The Chinese population is the world’s largest, and the economy is growing at a consistently high rate. This is a market that is developing, and the potential is so large that it can’t be ignored. Even though it is currently a relatively small market, InfoTrends estimates the entire printing and publishing market in 2005 to be $51 billion and anticipate top line growth over the next several years in the upper teens.
InfoTrends’ new study, The Chinese Printing Market: The Next Big Opportunity for Digital Printing & Workflow?, provides an objective, comprehensive view of the Chinese production printing market and the opportunity for digital printing technology adoption. The study also provides a five-year forecast for digital equipment through 2010.
The study examines the full range of production opportunities including the commercial printing market, from small quick printers to large commercial printers. It includes digital printing, copy shops, quick printers, in-plant operations, and specialists such as book or forms printers. It leverages multiple sources to help size and quantify this complex market.
According to the study, in 2005, the market for digital printing in China was estimated at nearly $376 million in terms of retail value of print and it is forecast to grow to nearly $5 billion by 2010, at a compound annual growth rate (CAGR) of an astounding 66%. The total Chinese printing market is forecast to increase from $60 billion in 2006 to $113 billion in 2010, at a 17% CAGR.
Figure 1: Total Annual Digital Printing Revenue in China
High growth occurs in all segments, however, full color digital impressions will experience the most growth, rising to 12 billion in 2010, representing an 80% CAGR.
Nearly half of the print providers surveyed had no workflow solutions installed. The most common solutions were developed internally. Purchase plans, while strong, are nevertheless somewhat mixed. Although only 7.8% of those without workflow software “definitely” will purchase, over half indicate they “probably” will do so. On the other hand, 32% are not likely to purchase a workflow solution in the next two years, and the remaining 5% definitely will not buy.
Figure 2: Plans to Purchase Workflow Solutions
Growth in the Chinese printing industry will be driven predominantly by domestic demand, but exports will continue to grow. The opportunity for digital printing is more aligned with domestic consumption, while the export market will drive adoption of CTP and related digital workflows.
Vendor and Service Provider Recommendations
Providers of equipment, software, and solutions should participate in this market growth, but they should be prepared to view initial actions as a long-term investment. Profits will be difficult to attain in the short-term. Profits will be minimized due to low pricing, required infrastructure investments, and the funding required for market development.
Vendors must work closely with government and trade associations and develop relationships with print providers. They must show commitment to the Chinese market, which remains a high relationship selling environment. Vendors should educate the market on the benefits of automation and digitization, produce China based “spot-on” case studies, and highlight the forecast growth opportunities to print providers. It is clear that many potential buyers need more reasons to believe in growth before they will invest.
The preceding is an excerpt from InfoTrends’ study entitled “The Chinese Printing Market: The Next Big Opportunity for Digital Printing & Workflow?.” The complete document is available immediately. To learn more about the report or to make a purchase, contact Scott Phinney at +1 , ext. 123 or .
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