Large enterprise and govt. drive MFP growth in India

by Sohini Bagchi    Sep 20, 2012

printer marketThanks to the large enterprise segment, the printer copier and multifunction product (MFP) market in India is witnessing a phenomenal growth, says a recent Gartner report.

According to the analyst firm, the combined serial inkjet and page printer, copier and multifunction product (MFP) market in India totaled 715,202 units in the second quarter of 2012. This is a 6.8 percent increase from the second quarter of 2011. The total enterprise spending also stood at USD $208.1 million, up 35 percent from the same period last year.

Banking, financial services and insurance, education and government sectors are driving the growth of MFP segment as print vendors have introduced a range of new models in the market over the past one year, especially for these businesses, said Amrita Choudhury, research analyst at Gartner.

“The market also gained some traction in the high speed segment, often used by large publishing houses or businesses to print their outbound communications such as brochures and marketing collaterals, among others,” she added.

“A key focus for enterprises today is to drive growth, innovation, and operational excellence. Those businesses becoming serious about driving growth and innovation and are striving for quality customer services are looking for a well-managed imaging and printing environment is key to these goals,” said P. Divakaran, Technology Director of United Business Institute.

According to Gartner, HP remains the leader in the India printer, copier and MFP market with its market share reaching 51 percent in the second quarter of 2012, followed by Canon with 23 percent market share. Both Epson and Samsung accounted for 8 percent of shipments.

The Page A4 MFP segment grew 54.1 percent in the second quarter of 2012, whereas the Page A3 MFP segment increased 31.7 percent compared to the second quarter of 2011.

Monochrome printers grew only by 2 percent due to sales in the small and midsized business, compared with the second quarter of last year. The inkjet printers market however declined 7.2 percent compared to the second quarter of 2011 but is expected to pick up pace in the next few quarters, the analyst firm believes.

Angsuman Chakrabarty, CEO of relaso Product Suite believes that for small educational organisations and workgroups the right inkjet printer may be the most cost-effective choice. This area will grow because organizations are constantly trying to reduce printing costs, while at the same time increasing productivity.