Imaging 360 Forecast: Hardware (Global)
The printing hardware market continues to trend downward, led by inkjet shipment decline and overall decreased revenue. However, patches of growth and opportunity can be identified, leaving select growth opportunities for the strategically aligned.
Photizo Group’s 2015 Hardware Forecast shows that worldwide hardware revenue has reached $35.5 billion (B) in 2014 with an expected revenue of $32.8B in 2019, a 1.5 percent decline. Additionally, worldwide shipments of monochrome and color laser devices and inkjet devices were 106.5 million (M) in 2014 with expected unit shipments of 104.7M in 2019, a 0.4 percent compound annual growth rate (CAGR) decline.
Positive trends are expected in laser hardware shipments through 2019. Monochrome shipments are forecast to increase by 2.1 percent CAGR globally. Likewise, color laser shipments are expected to grow by 3.7 percent CAGR. Upward trends are predominantly associated with multifunction printer (MFP) growth, as single-function printer (SFP) shipments show consistent decline.
Despite growth in laser shipments, overall global revenue for monochrome and color laser segments is forecast to decline by 0.6 percent and 2.6 percent respectively through 2019. While shipments indicate a positive landscape with steady growth, average selling price (ASP) is expected to decrease across the market.
While laser shipments are positive, overall shipments are shown to decline by 0.4 percent. Laser growth has been offset by a 2.1 percent decrease in inkjet shipments. Likewise, total inkjet revenues will decline, due to decreased average selling price.
The key trends are:
- MFP unit growth in most monochrome and color speed segments
- A3 and A4 page-size devices are battling in the MFP high-end color segments
- Most A4 ASPs are declining except for some select inkjet speed segments
- Users want smaller devices that include reduced energy consumption and reduced intervention rates
- PageWide, Replaceable Ink Pack Systems (RIPS), and Continuous Ink Supply System (CISS) technologies for business inkjet printers are attracting office workers and some have successfully been used to win MPS contracts
- Business inkjet is becoming a major competitor to low-end color laser devices due to lower cost/page, faster printing speeds, and generally smaller footprint
Though overall trends are overwhelmingly negative, Photizo Group identifies isolated growth opportunities in the market, presenting optimistic opportunity to secure emerging profits in a down market.