ru_slider

ru_icon_slider

CONTEXT Research Updates deliver timely insights on key market segments.

  • PCs
  • Displays
  • Imaging
  • Enterprise
  • 3D Printing

PC Research update


PC sales across Western Europe drop -2.4% in first quarter as consumer demand remains low

London, 09 April 2019 –  Volume sales of PCs through Western European distributors were down by -‍2.4% in Q1 2019 compared to last year as consumer demand remained weak and Intel chip supply tight, according to the latest distribution data published by CONTEXT, the IT market intelligence company.

Displays


Shift towards higher resolution and brighter large-format displays continues in W Europe in Q1 2019

London, 29 April 2019 - Unit sales of large-format displays (LFDs) in West Europe (WE) continued to grow in Q1 2019 – by almost +14% year-on-year – driven by all sub-segments, including videowalls and high-brightness displays, according to the latest distribution data published by CONTEXT, the IT market intelligence company.

Imaging


Printer hardware sales through West Europe distributors down sharply in Q1 2019

London, 17 May 2019 - Printer markets have become increasingly healthy over the recent years and are currently robust, although, as always, they remain competitive. However, sales of printer hardware through distributors in West Europe (WE) were sharply down by -4.2% year-on-year in Q1 2019, according to the latest distribution data published by CONTEXT, the technology market intelligence company. This is not a surprise: the first quarter is, historically, the weakest of the year – and it is usually followed by a weak second quarter.

Enterprise


European network storage revenue growth driven by racks

London, 18 April 2019 – Revenues from network-attached storage (NAS) systems sold by West Europe IT distributors in the first two months of 2019 were +7.4% higher than over the same period last year according to the latest data published by CONTEXT, the IT market intelligence company. This growth was seen in revenues from NAS products designed for large enterprise customers, those aimed at small and medium business (SMB) customers, and products that can be used by either segment.

3D Printing


Industrial-class 3D-printer shipments up +22% in H1 2018

London, 24 October 2018 – On the heels of one of the largest general manufacturing shows in the world – September’s IMTS in Chicago -- and leading into one of the world’s most prominent additive-manufacturing trade events – November’s Formnext in September -- the INDUSTRIAL 3D-printer market finds itself on a good footing with shipments during the first half of the year up +22%. Shipments of INDUSTRIAL-class 3D printers which produce plastic/polymer components were +18% higher than a year ago, while those of INDUSTRIAL metal 3D printers were up +30% year-on-year.




PC sales across Western Europe drop -2.4% in first quarter as consumer demand remains low

London, 09 April 2019 –  Volume sales of PCs through Western European distributors were down by -‍2.4% in Q1 2019 compared to last year as consumer demand remained weak and Intel chip supply tight, according to the latest distribution data published by CONTEXT, the IT market intelligence company.

Consumer PC sales declined by -11.3% as people continue to shift towards using smartphones for day-to-day tasks and see little reason to buy new machines. Notebook sales dropped by -12.1% while those of desktops were down -7.6%. The general fall was exacerbated by the effects of political and economic conditions in some of countries: for instance, in the UK, where consumer confidence is low amidst Brexit-related uncertainty, consumer PC sales dropped by -17.6%.

As in the past few quarters, the situation was much healthier in the commercial segment. Business PC volume sales were +4.6% up on last year, driven by the end of Windows 7 support in early 2020 and the need to modernise workplaces. Sales of notebooks increased by +6.6% and desktops by +0.6%. The increase in workstation sales, which has been ongoing for quite some time now, continued with a +11.3% growth in mobile systems and a +4.9% increase in sales of stationary ones.

The tightness of Intel’s chip supply has led to greater fluctuations in distributor stock movement over the past few quarters as vendors try to steer demand to match available supply. Some vendors have also added more AMD-based PCs to their portfolios to provide an alternative offering and, as a result, the overall share of AMD-based PCs this quarter was up to 6.7% of commercial sales and 14.7% of consumer PCs – an increase of 2.5 percentage points year-on-year in each case.

                                Y/Y PC volume growth: WE distribution




Shift towards higher resolution and brighter large-format displays continues in W Europe in Q1 2019

London, 29 April 2019 - Unit sales of large-format displays (LFDs) in West Europe (WE) continued to grow in Q1 2019 – by almost +14% year-on-year – driven by all sub-segments, including videowalls and high-brightness displays, according to the latest distribution data published by CONTEXT, the IT market intelligence company.

