. This surge in interest signifies a growing recognition of the benefits that our Digital Smart Labels™ bring to businesses, ranging from streamlined pricing processes to improved inventory management. “Over the past few years, the adoption of ESL has grown 3x times, validating the opportunity for expansion in the coming years,” explains Arizton Advisory & Intelligence. “Retail stores are increasingly adopting automation facilities.”
One significant trend reshaping the ESL landscape is the adoption of new communication technologies. While infrared technology has been a staple in ESL systems, the emergence of BLE is becoming increasingly prevalent. Bluetooth offers advantages such as faster data transfer rates, longer range, and improved energy efficiency, making it a preferred choice for many retailers. This shift towards Bluetooth connectivity is indicative of the industry’s commitment to staying at the forefront of technological advancements, ensuring ESL systems remain efficient and reliable.
The introduction of full-color LCD displays is set to transform the in-store experience for both retailers and consumers. These advanced displays provide a vibrant and dynamic platform for showcasing product information, promotions, and pricing details. ESLs and new full-color LCD displays enhance the overall visibility and appeal of products on the shelf, catching the attention of customers..
Incorporating Near Field Communication (NFC) technology into ESLs is another noteworthy development shaping the electronic pricing landscape. NFC enables seamless communication between ESLs and customers’ smartphones, creating an interactive and personalized buying experience. Consumers can access additional product information, reviews, and promotions simply by tapping their smartphones near the ESL. This integration of NFC technology adds a layer of convenience and engagement, aligning ESLs with the broader trend of creating connected and digitally-enhanced retail environments. Arizton Advisory & Intelligence notes, “Mobile technologies like BLE and NFC are expected to influence every stage of shopping in the stores during the next five years. They are also expected to influence personalized promotions, geotargeting, in-store research, payment capabilities, and price check features.”
The market is expanding as more industries recognize the transformative potential of ESLs in optimizing operations and enhancing the overall shopping experience. Danavation’s® success in acquiring new customers across diverse sectors reflects the industry’s momentum.