19 Feb 2019

India HCP Market Touches an All Time High in CY 2018; Grows by 5.5% YoY on back of Strong Consumer and SMB Demand: IDC India Reports

NEW DELHI, February 19th, 2019 – India Hardcopy Peripherals (HCP) market posted yearly shipments of 3.7 million units in CY2018, registering a Year-on-Year (YoY) growth of 5.5%. In 2018Q4 the market posted shipments of approx. 0.85 million units, a YoY decline of 2.6%, as per latest IDC Asia/Pacific Quarterly Hardcopy Peripherals Tracker , CY2018Q4. While the months following the festive season, online sale are usually on the lower side but 2018Q4 saw an unusually low demand from the consumer end, a stark contrast with the overall CY2018 trend.

Full year Highlights:

“The annual growth was led by Inkjet printers, specifically Ink Tank printers which grew by 21.4% and now command 68.4% of the overall Inkjet market in India. The online sales during 2018Q3 played a significant role in catering to the increased demand from the Consumer and SMB segment. The year ended with the Inkjet market commanding more than half of the HCP market followed closely by Laser,” says Bani Johri , Market Analyst, IPDS, IDC India.

“The Laser market also expanded by 3.7% on the back of strong demand from SMBs and Government’s tight monitoring of the refurbished copier market. Government’s increased seizing of illegal units at major ports has given the market players ample opportunities to expand their customer base by targeting the users of these machines with attractive pricing schemes,” adds Johri.

Quarter Highlights:

Inkjet printer shipments grew by 2.9% YoY with a contribution of 50.0% to overall India HCP market. Growth in inkjet printer shipments was led by Ink tank printers which recorded YoY growth of 10.5%. The overall laser printer market declined YoY by 4.8%. However, the laser copier market continued the growth momentum and registered a healthy YoY growth of 28.2%.

The market performed much below the expectations in 2018Q4 because of a combination of factors like excess inventory being carried forward from 2018Q3 owing to a drop in festive buying from consumers, aggravated further by channel partner issues across the country. Demand from SOHOs/SMEs was also reduced because of restricted lending to this segment from the banks. Government spending has also slowed down considerably in anticipation of the upcoming elections.

Overall HCP* Market:

Top 3 Brand Highlights:

HP Inc. (Excluding Samsung) maintained its leadership in CY2018 HCP market with a market share of 40.2% and a marginal YoY shipment decline of 0.6%. While the inkjet segment slowed down because of decline in ink cartridge-based printer shipments, the laser segment compensated for the same. HP experienced good traction for entry level A4 laser printers due to extensive promotions, schemes and multiple projects. On the Copier side, HP grew significantly in CY2018 with a shipment growth of 202% and a market share of 11.4%.

Epson maintained its 2nd position in the overall CY2018 HCP market with a 15.0% YoY growth and it also continued to hold its leadership in inkjet segment with a unit share of 45.1% and YoY growth of 18.7%. The growth is primarily attributed to the Epson’s channel depth and multiple channel schemes in the first half of the year. Increased promotional activities for the new Ink tank models also contributed to its growth.

Canon recorded YoY growth of 12.8% in CY2018 and maintained its 3rd position in the HCP market. In the copier segment, it maintained its leadership position with a 29.1% unit market share. The Government’s strict regulations on the refurbished market coupled with Canon’s increased focus on the Corporate segment helped to maintain its dominance in the copier market. In the Inkjet market, Canon saw strong YoY growth of 39.7% because of its increased focus on the ink tank segment through attractive channel schemes, End-user promotions and increased promotional campaigns.

IDC India Market Outlook:

“IDC expects the overall HCP market to decline in 2019Q1 due to weak consumer and SMB sentiment. While overall inkjet market is expected to decline, Ink tank printers are likely to be the only bright spot in 2019Q1 as vendors continue pushing them aggressively. Moreover, the Government segment is likely to withhold on spending before the general elections leading to decline in demand for laser printers. Despite decline in government spending, demand for laser copiers is expected to remain steady owing to continued crackdown of refurbished copier market by government,” says Nishant Bansal , Research Manager, IPDS & PC, IDC India.

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