Political instability causes hardcopy peripherals (HCP) market to stagnate for fifth consecutive quarter in 2Q13.
According to IDC figures, the HCP market in the Middle East and Africa (MEA) region saw a slight decline of 0.3 percent year-on-year in the second quarter of 2013, with shipments totalling 1,545,853 units. Revenue growth for the market also remained flat at zero percent; with this being the fifth consecutive quarter that the HCP market has stagnated in the region.
While the results differed from one country to another, Mitri Roufka, Research Director for Imaging, Printing and Document Solutions across the CEMA region at IDC, explained “political instability in many countries across the region” has been “inhibiting the rapid growth that this far-from-saturated region is capable of”, including “the ongoing conflict in Syria, Iraq’s deteriorating security and political situation, Iran’s economic and political struggles, Nigeria’s fundamentalist-fuelled violence, and socioeconomic and political instability in North Africa”.
Roufka added that “Africa holds the highest growth potential, with an increasing number of manufacturers looking to gain a better foothold in the continent”; and that “this follows the emergence of a group of countries that are experiencing relatively solid political stability and strong economic performance, thereby presenting vendors with real long-term strong growth potential”.
Inkjet shipments declined 8.5 percent in volume and 4.2 percent in value year-on-year, with inkjet vendors increasingly challenged by weak consumer demand and businesses showing a strong preference for laser devices. They are therefore changing strategy by gradually withdrawing from the extreme entry-level segment and instead focusing on higher-value devices that use cheaper consumables; promoting inkjet technologies as a reliable and cost-effective solution for general office printing needs.
Laser shipments meanwhile saw a growth of 9.6 percent in volume and 2.5 percent in value, with the colour laser segment growing twice as fast as the monochrome laser segment due to the strong performance of MFPs. Shipments of A3 colour laser devices grew 10.4 percent, compared to a 5.3 percent decline in A4 colour laser devices. This contrasted with the monochrome segment, where A3 shipments declined 5.8 percent but A4 shipments increased 4.1 percent.
WiFi-enabled devices are growing in popularity, particularly in the laser segment where shipments nearly doubled compared to the first half of 2012, while those with no WiFi capability are declining.
“The gradual shift to laser technology in MEA is not an exceptional trend for this region; it is actually in line with the worldwide trend,” Roufka commented. “However, in MEA, this trend is additionally fuelled by the fact that demand for printing devices in the region has been driven primarily by the business and government segments […] as the penetration of PCs in the home segment is low when compared to Europe, for example. This stems from the different socioeconomic challenges generally faced by home consumers across MEA, including low income levels, high unemployment, and high rates of illiteracy, particularly in Africa.”
Roufka added that the region’s low adoption of electronic document processes and solutions drives the continuously high requirement for and dependence on paper documents, which in turn drives demand for printing devices. He said that this is unlikely to change in the short or medium term, particularly in Africa: “Assuming the political situation will eventually stabilise across the region, the Middle East continues to harbour significant growth potential for printer manufacturers.”
The HCP market for Central and Eastern Europe was also recently reported to have declined due to the region’s economic struggles and high unemployment rate impacting consumers’ disposable income.