adoption of in printing - npesinkjet printers that use jet uv-curable inks are comprised mainly of...

Adoption of LED UV Curing

in Printing

I.T. Strategies, Inc.51 Mill Street, Suite 2 Hanover, MA 02339 P: (781) 826-0200

E: [email protected]

© 2018 Association for Print Technologies – PRIMIR Research Unit

Adoption of LED UV Curing in Printing

Task Force

Co-Chairs: Erich Midlik and Steve Metcalf

Name Company

Stephen Metcalf AMS Spectral UV - A Baldwin Technology Company

James J. Raffel Color Casters

Deanna Klemesrud Flint Group

Kelly Kolliopoulos Flint Group

Clarence Penge Heidelberg U.S.A.

Mark Bohan Heidelberg USA

Jorge Hasbun ICP Industrial-Nicoat

Eric Frank KBA-North America

Hal Stratton Komori America Corporation

Kazuyoshi Tanaka Konica Minolta Business Solutions U.S.A., Inc.

Ashley Jackson MacDermid Graphics Solutions

Erich A. Midlik Prime UV Systems Inc.

Deirdre Ryder VITS International

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Adoption of LED UV Curing in Printing Table of Contents

I. Executive Summary ....................................................................................................5 II. Introduction .................................................................................................................8

Background ..............................................................................................................8 Objectives of Adoption of LED UV-Curing in Printing Study ...............................8 Methodology ............................................................................................................9

III. Stakeholders and their Influence on Adoption of LED UV-Curing in Printing .......10 LED Lamp Systems Manufacturers .......................................................................11 LED Diode Manufacturers .....................................................................................11 Fluid Manufacturers (Ink and Coatings) ................................................................12 Regulatory Requirements .......................................................................................13 Customers (Print Shops) ........................................................................................14 Offset Press Manufacturers ....................................................................................14

IV. LED Curing Benefits and Disadvantages .................................................................15 Introduction ............................................................................................................15 Benefit: Productivity ..............................................................................................16 Benefit: Energy Savings ........................................................................................18 Benefit: Lower Heat ...............................................................................................21 Benefit: No Ozone .................................................................................................22 Benefit: Happier Operators ....................................................................................24 Benefit: Higher Output Quality .............................................................................25 Benefit: No Mercury ..............................................................................................26 Benefit: Reduction in Ink Consumption ................................................................27 Weakness: LED Lamp “Sticker Shock” Cost ........................................................28 Weakness: Uneven Integration Solutions ..............................................................32 Weakness: Higher Consumable Cost for LED UV-Curing ...................................33 Weakness: Understanding of Color Management Impact on Fluid Volume .........33

V. Development Trends in LED UV-Curing .................................................................35 LED UV-Curable Coatings ....................................................................................35 LED UV-Curable Low Migration Inks ..................................................................36 Multi-Layer LED UV-Curing Lamps ....................................................................38

VI. Competition to LED UV-Curing Systems ................................................................39 Offset Commercial Print ........................................................................................39 Flexo Packaging Print ............................................................................................40 Inkjet Print .............................................................................................................40

VII. Market Sizing for LED UV-Curing Systems ............................................................42 Sheetfed Offset Straight Presses, North America ..................................................45 Web Offset Straight and Perfecting Presses, North America ................................48 Narrow Web Flexographic Presses, North America ..............................................49 Inkjet Printers, North America ...............................................................................50 Total Market comparison .......................................................................................52

VIII. Conclusion ................................................................................................................53 IX. Implications for Members .........................................................................................56

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Implications for Press Manufacturers ....................................................................56 Implications for Ink and Coating Formulation Manufacturers ..............................57 Implications for Curing System Manufacturers .....................................................58 Implications for Blanket, Roller, Coater, and Other Manufacturers ......................59

X. Recommendations for Members ...............................................................................60 XI. Appendix ...................................................................................................................63

Glossary of Terms ..................................................................................................63

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Table of Exhibits

Exhibit III-1: LED Curing Stakeholders ....................................................................................... 10

Exhibit IV-1: LED Curing Benefits and Disadvantages ............................................................... 15

Exhibit IV-2: LED UV-Curing Productivity Benefit .................................................................... 16

Exhibit IV-3: LED UV-Curing Energy Savings Benefit ............................................................... 18

Exhibit IV-4: Electricity Prices per Major Country ...................................................................... 19

Exhibit IV-5: Electricity Prices Per U.S. State .............................................................................. 20

Exhibit IV-6: Lower Heat LED UV-Curing Benefit ..................................................................... 22

Exhibit IV-7: No Ozone LED UV-Curing Benefit ........................................................................ 23

Exhibit IV-8: Happier Operators LED UV-Curing Benefit .......................................................... 24

Exhibit IV-9: Superior Print Quality LED UV-Curing Benefit..................................................... 25

Exhibit IV-10: Legislation Banning Mercury Vapor Lamps Benefit to LED UV-curing ............. 26

Exhibit IV-11: LED UV-Curing Lamp “Sticker Shock” Weakness ............................................. 29

Exhibit IV-12: Uneven LED UV-Curing System Integration Offering Weakness ....................... 32

Exhibit IV-13: Unintended Under-Curing of Inks and Coatings Weakness ................................. 34

Exhibit V-1: Low-Migration Inks ................................................................................................. 37

Exhibit VII-1: A Matter of Perspective: Which is Larger? ........................................................... 42

Exhibit VII-2: LED UV-Curing Impact Upon the Installed Base, North America 2017 .............. 43

Exhibit VII-3: LED UV-Curing Impact Upon New System Sales, North America 2017 ............. 44

Exhibit VII-4: Impact of new UV-Curing Systems - ARC vs. LED, North America 2017 .......... 44

Exhibit VII-5: Straight Sheetfed Offset Press Sales and Installed Base by Curing Technology

Type, North America 2015-2021 ..................................................................................... 45

Exhibit VII-6: LED UV-Curing Straight Sheetfed Offset Press Sales Comparison by New Press

Sales, ARC-Retrofits, and Conventional Ink Retrofits, North America 2015-2021 ........ 46

Exhibit VII-7: Perfecting Sheetfed Offset Press Sales and Installed Base by Curing Technology


Exhibit VII-8: UV LED-System Perfecting Sheetfed Offset Sales Comparison by New Press

Sales, ARC-Retrofits, and Conventional Ink Retrofits, North America 2015-2021 ........ 47

Exhibit VII-9: Perfecting and Straight Sheetfed Offset Retrofits vs. New Press Sales with LED-

Cure, North America 2015-2021 ...................................................................................... 48

Exhibit VII-10: Narrow Web Flexographic Press Sales and Installed Base by Curing Technology


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Exhibit VII-11: Narrow Web Flexo Retrofits vs. New Press Sales with LED-Cure, North America

2015-2021 ......................................................................................................................... 50

Exhibit VII-12: Inkjet Press Sales and Installed Base by Curing Technology Type, North America

2015-2021 ......................................................................................................................... 50


2015-2021 ......................................................................................................................... 51


2015-2021 ......................................................................................................................... 52

Exhibit X-1: The Balance Between Efficiency and Value ............................................................ 60

Exhibit X-2: Observe and Measure the Interests of Stakeholders in LED UV-Curing ................. 61

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I. EXECUTIVE SUMMARY

The use of LED UV-curing technology is growing faster than any other type of

curing technology across all printing technologies. The LED UV-curing benefits are

clear: increased productivity, a reduction in energy usage, cleaner and operator friendlier

operations, and the elimination of ozone. There is a cost associated with these benefits,

and the value derived from all the LED UV-curing benefits is highly dependent upon

print technology (offset, flexo, inkjet), application (substrate, perfecting, etc.), and even

region (electrical consumption).

First commercialized in 2010, LED UV-curing technology is still in the early

stages of development. LED UV-curing compatible inks and coatings are at a stage

where ARC-curing was 10-years ago. High performance inks and coatings are available

for LED UV-curing, but limitations on cost and availability abound. It is a chicken and

egg conundrum: availability of LED UV-curing LED diodes is optimized today around

385-395nm wavelengths, which is a specialty wavelength for LED diodes which has not

benefited from the economies of scales in home and office LED lighting. Conventional

UV-ink formulations (and photoinitiators) designed for widely used UV ARC-curing

have centered on 230-313nm wavelengths. Either lower wavelength LED diodes need to

become more widely available to match the existing core market for photoinitiators, or

the volume of LED UV-curing inks that cure at 385-395nm wavelengths needs to grow to

reach economies of scale were LED UV-curing inks reach parity with UV ARC-curing

inks.

The economic premium for LED UV-curing systems and compatible inks and

coatings has not prevented wide spread adoption: by the end of 2017 in North America,

there will be over 250 narrow web flexo, 400 offset, and 1,000 inkjet presses installed

with LED UV-curing systems. The cost savings and value-add from LED UV-curing that

occur after installation drive adoption. The 30%+ productivity gains from the elimination

of drying allows presses to run faster, and opens up capacity without having to buy

additional presses.

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It allows jobs to get to the finishing stage faster, speeding turnaround for

customers. The reduction in energy use from low-wattage lamps pays dividends in

multiple ways, from direct energy savings, plant cooling savings, and friendlier and

happier operator environment. The elimination of drying powder to prevent sheets from

sticking makes for cleaner operations, making operators even happier as less maintenance

is required.

These cost savings are real, and often greater than prospects imagined when they

deployed LED UV-curing technology. But there is a big difference between seeing the

numbers on a spreadsheet model and experiencing them in action. For commercial offset

printers, at a time when print volumes are decreasing, it is a long sales cycle to convince

print shop owners and their banks to make additional investments in what some see as

declining businesses. The best advocates are print shop owners that installed LED UV-

curing. In all our interviews, there is not a single UV-LED curing owner who regretted

acquiring UV-LED curing technology. If anything, many regretted not having acquired

the technology sooner. Most offset commercial printers adopt LED UV-curing

technology by way of retrofitting existing conventional ink presses, and by 2021, IT

Strategies expects over 25% of new offset presses will be sold standard with LED UV-

curing technology.

Narrow web flexo press sales have already tipped in favor of LED UV-curing,

with more than 50% of new press sales sold with LED UV-curing. At narrower print

widths, the LED UV-curing acquisition cost hurdle that exists with wider sheet offset

presses is minimized, allowing label and folding carton converters to get a fast return-on-

investment on the productivity benefits.

