Multi-client Study

[2020 version of Photoconductor Market Forecast］

= How to deal with the China-first market=

Market Report

“The Future of the Photoconductor Industry: Seeking the New Chinese

Market Strategy”

＜Chinese makers expanding sales in the OEM market filled by more domestic products＞

＜China’s third-party market is becoming overcrowded＞

181022

174180

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149277144692

139781134972

166840

192675

196320 194950191280

184760

176750

120000

130000

140000

150000

160000

170000

180000

190000

200000

2017 2018 2019 2020 (estimate) 2021 (forecast) 2022 (forecast) 2023 (forecast)

Unit: Thousand Japanese maker Chinese maker

Summary

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I. Theme [2020 version of Photoconductor Market Forecast]

“The Future of the Photoconductor Industry: Seeking the New Chinese Market Strategy” = How to deal with the China-first market =

II. Abstract After Beijing announced a policy to buy Chinese-made products first in 2020, makers quickly responded to deal with the

situation. First, Konica Minolta has decided to further advance its partnership with Ninestar Group and extend OEM supply to copiers

(A3 MFP) and production printers. Then, Canon announced an extensive alliance with Chinese major stationery maker Deli to prevent shipments of its printers from dropping further. It remains to be seen how much the Chinese makers are expected to be involved in product development, but they’ll probably take a step further into the development process, rather than just being engaged in sales. If other makers follow suit, it will lead to the transformation of the office equipment industry. China is already the largest printer market made up of around 8.7 million units produced a year. The market of copiers and

MFP in the country is also growing to create a giant market of more than 900,000 units a year. And yet, Chinese makers only have a small proportion of 6-plus percent of market share, suggesting there’s quite a large possibility for them to replace foreign brands including those from Japan in the coming years. Amid this, new Chinese printer makers are mushrooming so heavily they could reach an unimaginable level of shipment

volume in one year. Makers normally begin with monochrome A4 printers before advancing to MFP and color devices. Since these monochrome printers are much less challenging to produce, even their functional components such as

photoconductors are quickly replaced by Chinese products. Chinese makers overtook Japanese counterparts in productions of photoconductors in 2018 and will keep producing even more. In Japan, there’re more and more makers that have come to adopt Chinese photoconductor substrates. From a technical perspective, Japan is leading the development of photoconductors but there’s little room for new

development, in contrast to Chinese makers that never spare technical investment. They could eventually catch up with Japanese makers. For Japanese makers, winning the court ruling over the patent dispute will not secure growth. They would rather be weakened unless efforts are made to increase market share in the Chinese market. Even though Japanese makers have technical advantages over 20φ small-sized photoconductors or photoconductors with OCL yielding more pages for high-speed machines and copiers, being able to capture the market is a different story. Under these circumstances, Data Supply Inc. will conduct interviews that cover a wide range of aspects such as development,

production, supply, materials, and substrates, in terms of their status quo and prospects. We hope the 30th edition of the report will be helpful to our readers.

III. Target items and makers 1. Target items 1) Photoconductor

2. Target Makers 1) Photoconductor makers (10 in Japan, 26 overseas) 2) Photoconductor's substrate makers (4 in Japan, 7 overseas) 3) Substrate processing makers (8 in Japan, 1 overseas) 4) Makers of photoconductor's coating materials (CTL / CGL / UCL / OCL) (11 in Japan, 2 overseas) 5) Hardware makers (8 copier makers, 20 printer makers, 4 FAX makers) IV. Research Period and Methodology 1. Research period: 2017 to 2023 Regions: Japan, North America, Europe, South Korea, Taiwan, China, and other regions. 2. Methodology: 1) On-site and in-person interviews with target makers 2) Analysis and review of open literatures,

materials, statistics, and other sources 3) Analysis of Data Supply's own proprietary database V. Format and Report Preparation Period 1. Study format: Multi-client study 2. Report preparation period: January and February 2020 3. Publication date: The English version: April 17, 2020 (Japanese version was published on February 26, 2020) 4. Report format: A4 size/PDF format 5. Price: $5,200

6. Researchers: Mr. Yukio YAMAMOTO, Mr. Kosuke YOSHIDA, and Mr. Masafumi HARIU Phone: +81-3-3831-9201 FAX: +81-3-3831-9204 E-mail: <yamamoto@datasupply.jp> <yoshida@datasupply.jp> <hariu@datasupply.jp> Homepage: http://www.datasupply.jp/

7. How to Apply: Please send us an email with your name, company, department, and phone number included to Data Supply Inc. at infods@datasupply.jp or any researcher shown above.

