Govt Drives India's Printer Market Growth
Despite the slowdown in the consumer segment, India’s Hardcopy Peripherals (HCP) market shows moderate growth in Q1 2014, primarily driven by the government’s procurement and supported by the large enterprises in the country, according to an IDC report.
Hardcopy Peripherals (HCP) includes Inkjet, Laser, SDM & Line Printer but does not include A6 Format Printers.
The analyst firm states that the HCP market in India grew 1.5% sequentially in Q1 2014 to reach over 8 lakh units in terms of shipments. This was largely driven by the government’s buying in the Laser segment, which recorded a significant sequential growth of 12.8%. But on the other hand, Inkjet segment performed weakly due to low consumer demand across all price band segments, resulting in a marginal growth of 1.5%.
Mohammed Riyaz Ahmed, Market Analyst at IDC India, says, “Excluding the Government business, the demand of Laser printer is slowing in the enterprise due to the combination of national and state elections where Enterprises decided to hold their purchase till the new Government is in.
However, overall business from this segment was stable due to the financial year-end purchase, where corporate would like to use up their remaining budgets. All these factors collectively led to the growth of the Laser market,” he says
In the overall HCP market in India, HP managed to achieve 48.3% shipment share and remained as the market leader, followed by Canon and Epson with 16.4% and 10.5% share respectively. With increased sales in government projects, Ricoh secured the fourth position and was closely followed by Samsung with just a marginal difference in market share.
In the inkjet segment, due to low consumer demand and marginally high inventory, Inkjet HCP market witnessed a sequential decline of 15.5% in the first three months this year. While all the leading vendors in the Inkjet HCP market recorded sequential decline but the highest decline was seen in Canon this quarter.
The laser printer segment has grown by 9.3% in terms of unit shipments in 2014 Q1 as compared to Q4 2013 Q4, again the surge in Government business considered to be the prime reason for growth; it was also supported by the stable channel business. HP continued to be the market leader with a share of 52.1%, followed by Canon and Samsung at the second and third position
In the laser copier however, a very high sequential growth of 68.4% was seen in the first quarter again due to strong Government buying and high demand from the Enterprise segment. Ricoh’s market share has grown tremendously to 30.0% in 2014 Q1 as they were among the few vendors to bag major deals in Government sector. Canon also recorded a high sequential growth of 20.9%; but moved to the second position in 2014 Q1, followed by Konica Minolta at the third position.
“the Printer industry in India is moving to the next level where vendors are mapping and targeting key accounts and industries with the solutions and services approach, and are modifying and building their portfolio accordingly. In addition, more focus on Managed Print Services (MPS) will also be seen the coming year,” adds Raizada.
“On the consumer side, vendors are also identifying and analyzing customer needs and requirements and aggressively marketing and repositioning their products to reach the right target buyers,” he concludes, adding that a significant recovery will be seen in the subsequent quarters.
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