E Ink CEO Johnson Lee acknowledged the seasonal slowdown in the first quarter, citing weaker demand for electronic paper products, particularly in consumer electronics and electronic shelf labels (ESLs). However, he framed this period as a strategic opportunity for the company to recalibrate. Looking ahead to 2025, Lee projected strong demand for Internet of Things (IoT) applications, including ESLs, digital signage, and consumer electronics. He expects steady growth throughout the year.
Global ESL adoption accelerates
The electronic shelf label (ESL) market is expanding beyond Europe, with rapid adoption in Asia, particularly in Japan, South Korea, Taiwan, Hong Kong, Singapore, Vietnam, and Thailand. The most significant momentum, however, is in the United States, where Walmart's large-scale ESL deployment is reshaping the industry. Analysts expect this move to spur broader adoption among retailers. E Ink anticipates record ESL demand in 2025 but remains cautious about potential supply chain disruptions.
Although ESL adoption is widespread in European retail, Johnson Lee sees untapped potential in segments such as fashion, department stores, DIY retailers, specialty shops, pharmacies, and duty-free outlets. The market focus in Europe is shifting from traditional retail to these emerging sectors. In North America, demand is rising for larger ESL formats, a trend Lee views as favorable for E Ink.
Demand for color electronic paper is surging in the consumer electronics sector, particularly in e-readers and digital notebooks, as manufacturers transition from monochrome to full-color displays. This shift has driven strong sales, reflecting growing consumer interest. However, macroeconomic and political uncertainties could impact spending patterns in the months ahead.
The rise of large-format color e-paper
Johnson Lee announced that 2025 will mark E Ink’s expansion into large-format color electronic paper, signaling a major shift in digital signage. Leading panel makers—BOE, TCL CSOT, HKC Corporation, and Innolux—are scaling up production of larger panels to meet growing demand. This aligns with a broader industry push toward high-efficiency, vibrant digital displays, reshaping the signage market as businesses seek scalable, energy-efficient solutions.
Lee remains optimistic about the demand for large-format e-paper, citing strong customer interest and robust order volumes. However, he acknowledged that E Ink’s primary challenge isn’t demand but maintaining product quality and meeting delivery schedules. As the company scales its presence in digital signage, Lee stressed the need for strict quality control and streamlined logistics to uphold customer expectations.
Currently, E Ink's largest digital signage size is 75 inches. Lee mentioned that the initial focus for digital signage sales is on modules, and the company has invested in its first large-module production line. E Ink expects a strong market outlook and looks forward to collaborating with partners to invest in module factories to share the customer demand and better serve end customers.
As for partnerships with panel manufacturers, Lee said there are two main approaches. One is that E Ink purchases electronic paper TFT backplanes from panel manufacturers, and the second is where panel manufacturers buy electronic paper materials to create electronic paper modules.
Regarding royalties, E Ink has already received steady income for over ten years but is now nearing the end of this phase.
Lee emphasized that for E Ink, 2025 will be a significant year for entering large-size products, a year of growth, and a milestone in the company's transformation into a more mature, large-scale business.
Article translated by Elaine Chen and edited by Levi Li