Inkjet printers that use jet UV-curable inks are comprised mainly of wide format

graphics printers. In terms of unit volume, over 60% of UV-curable wide format inkjet

printers feature LED UV-curing. With fewer LED diodes than either narrow web or

offset presses, the acquisition cost difference between LED and ARC curing is minimal

for serial inkjet technology, and the benefits of being able to print on a wider range of

high-value substrates are immediate.

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While it is the business model economic benefits that cause most print shops to

acquire LED UV-curing, it is the value-add that surprises them later. UV LED’s cooler

curing temperatures allow printing on a much broader range of substrates, including

many specialties such as thinner media, films, plastics, etc. The most successful adopters

of LED UV-curing expanded their business with the acquisition of new, first-time

customers through the ability to print on unique, different substrates.

So, what is the impact of LED UV-curing upon the print industry? If one looks at

the impact of LED UV-curing systems upon the installed base of all printing presses, the

impact frankly is negligible. The impact is larger upon narrow web flexo and inkjet

presses than offset, mainly because the economics and performance benefits of LED UV-

curing had an earlier benefit to those technologies and applications.

If one measures the same impact based upon new press sales, there is a dramatic

difference. About 15% of new sheetfed offset press sales in 2017 in North America were

sold with LED UV-curing according to IT Strategies calculations. This excludes

retrofits, which account for a larger number of system sales. Over 50% of new sales of

narrow web flexo feature LED UV-curing, and over 60% of UV-curable inkjet printing

systems are sold with LED UV-curing.

For the foreseeable future, competitive market pressures for greater efficiencies

and print volume consolidation are bigger drivers for the growth of LED UV-curing

technology in sheetfed offset and narrow web flexographic than the value-add benefits of

being able to print on a wider range of substrates and having happier operators. The

largest opportunity for LED UV-curing in the highly fragmented market remains in

retrofits of sheetfed offset presses due to the sheer volume of the installed base, even as

the majority of new sheetfed offset presses are projected to offer it as the standard

energy-curing system by 2021. Broader LED UV-curing ink availability continues to

lead to more competitive pricing, removing what some see as a barrier to further

adoption. The future of LED UV-curing is assured, with the biggest champions being the

existing owners and users of the technology.

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II. INTRODUCTION

BACKGROUND

Like many other industries, the commercial print industry endured a seismic

shock resulting in a precipitous revenue decline caused by the economic recession of

2007-2009. This economic decline slowed reinvestment, and simultaneously exposed the

inefficiencies of aging conventional printing equipment. At the beginning of the

economic recovery in 2010, a “new” curing technology was introduced that offered to

extend the life of those aging conventional presses by making them more productive and

operationally efficient. This technology, LED UV-curing, promised to be able to

increase productivity of conventional sheetfed ink presses by upwards of 30% or more

while saving on operational cost. More critically, it could be deployed in new presses or

as retrofits to older presses. UV-LED curing technology could also be applied to other

print technologies, chiefly narrow web flexo label printing as well as wide format, label,

and production sheet inkjet printing, with equal productivity gains and efficiency savings.

OBJECTIVES OF ADOPTION OF LED UV-CURING IN PRINTING STUDY

With great promises of LED UV-curing for print, the Association for Print

Technologies – PRIMIR Research Unit commissioned IT Strategies to gain a deep

understanding of the key drivers and opportunities, barriers and challenges, for growth of

LED UV-curing technology by printers, by press technology, and by application segment.

Ultimately, the request was to answer two seemingly simple questions:

1. Will LED UV-cure replace conventional, ARC UV-cure, and

aqueous/solvent inkjet inks?

2. Will it extend the life of offset and mitigate the impact of digital

production printing?

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The path to answering these seemingly simple questions is more complicated than

it appears. There are some clear product benefits, subtle benefits, and technical hurdles.

There are industry stakeholder interests in advancing and slowing the adoption of LED

UV-curing. And of course, like all businesses, the key to answering any question is to

follow the money.

METHODOLOGY As a mini-study, the desires for information are inevitably larger than the budget.

To balance the demands between information and resources, this study focused primarily

on quantitative primary interviews with key industry stakeholders with the objective to

capture balanced views on trends that ultimately could be used to develop a forecast.

IT Strategies conducted 30 primary interviews with existing and prospective LED

UV-curing users, spread across sheet offset, flexography, and inkjet printing

technologies. As part of the technology mix, we overlaid a combination of application

uses, including commercial print, labels/shrink sleeves, folding cartons, flexible

packaging, and wide format graphics.

We further supported the end-user interviews with 14 key supply chain providers

primary interviews. The supply chain provider interviews included curing system,

ink/coating, press, and software manufacturers. Secondary research was used to prepare

for the primary interviews, including prior Association for Print Technologies (formerly

NPES) – PRIMIR Research Unit studies, news articles, and attendance at key

conferences such as the annual Print UV conference in Las Vegas.

Based upon the Association for Print Technologies (formerly NPES) – PRIMIR

Research Unit and IT Strategies press forecast data, a trend forecast was developed

showing the momentum of LED UV-curing for sheetfed offset (retrofits for the installed

base and new press sales, simplex vs. perfecting presses), flexographic label presses, and

wide format inkjet graphics display presses.

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III. STAKEHOLDERS AND THEIR INFLUENCE ON ADOPTION OF LED UV-CURING IN PRINTING

With most things in business, if you want to know what is driving sales revenue,

you try to follow the money. LED UV-curing is a disruptive technology to the status

quo, one with many promises but also threats to the existing business models. Many of

the stakeholders have simultaneously aligning and conflicting goals in growing the use of

LED UV-curing technology, which for the moment prevents seeing a foreseeable tipping

point to LED UV-curing in the installed base. But exceptions abound by specific

application and technology implementation; between new LED UV-curing press sales

and retrofits, etc. There are fewer technical hurdles to LED UV-curing adoption on a

wide spread scale than there are legacy infrastructure and business models challenges.

As always, economies of scale challenges play a big role in the rate of adoption of LED

UV-curing.

Exhibit III-1: LED Curing Stakeholders

Source: Association for Print Technologies’ PRIMIR 2017 Study, “Adoption of LED UV Curing in Printing” by IT Strategies, Inc.

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LED LAMP SYSTEMS MANUFACTURERS Currently at the heart of the drive to grow LED UV-curing are LED lamp system

manufacturers. These are the companies to integrate LED diodes into curing systems,

designing the electronics and cooling systems required for reliable operation. Most

conventional presses that feature LED curing use LED UV-curing systems designed by

these dedicated lamp system manufacturers, both in new press sales and retrofits. Inkjet

printer manufacturers tend to integrate their own LED curing systems, mainly because

the economics, performance requirements, and volumes required for inkjet printers have

been more attractive for in-house development than buying and integrating LED-curing

systems from dedicated lamp manufacturers.

There are few curing lamp manufacturers that exclusively offer LED UV-curing

lamps. Most offer both ARC-curing and LED UV-curing systems. For many of those

who sell both ARC and LED-curing, the shift to LED UV-curing lamps must be balanced

carefully. LED UV-curing systems generate initial higher revenue, but because of their

longer life, do not generate annuities from replacement mercury vapor lamp sales.

Additionally, the sales cycle for LED UV-curing systems can be longer due to the higher

initial acquisition cost. This could lead to changes in cash flow, which they need to be

prepared for.

LED DIODE MANUFACTURERS LED-curing systems could not exist without the supply of LED diodes. The LED

diodes are mainly made by large electronic conglomerates whose focus is on lighting,

adhesive applications, and sterilization. The financial sweet spot for diodes that can be

used for LED UV-curing of UV-inks is in the 385-395nm wavelength. Higher

wavelength diodes would be less expensive to implement, but would be impractical from

an ink storage stability perspective. Lower wavelength diodes would enable a much

broader range of ink use, but the high cost of those lower wavelength diodes at this time

makes their use impractical. Until there is more demand, diodes that can be used for UV-

ink curing will remain priced as a specialty. As long as diodes for LED-curing remain

priced as a specialty, demand will remain limited.

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Since the conglomerates that make diodes have far larger demand elsewhere, their

efforts to reduce the cost of diodes for UV-curing will likely remain limited.

FLUID MANUFACTURERS (INK AND COATINGS) Ink and coatings manufacturers are dependent upon the availability of

photoinitiator suppliers to make UV-curable inks and coatings. The majority of UV ink

photoinitiators are made for wavelengths that correspond to ARC-curing systems

(concentrated around 230nm). Like the LED diode manufacturers, they consider

photoinitiators that cure in the 385 to 395nm wavelengths a specialty and charge

accordingly. As demand for LED UV-curing increases, the economies of scale are

starting to improve for LED-curable inks. It is said a breakthrough in photoinitiator

pricing could occur if the availability of LED-curing diodes that cure at 365nm (at prices

of existing 395nm LED-curing diodes) became more common. Much of the original

work on UV-curable inks was designed around 365nm back in the 1960s. This would

open up a broader availability of lower cost, higher performance photoinitiators, but this

is dependent upon the LED diode manufacturers.

There are different viewpoints on the availability of LED-curable coatings. Some

say that the availability of optically pure coatings has improved significantly during the

last couple of years and that the original problem of LED-curable coatings yellowing has

disappeared. Others note that while that may be true, there are few if any good economic

models at this time for LED-curable coating photoinitiators. The function of coatings is:

1) Shield protecting ink. Durability requirements are extreme compared to inks, and

depend upon the application requirements, which include:

a. Surface protection

b. Freeze/thaw

c. Chemical resistance

d. Penetration/scratch resistance

e. Other

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To develop a hard coating surface, you have to overcome oxygen inhibition. This

requires photoinitiators that can overcome barriers and are in the emission range that

lamps can cure. Those are available for ARC lamps, but not yet available in a cost-

effective manner for LED lamps (with lower cost LED photoinitiators, coatings yellow,

and ones that don’t yellow cost 3X more than ARC coatings). The challenge today is that

brand owners won’t pay more for any product if they can get the equivalent performance

from another technology/supplier. This makes the conversion from ARC to LED for

coating applications limited, because sunk capital cost in chillers, chilled drums, etc. with

ARC would have to be scrapped. High capital cost of LED lamps plus more expensive

coatings make conversion an un-attractive economic proposition.

