With the flood crisis hitting the country hard in 3Q 2011 coupled with weaker market sentiments in the last quarter of 2011, IDC is projecting that the Thailand hardcopy peripherals (HCP) market will grow at a slower pace of 2% for 2012. Spending on HCP is expected to slowdown in the start of 2012 as consumers spend on rebuilding and repairing their residences affected by the flood. Consumers might hold on to their purchases until late 1Q 2012, but IDC expects that demand from businesses and select government agencies will likely cushion the market from further slowdown.

Suradech Suwanchodratsamee, Market Analyst for Peripherals Research notes, "The HCP market is expected to reach 1.76 million unit shipments in 2012, with inkjets contributing about 70% and laser taking about 26% of total shipments. The inkjet market is expected to grow by 4% in 2012 compared to 2011, thanks to demand among Home and Small Office/Home Office (SOHO) groups for replacements caused by flood damages. On the other hand, the laser market is projected to decline in 2012. Since a great deal of demand for laser units is derived from notebook and laser printer promotional bundles, the hard disk drive supply shortages brought on by the flood crisis is expected to take a toll on the laser market."

Overall, the overall Thailand HCP market grew by 19% sequentially in 3Q 2011. As expected, laser HCP recorded a high growth of 25% QoQ, due to the seasonal trend of corporate buying during the third quarter. Inkjets, on the other hand, grew 19% in 3Q 2011, mainly led by the growth in inkjet multifunction printers (MFPs), as cannibalization of inkjet single-function printers (SFPs) become even more pronounced. Serial dot matrix (SDM) shipments declined in 3Q 2011 compared to the previous quarter. This was brought about by supply issues caused by the Japan tsunami on certain popular models.

Furthermore, IDC notes that the price difference between single-function inkjet printers and multifunction inkjet printer has become negligible lately, especially for the US$ 100-149 models. This is driving consumers and SOHO owners to go for multifunction devices rather than just single function printers. As a result, growth in multifunction inkjet printer grew 27% QoQ in 3Q 2011

Suradech adds, "In 2012, wireless HCP is expected to become more popular among consumers and the SOHO group. Wireless HCP increased 345% year-on-year in 3Q 2011 and the momentum is likely to continue in the coming months."

He adds, "With cloud printing entering the market in full force next year, some vendors are expected to make significant investments in developing products and activities around the concept of cloud printing to gain first mover advantage. In fact, some cloud-ready printers have already been launched in 4Q 2011."