The UK market for office equipment, as defined in this Review, was worth an estimated £3.7bn at manufacturers' selling prices (msp) in 2005. This represented a 5.4% increase on the figure for 2004, but there was little overall progress in the market's value between 2001 and 2005.

The market sectors discussed in this report are: document-imaging equipment, office furniture, presentation products, videoconferencing equipment and other office equipment. Document-imaging equipment includes printers, copiers, scanners, fax machines and multifunctional products (MFPs) carrying out some or all of these functions. Presentation products include data projectors, interactive whiteboards and electronic copyboards, as well as more traditional equipment. Key Note's market estimates include office equipment sold for use in the home, as well as that sold to businesses and the public sector.

Business confidence was shaken in 2002 and 2003. This affected business investment and thus the demand for office equipment. Confidence began to improve in 2004 and 2005, and the office-equipment market accordingly saw a return to growth. Because prices have fallen in some sectors, the low overall growth in the value of the market disguises stronger growth in the volume of equipment sold.

Document-imaging equipment is the largest sector of the market. The main trends in this sector have been growth in the use of colour printing and copying and a continued move towards MFPs. The trend from analogue to digital copiers is now well advanced and there is increasing demand for networked machines. The printer market fell in value in 2004 and 2005, despite strong demand for photographic-quality ink-jet printers and a gradual move towards colour laser printers in the office. Sales of stand-alone printers are being eroded by the trend towards MFPs, but the most significant factor in the decline in value of the printer sector has been falling prices.

The office-furniture sector has been helped by strict health-and-safety regulations and the introduction of the Disability Discrimination Act, but these were not sufficient to prevent a year-on-year decline in the sector's value between 2001 and 2004. Modest growth is estimated for 2005. Poor levels of business investment between 2001 and 2003, together with intense price competition in the furniture industry, have held back the market. Although employers are willing to replace seating to comply with regulations and to allow more flexible use of the office, with staff able to move between desks, manufacturers' prices for office chairs fell between 2001 and 2005 because of the intense pressure from imports in an oversupplied market.

Sales of data projectors started to increase again in 2004, after slowing between 2001 and 2003. There are many competitors in this sector, resulting in rapid product development and falling prices. Projectors have become smaller, lighter and brighter, and the market is polarising between ultra-portable models and powerful, top-of-the-range fixed models, which continue to sell in small volumes. The market for interactive whiteboards for business use is in its infancy but shows great promise; prices are expected to fall and sales are expected to grow rapidly. In 2004 and 2005, these products enjoyed a boom in sales to the education sector.

Videoconferencing equipment is a relatively small sector but a dynamic one, and one that holds the promise of further growth. There are very many applications for videoconferencing and some of the technical problems that previously detracted from its use have been solved.

Demand for binders and laminators remains quite healthy, and discounts in postage charges for franked mail should help the franking-machines sector. Demand for shredders has grown strongly as companies and individuals have become more aware of the threat of identity theft, fraud and other security risks. Security needs in the public sector, in particular, are high. The market for dictation machines is continuing its trend towards digital technology.

Key Note expects the office-equipment market to show modest but positive annual growth at current prices between 2006 and 2010. Products with strong growth potential include videoconferencing equipment, interactive whiteboards, laser MFPs, digital dictation equipment and shredders. Environmental issues are becoming increasingly important in the industry and will continue to influence the design of products in all sectors.

The UK market for office equipment, as defined in this Review, was worth an estimated £3.7bn at manufacturers' selling prices (msp) in 2005. This represented a 5.4% increase on the figure for 2004, but there was little overall progress in the market's value between 2001 and 2005.

The market sectors discussed in this report are: document-imaging equipment, office furniture, presentation products, videoconferencing equipment and other office equipment. Document-imaging equipment includes printers, copiers, scanners, fax machines and multifunctional products (MFPs) carrying out some or all of these functions. Presentation products include data projectors, interactive whiteboards and electronic copyboards, as well as more traditional equipment. Key Note's market estimates include office equipment sold for use in the home, as well as that sold to businesses and the public sector.

Business confidence was shaken in 2002 and 2003. This affected business investment and thus the demand for office equipment. Confidence began to improve in 2004 and 2005, and the office-equipment market accordingly saw a return to growth. Because prices have fallen in some sectors, the low overall growth in the value of the market disguises stronger growth in the volume of equipment sold.

Document-imaging equipment is the largest sector of the market. The main trends in this sector have been growth in the use of colour printing and copying and a continued move towards MFPs. The trend from analogue to digital copiers is now well advanced and there is increasing demand for networked machines. The printer market fell in value in 2004 and 2005, despite strong demand for photographic-quality ink-jet printers and a gradual move towards colour laser printers in the office. Sales of stand-alone printers are being eroded by the trend towards MFPs, but the most significant factor in the decline in value of the printer sector has been falling prices.

The office-furniture sector has been helped by strict health-and-safety regulations and the introduction of the Disability Discrimination Act, but these were not sufficient to prevent a year-on-year decline in the sector's value between 2001 and 2004. Modest growth is estimated for 2005. Poor levels of business investment between 2001 and 2003, together with intense price competition in the furniture industry, have held back the market. Although employers are willing to replace seating to comply with regulations and to allow more flexible use of the office, with staff able to move between desks, manufacturers' prices for office chairs fell between 2001 and 2005 because of the intense pressure from imports in an oversupplied market.

Sales of data projectors started to increase again in 2004, after slowing between 2001 and 2003. There are many competitors in this sector, resulting in rapid product development and falling prices. Projectors have become smaller, lighter and brighter, and the market is polarising between ultra-portable models and powerful, top-of-the-range fixed models, which continue to sell in small volumes. The market for interactive whiteboards for business use is in its infancy but shows great promise; prices are expected to fall and sales are expected to grow rapidly. In 2004 and 2005, these products enjoyed a boom in sales to the education sector.

Videoconferencing equipment is a relatively small sector but a dynamic one, and one that holds the promise of further growth. There are very many applications for videoconferencing and some of the technical problems that previously detracted from its use have been solved.

Demand for binders and laminators remains quite healthy, and discounts in postage charges for franked mail should help the franking-machines sector. Demand for shredders has grown strongly as companies and individuals have become more aware of the threat of identity theft, fraud and other security risks. Security needs in the public sector, in particular, are high. The market for dictation machines is continuing its trend towards digital technology.

Key Note expects the office-equipment market to show modest but positive annual growth at current prices between 2006 and 2010. Products with strong growth potential include videoconferencing equipment, interactive whiteboards, laser MFPs, digital dictation equipment and shredders. Environmental issues are becoming increasingly important in the industry and will continue to influence the design of products in all sectors.