IDC: Western Europe Printer/MFP Shipments Down, but Revenues Up

According to research by International Data Corporation (IDC), the Western European printer and MFP market declined by 0.9 percent in unit terms in the first quarter of 2017 compared with the same period a year ago.

IDC says that there were negative sales performances in both inkjet and laser markets for units, but value for the laser market was actually up. The overall market has been in continuous decline since the second quarter of 2015 — and in the first quarter of 2017, the quarter declined by 43,000 units to give a market of over 5 million devices and a decline that is again largely due to the contraction in consumer printing but is relatively in line with forecasts. Revenues, on the other hand, grew by 4 percent. Inkjet revenues, however, decreased 4.3 percent, while laser revenues grew by 5.4 percent.

Note that in its research IDC tracks A2–A4 devices for its Quarterly Hardcopy Peripherals Tracker. Hardcopy peripherals include single-function printers, printer-based MFPs, and single-function digital copiers (SFDCs).

Laser market shipments decreased by 0.9 percent in first-quarter 2017, but values increased, indicating that prices in many markets are holding. ASPs (average selling prices) for the laser market increased by 5.4 percent in first-quarter 2017. This also indicates higher-specification products shipping, including production printing systems.

Business-inkjet shipments suffered an unexpected decline, with shipments falling by 14 percent in first-quarter 2017. MFP shipments declined by 12.9 percent in volume but only decreased by 9.4 percent in value. IDC says that this is due to an increase in the average selling price of 1.8 percent for A4 MFPs and 9.1 percent for A3 MFPs; the A4 format represents 73.7 percent of business-inkjet MFPs. Despite this, business-inkjet MFPs accounted for 90.8 percent of business-inkjet shipments in first-quarter 20 17.

Overall, MFPs accounted for 81.1 percent of all shipments in Western Europe in first-quarter 2017, higher than the 79.6 percent in first-quarter 2016. Laser and inkjet MFPs increased by 1 percent, while laser and inkjet printers decreased by 8.2 percent, with shipments generally in line with IDC forecasts.

IDC states that there was also decline in the business market in first-quarter; the market, comprising laser and business-inkjet devices, declined by 4.8 percent, but the value increased by 4.6 percent. The highest value growth was in 31–44 ppm color devices and 45–69 ppm mono devices, a positive trend that has been seen for more than a year now.

“While 2017 started with negative results, the slow-down of the market is at a much slower pace than 2016,” commented Delphine Carnet, senior research analyst in IDC’s Western European Imaging, Hardware Devices, and Document Solutions group. “And it is important to note that despite a decline in shipments, revenues are doing well. For the past four quarters, the industry has showed positive value growth. Customers want fully equipped, better machines that are faster and more secure, and they are ready to pay for it.”

Main Highlights

• The overall Western European hardcopy market declined by 0.9% year on year in 1Q17, with laser decreasing faster than inkjet.
• Few segments saw any significant growth, with A4 color laser MFPs and A4 color inkjet MFPs showing the only real growth in Western Europe.
• Business inkjets declined by 14%, with printers decreasing by 23.3% and MFPs by 12.9%.

Country Highlights

Germany

The German market followed the overall Western European negative trend with a 3.9% decline after six negative quarters. The business inkjet market performed below the Western European average, with a decrease of 17.2% compared with the regional average of 14%.

The inkjet market declined by 8.9% while the laser market in Germany increased by 3.1%. This was due to the increase in volume in color laser devices, which grew by 7% in 1Q17.

Multifunction devices decreased by 1.4%, while printers declined by 10.8%. MFPs now represent 75.1% of all devices shipped in Germany this quarter, an increase on the 73.2% observed a year ago.

France

The French market performed above the Western European average, showing an overall growth of 0.7% in 1Q17 over the same period last year. Inkjet increased by 5.5%, but laser declined by 10.6%.

The inkjet consumer market increased by 11% and business inkjet decreased by 20.6%, both a higher growth and a higher decline than in the regional market. Inkjet MFPs grew by 6.9%, but laser MFPs decreased by 6.2%.

The U.K.

The U.K. recorded a weak performance again this quarter, with a 0.9% decline, the same as the regional average. However, this decrease in volume is a lot smaller than the 4.4% decline in Western Europe.

Business inkjet performed better than the Western European average, with a 0.6% decrease. The laser market overall declined, with a 1.2% decrease in shipments. The inkjet market declined, too, by 0.8% this quarter, and we saw slight growth in A4 inkjet (+0.1%) and A4 laser printing devices (+1%).

For more information about IDC’s Worldwide Quarterly Hardcopy Peripherals Tracker in EMEA, contact IDC’s Phil Sargeant at psargeant@idc.com.