Digital Printing Projected to Grow

Over the past decade, the rise of online media has provided fierce competition to operators in the printing sector. Despite this trend, the Digital Printing industry has recorded strong growth.

The development of advanced prepress services, which include the ability to make changes to documents and files at any time and create highly customizable and personalized additions to documents, has enabled the industry to expand quickly. Furthermore, recovering demand from the corporate sector, fueled by rising corporate profit and an increasing number of businesses, has created a surge in demand for industry services.

Therefore, IBISWorld projects that industry revenue will grow, with growth expected to remain strong as new businesses enter the United States with greater budgets to spend on materials that require printing services.

According to IBISWorld Industry Analyst Jeremy Edwards, "Industry profitability has also been on the rise, with profit margins growing in 2014." Rising demand for digital printing services has enabled operators to increase pricing and benefit from higher sales volumes simultaneously, which has also precipitated an increase in the number of industry players. The number of industry establishments is expected to increase over a five-year period.

Growth is expected to accelerate over the next five years as digital printing services benefit from a stronger business environment, with corporate profit and the number of businesses both expected to experience consistent growth. Additionally, the ability to run small prints with greater customization at a relatively low per-unit cost, will continue to drive growth.

"Competition will remain high for operators, as digital versions of products are becoming increasingly popular," said Edwards. Nonetheless, new markets such as textile manufacturing will also drive growth, particularly for inkjet digital printing, which is expected to become the leading printing format over the next five years. Overall, industry revenue is projected to grow over the five years to 2019.

For more information, visit IBISWorld’s Digital Printing in the U.S. industry report page.

Source: IBISWorld Inc.