IDC: Epson Inkjet Overtakes HP in India’s Printer/MFP Market

According to the latest IDC Asia-Pacific Quarterly Hardcopy Peripherals Tracker, May 2017, the printer and copier/MFP market in India registered a 0.5 percent year-over-year (YoY) growth for the first time in six quarters after unit shipments reached 799,164 in first-quarter 2017. The actual numbers for first-quarter 2017 are in line with the IDC forecast numbers with only 1 percent variance in inkjet printers and MFPs and 2 percent variance in the laser printer and MFP market.

After demonetization affected fourth-quarter 2016, IDC says the printer and MFP market bounced back in India in first-quarter 2017, with the inkjet market leading the way with 15.4 percent growth year-over-year.

IDC states that, over the past 12 months, the Indian printer and MFP market has witnessed a significant technology shift, with customers showing an ever-increasing inclination towards ink-tank inkjet printers over entry-level laser printers. The main reason behind this shift is the low cost of printing (starting from as low as 7 paise for black-and-white and 18 paise for color prints) and in-box high page yield ink bottles available in the market. There was also a significant marketing push from vendors, which resulted in generating high visibility for ink-tank printers.

Overall Hardcopy Market

Inkjet market:

  • Epson overtook HP Inc. as the market leader in terms of unit share for the first time ever after posting a 26.5 percent growth year-over-year. Epson captured 42.9 percent of the market while HP had 39.4 percent.
  • The market overall was “robust,” with the top three vendors posting double-digit growth. HP and Canon posted 11 percent and 13.6 percent year-over-year growth, respectively.
  • Ink-tank Printers constitute “the lion’s share of the Inkjet market,” which contributed to Epson capturing the number-one position in the category.

“Demand from SMEs in smaller cities/towns and home consumers continued to be the driving force behind the growth of Ink Tank Printers shipments in 2017Q1,” said Abhishek Mukherjee, senior market analyst for IDC India.

Laser (printer-based) market:

  • The laser printer market suffered a decline of 10.2 percent in first-quarter 2017 Q1 compared to first-quarter 2016. Among the leading vendors, Canon managed to register a growth of 12.6 percent for the same period.
  • HP Inc. continues to be the market leader in laser printers and MFPs with a share of 54.8 percent, followed by Canon and Samsung at the second and third position respectively.

Laser (copier-based) market:

  • The copier market saw a quarter-to-quarter growth rate of 45.9 percent after a soft fourth-quarter 2016, with demonetization in India affecting the jobbers segment and low government spending.
  • Kyocera shot up to the number-one spot with a market share of 26.8 percent with year-over-year growth of 22.8 percent.

“Laser-printer based market continues to face challenges although in first-quarter 2017 they managed to narrow the shipment gap with inkjet printers quite significantly owing to some good government and corporate deals,” says Manali De Bhaumik , senior market analyst for IDC India.

IDC India Forecast

“Despite the GST tax slab announcement, some confusion prevails as printers are listed in both 18 and 28 percent respectively. While the industry waits for clarification on the tax slab, channel partners have already started holding back on inventory stocking, which is likely to bring down the printer shipments in Q2,” says Nishant Bansal, research manager (IPDS) for IDC India.

For more information on this IDC market report, contact Nishant Bansal, research manager at nbansal@idc.com; Manali De Bhaumik, senior research analyst at mdebhaumik@idc.com; and Abhishek Mukherjee, senior research analyst at amukherjee@idc.com.

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