Supply chain issues that impacted growth of the hard copy peripherals (HCP) market in 3Q21 continued into 4Q21 and are in all likelihood set to continue throughout 2022.
The issues started with microchip and other component shortages during the Covid-19 pandemic as demand for consumer goods increased strongly.
Logistical and operational issues such as production capacity have added to the situation and most original equipment manufacturers (OEMs) are seeing inventory shortfalls.
As a result, year on year shipments declined 28.6%, with most product groups witnessing negative growth, though there were some pockets of growth. According to research by International Data Corporation (IDC), the Western European printer and multifunction peripheral (MFP) market stood at 3,81-million units in 4Q21 compared with 5,33-million a year ago. Market values were also affected and contracted 19,4% to give a value of €1,67-billion.
The two major product groups of laser and inkjets declined by double-digit figures, with laser shipments recording a year-on-year decline of 22,6% and inkjets declining 31%. All the laser segments contracted due to supply chain problems and as a result there are significant tenders that remain unfulfilled with not enough stock to satisfy the demands of channel partners.
The only segment that did see growth was the A4 business inkjet market which increased by 8,4%.
The weak quarters of 3Q21 and 4Q21 therefore meant that the overall 2021 market declined 6,1%, with laser shipments contracting 12,5% and consumer inkjet markets contracting 7%.
However, the strong shipments of business inkjet devices throughout the year saw the segment increase 21,7%.
“Supply chain issues brought on by the COVID-19 pandemic severely impacted the hardcopy market in the second half of the year and a similar scenario is likely to continue for some time as most of the major brands continue to have inventory and logistics issues,” says Phil Sargeant, senior program director: Western European imaging, hardware devices and document solutions group at IDC.
Main highlights from the quarter are:
* The overall Western European hardcopy market declined 28,6% year on year in 4Q21; shipments were at 3,81-million units.
* The 4Q21 market value in Europe declined 19,4% to €1,67-billion.
* Inkjet shipments declined 31% in 4Q21; consumer inkjets declined 34%, but business inkjets increased 8,4%.
* The overall market in 2021 declined 6,1%.
* Overall laser shipments declined 12,5% in 2021, colour shipments declined 13,9%, while monochrome shipments declined 11,6%.
* The inkjet market contracted 3,4%, consumer markets declined 7%, but business inkjet markets in 2021 increased 21,7%.