Gartner Dataquest Guide - Michigan Ross · Digital Documents and Imaging Guide Gartner Dataquest...

Digital Documents and ImagingGuide

Gartner Dataquest Guide

Publication Date: 16 January 2004

©2004 Gartner, Inc. and/or its Affiliates. All Rights Reserved.

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Publication Date: 16 January 2004

Digital Documents and ImagingGuide

Gartner Dataquest Guide

Authors Camille D. IornsCecile GobinFederico De Silva LeonJohn ChatzidakisTosh PrabhakarTomoko MitaniLai-ling LamAndrew JohnsonPeter J. GrantLynn RitterDon DixonDavid HaueterSharon McNeeMalcolm Hancock

This document has been published to the following Marketplace codes:

HARD-WW-GU-0015

For More Information...In North America and Latin America: +1-203-316-1111In Europe, the Middle East and Africa: +44 1784 267770In Asia/Pacific: +61-7-3405-2582In Japan: +81-3-3481-3670Worldwide via gartner.com: www.gartner.com

Entire contents © 2004 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction of this publication in any formwithout prior written permission is forbidden. The information contained herein has been obtained from sources believed tobe reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shallhave no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. Thereader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressedherein are subject to change without notice. 118820

©2004 Gartner, Inc. iii

Table of ContentsPage

1. Market Statistics Overview and Methodology............................................................................................. 1Market Share Methodology ........................................................................................................................ 1Forecasting Methodology............................................................................................................................ 2Forecasting Goals.......................................................................................................................................... 2Worldwide Geographic Regional Definitions .......................................................................................... 2

Asia/Pacific............................................................................................................................................... 2Rest of Asia/Pacific.................................................................................................................................. 3Western Europe ........................................................................................................................................ 3Eastern Europe.......................................................................................................................................... 3Rest of Eastern Europe ............................................................................................................................ 3Japan........................................................................................................................................................... 3Latin America ........................................................................................................................................... 3Rest of Latin America .............................................................................................................................. 3Middle East/Africa .................................................................................................................................. 3Rest of Middle East/Africa..................................................................................................................... 4North America.......................................................................................................................................... 4

Research Metrics ........................................................................................................................................... 4Exchange Rates ............................................................................................................................................. 5Market Segments .......................................................................................................................................... 5Vertical Market Definitions ......................................................................................................................... 6Distribution Channels.................................................................................................................................. 6Channel Definitions ..................................................................................................................................... 6

Direct Channel .......................................................................................................................................... 6Indirect Channel ....................................................................................................................................... 7OEM Channel ........................................................................................................................................... 8

Companies Surveyed ................................................................................................................................... 82. Copiers.............................................................................................................................................................. 11

Overview ..................................................................................................................................................... 11Product Segmentation................................................................................................................................ 11

Monochrome Copier Segmentation..................................................................................................... 11Color Copier Segmentation .................................................................................................................. 11

Product Definitions .................................................................................................................................... 12Monochrome Copier Definitions ......................................................................................................... 12Color Copier Definitions ....................................................................................................................... 12

3. Printers ............................................................................................................................................................. 15Overview ..................................................................................................................................................... 15Product Segmentation................................................................................................................................ 15Product Definitions .................................................................................................................................... 17

4. Facsimiles ......................................................................................................................................................... 19Overview ..................................................................................................................................................... 19Product Segmentation................................................................................................................................ 19Product Definitions .................................................................................................................................... 20

5. Multifunctional Products............................................................................................................................... 21Overview ..................................................................................................................................................... 21Product Segmentation................................................................................................................................ 21Product Definitions .................................................................................................................................... 22

Appendix A — Glossary of Terms .......................................................................................................................23

iv Digital Documents and Imaging Guide

©2004 Gartner, Inc. 16 January 2004

List of TablesTable Page

5-1 MFP Market Segmentation.................................................................................................................... 21A-1 Report Glossary ...................................................................................................................................... 23

©2004 Gartner, Inc. and/or its Affiliates. All Rights Reserved. 1

Chapter 1Market Statistics Overview and Methodology

Each year, Gartner Dataquest surveys vendors to estimate quarterly andannual shipments and end-user spending and develops market size estimatesfor the copier, printer, facsimile and multifunctional product (MFP) industries.The frequency of the surveys varies by product category and region.

The information gathered from these surveys enables Gartner Dataquest tomaintain a dynamic database of market data for each industry segment. Thecategories are comprehensively defined to provide clarity to surveyparticipants as well as those who use Gartner Dataquest's digital documentsand imaging market data. These category definitions are revised each year toreflect changes in technology, products and regional issues.