2) Aluminum substrate for photoconductors

3) Photoconductive layer coating materials

OPC drum

Se-based drum

a-Si drum

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《Table of Contents》 [Executive Summery] A. Comprehensive Analysis I. Worldwide production volume of photoconductors (2017-2023) ··············································································· 1 1. Overall summary ·········································································································································· 1 2. Worldwide production volume by type and by application ··················································································· 3 3. Production volume of photoconductors by application (for hardware devices / for consumable supplies) (2017-2023)···· 5 1) Overall 2) Third-party ratio (2018-2020)

4. World's top 10 photoconductor producers (production share) (2018-2020) ······························································ 7 1) Overall 2) Production share for OEM 3) Production share for third party

5. Worldwide production volume ······················································································································· 10 1) Production volume by region and by type 2) Production volume by region and by application 3) Production volume by maker 4) Production volume by region and by maker 5) Production volume by region and by type Japan/North America/Europe/China/South Korea/Taiwan/Other regions 6) Production volume by region and by application Japan/North America/Europe/China/South Korea/Taiwan/Other regions 6. Production volume by OEM and third party ··································································································· 28 6-1. Worldwide (2019) ································································································································ 28 6-2. Production volume for OEM and third party by maker (2018-2020) ··························································· 29 1) Worldwide 2) Japanese makers 3) North American makers 4) European makers 5) Chinese makers

6) South Korean makers 7) Taiwanese makers 7. Production trend of drum substrates ············································································································· 34 8. Use of coating materials by Japanese makers ································································································· 35

II. Production bases of photoconductors ··············································································································· 36 1. Japanese makers' production bases by region ·································································································· 36 1) Overall 2) Plant address 2. Overseas makers' production bases ················································································································ 39 B. Photoconductor Market B-1. Trend of Japanese makers (2017-2023) ········································································································· 41 B-1-1. Data summary and analysis of Japanese makers ······················································································· 41

1. Japanese makers' production volume by type and by application ······································································ 41 1) Worldwide production volume 2) Production volume in Japan 3) Overseas production volume

4) Changes in production volume over 25 years 2. Production volume by type, region, maker, and application (2017-2023)·································································· 49 1) All types 2) OPC 3) Se Type 4) a-Si 3. Production volume by diameter, by application, and by type (2019)··································································· 57 4. Production volume and shipment value by diameter and by maker (2019) ························································· 58 1) Overall volume (OPC for PPC/a-Si for PPC/OPC for printer/Se type for printer/a-Si for printer/OPC for FAX) 2) Value

5. Ratio of production volume and shipment value by maker and by diameter (2019) ··················································· 66 6. Share of production volume and shipment value by diameter and by maker (2019) ·················································· 70

1) 20φ 2) 24φ 3) 30φ 4) 40φ 5) 47φ 6) 50φ 7) 60φ 8) 65φ 9) 80φ 10) 84φ 11) 100φ 12) 108φ 13) 120φ 14) 210φ 15) 240φ 16) 260φ

7. Production volume by size and by maker (2019) ····························································································· 86 1) Production volume 2) Shipment value 8. Production volume and shipment value by diameter and by size (2019) ····························································· 88 1) Production volume 2) Shipment value 3) Ratio of production volume and shipment value by size and by diameter (A4-A0) 9. Japanese makers’ production status of photoconductors by application, by type, and by region (2018-2020) ············· 95 10. Development trend of long-life photoconductors (A3) ····················································································· 96 11. Production volume by negative/positive charge (2019) ··················································································· 96 12. Major supply relations between hardware makers and photoconductor makers (2019) ······································· 97 1) Supply volume 2) Major supply relations between PPC makers and photoconductor makers

3) Major supply relations between laser/LED printer makers and photoconductor makers 4) Major supply relations between laser/LED FAX makers and photoconductor makers

