Electronic shelf labels (ESL) using e-paper technology have experienced rapid growth in the retail industry, propelled by Walmart's large-scale adoption since mid-2024. ESL shipments surged from just over 100 million units per quarter to nearly 200 million units in the second quarter of 2025, setting unprecedented shipment records globally.
Data from Runto highlights that the ESL market exceeded 100 million units shipped for the first time in the third quarter of 2024. Shipments continued to rise, reaching nearly 300 million units in the first half of 2025—a 211.4% increase year over year. Walmart led this surge, primarily deploying ESL sizes of 1.52 inches and 2.06 inches, along with three other popular sizes ranging between 2.13 inches and 2.9 inches. ESL units under 2 inches made up 23.2% of shipments, the 2-3 inch segment accounted for the largest share at 59.2%, while larger labels between 4 and 6 inches represented approximately 5.5% of total volume.
Color e-paper technology is advancing rapidly within ESL, with four-color products gaining market traction. The expanding demand for ESL has also driven e-paper shelf label module shipments, which totaled 324 million units in the first half of 2025—an increase of 244.4% year-over-year. Leading module manufacturers in Walmart's projects include Beijing Oriental Electronics (BOE), Dongfang Kema, and Xingtai, with BOE controlling nearly 40% of the market.
Walmart's expanding ESL deployment sustains market momentum
Walmart remains a key ESL market driver, with E Ink Holdings as a principal supplier. Estimates indicate Walmart's total ESL demand could range between 400 million and 500 million units. After shipping 150 million units by the end of 2024, an additional 300 million or more units are projected to ship through 2026. This robust demand is expected to encourage broader ESL adoption among other retailers.
E Ink Holdings chairman Johnson Li confirmed optimism for ESL material shipments in 2025, citing accelerated customer orders, particularly for US deliveries. The company's operational performance in revenue, operating profit, and net income reached historic highs in the first half of 2025, partially fueled by customers accelerating orders amidst tariff concerns. While some consumers hesitate due to tariff uncertainties, retailers already committed to ESL installations continue their projects unaffected, some even requesting earlier deliveries.
Li emphasized that tariffs have a limited impact on ESL business because 2025 orders were largely finalized in advance, with installations proceeding on schedule. The second quarter of 2025 is expected to be the strongest period for ESL shipments, with a solid but less intense third quarter. The fourth quarter outlook is more cautious due to seasonal factors, as ESL installations tend to slow during this period when retailers prefer maintaining lower inventory levels and the year-end holiday season is typically not favorable for new ESL deployments.
Article edited by Jack Wu
