The value of the managed print services (MPS) market in the Asia Pacific (excluding Japan) is predicted to more than double by 2011, according to Springboard Research.
Springboard says management services and device support services are the most attractive markets and are expected to continue to occupy nearly three-quarters of the market, which is forecast to grow to US$825 million in 2011.
In its latest research report 'Dude, Where's My Printer - Asia Pacific Managed Print Services Market and Forecast" Springboard says that verticals like telecom, banking and finance have maturing printing demands that make MPS the best growth bet for printing hardware vendors in the region.
MPS can be defined as the management of devices, processes, people and technology to deliver a set of defined user experiences, and to cut ownership costs, enhance productivity and reduce energy consumption related to print/copy/fax/scan activities within an enterprise.
In the MPS competitive landscape, HP is the clear leader with a dominant market presence in the region, followed by Fuji-Xerox, which has "leveraged its robust set of MPS offerings and a strong partner ecosystem to strengthen its regional presence," says Springboard's report. Lexmark is the only other global printer vendor with a discernible market presence in the region. The remaining market is highly fragmented and is made up of local service providers and other printer vendors.
ANZ biggest market
Australia and New Zealand (ANZ) will remain as the largest MPS market in the region, cornering over 25 per cent of the market and expanding at a CAGR of 19.3 per cent to 2012. Springboard says that, while India is behind China and ASEAN in overall market size, India is forecast to be the fastest growing market a compound annual growth rate of 22.6 per cent.
"These robust growth figures indicate not just a vibrant MPS marketplace, but they also reflect the emergence of MPS as the best growth bet for the print hardware vendors in the region, who have seen a decline of hardware sales amidst the economic slowdown," said Sanchit Vir Gogia, senior research analyst for services at Springboard Research.
"Enterprises in the region are eager to test and adopt the 'next level' of printing environment, presenting the MPS vendors with a growth opportunity in a difficult economic situation," said Mr. Gogia.
"In addition to the market forecasts, services players need to base their investment decisions by also taking into account the emerging market trends. For instance, while a few vertical industries like banking and finance and telecom have maturing printing demands, a few segments such as retail, are still nascent in their use of managed print offerings."
Higher ROI challenge
Springboard recommends vendors to invest in educating the market and change current perceptions of MPS as an 'expensive and complex outsourced service'. The demand for higher ROI by end-users is predicted to offer a key challenge to MPS vendors in the region. The industry is also tipped to have its share of mergers and acquisitions, spurred by the entry of new players in the MPS market.
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