Electronic Article Surveillance Market Size, Share & Trends Analysis Report By Component (Tags, Antennas, Deactivators/Detachers, Others), By End-User (Clothing & Fashion Accessories, Cosmetics/Pharmacy, Supermarkets, Mass Merchandise Stores, Health Product Store, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global electronic article surveillance market size was valued at USD 1,046.14 million in 2021 and is expected to generate USD 1,438.2 million by 2030. The market is projected to grow at a CAGR of 3.6% during the forecast period (2022–2030). Tags and antennas are components available in the electronic article surveillance (EAS) industry. It prevents stealing from retail stores such as apparel and fashion accessories, supermarkets, and so on, using a technical method. The market growth is attributed to the increased adoption of these devices in retail stores around the globe.

Sites that have high efficacy for EAS labels are apparel and footwear, health and beauty, food and beverage, and others manufactured through numerous technologies, offering a positive shopping experience and maximum protection. The system under this technology usually consists of three components, namely the electronic antenna, deactivator or detacher, and an electronic tag.

Moreover, any loss of inventory related to shoplifting, employee theft, error, or fraud can significantly affect a retailer’s bottom line. The anti-theft tags have been a crucial asset in the battle against inventory shrink and have become one of the most valuable tools in a retailer’s theft-protection arsenal. These devices provide a visible deterrent to shoplifting, but they are also designed to alert the store personnel toward a potential theft immediately.

The global electronic article surveillance market is segmented based on components, end-user, and regions.

Market Dynamics

Electronic Article Surveillance Market Drivers

• Protection Against Inventory Losses, Shoplifting, and Theft

The major issues related to security against theft and counterfeiting are crucial to any industry. As enterprises worldwide have been witnessing thefts, the importance of security systems against these thefts has become paramount. The usage of EAS devices helps enterprises prevent these types of activities in their premises.

Shoplifting across several countries has reportedly become a problem to tackle. For instance, according to the National Retail Federation July 2020 report, the average dollar loss per shoplifting incident in the United States in 2019 amounted to USD 270.06. Also, according to the Annual Retail Theft Survey by Jack L Hayes International, 66.7% of retailers indicated an increase in inventory shrinkage, with the major reason being shoplifting.

Retail crime remains one of the most serious threats the retail industry faces across the globe. Shrink, otherwise known as a reduction in the inventory due to shoplifting, employee theft, or any other errors, can significantly impact the retailer’s bottom line. From big-box chains to tiny boutiques, retailers increasingly use electronic article surveillance (EAS) systems to reduce shoplifting and protect their profits.

Moreover, shoplifting, violence, and aggression toward employees, and organized ‘steal to order’ gangs have been causing havoc in the retail sector that is already being challenged by the rapid rise of online shopping channels. With everything from source tags where the tracking of product is included in the product packaging, through to the labels or on fresh food packaging, today's EAS solution’s can be unobtrusive, enabling customers to freely enjoy the shopping experience retailers want them to have, while at the same time protecting their assets and profits by minimizing theft.

• Higher Adoption of Acousto Magnetic Systems

The higher adoption of Acousto Magnetic Systems for wider protection in retail stores is also driving the market. The Acousto Magnetic (AM) technology applied in anti-theft systems by retail shops has been a crucial innovation. The technology is deployed on a physical phenomenon known as magnetostriction, primarily applied to anti-theft accessories used to protect the merchandise, and works at a frequency of 58KHz.

The AM technology provides wider protection than RF Anti-theft systems due to its larger detection areas through antennas and the usage of hard tags.

Further, AM is increasingly being adopted by small to large clothing apparel stores, electronics, and other departmental chain stores, thus, catering to the growth of the market.

Electronic Article Surveillance Market Restraints

• Need for Additional Investment of EAS Systems Implementation

Like any other business decision, installing a new Electronic Article Surveillance system should be very carefully considered to maximize the return on investment at the earliest. The cost of these Electronic Article Surveillance systems varies primarily depending on various factors. There are associated fixed initial and ongoing costs over the years for these systems.

The fixed initial costs are primarily impacted by the type of system chosen, the size of the retail outlet that is being protected, the number of entryways that needs protection, the way the antennas are being installed via pedestal, underfloor, overhead, etc., the delivery and installation costs, among other costs. Moreover, the ongoing costs majorly include the replacement of tags and labels, system maintenance, and running costs.

What Are Future Key Opportunities in Electronic Article Surveillance Market?

• Growing Awareness Regarding Electronic Article Surveillance (EAS)

Shoplifters have been becoming savvier, working in teams or using their technology to block electronic detection. As a result, the retail industry loses billions of dollars every year. It has become crucial for the retailers to stay ahead of them with the most up-to-date security solutions to prevent loss prevention from happening at their stores. The electronic article surveillance system, combined with RFID technology, is considered one of the most successful, effective, and scalable anti-shoplifting systems for retailers today.

The market is also witnessing the entry of new players, owing to the opportunities the market is offering to various vendors. For instance, in July 2021, ADT Commercial announced its expansion into the EAS market through a strategic alliance with WG Security Products Inc., as well as with a team of vertical market players.

