The latest desktop printer report by BMI-TechKnowledge shows that the overall printer market is set for long-term growth, so debunking the myth that the industry is heading for the paperless office.
The research house`s South African Annual Desktop Printer Report for 2002 states that, with the right infrastructure in place, the printing industry is poised for further growth, and that this growth will be driven by the promise of the Internet.
The report says the convergence of mobility with the Internet will change the way people communicate, while the hype of "anytime, anywhere" technology will extend beyond the parameters of information capture. While 2001 proved to be a challenging year for the printing industry due to the economic slowdown, BMI expects that the overall printer market will experience long-term growth.
According to Loretta Pein, analyst at BMI-TechKnowledge and author of the report, the lines between printers and multifunction peripherals will continue to blur. "Competition is getting fiercer in all segments, and this pressure will continue throughout the forecast period of 2002 to 2006.
"While vendors continue to tout on-demand printing and in-house short-run printing, more and more users are bypassing printers and beginning to archive, access, view and share information electronically. In spite of this, more pages are being printed than ever before.
"It remains up to the prime movers in the industry to shape how information is processed, transmitted, viewed and shared, be it in electronic or paper format. If printer vendors can capitalise on the power of the Internet and help consumers and businesses increase efficiency, the paperless office may remain just a concept."
In SA, BMI research indicates that the printer market displayed a negative 12.2% decline in growth during 2001, registering 375 825 units worth R786.3 million.
Some of the factors influencing this negative growth were the local economic slowdown and decline in business confidence, effects of the fluctuating rand, and the tendency for end-users to repair printers, rather than replace them.
However, BMI predicts that the South African printer market is expected to grow 3% in 2002, to reach unit shipments of 387 100, with a CAGR of 3% over the next five years. The value of the market is estimated to increase approximately 3.9%, totalling R817.1 million, offset by a 0.9% increase in average prices.
The report also comments on the printer to PC ratio, stating that the key factors behind the lag in replacement and a smaller growth rate of printers versus PCs are the increase in networking and other means of sharing documents electronically. These factors reduce the need to have printers on every desktop and thereby create a lower ratio of printers to PCs.
The printer to PC ratio has moved from 0.6 to 0.5, while South African PC sales are expected to grow 3.5% to approximately 768 630 units in 2002. This means that for every PC bought in 2002, 0.5 printers will be sold and this ratio is expected to remain at 0.5 through to 2006.
"While the general economic slowdown has spelt declining trends among most business sectors, it is BMI`s belief that the printer market in SA will continue to show sustained growth. The paperless office has not materialised and printing remains an essential part of any business. Printer vendors need to capitalise on the Internet and other new technologies to ensure their place in the business environment," concludes Pein.
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