LED lamp proponents (including press mfrs.) desire the benefits of lower heat of

LED as it optimizes the operability of the press… but an ink and coatings manufacturer

claims those proponents “kick the can down the road” for ink and coatings manufacturers

to solve the fluid/chemistry issues. The issues include developing LED coatings that

have a strong glossy shine, and ones that can be varied like ARC coating options for

more durability, freeze/thaw, wet resistance, etc. It is early days still for LED-curable

coatings, but progress continues daily in creating LED-curable coatings that reach parity

with ARC-curable coatings.

REGULATORY REQUIREMENTS It is often cited that long-term sales of any product containing heavy metals will

be banned. Mercury is a heavy metal, and its use has been banned in thermometers

around the world for years. Recently, the European Community passed legislation

phasing out the use of mercury in mercury vapor street lamps. Some have extrapolated

from this that the sale of mercury vapor UV-curing lamps will be banned in Europe. The

European regulation actually exempts what it calls “industrial applications” in

applications where there is no cost-effective alternative, and it includes mercury vapor-

curing lamps under this definition. Typically, there are also grandfather exemptions in

regulations; it is therefore unlikely a wholesale ban will occur on mercury vapor curing

lamps anytime soon.

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However, there are many non-regulatory reasons why the use of mercury vapor-

curing lamps will decline, with electrical consumption cost one of the key drivers in

Europe and select high-electrical cost states in the U.S.

CUSTOMERS (PRINT SHOPS) Awareness of LED-curing technology and its associated benefits for print are

making weekly headlines in the trade press. Those print shops that have adopted UV-

curing, and specifically LED UV-curing all stated that they would never go back to

conventional ink printing. The number of print shops and converters making investments

in new conventional press technology are limited however; the ones making investments

are the ones whose business is growing – often through industry consolidation and

market share capture. UV-curable printing further accelerates their productivity, making

it even more difficult for those with older equipment to catch up.

One way to catch up is by retrofitting older press equipment. Given the size of the

installed base of conventional presses, the retrofit opportunity is far larger than the

opportunity for new UV-curable LED sales. There are limits however. The sweet spot

for upgrades from conventional to UV-curable ink is any press less than about 10 years of

age. Any older and the lack of other automation reduces the productivity benefit from a

conversion to UV-curable printing. There are no inkjet retrofits; inkjet technology is still

changing too fast for this to be economically feasible.

OFFSET PRESS MANUFACTURERS Press manufacturers gain from selling new presses, less so from retrofits as many

conversions happen outside of the scope of the original OEM. There are competing ink

technology choices, ranging from conventional, ARC-curing, H-UV, and LED-curing

presses. When it comes to energy-curing technologies, there is a clear trend in favor of

LED UV-curing at this time.

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IV. LED CURING BENEFITS AND DISADVANTAGES

INTRODUCTION

The list of advantages of LED UV-curing for print is long. Many of the

advantages involve immediate economic benefits, mainly through productivity gains and

operational cost advantages. Like any technology, there are disadvantages as well. Most

of the disadvantages relate to the still early development stage of LED-curing, and

involve limited availability of sub-components which in turn keeps costs higher than

where they are expected to be in the years ahead.

Exhibit IV-1: LED Curing Benefits and Disadvantages


This chapter will explore the nature of each benefit and disadvantage based upon

comments from the primary end user interviews, including the impact on operations, the

implication on costs, and our analysis of the impact on sales of LED-curing systems for

offset, flexo, and inkjet technology.

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BENEFIT: PRODUCTIVITY

The impact of a benefit is often dependent upon an individual print shops’

circumstance and the printing technology that it is integrated with. This makes it difficult

to generalize about a specific benefit; however, interviewees were fairly unanimous that

one of the largest benefits from LED UV-curing is the gain in productivity. One could

argue that these benefits also would apply to ARC-lamp curing systems, and indeed they

often do. LED UV-curing however takes the productivity benefit a few steps further in

terms of less maintenance (fewer bulb replacements), cooler operation, and other benefits

that are closely related to productivity.

In general, for all print technologies covered (sheet-offset, web-offset,

flexography, and inkjet) the ability to go direct to finishing without an intermediary

drying step was the most significant benefit of UV-curing (and LED-curing) systems.

The ability to go direct to finishing without drying enabled the print shops to get through

more print volume. Indirectly this also resulted in real estate cost savings, allowing the

addition of incremental equipment and applications rather than elimination of real estate

space.

Exhibit IV-2: LED UV-Curing Productivity Benefit


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For offset presses, there was a dual benefit from UV-curing from the elimination

of offset powder. A direct benefit from the elimination of offset powder is a dramatic

reduction in clean up and maintenance. A corresponding but more difficult to quantify

benefit -until UV-curing has been implemented- is happier operators; their time can now

be spent more productively elsewhere in the print process.

LED-curing lamps instant-on benefits compared to ~5 to 20 minute warm-up of

ARC-curing lamps was considered a benefit by some, less so by other interviewees. The

chief benefit from instant-on lamps is a reduction of waiting time before printing.

However, some noted that the start-up process involves so many other steps that if you

make turning on the ARC-lamps at the beginning of those steps a routine, the timesaving

benefit is not impactful. Instant-on is more impactful however in case of paper jams and

other unexpected shut-downs, and in the end, is a net benefit to all users.

Another unexpected economic/productivity benefit specific to sheetfed offset

perfecting press retrofit customers is the ability to reduce the “gutter” required with

conventional offset inks. Typically, conventional ink sheetfed offset presses require

wider paper width to be able to cut out the tracking marks sometime left behind during

perfecting. With UV-LED curing retrofits, the inks are instant dry, so no tracking marks

are left. This enables retrofit UV-LED curing users (and new UV-LED curing press

owners) to use smaller width paper. With paper accounting for up to 50% of the cost of

print, even a 7% reduction in paper usage translates to 3.5% cost savings on the cost of

print. In a market of tight margins, a 3.5% cost savings can be very significant.

The single largest implication from all these benefits is the ability to increase the

number of jobs on the press, particularly in the case of retrofits from conventional inks to

UV-LED curable ink. This allows press owners to extend the productivity of the existing

press by upwards of 30% or more, for a relatively minor financial investment compared

to the acquisition of a new press. Additionally, they may be able to charge more for

output on the basis of being able to complete the jobs faster – equating to either a rush

charge or more likely a competitive advantage over peers.

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There is a potential downside from a sheetfed offset press equipment

manufacturer to receive all these gains in productivity. With a growing number of

retrofits, there is a possibility the life of the sheetfed offset installed base is extended and

the additional productivity reduces the need for incremental presses. Both factors could

slow sales of new offset presses on a longer-term basis.

The impact of the productivity benefit on the forecast of LED UV-curing system

retrofits for sheetfed offset presses and new LED UV-curing press sales of all types

(flexo, inkjet) is among the strongest of all the benefits of UV-LED curing. The main

challenge is that the benefits don’t materialize for users to see with their own eyes until

they’ve implanted LED UV-curing. Of all the users interviewed, not a single one would

want to go back to conventional ink printing.

BENEFIT: ENERGY SAVINGS After productivity, one of the core benefits of LED-UV curing is a reduction in

the amount of energy required to dry/cure the ink printed. Conventional ink presses tend

to use dryers, which not only consume energy directly during the printing process, but

also can indirectly contribute to higher cooling costs in the printing plant. The challenge

is not only in measuring and identifying energy consumption, but also factoring in local

energy rates and rebates, which can vary dramatically by country and even state.

Exhibit IV-2: LED UV-Curing Energy Savings Benefit


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Exhibit IV-3: Electricity Prices per Major Country

Source: Statista.com, 2017

In the United States, average electricity rates are comparatively low compared to other

countries. However, it is difficult to ascertain an average in the U.S., as locally sourced

data even conflicts with what is shown to be the average in the worldwide electricity cost

figure shown above. We recommend the reader interpret the electrical consumption rate

in a contextual interpretation rather than an actual rate interpretation as even within states

rates can vary dramatically based upon private or municipal supplied electricity.

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Based upon this interpretation, any state with rates above the natural average are better

candidates for leveraging the electrical savings from LED-UV curing than states with

rates below the U.S. average.

Exhibit IV-4: Electricity Prices per U.S. State

Source: U.S. Energy Information Administration

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There is another wild card in the electricity savings. Those are energy rebates.

Most U.S. utilities charge a fee to their customers that is escrowed into a pool of money

intended to drive energy reduction behaviors, reducing pollution and the need for

building additional electrical capacity. Often businesses and consumers are unfamiliar

with these rebate programs, as they change frequently and often the awareness of these

programs doesn’t arise until there is a specific event like an energy audit.

One interviewee regaled a story where his business had commissioned a plant

energy audit. One of the changes recommended was a switch to LED ceiling light bulbs.

This led to a discussion about the energy consumption of the business’s infrared dryers.

Because of the high electrical consumption on the infrared dryers, the removal of those

dryers upon installation of the LED-UV curing retrofit yielded the business over $80,000

in rebates. While in our limited experience this is exceptional, rebates ranging between

$10,000 to $20,000 are not uncommon in higher electricity consumption states. These

rebates can make a significant impact upon the return-on-investment switching from

conventional sheetfed offset, flexo, and even inkjet ink curing to LED UV-curing

technology.

BENEFIT: LOWER HEAT Lower heat curing is linked to lower electrical consumption, but there are several

other benefits correlated with lower heat curing systems. High heat is the enemy of all

electronics, often directly attributing to a part’s failure. This includes ARC-lamps and

infrared dryers. Reducing the amount of heat can extend the life of a component with

lower heat, including LED-UV curing lamps. LED UV-curing lamps offer lower heat

than other curing systems, but are not heat free. This makes it difficult to prove the hours

of life of LED bulbs; many however feature warranties of 20,000 hours or more.

Most of the heat generated by LED-UV curing lamps is dissipated from the

backside of the lamps, leaving the substrate-facing side relatively cool. For many users, a

cool curing enables them to print on a much broader range of substrates, including

thinner paper substrates and films, down to 0.2mm in thickness.

22

This is particularly important for label and shrink-sleeve printing applications.

These substrates are either less expensive or offer a higher-value add then what we call

centerline stocks, the more commonly available substrates. More importantly, they can

provide a print shop the opportunity to attract new business on the basis of being able to

offer a wider range of substrates.