Market Share MethodologyGartner Dataquest's market statistics methodology combines primary andsecondary sources to produce the Market Statistics documents. GartnerDataquest surveys all major participants within the digital documents andimaging industry in the Asia/Pacific, Europe, Middle East and Africa, Japan,North America and Latin America regions. This primary research issupplemented with additional research to verify market size, shipment totalsand pricing information. Sources of data used by Gartner Dataquest include,but are not limited to, the following:

■ Interviews with manufacturers, distributors and resellers

■ Information published by major industry participants

■ Estimates made by reliable industry spokespersons

■ Government data or trade association data

■ Published product literature and price lists

■ Relevant economic data

■ Articles in the general press and the trade press

■ Published company financial reports

■ Reports from financial analysts

■ Information and data from online and CD-ROM data banks

■ End-user surveys

The Market Statistics data is the most accurate and meaningful available.However, despite the care taken in gathering, analyzing and categorizing thedata, careful attention must be paid to the definitions and assumptions.Various companies, government agencies and trade associations may useslightly different definitions of product categories and regional groupings,or they may include different companies in their summaries. These differencesshould be kept in mind when making comparisons between data andnumbers provided by Gartner Dataquest and those provided by other researchorganizations.

2 Digital Documents and Imaging Guide

©2004 Gartner, Inc. and/or its Affiliates. All Rights Reserved. 16 January 2004

Forecasting MethodologyWe adhere to generic best-practice forecasting methodology guidelines thatare supplemented as needed with specific methodology for each industryresearch area. Forecasting is the meeting ground for the qualitative art ofintuition and the quantitative science of data analysis. A sound forecastingprocess incorporates art and science into a logical and coherent series of steps,which, if conducted in an organized, management-supported fashion, willensure forecasting effectiveness, reliability and accuracy, as well as provide avaluable tool for developing sound market strategies.

Forecasting GoalsWe aim at providing clients with forecasts that are as useful, credible andaccurate as possible. Because it is impossible to always be right, it is importantto provide clients with details of the assumptions that built the forecasts.Gartner Dataquest realizes that clients measure its credibility by evaluating thehistorical accuracy and the quality of written forecast assumptions. This is notto imply that a conservative approach is called for. When we fail to accuratelyforecast a completely new market, we have failed to inform the client of theopportunity. Gartner Dataquest uses tools and processes that maximizeGartner's overall presence in the market research industry by sharing processesand time frames, so that a unified, coherent picture of the IT market is built.

For several years, the process of developing IT market forecasts has beenundergoing continued refinement at Gartner Dataquest. Today, the processdraws upon Gartner Dataquest industry experts and client feedback to devise aforecast that is consistent internally and meets client expectations. The processassimilates vast amounts of disparate and aggregated data, which is moldedinto a forecast that is scrutinized and scrubbed by many seasoned analysts. Thecompletion of a typical long-term forecast takes about three to six weeks,depending on the product area, with several major steps.

The amount of time and effort that goes into a forecast varies from period toperiod and is also heavily dependent on the technology area being forecast.Generally, forecasts produced after the release of annual data are the mosttime-consuming and require the most attention. Also, unexpected economicdevelopments can affect the complexity and duration of the forecastingprocess.

Worldwide Geographic Regional DefinitionsThe following regional hierarchy and definitions are used for all of GartnerDataquest's geographic segmentation.

Important note: Not all Gartner Dataquest services report all product categoriesand segmentation. Some may have a greater level of detail and some may haveless. Please refer to the Gartner Dataquest digital documents and imagingscope sheet for specific market coverage.

Asia/PacificThe Asia/Pacific region includes Australia, China, Hong Kong, India,Indonesia, South Korea, Malaysia, New Zealand, Philippines, Singapore,Taiwan, Thailand and Vietnam.

Market Statistics Overview and Methodology 3


Rest of Asia/PacificThe Rest of Asia/Pacific includes American Samoa, Ashmore and CartierIslands, Baker Island, Bangladesh, Bhutan, Bouvet Island, Brunei, Cambodia,Christmas Island, Cocos (Keeling) Islands, Cook Islands, Coral Sea Islands,Federated States of Micronesia, Fiji, French Polynesia, Guam, Howland Island,Jarvis Island, Johnston Atoll, Kingman Reef, Kiribati, Laos, Macau, Maldives,Marshall Islands, Midway Islands, Mongolia, Myanmar (Burma), Nauru,Nepal, New Caledonia, Niue, Norfolk Island, Northern Mariana Islands,North Korea, Pakistan, Palau, Palmyra Atoll, Papua New Guinea, ParacelIslands, Pitcairn Islands, Solomon Islands, Spratly Islands, Sri Lanka, Tokelau,Tonga, Tuvalu, Vanuatu, Wake Island, Wallis and Futuna, and Western Samoa.

Western EuropeThe Western European region consists of Austria, Belgium, Denmark, Finland,France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain,Sweden, Switzerland and the United Kingdom.

Eastern EuropeThe Eastern European region consists of the Baltics (Estonia, Latvia andLithuania), Bulgaria, Czech Republic, Hungary, Poland, Romania, Russia,Slovakia, Slovenia and Ukraine.

Rest of Eastern EuropeThe Rest of Eastern Europe region includes Albania, Armenia, Azerbaijan,Belorussia, Bosnia and Herzegovina, Croatia, Georgia, Kazakhstan,Kyrgyzstan, Macedonia, Moldova, Tajikistan, Turkmenistan, Uzbekistanand Yugoslavia (Serbia and Montenegro).

JapanJapan is a single-country region.

