Industrial Printer market recovering from pandemic
According to the IDC Worldwide Quarterly Industrial Printer Tracker, market recovery of Asia Pacific, excluding Japan, from the COVID-19 pandemic continued in 2020 Q4. The quarter recorded 29,728 shipment units, showing an increase by 10.6% compared to the previous quarter.
Furthermore, total market value is US$384.2 million in 2020Q4, which is a 24% growth against the last quarter. Although the region’s industrial printer market size in shipment units and value are both still lower compared with the same time in 2019, the market has shown a strong recovery trend by the end of 2020.
“Almost all the product categories in industrial printer market grew in 2020 Q4. Only desktop label segment shows a decline in quarter-on-quarter base. Although the market is still not 100% back to the level before COVID-19 pandemic, it has clearly recovered in the latest 2020 data,” said Donna Wang, Senior Research Manager for Imaging Print Document Solutions research at IDC Asia/Pacific.
The large format printer shipment units increased by 11.1%, with a 15.5% growth in value base compared to the previous quarter. Both graphic and CAD product demand saw an increase in 2020 Q4.
Industrial textile and label & packaging printer shipments and value both grew rapidly quarter over quarter in Q4. Growth in the digital textile printing market was driven by economic recovery, and a number of manufacturers adapting to the digitalization trend.
Label & packaging printer growth can highly be attributed to the increasing demand for customized label and packaging and e-commerce.
Direct to Garment (DTG) and Direct to Shape (DTS) printer both grew on units and value. With more home businesses amid the pandemic and online shopping on the rise, it contributed to the growth of DTG and DTS printer market.
Shipment in Desktop label segment decreased by 12.2% compared to the previous quarter, value quarter-on-quarter was inevitably affected and declined to -16.7%. However, IDC expects desktop label printer market will grow in the future due to the expected demand from manufacturing, retail, and chemical industries.
In the ASEAN region, shipment units grew by 19.2% compared to the last quarter, with a sequential growth of 33.5% on value. ASEAN logged 3,443 shipment units in the quarter.
Greater China shipment units logged 21,211, an increase of 7.2% compared to the last quarter, with a sequential growth of 25% on value. Greater China market growth was driven by their economic recovery and better control of the COVID-19 pandemic.
The Korea market both show an increase on shipment units and sequential growth in 2020Q4. IDC credits the increase in Korea due to the decreasing transmission rates of COVID-19 in the country which led to exhibitions and expos to be held. This creates opportunities for industrial printer market growth.
India also showed an increase on shipment units and sequential growth. In India, growth was mostly driven by new demand coming in from lower tier cities.
The ANZ market is the only one on a decline in Q4 on both units and value base. The purchasing budget in ANZ for industrial printer and investments in the printing industry are limited which impacted the market to decline.
IDC projects that the investment in the industrial printer market will increase and will then impact the total market to keep growing in 2021. However, the market will not yet be able to go back to the level before the pandemic. On a good note, the demand for all segment markets under industrial printer tracker will grow in the coming year due to the market recovery.