Exhibit IV-5: Lower Heat LED UV-Curing Benefit


The lower heat benefit is one of the core reasons why LED-UV curing is

becoming the technology of choice for narrow web flexography and inkjet printing

technologies.

BENEFIT: NO OZONE Ozone is a by-product of many print-curing processes, including ARC UV-curing

and dry toner printing systems. Ozone is highly reactive, unstable, colorless gas with a

distinctive odor that, at room temperature, decomposes rapidly to oxygen. In high

concentrations it can be harmful to operators; it is commonly extracted from printing

plants using fans. Because it dissipates into oxygen within a day or two, it is rarely

identified as a safety issue in printing, and is a relatively smaller emitter of ozone

23

compared to other industries, interviewees believed that ozone in printing processes is

likely to be grandfathered if regulations are enacted to ban ozone producing applications.

Exhibit IV-6: No Ozone LED UV-Curing Benefit


The odor associated with ozone however can be a problem for print applications

in contact with food. ARC UV-curing print output sometimes has to be stored for 24-48

hours before use with food products as it can impart an off-taste on labels used on fresh

produce and fruit if applied immediately after printing. The impact of this is very small

in the context of the entire print industry output.

A more applicable benefit of no ozone to the print industry is a less tangible one.

Interviewees who had deployed LED UV-curing cited a reduction in fan noise to extract

ozone, and happier operators as a result of less noise in the printing plants. It is very

difficult to quantify this benefit. However, ozone is a broad environmental concern and

any reduction is beneficial. The impact on the growth of LED UV-curing is likely to be

minimal.

24

BENEFIT: HAPPIER OPERATORS This is a nebulous benefit in terms of concrete return-on-investment since it is so

difficult to measure, but if you provide operators with a cleaner (no offset powder), less

maintenance (less clean-up), a safer (less potential of paper jams or human hands

touching hot lamps or infrared dryers) and quieter (less fan noise to extract heat)

environment, this somewhere has to show up somewhere in improved employee retention

and fewer sick days.

Exhibit IV-7: Happier Operators LED UV-Curing Benefit


The challenge in conveying happier operators as a benefit can’t be proven to a

prospective UV-LED curing system user until it is implemented. It is a very real benefit

however, attested by interviewees who implemented LED-UV-curing systems. The

impact of happier operators does not have an impact upon the forecast for LED-UV

curing systems.

25

BENEFIT: HIGHER OUTPUT QUALITY This is another benefit that is real but difficult to quantify because output quality

is subjective, and has a regional/cultural aspect to it. In some cases, high pile height of

UV-curable inks can detract from print quality, although this is becoming less of an issue

as the chemistry and printing technology improves. Interviewees noted that in their

experience LED UV-curable inks offered brighter color and a wider color gamut, which

many considered a key aspect of print quality. This applied to all printing technologies

using LED-UV-curable inks.

UV-curable inks do not penetrate into the substrate unlike most other inks. They

sit on top of the substrate and through UV-curable lamp exposure of the photoinitiator

convert the ink from a liquid into a solid that is molecularly bonded to the substrate. This

means that nearly 100% of the pigments sit on top of the substrate surface, refracting a

higher density of light than other ink types. Many cultures equate more vivid inks with

higher output quality.

Exhibit IV-8: Superior Print Quality LED UV-Curing Benefit


26

Because the inks sit on top of the substrate, less colorant (i.e., ink) is required to

create equivalent image density to conventional inks. This saves ink fluid, but with

conventional inks accounting for as little as 2% of the cost of print, the savings from

using more expensive LED UV-curable inks are less impactful than it may seem.

There is another benefit of UV-curable inks for sheetfed offset presses that may

be more impactful, and that is set-up time (i.e., labor) savings. UV-curable inks are

relatively stable in terms of evaporation and do not need the same ink/water balance

adjustments that conventional inks require. This saves on start-up waste and set-up time.

The impact of subjective preference in LED-UV curable print quality is insufficient to

make an impact on the forecast.

BENEFIT: NO MERCURY Unlike ARC UV-curing lamps, LED-curing lamps contain no mercury. Mercury

is a heavy metal (toxic) that has been used for generations in all types of measuring and

lighting applications. It is used in all ARC UV-curing lamps and its power assures the

ability to create a full-cure at high production speeds. Legislation has slowly been

banning the use of mercury, with European efforts at the forefront of this legislation.

Exhibit IV-9: Legislation Banning Mercury Vapor Lamps Benefit to LED UV-Curing


27

Recent legislation in Europe is calling for the ban of mercury vapor street lighting

in Europe in the not too distant future. Some printing industry stakeholders have

interpreted this to mean that all mercury vapor lamps will be banned in Europe, which is

not the case at this time. Industrial applications that do not have an economically viable

alternative to ARC-lamps will be grandfathered. LED-UV curable lamps are not

considered by the European Community to be economically viable alternatives at this

time due to the higher initial up-front cost than mercury vapor lamps.

For the foreseeable future, there is no defined regulation that bans mercury in

ARC-curing lamps, and hence the negative impact of mercury as a driver to increase

LED sales is minimal. In the interest of mankind however, there needs to be a further

reduction in the use of mercury. Overtime, interviewees expect the print industry to

become self-policing and shift curing of UV-curable inks from mercury vapor lamps to

LED UV-curing lamps, driven by the expected lower acquisition cost of LED UV- curing

lamps as the production economies of scale of LED UV-curing curable systems improve.

BENEFIT: REDUCTION IN INK CONSUMPTION This is not a unique LED-curing benefit, but rather a UV-curable ink benefit that

applies equally to ARC-lamp curing. UV-curable inks are nearly instantly cured when

exposed to the ARC or LED-curing lamps. This reduces the amount of ink fluid and

colorant that is absorbed into paper substrates, reducing the amount of ink that needs to

be printed. On non-porous substrates, less ink is desirable in order to control the dot size.

For conventional print applications, where the cost of ink is a small

percent of the total cost of the print job, a reduction in ink usage is beneficial but not

overly impactful compared to other benefits. Where it makes a bigger impact is with the

use of inkjet technology. UV-curable inkjet inks are significantly more expensive than

UV-inks used with conventional printing processes. Any reduction in the use of UV-

inkjet inks has a direct and measurable benefit to the total cost of print. The majority of

UV-curable inkjet printers sold now use LED-curing as their default curing technology.

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WEAKNESS: LED LAMP “STICKER SHOCK” COST With so many benefits from LED-curing technology, one might wonder why LED

curing hasn’t become the default technology for all UV-curing print applications. As

with most puzzles in life, the answer comes down to time and money. The benefits of

LED UV-curing are clear and tend to become stronger over time. However, there is a

premium cost associated with LED UV-curing systems, an upfront and replacement

premium that can be a hurdle to some potential customers.

The initial cost of LED UV-curing systems can be upwards of 3-5X or more

expensive than ARC UV-curing systems. Total cost of ownership models customizable

based upon local electricity cost, ARC-lamp replacement cost, and soft benefit factors

tend to show a very positive economic lifetime benefit for LED-curing lamps. But yet

the initial hurdle of a significantly higher capital outlay caused many users to defer

buying LED-curing systems. The core reason for the higher cost of LED UV-curing

systems is supply and demand. Until there is more demand, the low economies of scale

have kept pricing of LED-curing lamps high. The economy of scale benefit from the

growth of LED lighting for home and offices hasn’t benefitted LED UV-curing lamps

much, as the wave length of LED UV-curing lamps is unique and far removed from home

and office lighting.

Despite the lack of direct economies of scale impact benefit from home and office

lighting, pricing for LED UV-curing systems are declining, and in fact, compared to the

initial offerings in 2010, it can be up to 75% less expensive now than the cost of similar

systems in 2010. But the initial acquisition cost remains significantly higher than other

ink-curing systems, including ARC-curing lamps. For inkjet systems, the price

difference between ARC and LED-curing lamps has not been as great, mainly because

most inkjet systems use serial printhead moving mechanisms, that require few curing

lamps since the productivity of those systems is limited. In other words, because inkjet

UV-curable printing systems use relatively few LED chips, it has allowed LED-curing to

become the default standard for UV-curable inkjet systems.

29

Exhibit IV-10: LED UV-Curing Lamp “Sticker Shock” Weakness


While the initial acquisition cost of LED UV-curing lamps is a hurdle for some,

what wins many prospects over to LED-curing are exceptional events. An unexpected

increase in business, or the need for a technology re-fresh, often leads existing

conventional ink press owners down a research path searching for options that are less

expensive than acquiring a new conventional ink press.

An upgrade from conventional ink to UV-curable ink technology on the existing

press typically leads to a 30% or more gain in productivity, by virtue of eliminating

extended drying times common with conventional inks. Then as they investigate the

benefits of LED vs. ARC-curing, the more educated the prospects become, the more

likely they are to consider LED UV-curing. IT Strategies’ vendor research indicated that

over 85% of retrofits from conventional ink to UV-curable ink systems deploy LED UV-

curing systems. There is no hard and fast rule, but major press manufacturers noted that

if a conventional press is less than 10 years old, a conversion from conventional ink to

UV-curable ink makes strong economic sense.

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If the conventional ink press is older than 10-years, it becomes a more difficult

decision because many of the other functions on the press may have aged or are

insufficient to keep up with the productivity of the new UV-curing system.

There are no inkjet retrofits for the simple reason that inkjet technology is earlier

in its development life cycle and the cost of most inkjet systems is significantly less

expensive than conventional press technology. The benefits to acquiring a new inkjet

wide format or label printer with LED UV-curing are much stronger than retrofitting an

older inkjet printer. New generation inkjet printhead technology in new wide format and

label inkjet printers provides higher resolution and productivity, at a fraction of the cost

of paying for a custom retrofit from aqueous, eco-solvent, or latex ink to LED UV-

curing.

There is one other factor related to lamp cost that is sometimes cited by UV ARC-

lamp curing manufacturers and commercial printers in favor of ARC-curing. The life of

LED UV-curing lamps is often stated to be in the 20,000+ hour range. ARC-lamp

manufacturers sometimes cite that this is a number that has yet to be proven on a wide

scale since that is equivalent to nearly 5 years of LED-lamp life assuming 2 shifts/day, 5

days a week. Given that the use of LED-lamps in UV-curing only started in 2010, there

is not yet enough evidence that indeed 20,000 hours is widely attainable.