Latin AmericaThe Latin America region consists of Argentina, Brazil, Chile, Colombia,Mexico, Peru and Venezuela.

Rest of Latin AmericaThe Rest of Latin America region includes Anguilla, Antigua and Barbuda,Aruba, Bahamas, Barbados, Belize, Bermuda, Bolivia, Cayman Islands,Clipperton Island, Costa Rica, Cuba, Dominica, Dominican Republic, Ecuador,El Salvador, Falkland Islands, French Guiana, Grenada, Guadeloupe,Guatemala, Guyana, Haiti, Honduras, Jamaica, Martinique, Montserrat,Navassa Island, Netherlands Antilles, Nicaragua, Panama, Paraguay, PuertoRico, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines,Suriname, Tortola (British Virgin Islands), Trinidad and Tobago, Turks andCaicos Islands, Uruguay and Virgin Islands (St. John, St. Croix and St. Thomas).

Middle East/AfricaThe Middle East/Africa region consists of Israel, South Africa and Turkey.



Rest of Middle East/AfricaThe Rest of Middle East/Africa region includes Afghanistan, Algeria, Angola,Bahrain, Bassas da India, Benin, Botswana, Burkina Faso, Burundi, Cameroon,Cape Verde, Central African Republic, Chad, Comoros, Congo, Cote d'Ivoire,Djibouti, Egypt, Equatorial Guinea, Eritrea, Ethiopia, Europa Island, Gabon,Gambia, Ghana, Glorioso Islands, Guinea, Guinea-Bissau, Iran, Iraq, Jordan,Juan de Nova Island, Kenya, Kuwait, Lebanon, Lesotho, Liberia, Libya,Madagascar, Malawi, Mali, Mauritania, Mauritius, Mayotte, Morocco,Mozambique, Namibia, Niger, Nigeria, Oman, Qatar, Reunion, Rwanda,Saint Helena, Sao Tome and Principe, Saudi Arabia, Senegal, Seychelles, SierraLeone, Somalia, Sudan, Swaziland, Syria, Tanzania, Togo, Tromelin Island,Tunisia, Uganda, United Arab Emirates, Western Sahara, Yemen, Zaire,Zambia and Zimbabwe.

North AmericaThe North America region consists of the United States and Canada.

Research MetricsThe following describes the research metrics that Gartner Dataquest uses forreporting market revenue, market size and market share:

■ Engine manufacturer — A producer of branded or unbranded finishedproducts. A manufacturer could be a contract manufacturer, an originalmanufacturer, or both.

■ Compound annual growth rate (CAGR) — The annualized rate of revenue orunit shipment growth over a given time period, assuming growth takesplace at an exponentially compounded rate. CAGR simply represents anannualized rate of growth assuming annual compounding. The CAGRbetween years X and Z, where Z - X = N is the number of years between thetwo given years, is calculated as follows:

CAGR Year X to Year Z = [(Value in Year Z/Value in Year X) ^ (1/N) -1]

For example, the CAGR for 1999 to 2004 is calculated as follows:

CAGR 1999 to 2004 = [(Value in 2004/Value in 1999) ^ (1/5) -1]

■ End user — The final user of a product or the final purchaser of a service forIT products or technology. The final purchaser may or may not be the actualend user, but the outflow of the product stops at the end user.

■ Vendor — The last entity in the manufacturing chain that brands a productand sells it either directly to end users or through a channel. A vendor maydesign and manufacture its own products, assemble complete systems fromcomponents produced by others, or procure products from an originalequipment manufacturer (OEM) or contract manufacturer. A vendor mayalso provide services for its own products or for other vendors' products,and may also provide services for other technologies.

■ Shipments — The sum of the branded finished products delivered from avendor directly to either the end user or the distribution channel.

■ Average selling price (ASP) — The average net price per unit received uponsale or lease of the unit to the customer.

■ End-user spending — The ASP multiplied by the sum of the total shipments.



Exchange RatesOnce data denominated in foreign currency is collected, Gartner Dataquestuses the average currency exchange rate for the relevant time period to expressthe data in U.S. dollars. The average exchange rate for a given quarter iscalculated by summing the exchange rates for the three months of the quarterand dividing the sum by three. Similarly, the average exchange rate for a year iscalculated by summing the exchange rates for the 12 months of the year anddividing the sum by 12.

The exchange rate used is determined by the precise period of time beingevaluated. Most of our historical market sizing and market share data isevaluated on a calendar year or calendar quarter basis. However, in evaluatingthe fiscal year or fiscal quarter performance of an individual company, anexchange rate must be calculated for the specific fiscal period under review. Forexample, NEC's fiscal year ends 31 March. Therefore, when evaluating NEC'sfinancial performance in U.S. dollars, the proper exchange rate would be theaverage yen-per-dollar exchange rate for the 12 months beginning 1 April ofthe previous year and ending 31 March of the current year.

When converting a company's local currency sales into U.S. dollars, or viceversa, it is important to use the 2003 exchange rates provided by GartnerDataquest. This will prevent inconsistencies in the conversion of offshore salesbetween companies.