Sales of high-resolution LFDs more than doubled in the first three months of 2019, managing to offset the continuing decline in sales of full HD (FHD) displays (-11% in this quarter) sufficiently to lead to an overall +14% year-on-year volume increase in WE. While FHD remains the dominant resolution, a constant demand for the best picture quality, to enhance customer experience both indoors and outdoors, makes higher resolution displays much more attractive. Moreover, prices for ultra-high definition (UHD) displays are falling, helping to spur sales: in Q1 2019 the average selling price (ASP) of 4K/UHD non-touch displays in distribution was 1500 euro, almost 30% less than a year ago, and the ASPs of the most popular screen sizes, such as 55 inch and 65 inch, are already below 1200 euro.

The other type of LFDs seeing growing sales are those with high brightness. Previously, most LFDs sold by WE distributors had a brightness of less than 500 nits, but sales of these grew only 7% year-on-year in Q1 2019 while sales of LFDs with brightness of 1000 nits grew by over +75%. Revenues generated by these models were also up, by over +25% year-on-year, while those from displays with lower brightness declined by -4%. In the last couple of quarters, significant growth in sales of high brightness displays has been seen particularly for LG.

Interest in videowalls also remains high. For the second quarter in a row WE distribution has seen growing sales, generating revenues that are +4% higher than in the same period last year. A range of sizes, resolutions and technologies gives videowall solutions the flexibility to provide the highest levels of customer engagement, and help ensure the message is impactful and memorable. Customers are happy with 55-inch screens, and this remains the most popular size; however, there is increasing interest in smaller and cheaper 49-inch screens.

The rise of high-resolution and high-brightness displays described above demonstrates a growing interest in outdoor solutions for a range of purposes, such as smart cities. And, nowadays, these cannot be driven only by consumer experience – they need to evolve in line with technical, physical and environmental changes. We should therefore expect to see smarter and greener digital signage solutions in the coming years. 

 

                  UHD and FHD large-format displays – ASP evolution in WE distribution

      




Printer hardware sales through West Europe distributors down sharply in Q1 2019

London, 17 May 2019 - Printer markets have become increasingly healthy over the recent years and are currently robust, although, as always, they remain competitive. However, sales of printer hardware through distributors in West Europe (WE) were sharply down by -4.2% year-on-year in Q1 2019, according to the latest distribution data published by CONTEXT, the technology market intelligence company. This is not a surprise: the first quarter is, historically, the weakest of the year – and it is usually followed by a weak second quarter.

Sales of multifunction printers (MFPs) were down by -1.7% year-on-year: even though laser MFPs saw a sharp growth of +4.6%, this was offset by the negative performance (-3.4%) of inkjet MFPs which account for almost 78% of sales in WE.

Sales of single-function printers (SFPs) registered a strong decline (-13.6%) and contributed to the overall negative performance in Q1 2019. The ongoing shift from single- to multifunction devices is likely to be further consolidated with distributors reporting that reseller demand for SFPs, particularly lower-spec models, is low.

Laser MFPs saw growth of +4.6% in Q1 2019, driven by the exceptional performance of consumer-targeted devices (sales up by +80%), especially monochrome printers (sales up by +113.1%), which is primarily due to falling ASPs as distributors use promotions and discounts to clear stock and get ready for the arrival of new models.

Consumer printers as a whole steadily increased their market share and drove overall imaging growth in Q1 2019, as they had done in 2018. Sales of business-targeted models, which account for 83% of laser MFP sales and 92.8% of revenue, dropped by -13.4% (leading to a fall in revenue of - 5.5%), mainly because the ASP is continuing to increase. This suggests companies (small and medium businesses) are replacing entry-level business-targeted models with mid- and high-level consumer- targeted devices.

Inkjet MFPs reversed the positive trend seen in 2018 with volume sales declining by -3.4% in Q1 2019. However, revenues were up by +2.3%, helped by increased sales in mid- and high-price ranges and driven by sales of monochrome and A3 devices, which saw revenue growth of +60% and +20.7% on the previous year. It is interesting to note the exceptional growth of A3 printer sales in the consumer segment (+145.4%) – another factor suggesting that SMBs are buying consumer inkjet devices with greater functionality to fulfil their commercial needs.

