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Introduction CAP Ventures defines a large format printer as any printer producing images greater than 24 inches wide. Large format aqueous inkjet printers are the most common printers available on the market. Their name reflects the fact that water is the primary “carrier” component of ink used in these printers. Hardware Shipments On a worldwide basis, CAP Ventures expects large format aqueous inkjet hardware shipments to experience a compound annual growth rate (CAGR) of 2.8% over the forecast period. Shipments are expected to increase from a total of 195,455 units in 2002 to 224,835 units by 2007. (CAD inkjet printers and graphics printers are included in this total.) Color-capable inkjet printers represent the majority of shipments, driven by the proliferation of color-using technical software applications in markets such as GIS, E-CAD, and MCAD.
On the graphics side, CAP Ventures expects worldwide unit shipments to grow to 68,336 units by 2007. As large format aqueous inkjet printers continue to develop in terms of speed, print quality, and functionality, they become capable of handling an increasing range of applications. Over the forecast period, CAP Ventures expects an even faster pace of development to occur as applications in digital proofing and digital fine art have only begun to adopt large format graphics printing as production methods. Hardware Revenue While hardware shipments and populations will continue on their growth trend, the revenue from aqueous inkjet hardware peaked in 2002. Large format aqueous inkjet hardware revenue was $1.13 billion in 2002. CAP Ventures expects hardware revenue to decline slightly at a CAGR of -0.9% over the forecast period, dropping to $1.08 billion by 2007. In an attempt to obtain market share, OEMs like Epson and Canon are expected to continue to put pressure on hardware selling prices. This model is sustainable since these companies are supported by the profitable sale of consumables. Once again, it is necessary to look at CAD Graphics separately because the CAD and graphics markets behave so differently. CAD inkjet hardware revenue will decline at a CAGR of –4.3% over the forecast period, shrinking from $526 million in 2002 to $421 million in 2007. Currently, HP dominates the CAD market with a share of more than 90% on a worldwide basis. Nevertheless, CAP Ventures expects the CAD space to become even more competitive as companies compete for those lucrative color pages.
CAP Ventures expects revenue on the graphics side to continue to experience a CAGR of only 1.7% over the forecast period. As shipment growth continues, especially in the higher margin area of larger size printers, revenues will grow to $666 million by 2007. With the looming introduction of new 60-inch printers, as well as the just-introduced entry-level 24-inch models, the pace of new graphics printer introductions is accelerating. New capabilities like 2-sided printing, integrated scanners, and faster speeds will be the value-add that OEMs need to limit price deflation in this very competitive market. The preceding text was excerpted from the CAP Ventures document entitled Worldwide Large Format Hardware and Supplies Forecast: Part I. The complete forecast is available immediately. To learn more about the report or to make a purchase, please contact Alison Hipp at , ext. 126.
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