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The quality of inkjet printing has improved over the years, so more and more print volumes have shifted away from electrophotographic printing and toward inkjet for productivity and cost reasons. This article offers some considerations about the future of the EP market as the drive toward inkjet continues.
For the most part, the direction and purpose of inkjet is clear. What isn’t so clear is where electrophotography (EP) will land—what is its role in the industry, which types of printers will sustain it, and will the technology have any room for future growth? The quality of inkjet printing has improved over the years, so more and more print volumes have shifted toward inkjet for productivity and cost reasons. With a consistent trend toward inkjet adoption, where does this leave EP?
According to DP3, electrophotographic printing was first invented in the 1930s by Chester Carlson. By the late 1950s, it had become the most popular form of office copying. In the mid-1970s, the process was adapted for use as a hardcopy output method for computers. Instead of using light reflected from an original document like old-fashioned photocopiers, a laser (or LED) was used to translate computer data into light pulses that would expose a light sensitive, photo-conducting drum or belt. By the 1980s, laser printing had been downscaled enough to be manufactured within a desktop-sized printer.
The six basic stages for this form of printing are as follows:
The Basic Stages of EP Printing
Source: DP3: Digital Print Preservation Portal | Electrophotographic (dp3project.org)
For an electrophotographic printer to create color images, four separate “impressions” (one each for cyan, magenta, yellow, and black toners) must be made.
As print ordering continues to shift from brick-and-mortar shops to online, small EP printers are expected to experience a significant decline. Although some orders will continue to be placed face-to-face in physical print shops, some of these jobs will be redirected to centralized production centers that have larger production equipment and the ability to produce at a lower cost. At the same time, however, there will still be a need for small multifunctional peripherals (MFPs) that serve walk-up customers. These customers will typically demand quick-turn jobs on the spot, but these types of orders will be less common than they were in the past.
Another unclear—and even less predictable—aspect of the industry is what will happen to mid- and high-production range EP devices that are priced between $25,000 and $140,000. Those printers offer the expected differences in running costs (e.g., a larger capital investment will generally deliver a lower click charge). The high EP production segment—which includes devices such as Canon’s imagePRESS C9010VP/C10010VP, Ricoh’s Pro C9200, Konica Minolta’s AccurioPress C12000/C14000, Xerox’s Iridesse, and FujiFilm’s Revoria—is doing well. In fact, this range of printers has almost fully returned to its pre-pandemic sales numbers. This is largely because devices like HP Indigo’s 7 series and Xerox’s iGen series feature low average monthly print volumes (AMPVs) and have also benefitted from print volume consolidations.
Although the high-volume EP segments are doing reasonably well, mid-range EP production devices like Canon’s imagePRESS C810/910, Ricoh’s Pro C7200, Konica Minolta’s AccurioPress C4070/C4080/C7100, and Xerox’s Versant machines have struggled. These devices are typically priced below $70,000, but their sales are still quite short of pre-pandemic numbers. Of course, this situation can and might change in the future based on the most frequently required AMPVs within the EP production market. Demand will need to stabilize before we can determine which printers will succeed and bring a profitable business to their vendors.
The EP mid+ production market is estimated at about 126 billion A4 pages globally. Vendors have a clear goal to keep and grow their print volume market shares, even in a declining (albeit large) EP market. Even so, any future growth will come at a cost—either mid+ EP print volumes will shift to the larger production inkjet printers with lower running costs, or EP click charges will be reduced to make these devices more competitive. Lower click charges have been a growing trend in the EP market of late.
While cost is an important factor for any buyer during the decision-making process, it is not the only consideration. This is why the lowest-cost printers are not always the most successful. In addition to a good pricing strategy, today’s vendors must cover as much ground as possible during these unpredictable times. Parts of the mid+ EP market are struggling at this time, but this might change based on the devices that best fulfill market demand now and in the future.
With the introduction of its new imagePRESS V1000, Canon has made the strategic decision to develop a solution for every customer’s need in the mid+ EP market. Over time, this segment will likely be consolidated into fewer printers. Konica Minolta (with its AccurioPress C4070/80, 7100, and 12000/14000) and Xerox (with its Versant 280/4100 and Iridesse presses) are covering similar grounds.
At this time, it remains to be seen which EP printers will be the most successful and sustainable in the coming years. Long-term industry success will likely depend on buyer preferences and changing market dynamics. One thing is certain, though—there will always be a requirement for EP printing because not every print service provider will have the print volumes to justify an inkjet investment. Keypoint Intelligence also acknowledges that there are currently far too many options for a market that is declining, so future consolidation is inevitable. For the time being, EP vendors would be well-advised to serve as much of the market as possible so they can establish leadership and maintain a strong position when this consolidation in fact occurs. This should help drive more profitability to vendors when the EP market eventually stabilizes.
German Sacristan is the Director of Keypoint Intelligence’s Production Print & Media group. In this role, he supports customers with strategic go-to-market advice related to production printing in graphic arts and similar industry segments. German’s responsibilities include conducting market research, industry and technology forecasts, custom consulting and development of analyses, editorial content on technology, as well as support to clients in the areas of production digital printing.
For 60 years, the digital imaging industry has relied on Keypoint Intelligence for independent hands-on testing, lab data, and market research to drive product and sales success. Keypoint Intelligence has been recognized as the industry’s most trusted resource for unbiased information, analysis, and awards. Clients have harnessed this knowledge for strategic decision-making, daily sales enablement, and operational efficiency improvements. Keypoint Intelligence continues to evolve with the industry by expanding its offerings and intimately understanding the transformations occurring in the digital printing and imaging sector.
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