India HCP grows by 5.5% YoY: IDC

India Hardcopy Peripherals (HCP) market has 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 the latest IDC Asia/Pacific Quarterly Hardcopy Peripherals Tracker, CY2018Q4. While the months following the festive season, online sales 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.

"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."

Top 3 Brand Highlights

HP Inc. (excluding Samsung) has 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 the 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 has maintained its second 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 third 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 expects the overall HCP market to decline in 2019Q1 due to weak consumer and SMB sentiment. While the 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.