Indonesia’s Elections to Boost the Overall Large Format Printer Market in 2012, says IDC
19 Apr 2012
Jakarta, 19 April, 2012- The large format printer (LFP) market, which consists of both the graphics and technical markets, grew 40.1% year-on-year (YoY) in 2011 and is expected to continue on its upward trajectory in 2012. The graphics market is forecasted to grow due to demand for solvent-based printers in the signage market segment. On the other hand, the growth of megaprojects will fuel demand for aqueous-based printers in the technical market segment.
“The graphics market is expected to grow substantially in the months to come due to the upcoming state elections in the second half of 2012 and the presidential election in 2014. These big-scale events will likely push up demand for signage using solvent-based ink,” says Muhammad Ikhwan, Associate Market Analyst for Peripherals at IDC Indonesia.
In the graphics market, solvent-based printers have been showing positive growth trend in the last few quarters. The use of solvent ink for the graphics market has overtaken the use of aqueous ink since 4Q10. However, due to their high price, latex and UV ink have not caught up with solvent ink for the graphics market.
Market share of solvent ink in the graphics market in 2011 reached 55.7% (refer to Figure 1), representing a 16.8% growth from 2010. In 2011, events such as the Southeast Asian Games, and the state and general elections also pushed up demand for solvent-based graphics. In addition, IDC observes that the printing culture in Indonesia is shifting from screen printing to digital printing, and even hawker stalls in Indonesia are using solvent-ink signage for display as well as promotional purposes.
“Thanks to the surge in infrastructure construction projects in Indonesia from both the private and public sectors, IDC expects increased demand for LFP from the technical market from the architecture, engineering, and construction (AEC) segment,” continues Ikhwan.
This year alone, the Indonesian government is carrying out over 50 infrastructure and industry projects, valued at 17.7 billion USD. These projects will fuel growth in the technical LFP market, especially 42 to 44 inch wide format printers. For the technical market, aqueous ink LFPs are still dominating the market with 97.6% market share in 2011. Demand for toner and solid ink LFPs is still very low in comparison to aqueous-base LFP as the latter is more economical. (Refer to Figure 2) Price is an important factor for Indonesia consumers in the technical market.
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