“market trends and dynamics in the printing industry”...

“Market Trends and Dynamics in the Printing Industry” What are the Key Drivers for Change?Engelbert StraneggerEngelbert StraneggerBusiness Development

20.02.2014

AgendaAgenda

● Introduction● Introduction● Global Printing Market● Printing Market Dynamics by Region● Printing Market Dynamics by Region● Asia Printing Markets 2013 – 2018

Print Technologies● Print Technologies● Most critical impacts to drive change in Printing

I d t

Alina Gafu

Industry● Key drivers for change

Océ Software Romania● Q & A

2

Leadership in digital printing and document management

Corporate profile: Canon - Océp p

● Founded 1937, HQ in Tokyo, JapanLeader in professional and consumer imaging

● Top 3 position in US patents● One of the best known global brands with rank 30 in Interbrand ranking● Revenues: $ 46 billion per yeary● ~200,000 people worldwide

● 87,000 people in manufacturing (44%)

● Founded 1877, HQ in Venlo, The Netherlands

Leader in printing and document services for professionals

Alina Gafu

● Member of the Canon Group since 2010● Revenues: $ 1.8 billion per year (Production

Printing Products only)Océ Software Romania

Printing Products only)● ~3,800 people worldwide

● ~1,600 people in R&D● ~1 300 people in manufacturing

4

● ~1,300 people in manufacturing● ~ 900 people in other departments

Global printing industry market 2013Total market size: 898 billion $Total market size: 898 billion $

Billion $4%

36

800

900

Packaging & RoW39%

304

349,636

388,3

500

600

700 Labels

Asia

34%304

300

400

500EMEA

34%

208 509,4

100

200

300Graphic ApplicationsNorth America

Asia represents 39% of global

0

Graphic applications make up about

23%

Asia represents 39% of global printing industry market

Graphic applications make up about 57 % of global printing market

Source: PIRA: The Future of Global Printing to 2018

Global printing industry market 2013Total market size: 898 billion $Total market size: 898 billion $

Billion $

28.4500 Security / Transactional

509.4Graphics

174.9

300

400

Commercial / others

388.3Packaging Labels 146.7

200 Advertising / Catalogs

156.3100

Publishing

Graphics market represents about

0

Publishing Advertising andGraphics market represents about57% of printing industry market

Publishing, Advertising andCommercial are almost equal in size

Global printing industry market size 2008 20182008-2018

1 200

Billion $ constant 2012 prices & exchange rates*)

1,000

1,200Total

800

G hi

400

600

Packaging

Graphics

Alina Gafu200

Océ Software Romania0

2008 2012 2013 2014 2018

● PIRA forecasts globally a slightly declining graphics market● PIRA forecasts globally a slightly declining graphics market● Growth is driven by packaging segments


Printing Market Dynamics by RegionsCAGR 2013 2018 by valueCAGR 2013-2018 by value

8.0% Asia total NOA totalWorld total LatAm total Africa totalEurope total

4 1

6.05.6

4 1

6.86.2

4.0

6.0

1.8

-0.6

4.1

-0 6

3.8

1.8 2.0

4.1

1.2 1.5

3.9

0.0

2.0

0.6 -0.6-0.1-1.9 -2.6

-4 0

-2.0

0.0

Alina Gafu

4.0

Total market Graphics Packaging/Labels

● PIRA forecasts positive global growth mainly due to dynamics of Asian Océ Software Romaniaand LatAm markets.

● EMEA and NOA printing markets are slightly declining● Graphic applications are loose heavily in Western Europe and US● Growth in packaging throughout the regions● Eastern Europe, Africa, Middle East: small but showing growing potential


Asia printing markets 2013 - 2018 g

Total market size 2013: 349,6 billion $ Total market size 2018: 427,5 billion $

Chi144 3

Country Market Share

CAGR 2018

China 210,4 7,8%ChinaJapanIndiaSouth Korea

144,3

10,4

China 210,4 7,8%

Japan 108,3 -1,5%

India 32,5 5,7%

TaiwanIndonesiaOther Asia

116,9

10,5 Korea 19,1 1,1%

Taiwan 11,7 2,0%

Indonesia 14,5 6,8%

Other Asia 31 4,9%

● China and Japan represent 73,2% of total Asia printing market● 7,8% CAGR in China until 2018 while Japan Printing Market is expected to decline● Significant growth in many of the other Countries in Asia expected● Significant growth in many of the other Countries in Asia expected


Asia printing market size by applicationD l t 2013 2018 ( / k i & l b l )Development 2013-2018 (w/o packaging & labels)

80.0 2,0%

Billion $CAGR

60.0

70.0CAGR

2013-2018

30 0

40.0

50.0

-0,3%

2,5%

10.0

20.0

30.0

-0,6%

1,2%

-1,3% -0,7%

+9,7%

Alina Gafu

0.0

Océ Software Romania

● Commercial and advertising printing are most important print markets and promising2013 2018

● Publishing markets show considerable decline● PIRA forecasts significant growth for transactional and security print


