As per the report published by Fior Markets, the global smart shelves market is expected to grow from USD 2.41 billion in 2020 and reach USD 6.23 billion by 2028, growing at a CAGR of 26.1% during the forecast period 2021-2028.
The global smart shelves market has grown significantly in recent years. This increase can be ascribed to a rise in improved inventory management by retailers to provide more innovative restocking options and real-time engagements and the usage of automation and intelligence solutions by retailers to provide a better shopping experience to customers. Better inventory management and digital shelves provide businesses with greater visibility and control. Furthermore, it aids in tracking in-store inventory levels, allowing companies to improve inventory management and make better restocking selections. According to Wise Shelf, smart shelf technology reduces the risk of missed sales, which occur when purchasers cannot locate the requested item. It also allows for automated inventory tracking and notifies retail businesses when a particular item’s supply is running low or stolen from its original location, preventing theft and shrinkage.
The shelf that is transistorized with a radio frequency identification reader (RFID) sensor installed inside, above, or behind the shelves is smart. To show product pricing on shelves, retailers typically utilize an electronic shelf label (ESL) system. When a price is adjusted from a central control server, the product’s price is automatically updated. Smart shelves are also electrically connected shelves that are used in retail locations to track inventory. Smart shelves employ a combination of digital displays, RFID tags, and sensors to provide detailed product information, cross-selling suggestions, and marketing. Smart shelves also provide businesses with essential insights into customer buying patterns and preferences.
The global smart shelves market is predicted to rise significantly due to the growing demand for workflow simplification in physical retail stores and more accessible data analysis, and the increased demand for greater surveillance and monitoring at physical retail outlets. Furthermore, rising demand for real-time stock information and inventory management and increased retail demand for inventory accuracy and supply chain management are key drivers that will fuel the smart shelves market. The factors restraining the market are privacy worries about embedded data tags resulting in low adoption of smart shelves by small and medium-sized stores, incompatibility concerns with infrastructure, and an absence of experienced labor. The desire of merchants to create closer interactions with clients at the front of the store will provide opportunities for market expansion.
Happiest Minds, Intel, PCCW Solutions, Avery Dennison, Honeywell, Huawei Technologies Co. Ltd, NXP Semiconductor, E-Ink Holdings, and Samsung Electronics are among the global smart shelves market players.
- In July 2020, Pricer announced that the Canadian Tire Dealer Association (CTDA), a dealer network with about 500 locations across Canada, has signed a Master Framework Agreement with Pricer as its sole supplier of Electronic Shelves Label (ESL) systems.
- In February 2020, Pricer Plaza, a new and upgraded architecture for innovative retail in-store services and business models, was introduced. As a result of this product launch, Pricer’s retail automation offerings would become more advanced.
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The software and Solutions segment dominated the market and held the largest market share of 30.23% in the year 2020
Based on components, the global smart shelves market is segmented into RFID Tags and Readers, ESL, IoT Sensors, Cameras, and Software and Solutions. The Software and Solutions segment dominated the market and held the largest market share of 30.23% in 2020. Software and solutions are critical tools and platforms used to link shelf components to cloud servers and gateways. Some of the most common applications of smart shelf software and solutions are in-store execution, category analysis and planning, inventory optimization, price and promotion compliance, store monitoring and intelligence, and planogram monitoring.
The pricing Management segment dominated the market and held the largest market share of 34.35% in the year 2020
Based on application, the global smart shelves market is segmented into Inventory Management, Pricing Management, Content Management, and Planogram Management. The pricing Management segment dominated the market and held the largest market share of 34.35% in 2020. This expansion can be linked to the advent of hyper-connected clients as well as severe competition. Pricing management has become more crucial for merchants to check on the competitive pricing shown on the shelf, allowing consumers to decide when comparing prices. Dynamic pricing is not a new concept in the retail industry; it has been employed by petrol stations and disruptive sellers such as Amazon. Retailers can benefit from the price optimization technique by utilizing automation to manage pricing and demand efficiently.