The digital wide format industry is dynamic and fast-moving. The sector has moved from initiation to rapid growth with strong proliferation of players and consolidation, reaching a high stage of maturity, all in less than 20 years. The number of integral players is shrinking, and start-ups are becoming quite rare. Major players with diverse interests in the printing industry – specifically the digital printing industry – are now active in this particular market segment. Many others, including Inca Digital, Agfa and Mimaki, have established themselves in digital wide format print.
Meanwhile wide format screen printing, which for many years has been the predominant technology in the display graphics and visual communications sector, now continues to lose ground. Innovations are few and far between, and it is now confined to a role as a legacy technology, although it will retain an important position for several decades yet as it is still used to lay down very heavy coverage’s much more cheaply than inkjet. What can we expect to see from these industries in the near future? In this new and exclusive bulletin, Smithers Pira examines the current state of the wide-format printing industry.
Threats to Progress
The emergence of electronic displays based on flexible electronics is, potentially, one of the most significant threats to the wide format printing industry. It is true to say that electronic signage has been considered a potential threat for some time, without taking significant market share. There have been some recent experiments which haven’t progressed, such as the Tesco in-store TV; however, flexible electronics will be better suited to meet the needs of signage applications, enabling them to take a greater market share. After years of converting to digital, it is somewhat ironic that digital print may ultimately see itself being replaced by yet another form of digital technology, in the form of electronic displays. Roll-to-roll manufacturing will be essential in order to create flexible, low-weight displays that can compete with printed displays from a cost point of view.
The effects of the 2008-2009 recession were most marked in the screen printing market, which suffered more than its digital counterpart. The shipment of screen printers declines rapidly in the Western world as the print shops stopped investing, particularly in old technology. In contrast, 2010 was the rebound year. Broadly the market recovered and regained its 2008 size. However, the gradual decline of screen-based printing will continue, but it is expected to be a long tail.
Geographic Forecasts
Worldwide, Smithers Pira predicts that the transformation of this market will continue over the forecast period at a global level. Screen’s share of combined screen and wide format/flatbed inkjet machines will fall from 30% in 2011 to 22% in 2017, while screen’s share in terms of combined printing output valued at ex-factory prices will fall from 36% to 24% over the same period. This may be due to the fact that digital technologies offer multiple benefits such as reduced set-up time, cost-effective short-run production, rapid response time, consistent output for repeat orders and a completely digital workflow. In addition, growth of digital is being fueled by increased reliability, increased productivity and lower cost. The combination of all these factors will lead to an overall market expansion as a growing number of applications become feasible for digital technologies.
Geographically, the replacement of screen technology will be more significant in Western Europe than anywhere else. With a higher degree of environmental focus than in other areas, Western Europe has been quicker than other geographic areas to adopt UV-curable inkjet technology, as well as the more recent latex printer products. Other regions are catching up to these trends, but penetration will remain highest in Western Europe throughout the forecast period.
The screen printing market developed strongly in North America in the 1960s and 1970s and a highly productive installed base remains in place. This has also resulted in a slower penetration of digital technology compared with, for example, Western Europe. With longer print runs and less demand for customization, conventional (litho and screen) print has retained a larger share of the display graphics market – and for a longer time. With Western Europe, however, the continued development of digital offerings combined with the demographic changes in North America makes it a strong growth market for digital, especially for the new generations of UV – and latex-based printers. Utilization of the installed screen base is declining, whereas it is increasing for the digital base.
The Importance of Wide Format Printing
Not so many years ago the wide format printing market was still in an experimental stage, and couldn’t be considered a serious contender for production in commercial environments. Since those early days, the advances in technology have been rapid, now reaching the point where digital has become the preferred format for many display applications.
Reliability in machine build has accompanied the continuing evolution of printheads and inks, resulting in platforms that produce consistent results that are fit-for-purpose; nowadays, it is rare to find a print business involved in large format jobs that doesn’t have an inkjet capability as part of its plant list of equipment.