This then tends to lead to the conversation on replacement cost. ARC-lamp

replacement bulbs are in the $300 range, and they typically last 1,000 hours or more

(some manufacturers now offer up to a 2,500 hour warranty). This means that 20,000

hours worth of ARC UV-curing lamps might cost the equivalent of $6,000. To replace

the LED UV-curing system after 20,000 hours, the replacement cost is going to be

significantly higher. This replacement cost has to be paid either out of cash (a big hit on

cashflow when that event occurs), out of escrow (which means this has to be built into

the financial/estimating models), or treated as a capital expense. In any of these cases, it

is something that has to be thought about at the time of LED UV-curing system purchase,

as otherwise it becomes a very unpleasant surprise at the end of life of the LED UV-

curing system.

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The financial risks for commercial printers are manageable if taken into account

early on. However, one also has to consider the impact on cashflow of ARC-curing

system manufacturers. Today, they have a predictable cashflow of ARC replacement

lamps. If that cashflow for ARC replacement lamps stops for what is assumed to be 5

years when someone buys an LED UV-curing system, that means the next five years

could be financially stressful until the new business model has settled in. The only

alternative is growth in selling more LED-curing systems, fighting for LED UV-curing

retrofit sales (which given the life of offset presses tend to maximize out at about 1/10 of

the installed base annually) or LED UV-curing systems sold with new presses. While

2017 seems to be an exception, the number of new offset presses sold annually has been

in decline for 10 years.

From the view of UV-curing system manufacturers that sell both ARC and LED-

curing systems, a gradual transition from ARC to LED-curing will help them to better

manage the financial business model transition than a rapid switch from ARC to LED

UV-curing systems. The bottom line on the “Sticker shock” of LED UV-curing lamp

acquisition and replacement is that the cost has limited the deployment in presses that

require higher number of lamps. This is why there are very few web offset presses with

LED-curing. Sheetfed offset presses, particularly new sheetfed offset presses, are

transitioning to LED UV-curing because of the productivity gains that minimize the

“sticker shock” impact of LED UV-curing lamps.

Flexo presses are a different story, in that the ability to cure with cooler

temperatures is highly beneficial for printing on thinner films and a wider range of label

stocks. Most LED UV-curing serial inkjet printers don’t print enough volume to reach

20,000 hours during their lifetime, so often LED-curable lamps are promoted as being

permanent. If breakthroughs occur in allowing UV-inks to cure at lower wavelengths,

the lower cost of lower wavelength curing lamps will make a dramatic impact on the

“sticker shock” weakness of LED UV-curing systems. For now, the “sticker shock” issue

on LED UV-curing acquisition and replacement cost is real, but often the other benefits

of LED-curing are sufficient to overcome the “sticker shock” weakness.

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WEAKNESS: UNEVEN INTEGRATION SOLUTIONS

The beginnings of LED UV-curing system deployment were driven by third-party

manufacturers who focused on retrofitting conventional ink presses with LED UV-curing

systems. Few of the OEM press manufacturers concentrate on retrofits, mainly because

there is more money to be made in selling a prospect a new offset press. This led to

growth of third-party LED UV-curing retrofit manufacturers, who in the early days, may

not have been as well prepared to handle all the integration issues as the leading

providers are today. The magic of an LED UV-curing system is not in the LED chips,

but rather the housing, the cooling, the drivers, and optimization of all those components.

The integration skills among the various providers vary, with the potential

unintended outcome of shorter than expected life cycles. This was mostly due to initial

poor understanding of thermal management systems. Contrary to common belief, LED’s

run quite hot on the backside of the LEDs not facing the substrate. This heat has to be

properly dissipated in order to prevent premature failure of the LED chips.

Exhibit IV-11: Uneven LED UV-Curing System Integration Offering Weakness


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A potential increase in inexpensive LED UV-curing systems imported from low-

cost manufacturers could lead to a tainted reputation for the entire LED UV-curing

industry if those systems are improperly designed. This is likely to impact web offset

systems to a greater degree as integrators try to save money for those systems, which

require a higher sophistication of lamps, potentially tempting them to take economic

short-cuts. Uneven integration skills are not a concern for current LED UV-curing

offerings. This is a potential concern for the future as demand for lower cost systems

increases.

WEAKNESS: HIGHER CONSUMABLE COST FOR LED UV-CURING

Retrofitting a conventional press with LED UV-curing requires more than just

changing inks and the curing system. It requires that close attention be paid to the rollers,

blankets, blanket wash, and other supplies that need to be compatible with UV-curable

inks. There is an up to 20% premium associated with supplies that are compatible with

UV-curable inks; retrofit owners need to be aware that avoiding UV-ink compatible

supplies will lead to problems down the road. As a percent of the total cost of print, the

impact of the premium supplies required with UV-curing is minimal. It becomes

magnified for very high-volume throughput users, but often this impact is not felt until

well after the LED UV-curing system has been put into operation. The requirement for

premium supplies is minimal upon the sale of retrofit and new LED UV-curing system

sales.

WEAKNESS: UNDERSTANDING OF COLOR MANAGEMENT IMPACT ON FLUID VOLUME

The understanding of ink coverage/volume and the rate of curing required is a

potential weakness for first-time adopters LED UV-curing. Most printing systems

automate the rate of curing based upon a job profile. However, unintended consequences

can occur. Sometimes operators aim to “improve” the image by adjusting the color

boost, altering the color profile in the RIP.

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This can lead to an under-curing in thicker ink coatings, where the top surface of

the ink is cured but the ink underneath the top surface remains uncured. Some users

described this as the ink being “squishy” when they pressed down on it.

Exhibit IV-12: Unintended Under-Curing of Inks and Coatings Weakness


This can become a problem once the print job reaches finishing. You don’t want to cut

through UV-curable ink that is not fully cured for health safety reasons. The lack of a

full-cure is typically less of a concern with ARC-curing, whose energy tends to be higher

(at the expense of heat and higher energy use).

The issue of under-curing with LED UV-curing seems to be a rare one, but is one that

warrants education of users at the time of deployment. As more RIP manufacturers

become attuned to the issue of ink coverage and curing, this concern should disappear.

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V. DEVELOPMENT TRENDS IN LED UV-CURING

As a relatively young technology, LED UV-curing continues to undergo

technology development and improvements. There are three areas that were called out

specifically by interviewees as areas where noticeable improvements are expected. They

include LED curing of coatings, low migration inks, and multi-layer LED curing lamps.

LED UV-CURABLE COATINGS

Coatings are said to have far greater performance and durability requirements

than inks. They are mainly used for embellishment and protection, and by virtue of their

function, tend to require great optical clarity. Most commercial print applications use

aqueous coatings, mainly because they are low-cost and tend to work well functionally

for the applications intended. They offer moderate ink protection and add gloss, matte, or

soft touch coatings where required. ARC UV-curable coatings are more expensive, and

tend to be used mainly in label printing and other packaging applications rather than

commercial print.

UV LED-curable coatings are in the early stages of development. There is a

limited set of photoinitiators available for coatings compatible with LED UV-curing.

Early LED-cure compatible formulations tended to yellow over time. This is less of an

issue today, but it has not entirely been universally solved.

There are several other challenges with LED-curable coatings. One challenge

with LED-coatings is that it is difficult to be sure they are fully cured. LEDs tend to have

26-40W of power, which is a very tight range of curing power. UV ARC-curable lamps

tend to have between 300-1000W of power, making it more forgiving to reach a full-cure

with ARC than LED lamps. The 395nm wavelength of LED-curing lamps is a bigger

challenge for coatings than it is for inks. All energy-cured inks tend to be cured in

oxygen, as it is expensive to cure in microclimates filled with oxygen.

36

Oxygen inhibits the rate of curing, which is a problem since oxygen tends to

accumulate in the surface of the coatings. The one lamp/one wavelength makes it

difficult to “crunch” the oxygen to get a full-cure since unlike ARC lamps whose

elliptical housing reflects 80% of the energy to the source to be cured, LEDs cannot be

concentrated to the specific area of curing. The way to overcome that today is with

specific photoinitiators, which means special, expensive initiators.

Since LED UV-curable coatings are more sensitive, the overhead lamps in the

print shop can “gelate” coatings that are left in the ink pan overnight. Most operators are

not conditioned to deal with sensitive chemistries, often erroneously believing that since

UV-coatings don’t dry unless exposed to LED-curing lamps, they can leave UV-curable

inks in the pans overnight. In the morning, they then find the “gelated” coatings stuck in

the anilox rollers, etc. To prevent this from happening, LED curable coatings need

special covers on the pans. It is also recommended that special filters be placed on

ceiling lists, outside windows, etc.

Does this mean LED-curable coatings face a challenge in becoming successful?

The answer to this is that LED coatings are successful today, provided they are matched

under the right conditions to the right application. They are cool-cure, consume low-

energy, and have potentially long lamp life. But the cost trade-offs to achieve these

benefits are formidable at the moment. Until the cost of photoinitiators for LED coatings

declines, we are more likely to see the use of ARC UV-curable coatings. It is not

uncommon to see UV LED-curable inks with ARC UV-curable coatings on the same

press.

LED UV-CURABLE LOW MIGRATION INKS UV-curable inks, whether it is ARC UV-curable or LED UV-curable, have a

perceived concern when applied to any food contact related application. There is no

single standard for “safe” application, and big brands in particular tend to shun any

applications that could introduce risk into their product lines. The mandate from large

consumer brands is that any ink or coating that comes into food contact cannot transfer

37

anything that is harmful to health, causes an unacceptable change in product, or has an

organoleptic effect (something that changes taste, coloring, smell, etc.).

As a result, ink manufacturers are trying to develop low-migration inks, inks that

don’t migrate though the packaging into the food or beverage.

Exhibit V-1: Low-Migration Inks


There are raw materials available that offer lower migration for LED-curable inks.

However, the cost of those photoinitiators and other chemicals is significantly more

expensive, creating higher cost inks. Some ink vendors are moving to a reduction in

photoinitiators in the ink, but this often results in a slower curing process, or a process

where more curing power is required.

Migration is a universal ink issue; one that goes well beyond LED curing. There

is no migration free ink, and there is no international standard. Low-migration inks are a

challenge for all ink manufacturers. In the end, consumer goods manufacturers will have

the final opinion on low-migration inks. They are ultimately responsible for packaging

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safety. Consumer goods manufacturers tend to be risk adverse, as they can’t control the

final use of the product (such as microwaving frozen peas in their original flexible film

pouch, causing an unintended reactivation of the inks.).

