With time, the preference of consumers is changing; therefore, retailers are taking different initiatives to upgrade the shopping experience. The retail sector needs to manage multiple departments, and handling large warehouses and stores is a complex task, thereby driving the requirement for smart automation in the sector. An electronic shelf labeling (ESL) system offers flexibility and precision in operating stores, as its centralized control permits store owners and managers to have easy access to updates and save time. Consequently, retailers are adopting these systems as they help them gain an advantage over competitors.
Another factor driving the electronic shelf label market is the increased efficiency of warehouse, inventory management, and physical store management this technology offers. Moreover, retailers are getting encouraged to adopt automated systems as they save expenses and efforts. With the help of automated systems, the entire process of taking the order, scheduling the delivery, displaying product information, and managing the entire process by monitoring the execution becomes easier and quicker. Thus, the demand for ESLs will grow in the coming years as they are important for retail automation.
Among the various types of these systems, full-graphic E-paper displays remain the most popular. According to P&S Intelligence, it is due to the fact that these variants can project graphical objects and they are highly energy efficient. Moreover, LCD ESLs are expensive, which makes them less popular, especially among medium-sized retail chains and individual shop owners. As a result, LCD variants are majorly used by large supermarket chains, such as Walmart, Reliance Fresh, and 7-Eleven.
In the coming years, the electronic shelf label market is expected to grow at the highest rate in Europe due to the presence of leading providers of this technology and rapid growth in the retail sector across the continent. Most European countries are characterized by high labor costs, which propels the adoption of these systems in the retail sector, as they minimize human involvement and allow retailers to save on OPEX. Additionally, North America has accounted for the highest number of ESLs in operation in its retail sector till now. This is primarily due to the surging demand for these systems among large and expansive retail chains, such as Walmart.
Thus, the evolving retail sector, owing to the integration of different technologies in it, will propel the demand for ESLs in the coming years across the world.
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