As a new printing method, digital ink-jet printing is in line with the current personalized, fashionable, and rapidly changing consumption trend, and has become the fastest-growing field in the printing and dyeing industry in recent years. With the declining cost of digital printing equipment and ink, the improvement of the replacement rate of digital printing is expected to be gradually accelerated. Moreover, domestic equipment and ink manufacturers have high-cost performance advantages compared with overseas, and there is a huge growth space for leading enterprises in the industry.
1. Digital printing industry conforms to the consumption trend
The printing and dyeing industry is an important part of the textile industry chain. As a new printing method, digital ink-jet printing conforms to the current personalized, fashionable, and rapidly changing consumption trend, and adapts to the transformation from the traditional business model to the new business model of “small-batch, personalized, and rapid response”, becoming the fastest-growing field in the printing and dyeing industry in recent years.
The development of digital printing technology has experienced four stages: technology exploration, proofing customization, small batch production, and mass production. In the past 10 years, digital printing technology has been developing continuously, and new equipment has been launched in an average of 2-3 years, which has improved in speed, accuracy, stability, and other aspects to varying degrees.
2. Vast potential space
① The global textile digital ink-jet printing output has increased from 1.2 billion meters in 2014 to 4.3 billion meters in 2019, with an average growth rate of 29%. The replacement rate of the traditional printing process has increased from 2.2% to 7.8%. The improvement of the replacement rate of the digital printing process will drive the continuous and rapid growth of the company’s digital ink-jet printing equipment and supporting ink products
② In 2018 and 2019, China’s digital ink-jet printing output was about 1.5 billion meters and 1.9 billion meters, accounting for 9% and 11% of the total printed cloth. According to the report released by China printing and dyeing industry association, it is estimated that by 2025, the domestic digital ink-jet printing output will reach about 4.7 billion meters, accounting for about 29% of the total domestic printing output, and the global digital ink-jet printing output will reach 15billion meters, accounting for about 27% of the total printing output.
③ According to estimates, the global market scale of digital inkjet printing equipment and digital inkjet market will increase from 8billion yuan /5.3 billion yuan in 2020 to 26.5 billion yuan /8.9 billion yuan in 2025 respectively, with huge potential market space.
3. Industry leaders are expected to benefit fully
① With the continuous progress of digital ink-jet printing technology and the continuous release of quality and differentiated consumer demand, digital ink-jet printing equipment has entered the peak of upgrading. The core components of digital spray equipment are sprinkler, board, and precision components of the sprinkler. The unit value of sprinklers is high, and there are many single machine configurations, accounting for about 40% of the cost. China has a large demand for sprinkler heads. Only in the field of digital ink-jet printing of textiles, there is an annual demand for 60000-70000 sprinkler heads, which are basically imported from several major foreign brands.
② Printing ink, as a necessary consumable for digital ink-jet printing, has high requirements in color fastness, colorfastness, and adaptability to the nozzle. Driven by the downstream market, the consumption of digital ink-jet printing ink in China has increased slightly in 2020, reaching about 21600 tons.
With the declining cost of digital printing equipment and ink, the improvement of the replacement rate of digital printing is expected to be gradually accelerated. Moreover, domestic equipment and ink manufacturers have high-cost performance advantages compared with overseas, and there is a huge growth space for leading enterprises in the industry.