MULTI-LAYER LED UV-CURING LAMPS

Multi-layer LED lamps blend multiple wavelength LED diodes into a single

curing system, blending for example 395, 385, and 360nm diodes into a single curing

system. This in theory allows the use of a blend of more economically viable diodes (i.e.,

360nm) with the use of photoinitiators that work at lower and standard wavelengths.

Multi-layer lamps, which are just starting to be developed, could be a bridge

between 395nm and 360nm curing systems. However, once photoinitiators are

commonly available to cure at 360nm wavelength, 360nm LED UV-curing systems will

become more economically effective than a multi-layer lamp curing system. The

sentiment from manufacturer interviews is that the jury is still out on multi-layer LED

UV-curing lamps.

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VI. COMPETITION TO LED UV-CURING SYSTEMS

There are two main competitors to LED UV-curing systems: existing alternative

energy curing technologies and inertia. Among the existing alternative curing

technologies, there are ARC UV-curing systems and Electron Beam systems.

Electron Beam curing is of great interest technically as it can provide a strong

cure without photoinitiators. Electron Beam curing technology is commonly used in the

curing of adhesives. A core application for Electron Beam technology is in the

manufacturing of sandpaper. The downside to Electron Beam technology for printing is

the highly specialized technology required. This includes highly expensive electron

beam technology, a large curing footprint (making it impractical for smaller sheetfed

printing presses), and the requirement for an oxygen-free (usually a nitrogen filled

chamber) curing zone. While some progress is being made on more compact Electron

Beam curing systems, there is very little impact expected on the print industry, and by

implication, LED UV-curing systems within the foreseeable future.

OFFSET COMMERCIAL PRINT

The biggest challenge to adoption of LED UV-curing systems in commercial print

is inertia. Typically, awareness of LED UV-curing systems does not extend beyond

something that commercial printers and converters hear about in the general domain,

until there is a trigger point that causes them to investigate the need for a new technology.

In the case of offset press retrofits from conventional to LED UV-curing systems, that

trigger is often something related to a desire for greater efficiencies/productivity. As

described earlier, productivity gains from LED UV-curing on offset presses that are up to

10 years old can be as much as 30% for a fraction of the cost of buying a new, highly

productive modern offset press. Those who have converted have universally become

disciples of LED UV-curing; those who have yet to experience the benefits of LED UV-

curing remain on the fence.

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The problem is mainly limited capital. With most commercial printers

experiencing declining revenues, there is more pressure put upon limited capital to be

distributed to finishing equipment upgrades, digital printing, and software. Unless there

is an immediate return on a capital investment helping a commercial printer expand into

new areas of business, the interest in productivity gains only arise in times of crisis or

immediate revenue opportunity.

The times of crisis that involve a defective, end of life, offset press tends to favor

new sheetfed offset presses. Depending on the offset press manufacturer, over 20% of

new presses sold are sold in North America and were sold with LED UV-curing in 2017.

Some press manufacturers sell LED UV-curing presses almost exclusively at this time.

FLEXO PACKAGING PRINT In narrow web flexo applications (e.g. label), there are very few retrofits from

conventional ink to UV LED-curable curing systems. The core reason is since volumes

are still sufficiently large that on those mainly older systems, the 20% lower ink cost for

conventional inks makes a big economic difference. If UV-LED-curable ink costs reach

parity with aqueous ink, then the high-volume label market will flip to LED UV-curing

as well because the productivity of LED-curable inks is significantly greater than aqueous

inks.

Looking at new narrow web flexo press sales, nearly half of all flexo presses sold

in North America in 2017 were sold with LED UV-curing. This is because the make-

ready of modern flexo presses allows them to cost effectively handle very short-runs, and

the productivity of UV LED-curable inks allows the converter to print a higher number of

short-run jobs.

INKJET PRINT Inkjet is a very versatile technology, and can be used to address a broad range of

applications including wide format graphics, label, and production printing. The majority

of wide format inkjet printers sold use either eco-solvent/latex or aqueous inkjet inks

since this allows for low hardware acquisition cost.

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For the higher cost UV-curable wide format inkjet printers, those systems are

rapidly shifting from ARC to LED-curing systems, as the cost delta between ARC and

LED for systems that use few lamps is very small. UV-curable inkjet inks are also

commonly used in inkjet label printing. Most of those systems used ARC-curing for

reasons of cost and full-cure, with LED-curing lamps used for pinning in between colors.

However, in this segment too we’re seeing rapid growth from ARC to LED-curing, in

part because lower heat LED-curing is superior on film and very thin label stocks.

Other high-speed inkjet applications such as continuous feed transaction, direct

mail, and book printers will likely continue to use aqueous inks as those inks are less

expensive to produce and are sufficient on porous substrates commonly used in those

applications today. Two printer manufacturers offer sheet-fed production printers that

use LED UV-curing technology. These printers are aimed at commercial print

applications, focused on the frequently changing range of porous and non-porous

substrates use by commercial printers.

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VII. MARKET SIZING FOR LED UV-CURING SYSTEMS

The impact of LED UV-curing systems on the printing industry depends on the

angle of the perspective. To provide context of why the perspective matters, look at

exhibit VII-1. Is figure A or B larger, or in another context, is the impact of LED UV-

curing more important as measured from the angle of installed base, new sales, or share

between ARC and LED-curing systems?

Exhibit VII-13: A Matter of Perspective: Which is Larger?


Please use a ruler to measure the distances between figure A and B to see which

one is larger. The answer may surprise you, and the difference in reality and opinion is

based upon the angle of the figures. If one looks at the impact of LED UV-curing

systems upon the installed base of all printing presses, the impact frankly is negligible.

The impact is larger upon narrow web flexo and inkjet presses than offset, mainly

because the economics and performance benefits of LED UV-curing had an earlier

benefit to those technologies and applications.

43

The green colors in Exhibit VII-2 show the contextual penetration of LED UV-

curing upon the respective printing technologies. As one can see, it is early in the

adoption life cycle. The tens of thousands of press installations make the impact of new

LED UV-curing installations minimal.

Exhibit VII-2: LED UV-Curing Impact Upon the Installed Base, North America 2017


If one measures the same impact based upon new press sales, there is a dramatic

difference. About 15% of new sheetfed offset press sales in 2017 in North America were

sold with LED UV-curing. This excludes retrofits, which account for a larger number of

system sales. Over 50% of new sales of narrow web flexo feature LED UV-curing. The

LED system cost across the narrow web is more tolerable than wider sheetfed offset

presses, and the benefits of printing at cooler temperatures, with more productivity, make

a big impact upon the demand for LED UV-curing in this sector. The impact of LED-

curing on inkjet technology appears modest based upon all new wide format inkjet printer

sales. But if one were to look specifically at UV-curable wide format inkjet printing

sales, LED UV-curing already accounts for over 60% of all new UV-curable wide format

inkjet printer sales.

44

Exhibit VII-3: LED UV-Curing Impact Upon New System Sales, North America 2017


The last comparison we’ll make is the difference between new ARC and LED-

curing system sales by press type. This perspective shows that LED UV-curing has

passed the tipping point in comparison to UV ARC-curing system sales in narrow web

flexo and inkjet, and is likely to reach a tipping point in sheetfed offset press sales in the

not too distant future.

Exhibit VII-4: Impact of New UV-Curing Systems - ARC vs. LED, North America 2017


45

To gain an even better understanding of the trend towards LED UV-curing, we’ve

broken out each respective press technologies into further sub-classifications. To protect

market share, we’ve expressed all the data in percentages rather than units.

SHEETFED OFFSET STRAIGHT PRESSES, NORTH AMERICA

Straight (or simplex) sheetfed offset presses continue to dominate new press

sales, even with the advancements in automation and productivity offered by perfecting

sheetfed offset presses. The reasons for the continuing popularity of straight sheetfed

offset press sales this appears to be lower acquisition cost and familiarity. The main

benefit of UV-curing for straight press technology is productivity, which is offered by

both ARC and LED-curing technologies. The lower initial acquisition cost is helping

ARC-curing technology to maintain its lead over LED-curing, but IT Strategies expects

LED UV-curing to surpass ARC UV-curing by 2021.

Exhibit VII-5: Straight Sheetfed Offset Press Sales and Installed Base by Curing Technology Type, North America 2015-2021


46

Given the large installed base of straight sheetfed offset presses, the impact of

new sales upon the installed base remains negligible for the foreseeable future.

The market for retrofits from conventional ink is a much larger opportunity for

LED UV-curing sales than new press sales. The green bars in the exhibit below show the

units from the previous exhibit. The orange bars show replacement of ARC-curing

technology with LED-curing, which is relatively rare. The bigger opportunity by far

(over 90%) is the retrofit of conventional ink straight offset presses with LED UV-curing

systems. Retrofit sales are mainly captured by 3rd party independent suppliers, not the

OEM press manufacturers.

Exhibit VII-6: LED UV-Curing Straight Sheetfed Offset Press Sales Comparison by New Press Sales, ARC-Retrofits, and Conventional Ink Retrofits, North America 2015-2021


The benefit of LED-curing is even greater for perfecting (duplex) sheetfed offset

presses. The ability to instantly perfect the sheet increases productivity dramatically, and

the ability to reduce the paper gutter waste (required to turn the sheet and cut out any ink

tracking marks) can save upwards of 5% or more on paper costs. As a result, LED UV-

curing’s share of new perfecting sheetfed offset press sales is expected to reach nearly

40% by 2021.

47

Exhibit VII-7: Perfecting Sheetfed Offset Press Sales and Installed Base by Curing Technology Type, North America 2015-2021


Similar to straight presses, the majority of LED UV-curing system sales for

perfecting sheetfed offset presses will be retrofits of conventional ink presses.

Exhibit VII-8: UV LED-System Perfecting Sheetfed Offset Sales Comparison by New Press Sales, ARC-Retrofits, and Conventional Ink Retrofits, North America 2015-2021


48

In fact, if one is a LED UV-curing system provider, perfecting sheetfed presses

offer the largest opportunity for volume. Nearly 80% of all LED UV-curing system sales

for offset presses will be absorbed by retrofits of conventional ink perfecting presses.

