According to Future Market Insights, the global smart shelves market was estimated to reach a valuation of US$ 2.7 billion in the year 2022. With a robust CAGR of 25.2% from 2023 to 2033, this market is anticipated to reach US$ 3.38 billion by 2023 and US$ 31.99 billion by 2033.
The improvement of inventory management by retail to create better replenishing options and real-time engagement, as well as the use of artificial intelligence and automation technologies by retail to improve the overall shopping experience for customers, are the main factors driving the smart shelf market.
Increased urbanization and consumer purchasing power encourage market growth by driving up demand for natural as well as premium products. Retailers have a high need for pricing optimization, improved operating effectiveness, along with real-time product placement as a result of the rising popularity of retail automation. These are only a handful of the important variables driving the market's upward trend worldwide.
Sales in various e-commerce platforms are rising quickly; this growth allows the studied business to prosper by supplying new goods to e-commerce distribution centers to manage efficient inventory management. The USA Census Bureau estimates that from July to September 2022, commercial e-commerce in the USA generated roughly USD 266 billion, a 3% rise over the previous quarter. Furthermore, the business is being driven forward by expanding retail sales.
When a consumer exits a store, RFID tracking continues. Retailers may link a customer's purchases to the RFID data and use it to map out a customer's movements across the store or even an entire shopping center if they pay with a credit or debit card or scan their loyalty card at the register. This suggests that it is endangering user privacy, which is a barrier to the market's expansion.
The global smart shelves market is anticipated to be driven by the use of improved inventory management. Businesses must make significant investments in a steady supply of products that are fairly priced, reliable, and of excellent quality as online sales grow. Managing safety inventory and improving operational efficiency is more crucial than ever in this new environment. As a result, e-commerce companies have been using inventory management software more frequently lately. Retail businesses all around the world need inventory management systems to help them keep track of their current inventory and keep up with rising demand.
Retailers are looking for improved inventory management strategies that are quicker, cheaper, and more effective. Traditional inventory management methods require a lot of time and are prone to human error, which costs businesses money and effort. By using intelligent inventory management technology like RFID, autonomous inventory robots, as well as smart shelves, retailers can reduce shrinkage and increase overall business efficiency.
To obtain an advantage in the market, major businesses are launching novel goods, collaborating, and forging alliances.
May 2022 saw the announcement by Avery Dennison Corporation of two significant investments totaling EUR 45 million (USD 48.21 million) for the expansion of its manufacturing capacity and increased factory productivity in Europe.
May 2022 marks the beginning of a new age of the Internet of Things that will benefit both people and the environment thanks to a partnership between Avery Dennison Corporation and Internet of Things pioneer Wiliot. The second generation of Wiliot tags, which are Bluetooth-powered stamp-sized computers, would be designed and produced by Avery Dennison using its scale and R&D skills.
Data Points
Key Statistics
Expected Market Value in 2023
US$ 3.38 billion
Expected Market Value in 2033
US$ 31.99 billion
Growth Rate of the Smart Shelves Market (2023 to 2033)
25.2% CAGR
Smart shelves are electronically connected shelves that are used for tracking inventory in retail outlets. Smart shelves use combination of digital displays, RFID tags, and sensors for providing detailed information about the product, cross-selling suggestions, and marketing and smart shelves also provide retailers valuable insights about customer shopping patterns and preferences.
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Smart Shelves Market Forecast and CAGR
According to latest research, Metal Air Batteries market is estimated to reach around 10 Billion in 2031 with an expected CAGR of 25%. Technological advancement and increasing customer customization & personalization is driving the sales of smart shelves in forecast period.
What is Driving Demand for Smart Shelves?
The advent of electronic labels are likely to eliminate the use of paper and will ease out the process of changing the prices in the entire store in minutes. Most of the supermarkets are starting to adopt smart shelves with digital displays as more and more retailers are making use of advanced technologies to replace paper labels.
For instance, Kroger, an American retail company, has now started using EDGE, a cloud-based display solution. The software displays advertisements, prices, coupons, videos, and nutritional data. This is estimated to significantly boost the sales over the forecast period.
Moreover, this technology enable retailers to check inventory levels and know when a product is out of stock. Smart shelf technology can also alert retailers to the theft of goods, thus minimizing the loss and maximizing the profits.
Also, key benefits such as correct product positioning, low stock alerts, real-time shelf tags update, real-time stock information, customized product information, optimized store performance, and enhanced customer service are likely to flourish the demand in the near future.
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How are RFID Technology and IoT Sensors Contributing towards the Market Potential?
A radio frequency identification reader (RFID) uses radio waves for identifying the products and provide information about them. It usually contains a tag which comprises of a reader, microchip, and an antenna to receive and transmit data. RFID tags on products combined with robotic checkouts helps to automatically scan the products and make shopping faster.
RFID technology help retailers track and manage inventories in supermarkets. RFID tags may also alert store owners/associates if in case someone has mistakenly placed items on a wrong shelf or when the shelves are empty and need restocking.
Additionally, Internet of things (IoT) sensors are used for controlling temperature. It can check temperatures in cases and freezers to ensure whether they are appropriate before any fluctuation makes all the frozen food turn bad or ruins all the ice cream.
Moreover, the IoT technology help supermarkets comprehend which items are mostly bought by customers can affect the way stores displays their products. The technology is also capable of collecting data and data is provided to the associates for analysis.
APAC Smart Shelves Market Outlook
The demand for smart devices such as RFID tags & labels, smart shelves, mobile computers, POS terminals, signal-receiving devices, customer service appliances include shopping guide robots and self-service terminals are increasing in the retail industry in the region. These smart devices are used to track and identify items and control of inventory applications.
Retailers are using smart shelves to upgrade and check inventory levels over its stores across the globe. These factors responsible for an impact on the inventory accuracy reportedly updated to 98%. Moreover, smart devices offer different features for smart retail, such as improve operational efficiency, increase store quality, and enhanced end-user consumption experiences.
These features creating potential growth opportunities for the smart shelves vendors in the region.
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Europe Demand Outlook for Smart Shelves
The retail industry in Europe is witnessing high growth in last few years. This growth is attributable to the existence of key players such as Pricer, SES Imagotag, Opticon Sensors, and Cicor. High penetration of electronic shelf labels in the regional retail business, especially in the countries such as France, Italy, Belgium, Germany, and other European countries, is likely to drive the growth of smart shelves in the region.
Several factors such as the requirement for highly interactive retail environment and advanced and fast retail processes in Europe are contributing towards the growth of smart shelves market.
Who are the Key Manufacturers and Suppliers of Smart Shelves?
Some of the leading manufacturers and suppliers include
Happiest minds
Avery Dennison
Huawei Technologies Co. Ltd
PCCW Solutions
Intel
Honeywell International Inc.
NXP Semiconductor
Samsung Electronics
E-Ink Holdings
Software AG
MINEW
TraxRetail
Pricer among others.
Companies developing smart shelves adopt different expansion strategies for enhancing their presence across lucrative markets. These strategies include product launches, acquisitions, partnerships and collaboration with key players, and enhancement of distribution networks at regional and global levels.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
