Inkjet MFP market almost doubles in first half of 2002: IDC

The market for Inkjet Multi-functions or All-in-ones as they are so called has taken flight in the first half of the year 2002. As per IDC research in India, the market for inkjet based Multifunction peripheral, (MFP) has registered a growth of 79.8 percent in units' terms and 13.5percent in terms of value. Altogether, 9160 Inkjet MFPs were shipped in the Indian market in first half of 2002 as compared to 5,094 units shipped in first half of 2001. 

As per IDC's technical definition of the product, a Multi Function Device is a product that can be connected to a PC and that can do at least two out of the four functions like printing, copying, scanning and faxing. Besides these basic functions, a multi function device can have additional features like answering machine, etc. also. 

A number of vendors are now expediting their plans to enter the market due to earlier than expected evolution of this market. This is because the potential here comes from fax and Inkjet Printer market that are relatively more matured. Vendors lead by HP have slashed the prices by as much as 25percent-30percent that has made the product look increasingly more affordable when compared with an Inkjet printer or a fax. Inkjet MFPs offer both these functions along with scanning & copying in just one single device. As a result, Inkjet MFP market has already started cannibalizing into these two markets. 

In terms of vendor share, HP dominated the inkjet MFP market and improved its market share considerably in first half of 2002 as compared to same period last year. Other players operating in this arena are Canon, Sharp, Xerox, Samsung etc.

The Inkjet based Multi Function products have shown the highest potential for growth. As per IDC (India), the market is expected to grow by another 45percent-50percent in the second half of 2002 as compared to first half of 2002. Inkjet multi function products would continue to increase their share as they are sold more in the Small Office/Small & Medium Business segments, where the potential for growth is very high. The adoption of these devices in the home market has also started
happening. The current penetration levels of the PCs being low in these markets, hence they offer a lot of scope for growth.

These segments are price sensitive but hold a lot of potential for the future. Most of the Inkjet-based MFP are targeted at these segments. With the prices coming down sharply and awareness increasing, the growth rates are expected to increase further. Since, these devices play on space they find usage where space is a constraint & price is a barrier.

Global scenario shows an equally promising future for MFPs, with inkjet based MFPs accounting for almost three fourth of the total worldwide market in unit terms. The US MFP market exhibited solid growth with inkjet MFP shipments growing by 58percent in 2001 as compared to 2000. Most of the MFP growth emanated from the sales of low cost inkjet products. One factor that contributed to the inkjet MFP growth was the first time decline of the US inkjet printer market in 2001. IDC believes that some potential inkjet printer customers may have opted for multifunctional configuration during the past year.

In the coming years, while the US market is expected to control the highest percentage of activity in the worldwide MFP market, the greatest growth opportunities are presented in Western Europe and other regions in the rest of the world as these geographical areas are less established in the MFP market and expected to shower much higher growth rates.

Cyber News Service