Inkjet-to-laser migration drives MEA consumables growth

Laser toner consumables revenues up 11.2%

Tags: International Data Corporation
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Inkjet-to-laser migration drives MEA consumables growth Overall, the market grew just 0.6%, year on year, in unit terms, but revenue was up 7.2% over the same period.
By  Stephen McBride Published  April 27, 2014

The Middle East and Africa (MEA) consumables market remained relatively flat in volume terms during H2 2013, but saw significant revenue growth because of an ongoing shift from inkjet devices to laser technology and from black and white to colour, according to the latest figures from International Data Corporation (IDC).

Overall, the market grew just 0.6%, year on year, in unit terms, but revenue was up 7.2% over the same period.

The inkjet consumables segment suffered year-on-year declines of 2.1% in volume and 3.9% in value in H2 2013, and the downturn was seen across all key markets in the MEA region, with the exception of the UAE. The shrinking installed base of inkjet devices in the consumer segment is being driven by the proliferation of smartphones and tablets, which negate the need for home printing, while the decline in the enterprise segment is being caused by increasing migration to laser devices.

The picture is much brighter in the laser segment, where shipments of toner consumables were up 4.5%, year on year, in volume and an impressive 11.2% in value. Significant growth was reported across the region, thanks mainly to increased adoption of MFPs (particularly colour devices), which had a positive impact on the page volumes seen within this segment.

While the MEA region is generally not impacted by compatible and counterfeit consumables to the extent seen in other regions around the world, anecdotal evidence gathered by IDC from the region's channel community suggests they are facing increasing competition within the market from parallel (or grey) imports. These consumables are original products that are sourced into the region through unofficial channels. Demand for such products is generally strong as they are cheaper than the same consumables sold through official distribution channels, and IDC believes that the challenge presented by such imports to vendors of OEM products will only intensify as the market continues to grow.

"The MEA consumables market offers attractive revenue opportunities for OEM vendors," says Ashwin Venkatchari, senior programme manager for imaging, printing, and document solutions at IDC Middle East, Africa, and Turkey.

"Compatibles primarily maintain market share in the entry-level segment and therefore do not pose a serious threat to OEM vendors in the region (with the exception of Turkey). The OEM vendors have also done a commendable job in combating the scourge of counterfeit products. However, the most serious threat to growth in the MEA region is posed by parallel imports. As such, OEM vendors must come up with consistent and sustainable strategies to address this issue if they are to fully capitalise on the growth opportunities that this region has to offer."

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