Market SegmentsThe major market segments are the following:

■ Business

■ Home

■ Government

■ Education

These segments are further broken down as follows:

■ Business — Business is defined as a person, partnership or corporationengaged in commerce, manufacturing or service. A business could be runout of a store, office, factory or the like. Business segments are reported bynumber of employees at a site. The standard three categories of business sizeare as follows:

❑ Small businesses

■ 1 to 19 employees


❑ Midsize businesses


❑ Large businesses


■ 1,000 or more employees

❑ Individual regions or programs may use more detailed categorization asfollows:










■ 1,000 or more employees

■ Home — A home purchase is an item that has been paid for by privatefunds. It includes all products whose primary use is for personal,"edutainment" and home office purposes. It excludes home business usewhere the cost has been written off against a company's (or charity's)accounts.

■ Government — Includes executive, legislative, judicial, public order, safety,finance, taxation, monetary policy, administration of human resources,environmental quality, housing, economic programs, national security(military), space and international affairs. This includes local government,central government and other governments.

■ Education — Education includes elementary, secondary and highereducation (two-, three-, and four-year institutions, public or private,including research and other education).

Vertical Market DefinitionsThe 13 segments have been mapped with the U.S. Standard Industrial Code(SIC), the European Community economic activity code (NACE) and theAustralia and New Zealand Standard Industrial Code (ANZSIC).

Distribution ChannelsDistribution channels are responsible for the acquisition (by sale, rental orlease) and transfer of the product from the manufacturer or vendor to the site ofthe end user; in most cases, they are also responsible for servicing theseproducts.

The fundamental element of a successful and efficient distribution policy is aset of consistent terminology that defines the different channels. Thesedefinitions must allow genuine channel comparisons to be made across each ofthe different countries and for each product segment.

Channel DefinitionsTo describe the path by which a product moves from manufacturer to end user,Gartner Dataquest defines two main types of channel within the digitaldocuments and imaging industry — direct and indirect.

Direct ChannelThe direct channel is defined as encompassing a vendor-owned sales force, fax,phone, Web and retail.

Direct Sales ForcesThe vendor sells directly to the end user via an outbound sales force, mainlytargeting management information system managers in large and midsizecorporate accounts, governments and centralized education contracts.



Direct Fax, Phone and WebThe vendor sells directly to the end user via facsimile, phone, mail order, orcatalog techniques. This is an unusual channel for printer vendors.

All customers are targeted, from the home to the large business markets.Customers are typically computer-literate and so do not demand printersolutions or expertise.

Direct RetailA vendor sells its own products to users through its own chain of stores. This isalso an unusual channel for printer vendors.

An agent has a similar role to a dealer in that it distributes (and services)products for a vendor. Xerox is the most notable vendor to use agents(or concessionaires) in Europe.

Indirect ChannelThe office equipment dealer chain and local dealers are the most prominentindirect channels used in the copier and printer industry, although thedistributor channel should not be overlooked.

Distributors/WholesalersDistributors contract with vendors to distribute products to other outlets foreventual sale to end users: A distributor acts as an intermediary between amanufacturer and another reseller. Distributors are essentially wholesalers thatpurchase a large quantity of machines at attractive prices, stock them in awarehouse and supply units to dealers as required. Although distributors areused extensively within the printer and PC industries, copier distributorsgenerally are used exclusively in a European country where the vendor has nodirect subsidiary. In the United States, few copier vendors use distributors forlow-end products in addition to their main channels.

Value-Added ResellersFor customers wishing to acquire solutions rather than just boxes of hardware,value-added resellers (VARs) are a good choice. Most VARs have expertise inone or more vertical markets. They depend on their solution expertise togenerate revenue rather than relying on margins generated from the sale ofhardware.

DealersCopier dealers are also dedicated to selling fax machines, but, generally,printers are sold through specialized printer dealers and other channels.Traditionally, all major vendors used the dealer channel, which, in most cases,was also responsible for servicing the products. Vendors may use a local dealeror a dealer chain offering wider coverage to distribute and service theirproducts.

Local dealers are reseller operations with three or fewer outlets in a givencountry. They rely mainly on face-to-face and walk-in traffic to generatebusiness.

Dealer chains are reseller operations with multiple (more than three) outlets ina given country; their principal sales method is face-to-face. The target cus-tomer groups are midsize and large businesses, as well as education and gov-ernment. Dealer chains generally use an outbound sales force to provideaccount management services and, thus, are generally focused on the larger ITcontracts.



Indirect Fax, Phone and WebThis is the channel through which resellers sell a variety of products to endusers through the use of the telephone, Web, fax and fax-back and mailincluding catalog sales. This is different from the direct fax, phone and Webchannel in that the products are sold by resellers rather than directly by thevendor.

PC StoresPC stores are reseller chains (more than three outlets in a given country). Theirprincipal sales method is walk-in. The key differentiator between PC stores anddealer chains is the sales method used: Whereas PC stores rely on walk-in,dealer chains rely on face-to-face.

PC SuperstoresPC superstores are typified by their size: Their floor space is usually 1,000square meters or more.

General MerchandisersGeneral merchandisers are characterized by the fact that they are not dedicatedto computer products, and typically less than 50 percent of their revenue isderived from computer products.

