The market will see a compound annual growth rate (CAGR) of 14.8 percent through to 2024.
A study by Transparency Market Research stated that the global MPS market is “driven by evolving customer needs and demands”, which have “compelled players […] to focus on delivering innovative, flexible and cost-effective offerings”, as MPS is “designed to help users achieve their business objectives by streamlining operations and ensuring utmost efficiency”.
The report outlines MPS benefits including “reduction in printer volume, accurate allocation of costs, reduction in printer fleet, minimised IT workload, lowering paper usage, enhanced security and authentication, lower consumption of electricity, and overall business efficiency”. In line with this, the analysts note that “one of the key challenges staring managed print service providers in the face” is the “ongoing transition to a more digitised paper workflow”.
Because businesses are “looking to reduce their reliance on paper”, this “poses a major hurdle in the widespread adoption” of MPS, but industry experts continue to believe that “owing to the significant role that printing plays in various business operations, companies will continue to be reliant on this function”. In turn, enterprises are “now presented with the opportunity of expanding the realm” of MPS with “the rising interest in document workflow automation”.
As such, Transparency Market Research believes that the MPS market “is undergoing what many in the industry term as an ‘identity crisis’”, because “as print volumes decline at a steady pace, MPS providers are looking to extend their service area to include business process automation, document workflow, and information management”.
The analysts believe that “capitalising on this growing trend”, the global MPS market is “poised” to see a “strong” CAGR of 14.8 percent between 2016 and 2024, and that by “maintaining this pace”, the value of the market is “slated to rise” from $26.18 billion (€24.39 billion) in 2015 to $94.97 billion (€88.50 billion) in 2024. Part of this growth is the “rising adoption” of MPS by SMBs, with the market “bifurcated on the basis of size of enterprise into large enterprises and SMEs”.
The former “accounted for the leading share in the overall market owing to the adoption” in “managing complex IT infrastructure”, but SMEs are “slated to up their usage […] with increasing awareness regarding the many advantages”. As MPS can be broken down into on-premise, cloud-based and hybrid deployments, and “on account of the growing popularity and adoption” of the cloud-based services, this segment “enjoys increased preference” from end users.
The analysts added that MPS applications include telecom, IT, banking, financial services, insurance, healthcare, government, public, legal, education, manufacturing and construction vertical markets, with the government and public sector “by far the leading consumer of MPS owing to the massive volume of paperwork”. On a geographical basis, both the Asia Pacific and Latin America were “identified as lucrative markets”, though North America is “the dominant market”.
In turn, the North American market “has been” dominant previously and “is likely to retain its lead through 2024”, as “the high level of awareness among SMEs as well as large enterprises in the region regarding the benefits […] has greatly upped its adoption” there. The North American market is also “driven by the strong presences” of major MPS providers and leading copier and printer OEMs.
The report concludes however that the Asia Pacific and Latin American regions “are two of the most promising markets for MPS” as they are “slated to offer players a host of opportunities in the coming years”, with their growth “attributed to rapid economic development and consequently, widespread industrialisation”.