According to the statistics of the General Administration and Publication of the People's Republic of China, up to the end of 2005, China's digital printing enterprises of various types had totaled 182717 (including copying and typing enterprises); the total annual output value of China's printing industry had reached RMB 332.27 yuan, covering 2% of the GDP. It was predicted that in 2010 the total output value of China's printing industry will reach RMB 444 billion yuan and constitute 2.5% of the GDP. As a sector with the highest growth rate, digital printing business will continuously increase its proportion in the total output value of the digital printing business. According to the prediction of authoritative overseas organizations, China will become the world's most important printing market in 2015, and its total output value will reach € 2.7 billion.

   China's traditional printing market experienced a steady increase in 2006. In contrast, the digital printing market, characterized by a short-run, variable, on-demand and customized design, underwent a sustained high-speed development. The installed capacity of digital printing press was continuously increasing; digital printing enterprises gradually gained profit; digital printing quality was enhanced£»the application of digital printing was increasingly diversified.

   1. The installed capacity of the domestic digital printing equipments continued to increase.

   According to the statistics of the survey entitled ¡°Digital Printing in China¡±, which was performed by Digital Printing magazine in 2006, up to the end of May 2006, inkjet digital printing equipments had boasted the highest growth rate in terms of installed capacity in the Chinese market. Three companies alone, that is, Kodak Encad (large breadth inkjet printer), Kodak Versamark (continuous inkjet printing system) and Epson (inkjet printer), contributed an increase of 30441 to the total installed capacity of the inkjet digital printing press. Among the installed capacity newly increased from June 2005 to May 2006, four companies alone, that is, Win Digital Security Pte Ltd., Kodak GCG, Kodak Versamark and Epson, contributed 5669 sets. This demonstrated the powerful growth momentum of the inkjet digital printing press.

   In 2006, the laser digital printing equipment experienced a steady increase in its installed capacity. From June 2005 to May 2006, some manufacturers increased their installed capacity by a percentage as high as 36%. In addition, magnetic imaging technology was gradually recognized by the market.

   In terms of the large-size productive digital printing equipment, the installed capacity reached 871 sets from 2002 to 2005. In the single year of 2005, the installed capacity reached 463 sets, 85.2% higher than 250 sets in 2004. In 2006, the productive digital printing press experienced an unprecedented development. It is known that some manufacturers, including Kodak, HP, Fuji-Xerox etc. all doubled their sales of the productive digital printing press on the basis of 2005.

Different output speed of the digital printing equipments leads to different proportions of variable data printing.


   2. Digital printing business is changing on the basis of a stable development pattern.

   In China, the application of digital printing has been extended to various industries, such as bill preparation, post service, telecommunication, banking, etc. Generally speaking, these industries employ black-and-white digital printing equipments to carry out their business, including variable data printing. The development of these monopolized industries has pushed forward digital printing business.

   In addition, domestic digital printing business is developing in a prevailing form of quick printing shops. In 2006, a number of quick printing shops entered the digital printing market. Some eye-catching quick printing chain stores are now making efforts on exploring the domestic market, for example, Founder, Kinsos, etc.