OEM ChannelThe term OEM is more often used to describe a copier vendor that distributescopiers produced by another company under its own brand name. Forexample, Kyocera Mita is a manufacturer, but also supplies products to be soldunder the Olympia, Triumph-Adler and Utax OEM brands.

Companies SurveyedThe following companies are surveyed:

■ Alaska

■ AMT Datasouth

■ APTi

■ Brother

■ Cano

■ Casio

■ Chungho

■ Citizen

■ Comparex

■ Compuprint

■ Danka/Infotec

■ Dell

■ Develop

■ Elex Tech

■ Epson

■ Firstec

■ Founder Electronics



■ Fujifilm

■ Fujitsu

■ Fuji Xerox

■ Futek

■ GCC Technologies

■ Genicom

■ Gestetner

■ Great Wall

■ Heidelberg

■ Hewlett-Packard

■ Hitachi Printing Solutions

■ IBM

■ Imagistics

■ JBCC

■ Konica Minolta

■ Kyocera Mita

■ Lanier

■ Ledomars

■ Lenovo

■ Lexmark

■ Lipi Data Systems

■ MB

■ Memorex Telex

■ Minolta-QMS

■ Mitsubishi

■ Muratec

■ Nantian

■ NEC

■ Newbury Data

■ Nipson

■ NRG

■ Oce

■ Oki Data

■ Oki Electric

■ Olivetti

■ Olympia

■ Olympus

■ OTC

■ Panasonic

■ Penrod



■ PFU

■ Printec

■ Printronix

■ PSi

■ Ricoh

■ Samsung Electronics

■ Savin

■ Seiko Precision

■ Sharp

■ Sindoricoh

■ Sony

■ Star

■ Start

■ TaeHeung

■ Tally

■ Toshiba

■ TriGem Computer

■ Triumph-Adler

■ TVSE

■ Utax

■ VeriTek

■ Visara

■ WEP India

■ Xante

■ Xeikon

■ Xerox

■ Yangjae

■ Y-E Data

Gartner Dataquest will also take into account new entrants to the market.


Chapter 2Copiers

OverviewThe digital document and imaging services encompass market statistics andin-depth market analysis for the monochrome and color copier markets in theUnited States, Japan, Asia/Pacific, and the region comprising Europe, theMiddle East and Africa.

A copier is defined as an image-duplicating device with an integrated platenused to make copies and facilitate scanning and scan-to applications, andwhich can receive images for printing. The copier will integrate an imageformation process that receives a scanned image (from the scanner or network),exposes that image to a photoconductor and then transfers the image to avariety of media, including paper, transparencies and so forth.

To be classified in Gartner Dataquest's segmentation, the device must becapable of using plain or coated papers with a minimum size of ISO A4 orU.S. size A (letter), or continuous forms with an 8-inch print width or greater.The segmentation excludes products that support paper widths above A2 orU.S. size C (17 x 22 inches).

Each quarter, Gartner Dataquest surveys vendors to estimate their shipmentsof monochrome and color copiers. The survey covers vendors that are active inone or more of the seven product segments defined in the following sections.

The information gained is supplemented and cross-checked with GartnerDataquest's various other information sources.

Product SegmentationGartner Dataquest divides the monochrome copier market into segmentsaccording to multicopy speed. The color copier market is divided intosegments according to technology and then further segmented by speed.

Monochrome Copier SegmentationThe monochrome copier market is divided into the following seven segments:

■ Segment Personal Copier (Segment PC) — 1 to 10 pages per minute (ppm)

■ Segment 1 — 11 to 20 ppm





■ Segment 6 — 91 ppm or more

Color Copier SegmentationGartner Dataquest segments the color copier market by technology —electrophotographic and inkjet. Inkjet copiers are not segmented by speed.



Color copiers of electrophotographic technology are segmented furtheraccording to full-color multicopy speed, as follows:

■ 1 to 10 ppm

■ 11 to 20 ppm

■ 21 to 30 ppm

■ 31 to 40 ppm

■ 41 to 69 ppm

■ 70 to 90 ppm

■ 91 ppm or more

There are no color copiers in categories above 41-69 ppm.

Product Definitions

Monochrome Copier Definitions

Analog and Digital TechnologiesGartner Dataquest analysis covers analog and digital copier technologies. Thetwo technologies are defined as follows:

■ Analog copiers — Image capture and transfer using optical or "light lens"technology in which the image is flash illuminated on the platen, thentransferred to the photoconductor through a series of lenses and mirrors. Thelatent image is then transferred from the photoconductor to paper throughthe electrophotographic process.

■ Digital copiers — Image capture using digital scanning and image transferusing electronic impulse in which the image is scanned from the platen anddigitized into electronic data. The electronic data is processed to enable theimage to be transferred to the photoconductor. The electronic image data isthen transferred to the photoconductor through the light impulses of a laseror LED to "write" the image to the photoconductor material. The latent imageis transferred from the photoconductor to paper through the electrophoto-graphic process, as with an analog copier.

Copiers using analog technology are no longer being introduced.