          Imaging unit sales and Y/Y change by category – WE distribution

     

 

Imaging sales and revenues declined in almost all WE countries in Q1 2019. Italy was the only top 5 WE country which continued to register a positive year-on-year performance in terms of both units and revenues. The increase there was driven by strong consumer sales from HP (sales up by +62%), Brother (+38%), Samsung (+15.6%) and Ricoh (+15.5%), which share 69.9% of the country’s printer market.

Spain also saw growth of both units and revenues in Q1 2019, reversing the negative trend of 2018.This positive performance was driven by mid-range and high-range consumer devices, and by brands such as Kyocera (sales up by +149.3%) and Epson (+11%), even though these have a combined market share of only just over 22%.

In the United Kingdom, where consumer confidence is low amidst Brexit-related uncertainty, last year’s positive trend was reversed and sales (units and revenues) declined in Q1 2019. There were falls in both consumer and business segments, and significant drops for brands such as Ricoh (year-on-year sales down by -90.5%), OKI (-36.8%), Epson (-34.3%), Lexmark (-9.9%), Canon (-9.1%), Xerox (-4.9%) and Brother (-3.5%), although other companies, which share 59.4% of the country’s printer market, saw smaller declines.

Germany and France continued to register negative year-on-year changes in volume sales and revenues, with strong falls in both consumer and business segments. This had an effect on all the brands which share over 94% of the printer market in these countries: Ricoh saw volume sales decrease (by -39.8%), as did Samsung (-33%), OKI (-31.4%), Kyocera (-16.7%), Epson (-15.4%), HP (-12.7%), Lexmark (-8%), Brother (-5.8%) and Canon (-3.7%).

 

     Graph - Y/Y change in imaging units sold through distributors – Top 5 WE countries

Table - Y/Y change in imaging units sold and revenue – WE distribution, Q1 2019

 

Looking ahead, the market is likely to see other changes alongside the ongoing shift from single-function to multifunction printers.

Managed print services (MPSs) that allow customers to transform their workplaces from paper to digital will continue to expand in 2019 as distributors and retailers use their partnerships with vendors to provide comprehensive, cloud-based MPS solutions to consolidate workplace printing. The emergence of enterprise Internet of Things (IoT) platforms offering asset management, fault detection, smart analytics and remote monitoring presents a broader opportunity for MPS providers to participate.

Over the next one or two years, we expect to see relatively fast growth in sales of production-standard inkjets, wide-format printers (both digital and inkjet), and digital toner-based devices. However, the five-specific print-market segments that are likely grow at a relatively higher rate are packaging and specialty packaging, labels and wrappers, signage, direct mail and point-of-purchase.

 




European network storage revenue growth driven by racks

London, 18 April 2019 – Revenues from network-attached storage (NAS) systems sold by West Europe IT distributors in the first two months of 2019 were +7.4% higher than over the same period last year according to the latest data published by CONTEXT, the IT market intelligence company. This growth was seen in revenues from NAS products designed for large enterprise customers, those aimed at small and medium business (SMB) customers, and products that can be used by either segment.

                                        NAS revenue: WE distribution

Although tower products saw the largest growth, with revenue up by +2737.7%, this is based on very small revenues in Jan–Feb 2018. Most of the increase came from sales of rack NAS systems: revenues from these grew by +19.3% year-on-year. This group’s performance was driven by sales of 1U and 2U racks, revenues from which were up by +22.3% and +18.5% respectively. Revenues from products whose form is not specified declined.

Desktop systems, which still make the biggest contribution to NAS revenues, have grown by +5.8% year-on-year.

              Desktop NAS system revenue share by number of bays: WE distribution

Since their introduction to the distribution channel in October 2017, products with only one bay have had a small but consistent share. However, so far this year the most widely adopted desktop systems have been those with two bays, closely followed by systems with four bays, both of which are designed for SMBs. These include Synology’s Disk Station, QNAP’s Turbo NAS TS and their latest addition, QNAP HS. Unsurprisingly, such products are largely sold through the consumer etail and small and medium reseller channels.