Printing technologies World and AsiaPrinting equipment sales and development 2013 2018Printing equipment sales and development 2013-2018

G th t hi l b

CAGR 2013 - 2018 in %

10.810.0

12.0

Growth rates machine sales by printing technology in Asia

9 08 0

10.0

Growth rates machine sales by printing technology worldwide

10.8

4 24.0

6.0

8.09.0

3 04.0

6.0

8.0

-1.7-0.3

4.2

-2.0

0.0

2.0

-1.6-0.9

3.0

-2.0

0.0

2.0

Alina Gafu

-4.0

Offset Other conv.* Inkjet Electrophoto-graphy

-4.0

Offset Other conv.* Inkjet Electrophoto-graphy

Océ Software Romania● Offset is shrinking – digital printing grows at high pace● Digital share 2013 in machinery sales is 18,4% worldwide while Asia reports

a share of 27,3% I kj t hibit hi h th t th th i t t h l● Inkjet exhibits higher growth rates than any other print technology

Source: PIRA: The Future of Global Printing to 2018* Gravure, flexo, screen, incl. pre- and post processing

Critical impacts to drive change in GA-Industry

Competition with online

Competition with online

Critical impacts to drive change in GA Industry

with online media

with online media

Price competition

Price competition

Saturated markets

Saturated markets ppmarketsmarkets

Industry consolidation

Industry consolidation

Carbon footprintCarbon footprint

Alina Gafu

footprintfootprint

Océ Software RomaniaDeclining run

lengthDeclining run

lengthDigital printing

capabilities

Digital printing

capabilities

Key Drivers for ChangeChanged Customer Requirements

Shorter

Clients Requirements

g q

Shorter product lifecycles

Faster turnaround

Fragmentation of consumer interests

More but smaller jobs

Tighter budgets

Increased productivity

Due to shorter printGlobal, targeted, multimedia

Expanded services with

Due to shorter print runs and tighter deadlines demandmultimedia

communicationsservices with web & print

Stronger clientC titi

deadlines, demand for digital printing is significantly growing

(Source: NAPL)

Stronger client relationships

Competition significantly growing

Key Drivers for ChangeKey Applications driving the Transformation

Transaction Printing2012 2018

y pp g

● Offset pre-printed forms● Digital overprints mono● Leaflet, promotion offset printed

● Plain paper solution● Full digital color● Target marketing, customer relevant

dent

ial

p p g g,promotion

8% Digital MonoDigital Color

Billion pages23%

Digital Mono

Digital Color400

R2

-Con

fid

92% 77%

Digital Color

200

250

300

350

Digital

0

50

100

150Digital

Overall print volume is declining, due to paperless payments. Amount of digital color pages will increase mainly through target marketing

Source: Caslon 2012 20162012 2018

14

of digital color pages will increase, mainly through target marketing activities.


Direct Mail● 2012 ● 2018

y pp g

● Offset printed and personalization with digital overprinting / imprinting

● Plain paper solution● Full digital color

dent

ial

g● Full personalization

23%Digital Mono

Di it l C l

Billion pagesDigital Mono800

R2

-Con

fid

77%

23% Digital Color44%

56%

Digital Color

400

500

600

700

Digital

0

100

200

300

2012 2016

Offset

2012 2018

Overall Direct Mail spending will decrease, but a high growth in digital

2012 2016

Source: Caslon2012 2018

15

p g , g g gcolor volume is forecasted → customized Direct Mail.


Books● 2012 ● 2018

y pp g

● Most books offset printed, few start with digital production

● E-Books widely accepted for

● Declining offset volumes, use of digital printing for monochrome and color prints

dent

ial

paperbacksp

10% Digital MonoDigital Color

Billion pages

2500 18%Digital MonoDigital Color

R2

-Con

fid

90%

1000

1500

2000

Digital

Offset

82%

0

500

2012 20162012 2018

Total book print volume will fall significantly over the next five years. E-books will have a dramatic effect on printed sales of mass market

Source: Caslon

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E-books will have a dramatic effect on printed sales of mass market paperbacks, resulting in more digital print volume.

Reference Sources

● Pira: „The Future of global Printing to 2018“● IBIS World Industry Report: „Printing in the US“● Caslon Report: „North American Monochrome Production – Digital Printing

Market“

dent

ial

● Caslon Report: „North America Production Digital Printing – Color Market Forecast● WAN-IFRA: „Digital Printing for Newspaper“● IT-Strategies: Research on Emerging Print Markets“

R2

-Con

fid

g g g● Pira: „ The Future of Digital Print for Packaging to 2018● Pira: „The Future of Folding Cartons – Market Forecast to 2018“● Interquest: „The Direct Mail Market“● Interquest: „The Direct Mail Market● Info Trends: „The Production Color Inkjet Market 2013“● Info Trends: „Substrates and Inkjet – The move toward higher Quality Output“● PRIMIR: The Evolution of general Commercial Print – Implications for the Future“● PRIMIR: „The Evolution of general Commercial Print – Implications for the Future

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