IDC Reports MEA Hard Copy Peripherals Market Declined Slightly Amid Political Instability

With total shipments of 1,545,853 units, the Middle East and Africa (MEA) hardcopy peripherals (HCP) market recorded a 0.3% year on year (YoY) decline in 2Q2013, according to IDC. Revenue growth remained flat during this period. In this same quarter, inkjet shipments in MEA recorded an 8.5% YoY decline in volume and a 4.2% YoY drop in value.

According to IDC, Inkjet vendors in MEA are “gradually withdrawing from the extreme entry-level segment (as this segment is evidently not profitable for either hardware or cartridges), increasing their focus on higher-value devices that use less expensive consumables, and targeting the business segment by promoting inkjet technology as a reliable and cost-effective solution for general office printing needs”.

On the other hand, laser shipments grew by 9.6% YoY in volume and 2.5% YoY in value. Growth of the color laser segment was twice as fast as that in the monochrome laser segment.

In the first half of 2013, A3 device shipments in the color laser segment grew 10.4% YoY whereas A4 color laser devices declined 5.3% YoY. In the mono laser segment, A3 shipments declined 5.8% YoY and A4 shipments increased 4.1%. IDC says shipments of inkjet and laser devices with no WiFi capability are declining, while shipments of WiFi-enabled inkjet and laser devices are growing. Shipments of WiFi-enabled laser devices have more than doubled compared to the first half of 2012.

IDC says political instabilities are hindering the growth of this region. These include, the ongoing conflict in Syria; Iraq’s deteriorating security and unstable political situation; Iran’s economic and political struggles; and, political instability in North Africa. Africa, compared with other countries in the MEA, has relatively solid political stability and economic performance. It also has the largest growth potential, which explains why a growing list of manufacturers are looking for opportunities in this area.

IDC also points out that “the relatively low adoption of electronic document processes and document solutions in the MEA business and government segments plays an important role in driving the continuously high requirement for, and dependence on, paper documents”.