The worldwide retail value of wide format graphics prints reached $19 billion in 2002 and is forecast to grow to almost $30 billion by 2007, a CAGR of 9%. The market is made up of small units of demand reflecting the PFP channels and the technology. Not surprisingly, the largest applications are POP signage and trade show graphics, applications that were among the first wide format graphics applications and are now becoming commodities forcing print providers to look at new areas for growth such as outdoor applications.

Ink is the major payoff for the vendors. Wide format printers at an average of 38 liters per year have been found to consume more than seven times more ink per hardware dollar than narrow format printers. In general, the printer vendors have been successful in locking users into their proprietary inks. More than 70% of media, on the other hand, is supplied by third-party players.

The newer vendors of wide format printers are barely visible in comparison with the mainstream printer vendors. These companies are the pioneers, however. Here wide format is following the traditional pattern in which the small companies pioneer the new markets, often to be displaced later when the giants follow.

Flatbed printers are gaining in market popularity, serving applications traditionally handled by screen printing. I.T. Strategies estimates that in 2002 about 165 digital flatbed printers were sold. The primary application today is POP advertising. Two types of companies are buying digital flatbed printers.

Looking ahead, the I.T. Strategies analysts see continued growth and the introduction of new products to fill the price/performance gaps. One of the more interesting applications is digital printing of wallpaper. I.T. Strategies estimates that in 2002 digital printing of wallpaper was valued at about $90 million in the US. This represents about 3% of the total US wallcoverings market.