During FY 2005-06, the cannibalization effect started in full swing and had a
strong impact on the shipments of scanners. This trend is not limited to India
only as globally scanners are losing their sheen. DriÂving this change without
doubt is the multiÂfunction device (MFDs) and their all in one capaÂbility in
wooing the buyers to opt for MFDs instead of scanners. The impact was felt to
the maxiÂmum extent on entry-level scanners, which once was a thriving market
when printers used to be predoÂminantly single function. But since 2003, MFDs
sloÂwly started making their presence felt and provided ample pointers of an imÂpenÂding
impact on stanÂdalone input devices.
According to vendors like HP, slowdown is an ineviÂtable reality in the
scanner market. While it's reasonable to expect that scanner sales will
plateau, scanning itself will become all pervasive, going from conventional
image scanÂning to hard copying, faxÂing, and document manaÂgeÂment
applications.
A look at the shipments over the year indicates volumes heading south. For
instance, during FY 2005-06, according to IDC India, scanner market shipments
stood at 157,873 units valued at Rs 105 crore. This repreÂsents a decline of
nine percent in unit terms.
While the mainstream scanner market faces touch times ahead, the high-end
production scanners have entered a separate market segment.
Share by Volume |
|
HP |
53.7% |
Umax |
24.2% |
Canon |
11.3% |
Microtek |
3.5% |
BenQ |
4.9% |
Source: IDC India, |
|
Scanner Market Size |
|
|
2005-06 |
Units |
Units |
174,418 |
157,973 |
The impact of MFDs was |
MFDs vs Scanners: Value Proposition
When analysts talked about the impending cannibaliÂzation effect MFDs will
have on single-funcÂtion output deviÂces, the assÂerÂtion was brusÂhed
aside as too forwÂard looking. But a look at the scanner market clearly proves
that MFD canniÂbalizing other output devices has started hapÂpeÂning. In the
printer space, inkjets have started facing the onslaught of MFDs. Inkjets, for
instance, that have been posÂting flat values over the last two years, showed
marÂginal decline in voluÂmes for the first time. Clearly, the current market
dynamics foretell the trends ahead.
For one, vendors will find the going tough in projecting the USP of
single-function devices because with a marginal additional cost, a consumer
would prefer a MFD that can print, scan, and copy. With inkjet MFDs becoÂming
highly affordable over the year with prices breaÂching the Rs 5K mark, a
consumer intending to buy a scanner at Rs 3K might opt for a MFD. Still, venÂdors
are hopeful that exÂclusive consumer needs -including quality output and
special tools to enhance the image - will drive the demand for standalone
devices like scanners.
Shrikanth G
shrikanthg@cybermedia.co.in