Although there has been significant expansion of digital printing systems among display producers, screenprinting companies, sign-makers and, increasingly, the offset litho sector, this hasn’t seen the total demise of analog production methodologies. Where wide format has scored, complemented by advances made in associative software and the materials available, is by bringing versatility and flexibility to all industry segments where the digital revolution has opened doors to low volumes, one-offs, versioning and variable data. To these criteria can be added environmental benefits through a process that uses no traditional chemistry, plus a reduction in waste and the advantages of just-in-time and on-demand ordering by brands and end customers.
Practical Benefits from Digital Production
From a practical perspective, wide format inkjet production carries the advantage of faster turnaround times, better operating environments, easier logistics and more efficient end-to-end workflows. Additionally, economic and stock reduction considerations have been factored into this mix and these have helped to bring inkjet processes to the fore.
During the past two decades, therefore, there has been a significant change into the way that applications coming under the remit of large or wide format are produced. This took digital print engines, typically ranging in size from 1.0m to 5m, from being specialty machines into the mainstream market. In that period of time, manufacturers have witnessed a metamorphosis in customer requirements, with today’s considerations in a print device becoming more diverse and eclectic in many environments.
Niche and Specialty Markets
While the growth in wide format print continues, it is noticeable that users of machines are not only servicing the more conventional market requirements but are also moving to new niche and specialty areas where digital technology can realize jobs that, formerly, were not feasible. The ability to experiment with inkjet and different materials is simplified because of fast-set-up and changeover, the ease of the pre-press process and the viability of producing one-offs or very low volumes.
Additionally, print service providers face challenges not only from competition generated by their counterparts trading in the same market sector but also by new investors in digital technology. Those recent entrants that have opted to take on a niche or specialist segment, rather than merely become a “me too” operation, avoid the inevitable race to win orders in an arena where rivalry can too often be based on price.
Nonetheless, the growth in demand for wide format inkjet production devices continues across the entire digital spectrum with reasons driven by the desire for higher quality, faster throughput and the need for reliability.
Speed Versus Versatility
Is speed of the essence throughout today’s wide format printer users? The answer to this million dollar question differs depending on business model and type of demand. Versatility is still key to the throughput benefits of inkjet and diversification can often prove to be the key factor that drives better margins and greater profitability. Ergo, effective workflow is as important as the throughput rates of a particular print device, and investment must be quantified against expected daily volumes, diversity and variability of work.
“We know many of our customers are using our printers to produce a wide variety of products on a range of substrates to meet the needs of their customers and to maximize ROI. So one printer can be used to produce everything from retail POS graphics, pop up banners and self-adhesive decals and labels to wall coverings, external displays and vehicle wraps,” said Richard Barrow, senior product manager, LFP signage, Epson Europe.
“I believe that diversity in the offering is the key to success,” added Mike Horsten, GM marketing EMEA at Mimaki. “For the most part, a single production type of print company no longer exists. Offering a diverse series of printing products is making the one-stop-shop a reality.”
Flexibility is not only governed by the creativity of the display producer or the sign shop. It is encouraged by technologies that have been developed to minimize down-time during job changeover and the ability to produce applications that are right first time. Every minute wasted when a machine sits idle eats into a company’s overall profitability, and present day device improvements certainly acknowledge these principles when it comes to functionality and performance.
End-to-End Workflow Advantages
Advances don’t lie only in the print engine’s design and construction; of increasing importance is the benefit of an efficient end-to-end workflow plus integration with onward services that aid accountability, such as streamlined finishing in print-to-cut environments, MIS/ERP and JDF compliance.
“It is fairly obvious to calculate how a company can increase its throughput and its profits by printing more work on a wider, faster printer,” said Ken Hanulec, EFI’s VP inkjet solutions. “But it is too easy for companies to overlook the ways they can also get better results with a better workflow. So it is definitely a way to gain a competitive edge that needs to be recognized.”
“If you are a large print house with multiple printers the workflow is crucial to survival. Without a good MIS system or an automated workflow the amount of work would kill any company in the long run. On the other hand, the demands for perfect workflow are not so important if you are a small company and you know your entire customer base,” Horsten added.
