IDC: India Printer-MFP Market Down 2.2 Percent in First-Quarter 2016; HP Remains Leader


According to market-research firm International Data Corporation (IDC), the hard-copy peripherals (HCP) market in India dropped 2.2 percent sequentially in first-quarter 2016 and reached 795,451 units in terms of shipments. IDC says the HCP market in India was primarily driven by laser printers, which marked a remarkable sequential growth of 15.9 percent in first-quarter 2016. Hard-copy peripherals include printers and copier/MFPs, and this research refers to the consumer- and office-printing segments.

According to Maninder Singh, market analyst for IDC India, “In the absence of substantial demand from government and consumers in first-quarter 2016, the overall HCP market witnessed weak buying as the sentiments were not positive. However, the enterprise segment witnessed some growth and is expected to pick up (the) pace in the coming quarters.”

Major Vendor Analysis

According to IDC, HP managed to achieve 44.7-percent shipment share in first-quarter 2016 and remained as the market leader in India. HP was followed by Epson and Canon with 19.1 percent and 16.6 percent share, respectively. Brother International emerged into the fourth position in first-quarter 2016 and was closely followed by Samsung.

The inkjet HCP market in India witnessed a sequential decline of 13.7 percent in first-quarter 2016, due to low consumer demand and high inventory. However, IDC says Epson and Brother witnessed a sequential growth of 6.2 percent and 12.4 percent in first-quarter 2016, respectively. Both HP and Canon in the inkjet HCP market recorded sequential declines. All vendors faced inventory issues during the start of the quarter, but the second half saw new campaigns and marketing activities that are expected to “pave the recovery path in the coming quarters.”

In the laser segment, the printer-based laser HCP market grew by 5 percent in terms of unit shipments in first-quarter 2016, as compared to fourth-quarter 2015. IDC says the end of the financial year pushed many corporations and enterprises “to exhaust their budget, which supported the laser-market growth.” The surge in mid-size and large-enterprises business was the prime reason for the growth, according to IDC, and it was also supported by the stable channel business. HP continued to be the market leader with 57.7 percent market share, followed by Canon and Samsung at the second and third positions, respectively.

In the copier-based laser HCP market, the market witnessed sequential growth of 31.5 percent in first-quarter 2016. According to IDC, the first quarter in India traditionally remains strong for the copier market and the trend continued this year as well. IDC says this was primarily due to strong enterprise buying, but demand from the government segment was weak this time.

Ricoh’s market share was 19.5 percent in first-quarter 2016, followed by Konica Minolta, the latter of which recorded a sequential growth of 24.9 percent and moved to the second position in first-quarter 2016, followed by Kyocera Document Solutions at the third position.

According to Manali De Bhaumik, senior market analyst for IPDS, IDC India: “In (the) first quarter, the HCP market was driven by (a) rise in (the) laser segment, due to increased government and corporate spends than inkjet, which suffered a loss due to less consumer spending. The market is expected to revive in the coming quarters.”

IDC Forecast

With an increase in income levels, better education facilities, improved job prospects, and low cost of living, IDC forecasts that India’s Tier 3 and 4 cities and towns are the “new playing field” for printer vendors, which will bring them into the next phase of growth. In the inkjet market in India, IDC says there’s a shift towards the CISS (Continuous Ink Supply System) printers, which are billed as more efficient and offer lower cot per page printing. In the laser segment, demand for the higher-speed products is increasing as mid-size and large enterprises are looking not just for the hardware but for an “overall solution” that can be integrated into their existing business environment for higher productivity and efficiency. This is expected to further open up the services-based market in India.

For more information on this research, visit IDC here.

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