Multifunctional Products With Copier PlatensFrom 1998, copier market statistics include monochrome MFPs with flatbedscanners or copier platens. Historical data has been revised to reflect thischange, providing a year-over-year comparison. Via MarketView 2.0 and Excelpivot tables, it is easy for clients to exclude these MFPs if required.

Color Copier Definitions

Color Copier TechnologiesThe two basic technologies are electrophotographic and inkjet color copying.

Copiers 13


ElectrophotographicElectrophotography is a process by which a developed image is transferredfrom a reusable photoconductive medium to the final image paper. Thephotoconductor is an electrical insulating material with electrical conductivitythat increases when exposed to a light source; this material is plated onto aconductive substrate. The output medium is uncoated plain paper, althoughhigher-quality paper can be used for enhanced results. The image is developedusing cyan, magenta and yellow toners and developers. A black toning cyclemay also be included to improve copy quality.

Electrophotographic color has several potential advantages compared withother color-reproduction processes: excellent copy quality, faster copy speeds,low supplies costs and the use of plain paper.

InkjetTwo basic types of inkjet imaging are employed — liquid and solid. The liquidcategory comprises two primary types — continuous jet and drop-on-demand.All of the associated inkjet processes work by sending droplets of ink from anozzle to the output medium. Continuous inkjet systems send out a constantstream of drops that are deflected or allowed to continue to the paper,depending on the digital signal. By contrast, drop-on-demand units producedrops only when directed by the signal. Solid inkjet devices are similar todrop-on-demand systems in that they also produce drops only when necessary;the difference is that these drops are first obtained by melting the crayon-likesolid ink.

Color inkjet technology is capable of generating excellent color graphicstogether with good text quality. In addition, color inkjet devices can havelow-to-moderate pricing for machines and supplies.


Chapter 3Printers

OverviewEach quarter, Gartner Dataquest surveys electronic printer vendors to estimatequarterly sales and develop printer market size estimates for the major marketsin the world. The survey covers about 70 vendors that are active in one or moreof the following three product segments:

■ Serial printers

■ Line printers

■ Page printers

The information gathered from this survey enables Gartner Dataquest tomaintain its dynamic database of printer data for each product segment. Thisinformation is supplemented and cross-checked with Gartner Dataquest'svarious information sources and published in the database software toolMarketView 2.0 and Excel pivot tables. Gartner Dataquest's final electronicprinter annual market share estimates are published in depth in a MarketTrends document.

Product SegmentationGartner Dataquest defines the printer market according to the followingsegmentation scheme:

■ Serial printers

❑ Dot matrix technology segments

■ 9 pins

■ 18 pins

■ 24 pins

❑ Dot matrix speed segments (under a draft mode of 10 characters per inch)

■ 0 to 180 characters per second (cps)

■ 181 to 250 cps

■ 251 to 399 cps

■ 400 cps or more

❑ Inkjet printers

■ Monochrome

■ Color

❑ Color-capable

❑ Photo

❑ Photo-capable

❑ Serial thermal transfer printers

■ Line printers

❑ Line matrix and line-fully-formed printer speed segments

■ 0 to 200 lines per minute (lpm)

■ 201 to 450 lpm



■ 451 to 650 lpm

■ 651 to 1,050 lpm

■ 1,051 to 1,250 lpm

■ 1,251 to 1,650 lpm

■ 1,651 lpm or more

❑ Line thermal transfer printers

■ Page printers

❑ Speed segments based on the monochrome speed of the page printers

■ 1-6 ppm

■ 7-10 ppm

■ 11-15 ppm

■ 16-20 ppm

■ 21-30 ppm

■ 31-40 ppm

■ 41-50 ppm

■ 51-69 ppm

■ 70-90 ppm

■ 91-150 ppm

■ 151 ppm or more

❑ Speed segments based on the color speed of the page printers

■ 1-6 ppm

■ 7-10 ppm

■ 11-15 ppm

■ 16-20 ppm

■ 21-30 ppm

■ 31-40 ppm

■ 41-50 ppm

■ 51-69 ppm

■ 70-90 ppm

■ 91 ppm or more

Printers 17


Product DefinitionsGartner Dataquest defines a printer as a peripheral output device of acomputer system for producing computer-generated images on paper using anumber of different marking technologies. To be classified in GartnerDataquest's segmentation, the device must be capable of using plain or coatedpapers with a minimum size of ISO A6 or U.S. size 6 x 4, or continuous formswith an 8-inch print width or greater. The segmentation excludes products thatsupport paper widths above A2 or U.S. size C (17 x 22 inches). GartnerDataquest also excludes other classes of application-specific printers, such aspoint-of-sale printers, video printers and dedicated small-format printers.

■ Serial printer — A printer that produces images by using a printhead thattravels across the width of the paper on a carriage mechanism.

❑ Serial dot matrix printer — A printer that creates a character image byselectively placing individual dots on the substrate using mechanicalforce. These include the following:

■ 9 wire — Printers with 9-pin printheads



❑ Inkjet printer — A printer that creates the desired image by emitting inkfrom an array of orifices or nozzles. Inkjet printers include the following:

■ Monochrome inkjet — An inkjet printer that only prints a black image

■ Color inkjet — An inkjet printer that prints with a minimum of the fourbasic colors (cyan, magenta, yellow and black, or CMYK) resident in theprint head at the same time. Additional colors may also be present toenhance the quality of image produced.