With wide format print devices across all levels providing key output for an ever growing range of end applications, efficiency continues to increase in relevance. “Our support of workflow is the driving force behind efficiency of our printers,” insists Barrow. “We work closely with our software partners to ensure that the workflow to printer interface is very efficient.”
Getting It Right First Time
Agfa’s Paul Adriaensen endorses the relevance of good workflow in today’s print operations. “Good throughput means that the machine outputs correctly the first time and every time, job after job,” Adriaensen said. “Workflow automates input file and data processing, color management, printer and finishing settings in order to avoid delays during the entire production process.”
Today’s users of wide format printers can come from any background, whether they happen to be designers, former specialists in typesetting or repro, sign-makers, screen-printers or the sign-making sectors of the industry. The common feature among all is that every order should meet the quality of output required, produced to an acceptable price, on time. But every print service provider should look at the bottom line and not just production costs.
“There are still companies that don’t calculate the entire workflow cost before adding margin,” said Horsten. “If they can look at the whole cost structure of their business they would know the profitability for the work carried out.”
Growth in the wide format segment is down to many criteria, based on machine technologies and reliability, running costs, diversification in application type and balancing volume against the versatility of low numbers and one-offs. But device flexibility is proving to be a key factor in future investment where fewer print engines can generate the right volumes across a broad range of materials and applications types.
“Diversity is one of the reasons customers like using our hybrid roll/flatbed printers. Many of our customers need to be able to print as many different types of jobs as possible, from corrugated displays printed to traditional banners to everything in-between,” Hanulec said.
Since drupa 2012, inkjet developments have continued apace, with the announcement of new inks and faster machines that include automation for material handling, streamline print-to-cut options and the advancement of LED curing. New chemistries include water-based UV-curable formulations, the challenge presented by latex chemistries and the ever present capabilities of aqueous-based, solvent-based and UV-curable options that continue to be used in everyday environments.
Executive Summary
Challenges presented by opposing and parallel technologies won’t affect the wide format segment for the foreseeable future. Indeed, increasingly it continues to grow in appeal as it crosses all budgets, speed necessities, the handling of different widths and the introduction of automation. Additional benefits, including greater environmental awareness and greener practices through lower energy consumption, also play a part in shaping the future of inkjet, as does the increase in workflow and complementary software integration for a true end-to-end environment.
Where wide format print will find its stronger markets that generate great profitability for its users is in applications away from the main-stream work. Indoor and outdoor displays, banners, point-of-purchase, retail advertising, vehicle graphics and scaffold wraps continue to bring revenues to the supply chain that is established in this market segment but, often, at ever tighter margins. Growth areas, such as printed interior décor, are now generating a new interest in the capabilities of digital print with profitability often being driven by overall project management and creativity — areas where print becomes part of the modus operandi and not an isolated operation.
Compared with events that cater only for specific areas of the print industry, drupa 2016 extends its reach into all segments so that all areas of the graphic arts and beyond are presented with a strong snap-shot of opportunities and the realization of trends. Connectivity between latter day cloud-based technologies, digital out of home (DOOH) functional applications and traditional production segments will show wide format technologies playing a cogent role in parallel as a complementary counterpart to alternative processes as well as playing its part in a stand-alone environment.
The increase in demand for customization and versioning, plus better quality, faster throughput, less down-time and easier accountability has now given a solid ground for wide format digital print in many print environments, including those that are predominantly analog. The future won’t see an end to traditional processes but it will herald greater diversification across areas where digital print can play a strong practical and economic role across the variable business models that apply to today’s industry players.
A former photographer, Sophie Matthews-Paul started writing about the printing industry in the late 1970s, with emphasis on the screen process segment and, as computerized techniques began to manifest themselves, she became more involved with data handling and file creation across many pre-press areas. Today she works primarily as an international independent consultant, having been involved at the start of wide format developments and by following through their evolution into the devices they are today. She specializes in the use of digital print in the graphics, display, sign-making, packaging and labeling sectors, and is now also concentrating on the industrial, functional and textile arenas worldwide.