Exhibit VII-9: Perfecting and Straight Sheetfed Offset Retrofits vs. New Press Sales with LED-Cure, North America 2015-2021


WEB OFFSET STRAIGHT AND PERFECTING PRESSES, NORTH AMERICA

There are no LED UV-curing web offset press installations in North America that

we are aware of at this time. There are less than a handful of web offset press

installations with LED UV-curing systems in operation in Japan, where very high

electrical costs provides a strong return-on-investment case for LED UV-curing

technology. The electrical cost savings impact from LED UV-curing is larger with web

offset presses than any other printing press technology due to the print volumes produced.

However, demand for web offset output is decreasing as print run lengths continue to

decrease, which results in low re-investment in web offset technology. Additionally, the

higher ink cost for LED UV-curing compatible inks makes the return-on-investment case

less compelling in North America where we enjoy relatively low electrical costs.

49

NARROW WEB FLEXOGRAPHIC PRESSES, NORTH AMERICA

The demand for LED UV-curing systems has tipped for narrow web flexographic

press sales. UV-curable ink technology became the default ink technology for narrow

web flexo presses years ago, and as the cost of LED curing systems decline, its share

exceeded ARC-curing within a period of about 3 years since its widespread

commercialization in 2010.

Exhibit VII-10: Narrow Web Flexographic Press Sales and Installed Base by Curing Technology Type, North America 2015-2021


The impact upon the installed base is also greater than in other markets, since

sales of new flexo presses are very robust due to the tremendous gains in modern flexo

press productivity and the fact that the aging installed base is reaching a stage where

replacement is unavoidable. This situation also makes it less compelling to retrofit

conventional ink flexo presses with LED UV-curing systems. The demand for LED UV-

curing systems between new press sales and retrofits is almost reversed from the demand

of offset presses. Over 90% of LED UV-curing systems are sold with new flexo press

sales.

50

Exhibit VII-11: Narrow Web Flexo Retrofits vs. New Press Sales with LED-Cure, North America 2015-2021


INKJET PRINTERS, NORTH AMERICA

The market for inkjet presses is more fragmented than conventional presses. LED

UV-curing is predominantly utilized by wide format inkjet printing systems, as they tend

to have lower acquisition prices (starting at $30,000) than UV-curable inkjet label or

sheet document presses.

Exhibit VII-12: Inkjet Press Sales and Installed Base by Curing Technology Type, North America 2015-2021


51

There are no retrofits for inkjet, as the economics generally do not provide a

reasonable return-on-investment. The main competition for LED UV-curing with inkjet

printers is not other ink chemistries; the main competition is ARC UV-curing systems.

As a percent of sales, LED UV-curing systems have tipped as the dominant technology

for UV-curing inkjet systems. The installed base is actually growing even faster for

LED, driven by the retirement of ARC-curing systems which are being taken out of the

base faster than you would see comparable retirements of either offset or flexo presses.



Note that the majority of LED UV-curing systems deployed with inkjet presses

are made by the OEMs directly themselves. While some do use technology from 3rd

party suppliers, lower complexity (fewer lamps that need to be integrated) with serial

inkjet printing systems enable the OEMs to integrate LED UV-curing systems at a lower

cost than sourcing complete curing systems from 3rd party suppliers.

52

TOTAL MARKET COMPARISON

While perhaps not an especially useful comparison, if you total the sale of all

LED UV-curing systems by type of press technology, it is no surprise that the unit

volume dominates. Inkjet technology uses fewer LEDs per system since most are

scanning rather than fixed across the print width as with other print technologies, which

allow them to gain large unit volume share. However, this inkjet share is misleading in

terms of LED UV-curing opportunity.



What inkjet share does indicate is that acquisition cost matters, regardless of all

the other benefits derived from LED-curing technology. Inevitably, the acquisition cost

of LED UV-curing systems will continue to decline, which will increase further demand,

which will drive up more volume.

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VIII. CONCLUSION

LED UV-curing is universally accepted as being technologically sound. It is well

proven at this stage, limited in adoption by initial acquisition cost and comparably higher

cost on compatible inks and supplies. LED UV-curing is a highly fragmented market;

with the largest volume opportunity remaining in retrofits for sheetfed offset presses.

Fragmented markets slow the rate of adoption of any new technology, but also keep

margins relatively higher than homogeneous markets.

For sheetfed offset presses, IT Strategies expects LED-cure to lead new press

sales by 2021. Some of the leading press manufacturers already mainly sell LED UV-

curing with their new press sales. The one press manufacturer that has been a hold out in

promoting new press sales with LED UV-curing is moving in the direction of UV-LED

curing as they gain better access to sourcing of LED technology. From a LED UV-curing

system perspective, new offset press sales are not as important as retrofit sales. Retrofit

sales converting conventional ink presses to LED UV-curing systems account for up to

5X the larger unit volume by 2021 for LED-cure than new sales. The retrofit opportunity

is strongest for perfecting presses. But yet, due to the very large active installed base of

offset presses, LED UV-curing technology will only account for <1% of the entire offset

press base in North America by 2021. Does this mean that there is unlimited opportunity

for retrofits? The answer won’t be known for years, but there is a strong likelihood that

many of those 10+ year or older presses will be taken out of the base permanently. So, it

is likely that sometime between 2021 and 2026, they’ll be an acceleration in conversion

from conventional ink to LED UV-curing systems, before hitting a peak and then a

decline in retrofit sales as the eligible number of offset presses ready for conversion dries

up.

Web offset press sales are under severe pressure as run-lengths decline. The cost

of integrating LED UV-curing at the productivity rates of web-offset press technology is

high. This makes retrofits an option for very high electricity rate regions such as Japan,

but of less economic interest in North America.

54

However, IT Strategies does expect to see new web offset press sales deploy LED

UV-curing in North America, as the remaining buyers of web-offset presses (cold-set)

will expect the highest rates of productivity possible. This could account for up to two

handfuls of sales by 2021.

Narrow web flexography presses have lead in terms of the percent adoption of

LED-curing. LED UV-curing is an industry standard. Interestingly, compared to

sheetfed offset presses, retrofits from conventional to LED UV-curing lag due to high

prior adoption and satisfaction of UV ARC-during technology and the low running cost

of high-volume aqueous narrow web presses. UV ARC-curing technology works well,

and there is little economic incentive to retrofit ARC to LED-curing. However, when it

comes to new narrow web press purchases, LED UV-curing has become the default

standard.

Inkjet LED UV-curing dominates in wide format graphics energy-curing sales due

to low-cost model dominance. The main benefit of LED UV-curing for wide format

inkjet printing is substrate range expansion, in particular, the ability to print on films and

other specialty, higher value media. The ability of inkjet printer OEMs to integrate their

own curing systems makes this a less interesting opportunity for independent 3rd party

LED UV-curing system integrators. Nearly all of the inkjet ink that is consumed is also

provided by the OEM manufacturers.

In the inkjet label industry, LED UV-curing has lagged due to lack of ink

experience. The majority of UV inkjet label printing systems on the market today are

developed by integrators who are not vertically integrated. This has limited the

experience that we’ve seen in the wide format inkjet printer market. Yet the opportunity

for LED-curing is strong, as the ability to print on a wider range of substrates enjoyed by

wide format users applies to the inkjet label printing market as well.

As a general rule, the opportunity to sell LED UV-curing technology is strongest

in regions with high electric rates. New England is a more receptive market to LED UV-

55

curing than the Southwestern states based upon electrical rates. Regulatory impacts

(banning ARC) will be slower than expected, as ARC-curing technology is likely to be

grandfathered in regulations in North America should those regulations become enacted,

just as they have been grandfathered in Europe.

For LED UV-curing to become mainstream, availability of reasonably priced

photoinitiators that are matched to LED-curing wavelengths is the key to growth. There

are very few chemical manufacturers who develop 385-395nm photoinitiators for printing

applications. As the core building block for UV inks, this has kept LED UV-curing ink

pricing high.

The development of multi-layer LED lamps or 360nm LED lamps could solve

lack of lower cost photoinitiators. The industry is early on the development curve of

lower wavelength LEDs optimized to work with LED-curing, in part because the LED

diode manufacturer’s attention is focused on much larger other market opportunities.

The market for coating technology that can be cured by LED UV-curing is still

under development. There are a limited number of LED-curable coating formulations

available whose performance is on par with ARC-curing coating technology, but the cost

difference for UV-curing coating fluids that can be cured with LED UV-curing

technology remains significantly higher. Like inks, the constraint on lower pricing of

LED-curable coating fluids is the lack of availability of matched photoinitiators.

56

IX. IMPLICATIONS FOR MEMBERS

LED UV-curing is a disruptive technology. Its ability to produce and finish more

documents on a single press may lead to a concentration of higher output volumes on

fewer devices. It is also a technology that brings many simplification benefits to daily

operation, particularly sheetfed plants. For those print shops that have adopted LED UV-

curing, there is no turning back to conventional inks.

IMPLICATIONS FOR PRESS MANUFACTURERS Sheetfed offset press manufacturers are in a challenging position. They are

finding the life of their installed base being extended by independent LED UV-curing

systems manufacturers who are retrofitting older press with LED UV-curing, increasing

their productivity at a fraction of the cost of purchasing a new offset press. Retrofits are

most applicable to offset presses in the installed base that are less than 10 years old; any

older and the lack of automated pre-press, etc. prevents the full productivity benefit of

LED UV-curing upgrades. Similarly, greater productivity and capacity of new LED UV-

curing presses in a declining market for commercial print means that fewer new presses

will be needed. This could accelerate a decline in the demand for offset presses.

However, this concentration of output volume puts pressure upon commercial printers to

adopt or perish. Not all sheetfed offset press manufacturers are sold on the cost/benefit

ratio LED UV-curing technology today. However, as the economies of scale of LED

UV-curing improve, so will the cost/benefit ratio to sheet offset press manufacturers and

print shops alike.

The cost/benefit hurdles are greatest for web offset press manufacturers. High

electrical cost regions (affecting drying cost) are potential major beneficiaries of LED

UV-curing. However, meager investment in new web offset press technology (due to

declining run lengths) and the high cost of LED UV-curing systems capable of matching

web offset productivity have to date prevented adoption of LED UV-curing in North

America.

57

Narrow web flexographic press manufacturers were early to embrace LED UV-

curing. The substrate range expansion capabilities due to low heat curing, relatively low

deployment cost on 13” print width webs, and productivity of LED UV-curing made it a

good match for narrow web flexographic press. The majority of new narrow web label

presses are sold standard with LED UV-curing. There are few retrofits, as the other

enhancements of modern flexo presses outweigh the benefits of updating older flexo

presses.