❑ Color-capable inkjet — An inkjet printer that prints either withthe basic CMY colors or a single black cartridge. It is typically asingle-cartridge product. It may have additional quality-enhancement ink cartridges available with "light-colored inks."

❑ Photo inkjet — An inkjet printer with 6 inks permanently resident.The inkjet printers with memory cards or direct connections tocamera also qualify as photo printers.

❑ Photo-capable inkjet — An inkjet printer with four colors residentand the possibility to replace the black cartridge with a photocartridge for the photo-capable inkjet printer to then support six inks

❑ Serial thermal transfer printer — A printer that creates the desired imageone dot at a time using point-specific heat to transfer ink from a ribbon toa receiving substrate

■ Line printer — A printer that prints one line at a time

❑ Line dot matrix printer — A printer that forms text and graphics in one ormore rows of dots at a time, using an array of print elements that exertmechanical force through a ribbon onto the page

❑ Line fully formed printer — A printer that creates one line of characters ata time by placing characters from a band, type train or drum on the paperby the pressure of a mechanism (hammer)

❑ Line thermal transfer printer — A printer that prints one line at a time,using an electrically heated element to produce images. These arecommonly referred to as wax thermal transfer and dye sublimationtechnologies. Examples include Fargo's Primera Pro, Imation's Rainbowseries and Tally's Spectra*Star series.



■ Page printer — A printer that prints one page at a time. This includes thefollowing types of printer:

❑ Laser printer — An electrophotographic printer in which laser beams areused to transfer images to a photoreceptor (drum). It has the ability tobuffer, in part or in whole, a page of images received from an electronicsource and then transfer these images to a receiving substrate.

❑ LED printer — An electrophotographic printer in which precisely alignedarrays of light-emitting diodes (LEDs) are used to expose the print drum.

❑ Solid ink printer — An inkjet printing technology in which solid inks areliquefied by heating and then sprayed onto the page, where the inkimmediately resolidifies. Solid inkjet can print on a wide range of papertypes because the solid ink does not wick into paper to degrade the image.Solid ink printers are included in the page-printer market because itcompetes directly against the laser printers.

❑ Electron beam, imaging ion deposition and magnetography are examplesof other technologies that can be used in page printers.

■ A3/A2 paper size — This category includes printers with the capability ofprinting paper between A3 (U.S. B) size and A2 (U.S. C) size.

■ A4 paper size — This category includes printers with the capability ofprinting A4 (U.S. A) size paper.

■ A6 paper size — This category includes printers with the capability ofprinting A6 (U.S. size 6 x 4) size paper.

The following are paper dimensions:

■ United States — U.S. size 4 x 6, A (8.5 x 11 inches), B (11 x 17 inches), C(17 x 22 inches)

■ Europe — A6 (4 x 6 inches or 100 x 150 mm), A4 (8.3 x 11.7 inches or 210 x 297mm), A3 (11.7 x 16.5 inches or 297 x 420 mm), A2 (16.5 x 23.4 inches or 420 x594 mm)

The following are printing speed descriptions:

■ cps — Characters per second

■ lpm — Lines per minute

■ ppm — Pages per minute


Chapter 4Facsimiles

OverviewEach quarter, Gartner Dataquest surveys facsimile machine vendors to estimateshipments and develop market size estimates for the major markets in theworld. The survey covers the top 26 vendors active in one or more of thefollowing product segments:

■ Print method — Thermal, laser, LED, thermal transfer recording (TTR),monochrome inkjet and color inkjet

■ Output volume range — Low-end, midrange and high-end segments

■ Modem speed — 9.6 Kbps, 14.4 Kbps and 28.8/33.6 Kbps

■ Functionality — Single-function fax products vs. MFPs

■ Distribution channel — Direct, dealer and retail

The categories for which facsimile product unit shipments and end-userspending are reported are comprehensively defined for the purpose ofproviding clarity and guidance to survey participants as well as those who useGartner Dataquest's facsimile machine market data. These definitions arerevised, altered or expanded each year to reflect changes in the facsimilemarket and facsimile technologies.

Product SegmentationGartner Dataquest uses the following segmentation:

■ Modem speed — Composed of 9.6 Kbps, 14.4 Kbps and 33.6 Kbps

■ Volume — The plain paper volume category is divided into low-end,midrange and high-end segments based on machine specifications (standardpaper and memory capacity) and typical machine usage. Typical machineusage varies greatly by specific fax traffic patterns and applications. Thefollowing ranges apply:

❑ Low-end models have fewer than 250 sheets of paper, have limited imagememory capacity and functionality, and are typically used in small office/home office (SOHO) environments. A single individual in a largercompany also uses these models.

❑ Midrange models have standard paper capacity of between 250 and 499sheets of paper and less than 1Mb of image memory. Although somemodels in this segment can be configured with larger paper and imagememory options, Gartner Dataquest looks at standard machine capability.These models are generally used in the office and serve workgroups fromfive to 50 employees.