Regional Analysis

Significant Growth in North America

The global electronic article surveillance market is segmented into four regions: North America, Europe, Asia-Pacific, and the Rest of the World. In 2020, North America accounted for the largest share of the global market for electronic article surveillance. The North American electronic article surveillance market is expected to generate a value of USD 541.13 million by 2030, at a CAGR of 3.26%. The key contributor to market growth in this region is owing to rise in shoplifting instances, as many retailers are losing huge amounts of money.

The United States is expected to account for the highest market share in the North American region during the forecast period. The country has been witnessing various retail store expansions. For instance, Ulta Beauty announced the plan to open 40 new stores in 2021 with an investment of USD 70 million. In addition, the company planned to relocate 10 stores and remodel 11 stores in the United States. Such investments have been driving opportunities for the EAS market in the region.

Moreover, Germany is the second-fastest-growing nation in retail trade in Europe, at a growth rate of 4.4% in FY 2020, according to OECD. But the number of shoplifting cases recorded by the police in Germany has increased concerns over the adoption of electronic article surveillance systems. Moreover, according to Bundeskriminalamt, Germany recorded 304 thousand cases of shoplifting in 2020.

The Asia-Pacific electronic article surveillance market is expecting lucrative growth in the coming future. Asia-Pacific electronic article surveillance market share is expected to generate a value of USD 352.54 million by 2030 at the highest CAGR of 4.38% during the forecast period.

In this region, countries such as India, China, Japan, and Australia have a huge potential in the electronic article surveillance (EAS) market. The EAS market is expected to grow at a substantial rate in Asia-Pacific. EAS systems are expected to be in high demand as the number of retail outlets in the garment, supermarket, and mass merchandise sectors grows.

To improve the omnichannel consumer experience, Pomelo, a fashion company, announced the development of retail shops in Southeast Asia in August 2020, spanning countries such as Singapore and Malaysia. The company plans to open 20 more sites to broaden its reach in the area. The demand for EAS solutions in the region is fueled by initiatives like this from fashion merchants.

The rest of the report's world segment comprises Latin America and the Middle East & Africa regions. The market is expected to witness recovery after the pandemic situation relaxes. For instance, according to the Mexican retailers’ association ANTAD, Mexico’s same-store retail sales rose by around 33.9% in May 2021, compared to the same month last year.

Segmental Analysis

The global electronic article surveillance market share is classified into components and end-user.

Based on components, the electronic article surveillance market is segmented into tags, antennas, deactivators/detachers, and others. The tags segment is dominant over other electronic article surveillance technology types and is expected to generate USD 843.10 million by 2030. It is expected to grow at a CAGR of 3.74% during the forecast period. The electronic article surveillance (EAS) tag is a crucial part of an EAS system. The tag is a small signal transmitter that is attached to the merchandise. The EAS tag signals to the EAS antennas to make them sound an alarm if the tag comes close to the antennas.

Tags (in hard tag or sticker form) are attached to merchandise, which can occur during manufacturing or packaging or in a store. At the time of checkout, tags are deactivated by store employees, using either a deactivation pad or a detacher, which releases the hard tag pin.

The tags are available in various designs and sizes, depending on their intended use. Vendors are constantly inventing and offering new items.

On the basis of end-user, the market is classified into clothing & fashion accessories, cosmetics/pharmacy, supermarkets, and mass merchandise stores. The clothing & fashion accessories segment is anticipated to generate USD 748.56 million by 2030 at a CAGR of 3.27%.

Benefits such as ease of implementation, decreased labor, open merchandising and brand development, speed of delivery on the shop floor, and improved consumer experience drive the adoption of EAS in clothing and fashion accessories.

Merchandise visibility through Radio Frequency Identification (RFID)-based solutions provides detailed insights into the location and quantity of apparel and footwear from the manufacturing source to the store to reduce inventory costs, reduce out-of-stocks, and increase sales and margins.

Impact of covid-19

The COVID-19 outbreak has impacted international trade and worldwide supply networks of both vital and non-essential goods and services. With the spread of COVID-19 across the world, businesses have suffered significantly. The pandemic had a negative influence on the market under investigation.

As a result of the COVID-19 outbreak, the market has slowed significantly. As a result, retail outlets around the world, including clothes, fashion stores, and other types of department stores, have temporarily closed. In addition, with no significant expansions projected during this time, demand for EAS systems is expected to be slow.

Moreover, the temporary closures of the manufacturing facilities of components, such as the tags, antennas, and deactivators, the supply chain has also been affected significantly. Also, with the drastic impact of the demand distribution in the overall semiconductor market, the providers of EAS solutions are finding it difficult to manufacture new units.

Recent Developments

• July 2018 - Scalpers, a Spanish fashion retailer, has chosen Nedap as its technology partner for implementing RFID-based solutions throughout its 150 outlets. Scalpers' inventory will be fully traceable thanks to Nedap's!D Cloud software platform, RFID hardware, and EAS, which will improve the retailer's stock accuracy. 
• January 2018- Tyco Retail Solutions unveiled the Sensormatic InFuzion tag, the first in a new line of sophisticated InFuzion EAS tags. It offers the opportunity of upgrading to various technologies and loss prevention capabilities to fit the needs of shops.