The latest round of data on the performance of the global digital textile printing industry continues to surprise with the high growth rates it reveals for the first half of 2017. The largest global markets, China, Italy and Turkey, retain their status – but other large markets, such as the US and India, have continued to expand their share of the world market.
We had forecast a decrease in the growth rates experienced because of new installations following ITMA 2015 and other large Asian shows, which had increased awareness of the technology within the wider textile industry. However, growth has remained impressive thanks to stronger than expected performances in some of these large global markets and high levels of growth in new and emerging countries. The first half of the year showed an uplift of 26% in output and 15% in total installed units, compared to the first half of 2016. It appears that increased competition in the market, with new models and competitive prices, has helped boost demand.
While the installed base is still dominated by Low and Sampling speed machines, we saw an uplift in both High and Industrial volume printers. Nearly 800 new printers we installed during the first half of the year, which indicates that the industry is still looking for opportunities to grow. The increase in higher value segment creates an apparent disparity the number of units installed and the output they deliver.
As the market has developed from its early days, of companies purchasing printers to handle sampling or very specific segments, we have seen the demands made on the machinery increase. In today’s market, orders have become larger rates and costs are more competitive, while digital can offer quality advantages over traditional flat-screen or rotary technologies. With the increasing acceptance of digital, companies that have older printers are looking to purchase faster and more reliable machines, while those that are entering the market for the first time are more willing to invest larger amounts because they identify less of a financial risk. This means that, in general, the volume of output capable of being printed by the average newly purchased printer is around 100% more than 5 years ago. So, output grows much faster than the absolute number of new installations, and the value being invested into the industry continues to grow.
We expect to see similar growth rates during the second half of the year and close 2017 with 21% increase in output, compared to 2016, with further Industrial and high-speed printer sales. The base of low-end printers is expected to expand, but with gradual increases in both price points and productivity. This will mean that, in unit terms, the growth forecast is lower, at around 15%.
