Varied market segments are expected to increase the adoption of laser multi function devices in a bid to enhance their productivity.

On the growth drivers of the Indian MFD market

Optimization of resources and maximization of functionality are the basic reasons for going in for multifunctional devices. This translates into benefits like space optimization and value for money.

The increasing need for automation in the enterprise sector has primarily triggered the growth of MFDs. The different economic factors, regulatory environment, and IT maturity in each country have contributed to varying levels of adoption and knowledge surrounding MFDs in India. Moreover, aspects such as virtualization, integration, and compliance issues are driving MFDs in India.

SMBs are also adopting this technology now. The government and sectors like telecom, banking, insurance, and healthcare are fuelling the growth in consumption of MFDs. Other than that, there is an existing "Print for Pay" segment as well. Simplicity is important for a technology to be successful. Only those automation would be successful which can make applications easier.

On the market and technology trends in the MFD market

The trend of convergence between the markets continues, with the usual competition happening amongst the copier vendors as well as the printer vendor circles. They are now competing against each other in a single market rather than at the two different ends of it. With the competition stronger than ever and educated end-users, vendors will need extra efforts to position their brand portfolios.

On the impact of slowdown on the industry

The fourth quarter of 2008 was a pivot point for the world economy, creating a very challenging selling environment for all printer, copier, and MFD hardware and software providers. Businesses should consider adopting managed print services (MPS), smart MFD, and document management systems. This will help better control costs and better manage their office devices with cost optimization in mind.

On key demand verticals

In spite of the slowdown there are three verticals bound to grow in 2009. First and foremost is the government, as it is going to get more effective and there would be wide deployment of e-governance plan in the country. Other verticals like healthcare and telecom will be very lucrative in the coming years.

On major policies or regulatory issues that are affecting the growth of the market

• Abatement of MRP based product
• VAT rate differentiation across states for same products
• Different policy for channel during this slowdown

On the future of MFD market in India

Varied market segments are expected to increase the adoption of laser multi function devices in a bid to enhance their productivity, speed up the processes, and increase the ease of operation while reducing costs as much as possible. Space cost is becoming more and more critical. Instead of four stand-alone devices cluttering the office,customers have an option of single device managing all their work.