The continuing success of smaller desktop systems suggests that many SMBs have not been won over by the convenience of cloud storage but are instead choosing to store certain types of data locally.

The increase in revenues from rack systems, described above, shows that some larger businesses are also still investing in this type of storage. Despite some growth in the consumer etail channel, the corporate reseller channel has the largest revenue share and saw the greatest year-on-year growth.

 




Industrial-class 3D-printer shipments up +22% in H1 2018

Polymer INDUSTRIAL 3D-printer shipments up +18% year-on-year, led by growth from HP and Carbon; metal-focused INDUSTRIAL 3D-printer shipments up +30%, led by GE and EOS.

London, 24 October 2018 – On the heels of one of the largest general manufacturing shows in the world – September’s IMTS in Chicago -- and leading into one of the world’s most prominent additive-manufacturing trade events – November’s Formnext in September -- the INDUSTRIAL 3D-printer market finds itself on a good footing with shipments during the first half of the year up +22%. Shipments of INDUSTRIAL-class 3D printers which produce plastic/polymer components were +18% higher than a year ago, while those of INDUSTRIAL metal 3D printers were up +30% year-on-year.

Polymer-based 3D printers accounted for 68% of all INDUSTRIAL printers shipped during the first half of 2018, and the ongoing rise of shipments from HP and Carbon more than took up the slack from Stratasys which, although it remains the industry leader, continued to struggle. While Q2 was fantastic for 3D Systems, the leading publicly traded company in this market, most of its growth came from shipments of DESIGN and PROFESSIONAL printers. The company began shipping new products – including the much-anticipated Figure 4 systems – in Q3, so the second half of the year is expected to be strong. While most companies focused shipments on North America and Western Europe, UnionTech remained solid largely because of its focus on China.

     Chart 1: H1 2018 Global INDUSTRIAL polymer 3D-printer shipments by company

                           

The period continued to see even stronger interest in and growing demand for metal INDUSTRIAL 3D printers, with shipments +30% higher than a year ago. All major vendors witnessed growth with EOS and GE Additive as joint leaders by market share. While they did not ship in bulk in the first half of the year, Desktop Metal has now begun supplying their lower-priced Studio system; with a strong and growing backlog of orders, this company is expected to enter the global Top 5 before the end of the year. Having just introduced its Metal Jet technology to the world, HP will also join leaders EOS, GE Additive, SLM, 3D Systems, TRUMPF and Renishaw in the years to come. HP will enter the metals side of industrial 3D printing in a slow and methodical fashion and the full market impact is not expected to be clear before 2020. Like Desktop Metal’s first product (as well as its larger and more exciting Production System which is set to hit the market next year) HP’s Metal Jet focuses on mainstream manufacturing across all sectors, rather than just the aerospace, automotive and medical industries where metal 3D printing already thrives.

       Chart 2: H1 2018 Global INDUSTRIAL metal 3D-printer shipments by company

                             

 

INDUSTRIAL-class models are not the only 3D printers on the market: many of the companies mentioned above also offer DESIGN and PROFESSIONAL printers, and there is an almost entirely different set of vendors that sell PERSONAL 3D Printers. However, INDUSTRIAL 3D-printer shipments represented 70% of total printer revenues in H1 2018. “The INDUSTRIAL class of 3D printers is currently the most closely monitored, due to its ability to disrupt the $12T global manufacturing industry,” notes Chris Connery, VP for Global Analysis at CONTEXT.

 

* 3D-printer segment by ASP: INDUSTRIAL ≥ $100K, DESIGN = $20K–$100K, PROFESSIONAL = $2.5K–$20K, PERSONAL ≤ $2.5K

ru_form

Receive the latest Research Updates in your inbox

ru_channel

Research Updates are drawn from CONTEXT’s full suite of analysis tools covering the whole technology supply chain.

  • Business Analytics

    Set targets, take action and measure results


    + Define your strategic market point of view

    + Take fact based decisions

    + Assess results at each stage of the value chain

    Find out more
  • Business Analytics

    Set targets, take action and measure results


    + Define your strategic market point of view

    + Take fact based decisions

    + Assess results at each stage of the value chain

    Find out more