UV-curing wide format graphics and label inkjet printing systems have also

embraced LED UV-curing. It took a few generations to develop a good match between

ink and LED UV-curing systems, but once it became resolved around 2014, demand for

LED UV-curing technology outpaced demand for ARC UV-curing.

IMPLICATIONS FOR INK AND COATING FORMULATION MANUFACTURERS

Demand for LED UV-curing inks and especially coatings are still in its infancy

compared to demand for conventional offset and flexo inks. This means that the

economies of scale on raw material purchases such as photoinitiators are not yet

favorable, which in turn has kept overall prices of LED UV-curing inks higher than other

inks. This has led some ink manufacturers to invest less aggressively than others who

took an early lead in specializing on LED UV-curable inks. Today nearly all ink

manufacturers offer LED UV-curable inks, and the LED UV-curable ink performance

across all manufacturers is starting to equalize, and LED UV-curable ink is universally a

growth segment for all ink manufacturers.

If and when 365nm LED Diodes become economically available for print curing,

the latitude of more affordable photoinitiators should expand significantly, in turn leading

to lower LED UV-curable ink prices. This could accelerate demand for LED UV-curing

retrofit conversions and new LED UV-curing sheetfed offset press sales. Given the

volume of conventional ink presses in the installed base, conventional inks will continue

to dominate for the foreseeable future.

58

Demand for LED UV-curable coatings is a different story. The high-cost of

optically pure LED UV-coatings (and initial use of lower performing photoinitiators

which caused yellowing) has prevented LED UV-curing of coatings from establishing a

strong foothold in the commercial print market. Alternatives to UV-cured coatings

(aqueous coatings, lamination) remain strong competitors to LED UV-curing. IT

Strategies is projecting that it will take beyond the foreseeable future for LED UV-

curable coatings to take a dominant position.

IMPLICATIONS FOR CURING SYSTEM MANUFACTURERS Independent LED UV-curing systems manufacturers continue to have strong

opportunities in providing retrofits to the sheetfed offset installed base. Their skill and

lack of business model conflict (they are not under pressure to sell brand new presses)

means they are well positioned to continue to serve the sheetfed offset installed base for

the foreseeable future. Beyond 2025 their opportunities for converting the installed base

with retrofits may diminish, as pressure for greater automation is likely to concentrate

print volumes in fewer, more modern print shop operations who will be incented to

upgrade to the newest and most productive sheetfed offset presses possible, rather than

retrofitting older presses.

The ability for independent LED UV-curing systems manufacturers to sell LED

UV-curing systems for integration by new sheetfed offset and flexo press manufacturers

is likely to weaken as the OEM press manufacturers seek to lower cost and become more

skilled at understanding the LED UV-curing requirements. The majority of inkjet press

manufacturers have moved development of LED UV-curing systems in-house.

Improved economies of scale and competitive growth will put pressure on the

price of LED UV-curing systems. Devaluation is the greatest risk facing LED UV-curing

systems manufacturers.

59

IMPLICATIONS FOR BLANKET, ROLLER, COATER, AND OTHER MANUFACTURERS

LED UV-curing systems require more robust blanket, roller, coater, and other

supplies technology. The aggressive nature of uncured LED UV-inks means that related

systems need to be well matched to LED UV-curable inks. This is allowing for a small

premium for supplies manufacturers. In the past, print shops have not been as well

advised of the need for different and matched supplies when converting to LED UV-

curing. There is an opportunity for supplies manufacturers to work closer with both LED

UV-curing systems and ink manufacturers to pre-empt incompatibilities and become

closer advisors to those entities and print shops alike. Supplies manufacturers may be

able to leverage their knowledge of LED UV-curing requirements to sustain and fortify

their position as preferred suppliers.

60

X. RECOMMENDATIONS FOR MEMBERS

LED UV-curing lamp/diode cost reduction and expansion of fluid availability is

the key to greater adoption of UV-LED curing technology. One solution to cost

reduction is lower wavelength 360-365nm LED lamps, which would open up wider

availability of photoinitiator options. Combined, this could set the stage for a tipping

point for offset, narrow web flexo, and inkjet UV-curing technologies.

While growth is an objective many companies desire, be mindful of the value

proposition. The value of LED UV-curing is highly dependent upon print technology

(offset, flexo, inkjet), application (substrate, perfecting, etc.), and even region (electrical

consumption). More critically, be mindful of the end goal of LED UV-curing. The

technology solution is clearly geared to help commercial printers and converters become

more efficient in their operations.

Exhibit X-1: The Balance Between Efficiency and Value


61

This could lead to unintended consequences, in that the high-efficiency print

shops take a disproportionate share of the demand for print, leaving fewer and more

powerful (including the ability to negotiate from a stronger position with equipment and

supplies manufacturers) print shops. This in turn could lead to faster than desired price

erosion on equipment and supplies. Of course, capitalism encourages competition, so the

race to greater efficiencies is likely unstoppable regardless of the overall industry

consequences.

To balance and potentially mitigate margin erosion for equipment and supplies

manufacturers, a focus on fragmented and specialty applications may be desirable. The

ability to print on a wider range of specialty substrates with lower heat could open up

specialty markets including printing of plastics for packaging, direct mail, and other

applications. To continue to project the development path of LED UV-curing, watch the

stakeholders that have vested interests in the rate of growth of LED UV-curing. The

interest to undergo a wholesale switch to LED UV-curing may not be in the interest of all

stakeholders, as it could negatively affect their business models and cashflow.

Exhibit X-2: Observe and Measure the Interests of Stakeholders in LED UV-Curing


62

Regardless of the various stakeholder interests, LED UV-curing is a technology

whose time has come. It won’t replace other curing technologies in the installed base

anytime soon, but it will displace ARC-curing in most print technologies by 2021.

Retrofits from conventional to LED UV-curing technology will extend the life of

sheetfed offset presses in the installed base, helping offset print to remain a competitively

priced alternative to digital production printing systems.

In the end, efficiency and value-add always triumph. LED UV-curing technology

offers both; hence the growth of LED UV-curing technology is assured.

63

XI. APPENDIX GLOSSARY OF TERMS

For the purposes of this report, we have developed the following definitions:

Additives: Chemicals that alter the formulation of ink to achieve specific performance

requirements. Chemical additives can include dispersants, defoamers, surface tension

modifiers, wetting agents, and rheology modifiers.

Aqueous Coating: A water-based overprint varnish. Aqueous coatings offer basic

protection against abrasion and create a gloss that helps the colors to “pop”.

ARC-Curing: An arc lamp or arc light is the general term for a class of ink-curing lamps

that produce light by an electric arc. The lamps are often defined by the type of gas used

to create the arc. Mercury gas is the most commonly used one in print-curing lamps.

Analog UV: Offset, flexographic, screen, or letterpress printing press technology used

with UV-Curable inks.

Conventional Curing: Ink or coating curing technology that relies upon heat and/or air

drying.

Electron Beam Curing: Electrically driven curing source where tungsten filaments

inside a vacuum chamber are superheated to generate a cloud of electrons that cause a

molecular change in the ink or coating that passes in front of the filament chamber.

Electron Beam (EB) Ink: Ink formulations that chemically react and alter their

composition when exposed to electron beam curing.

64

Film Lamination: Post-print lamination that uses a film for protection rather than an

aqueous or energy-cured varnish overcoat.

Hybrid UV-Curing: A form of ARC-curing, created by a unique alignment between

high-sensitivity ink and the use a single ARC-lamp. An H-UV lamp emits no ozone (as

is the case of a UV lamp) and does not require venting.

Inkjet UV: Inkjet printing technology that uses UV-curable printing inks instead of

aqueous, oil, solvent, or wax inks.

LED UV-Curing: Ultraviolet electronic light source that utilizes LEDs (light emitting

diodes) used for drying inks, coatings, adhesives and other UV sensitive materials

through polymerization instead of evaporation.

Oligomers: A molecular composition that consists of multiple monomers. Oligomers are

a reactive agent in energy curing inks. When exposed to energy-curing system, they

convert from a liquid to a solid.

Monomers: A single molecule that can bind chemically to other molecules to form an

oligomer or ultimately a polymer. Monomers are a reactive agent in energy curing inks,

frequently used in conjunction with oligomers in UV curing ink and/or coating

formulations. When exposed to energy-curing system, they convert from a liquid to a

solid. Monomers are not present in EB curing inks.

Pigments: Dry colorants ground into powders that form the basis of color in ink

formulations.

Photoinitiator: Additive for UV curing printing inks and varnishes. Through absorption

of UV light, photoinitiators form reactive products (radicals), leading to cross-linkage

with the molecules in the binder.

65

Polymers: Large masses of molecules that help to give ink and/or coatings its structure

and substance. The size and orientation of the molecules are formulated to help control

the performance of ink and/or coating fluids.

Pinning: Inkjet "pinning" allows the ink to be partially cured immediately after being

jetted to reduce dot gain and provide a sharper more vibrant image on an inkjet printer.

UV Blanket/Roller/Other: Analog press supplies optimized to work with UV-curable

inks.

UV Coating Formulations: Over print varnishes that consist of chemicals that are

reactive to energy curing systems, transforming the fluid from a liquid to a solid.

UV Curing Systems: Energy-curing lights that convert UV-inks from liquids into

solids.

UV Plate: Offset plates optimized by the plate manufacturer to work with UV-curable

inks.

UV Curing: The polymerization of UV sensitive materials, rather than drying through

the evaporation of solvents.

UV Curable Inks: Inks that cure via treatment with ultraviolet light. These inks produce

hard, durable images and are less media-sensitive than solvent or aqueous inks.

Ultraviolet Light: (UV) light is electromagnetic radiation with a wavelength shorter than

that of visible light, but longer than X-rays, in the range of 10nm to 400nm, and energies

from 3eV to 124eV. It is so named because the spectrum consists of electromagnetic

waves with frequencies higher than those that humans identify as the color violet.

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Wavelength: A descriptor of electromagnetic energy, corresponding to the distance

between the top points of the wave. UV-wavelengths are measured in nanometers

(nanometers have commonly replaced the term Angstrom that was previously used).

adoption of in printing - npesinkjet printers that use jet uv-curable inks are comprised mainly of...

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