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B-1-2. Japanese individual photoconductor makers ······························································································ 101

1. Canon 2. Ricoh (Yamanashi Electronics) 3. Fuji Xerox 4. Konica Minolta 5. Kyocera Group 5-1. Kyocera 5-2. Kyocera Document Solutions 6. Mitsubishi Chemical 7. Fuji Electric 8. Sharp

B-2. Trend of overseas makers (2017-2023) ········································································································ 205 B-2-1. Data summary and analysis of overseas makers ······················································································ 205

1. Overseas makers’ production volume by type and by application ···································································· 205 B-2-2. Overseas individual photoconductor makers ···························································································· 209

1. AlphaChem (South Korea) 2. APS Photoconductor (China) 3. CEMS (South Korea) 4. GreenRich Technology (Taiwan) 5. Guangzhou A&G Optoelectronics Technology (China) 6. Hanp (Baiksan OPC) (South Korea) 7. HG Technologies (China) 8. Huaian Gantech Opto-Electronics (China) 9. Lexmark International (USA) 10. Sindoh (South Korea) 11. Suzhou Goldengreen Technologies (China) 12. Xerox Corporation (USA) 13. Other makers (USA: 1, China: 7, South Korea: 2, Hong Kong: 1, India: 1, Bangladesh: 1)

C. Drum Substrate Market I. Overall trend ·············································································································································· 237

1. Summary of makers in the photoconductor industry (drum substrate, drawing, processing, and coating) ·············· 237 1) Makers by production process ·················································································································· 238

2) Major relations between aluminum substrate makers and processing makers 3) Supply relations from aluminum substrate makers to coating (photoconductor) makers··································· 239

(Summary/flowcharts indicating major trends of aluminum substrate makers and photoconductor makers) 2. Worldwide production volume of drum substrates (2017-2023) ······································································· 242

3. Changes in production volume by drum substrate maker in Japan (2017-2023) ················································· 243 4. Production volume by drum substrate maker, by diameter, and by size ···························································· 244 5. Supply volume to photoconductor makers (2019) ·························································································· 245 1) Overall 2) OPC 3) Se and a-Si II. Trend of individual drum substrate makers ··································································································· 248

■Common research item■ ･Production volume by diameter, by application, and by size ･Production volume of non-burnished and burnished drum substrates ･Photoconductor makers' supply volume by production base (worldwide) ･Approach for color photoconductors (runout tolerance of drum substrates, roundness, surface roughness, and uniformity) ･Relations between processing and drawing makers ･Trend of production technology (burnished and non-burnished drum substrates) and others ･Price trend ･Production bases

1. Showa Denko 2. UACJ Extrusion Corporation 3. Nikkeikin ACT

D. Photoconductive Layer Coating Material Market 1. Overall ····················································································································································· 263 2. CTL ························································································································································· 264 2-1. Binder resin: 1) Worldwide market (2017-2021) (Overall/makers in the market/material features/price)

2) Major supply relations of binder resin (Japan) 2-2.CTM: 1) Worldwide market (2019) 2) Market share by maker (Shipment volume by in-house maker/shipment volume by CTM maker)

3) CTM types 4) Major supply relations of CTM 3.CGL ························································································································································· 269 3-1. Binder resin 3-2. CGM 4. UCL ························································································································································ 269 5. OCL························································································································································· 270

■Common research item■

・Present and future production volume by region, production base, type, and application (Japan and overseas) (2017-2023) ・Changes in production volume of photoconductors over 25 years ・Trend of production bases (facility investment, increase or decrease of production lines, and future production bases) ・Production volume by diameter and by application ・Production volume, shipment value, and unit price by diameter and by size (2019 results) ・Production volume by positive and negative charge ・ Status of long-sized photoconductors ・Development and purchase status of photoconductive layers and coating materials (UCL, CGL, CTL, OCL) ・Development trend of long-life photoconductors ・Status of drum diameters (small or large)・Production lines ・Coating methods ・Measures by genuine makers against third-party photoconductors ・Production ratio between genuine (OEM) and third-party products ・Changes in supply volume by destination・Worldwide production bases

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