❑ High-end models have standard 500-sheet paper capacity and more than1Mb of memory. These models are used primarily in office environmentsthat process high-volume fax traffic.

■ Single-function and MFPs — Some products have multiple functions asstandard features. All of these products are counted as MFP shipments in themarket share and forecasts. Other products are single function in their basicform and gain their multifunction status with the addition of an optionalaccessory. In this case, only those products being sold with this optionalaccessory are counted as MFPs. The cost of the accessory (port or server) isincluded in the end-user average purchase price of the MFP.



Product DefinitionsGartner Dataquest uses the following product definitions to discuss faxproducts:

■ Facsimile — Equipment that allows hard copy (written, typed or drawnmaterial) to be sent through the switched telephone system and printed outelsewhere

■ Thermal printing facsimile — Thermal printing is a process that uses the heatfrom a thermal printhead to darken chemically treated paper. Thermal paperis coated paper that reacts to heat. When the paper passes through theprinter assembly, it comes in contact with a thermal printhead array and theheater elements turn on to activate the thermal coating to create the image.The only supply item used is thermal paper.

■ Plain paper facsimile — Plain paper fax machines use the same kind of paperfound in standard office copiers. The plain paper fax category is composed oflaser, LED, inkjet and thermal transfer print types.

■ Laser facsimile — Laser fax units print on plain paper using a laser beamelectrostatic printing method (similar to that used by a laser printer). Thelaser recording process uses laser light to "write" the image of a faxeddocument onto a photosensitive drum. The sensitized areas around thedrum then attract toner to print the dark portions of the transmitteddocument. The supplies required are plain paper, a toner kit and aprocessing unit.

■ LED — LED recording is identical to that of laser, except that LED fax unitsuse an LED instead of a laser beam to "write" the image onto the drum. Thesupplies required are plain paper, a toner kit and a processing unit.

■ TTR — TTR printing is similar to thermal printing, except that an ink film orribbon is situated between the printhead and the paper. Supply itemsinclude plain paper roll or cut-sheet paper and transfer film. Thermaltransfer recording involves heat from a thermal printhead to transfermarking from a carbon ribbon or overlay sheet to another sheet, forming therecorded paper.

■ Inkjet — Inkjet is a plain paper printing technology that uses a liquid inkfrom a dispenser to produce an image on a sheet of paper. Inkjet printsimages by spraying tiny droplets of ink out of a printhead composed of aseries of nozzles in response to electrical impulses. This category is dividedinto monochrome inkjet and color inkjet printing models.


Chapter 5Multifunctional Products

OverviewEach year, Gartner Dataquest completes extensive research of the MFP marketthat provides an insight into vendor market share and industry market size.Vendor market share and the overall market size are measured in both unitsand end-user spending. The survey covers about 30 vendors that are active inone or more of the following two product segments:

■ Page MFPs, which include monochrome and color printing models

■ Inkjet MFPs (also called "All-in-Ones"), which include color, photo andphoto-capable printing models

Product SegmentationGartner Dataquest defines the MFP market according to segments andsubsegments described in Table 5-1 as they appear in Gartner Dataquestresearch.

Table 5-1MFP Market Segmentation

Tech Group Multifunction Subsegment

Printer Sheetfed MFPs without an integratedfax modem

1-10 ppm

11-20 ppm

21-30 ppm

31-40 ppm

41-69 ppm

70-90 ppm

91+ ppm

Copier Flatbed MFPs 1-10 ppm

11-20 ppm

21-30 ppm

31-40 ppm

41-69 ppm

70-90 ppm

91+ ppm

Fax Sheetfed MFPs with an integrated faxmodem and standard PC printing

Low-end (below 250 sheets capacity)

Workgroup (250 or more sheetscapacity)

Source: Gartner Dataquest (January 2004)



Note that all models with platens will be counted in the copier-based products,and the sheetfed MFPs with a fax modem integrated will be counted in thefax-based products. All sheetfed devices without an integrated fax modem thatare equipped with a second function will be counted in the printer database.

Product DefinitionsMany business and consumer products fit a loose definition of an MFP. GartnerDataquest's basic definition of an MFP is a machine that can perform two ormore functions with a reasonable minimum "utility" threshold for eachfunction. This minimum threshold is determined by anticipating if a typicalbuyer would consider it as an adequate solution. A copier that can also print isan MFP. A fax machine that can simply make a copy through the automaticdocument feeder is not an MFP.


Appendix AGlossary of Terms

Table A-1 lists the definitions of the acronyms and abbreviations that appear inthis report.

Table A-1Report Glossary

Acronym/Abbreviation Definition

ANZSIC Australia and New Zealand Standard Industrial Code

ASP average selling price

CAGR compound annual growth rate

cps characters per second

Kbps kilobits per second

LED light-emitting diode

lpm lines per minute

MFP multifunctional product

mm millimeters

NACE European Community economic activity code

OEM original equipment manufacturer

ppm pages per minute

SIC U.S. Standard Industrial Code

TTR thermal transfer recording

VAR value-added resellers

Source: Gartner Dataquest (January 2004)

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