Strong growth in the managed print services (MPS) market is forecast for the Asia Pacific region, excluding Japan, with the market value in 2011 expected to be US$825 million compared with just a US$392 million market value in 2007.

Sanchit Vir Gogia, senior research analyst for services at Springboard says the “robust growth figures’ indicated not just a vibrant MPS marketplace, but also reflect the emergence of MPS as the “best growth bet for the print hardware vendors in the region, who have seen a decline of hardware sales amidst the economic slowdown.

“Enterprises in the region are eager to test and adopt the ‘next level’ of printing environment, presenting the MPS vendors with a growth opportunity in a difficult economic situation.”

Springboard’s report sees Australia as the region’s leader in MPS adoption as it is in a ‘ready state’ to adopt MPS services and also offers the most significant market potential. According to the report, Australia and New Zealand (ANZ) together will remain the largest MPS market in the region throughout the forecast period; cornering over 25% of the market and expanding at a CAGR of 19.3% during the forecast period. While India is behind China and ASEAN in overall market size, the south Asian country is forecasted to be the fastest growing market in the region with a CAGR of 22.6%.

Phil Hassey, VP for services at Springboard, says the MPS model is still in its infancy in Asia Pacific and enterprises in the region need to be educated that this is much more than, what he calls, ”an alternative print hardware purchase model,” and he adds “the challenge for providers is to ensure they manage MPS offerings prices and offer solutions as a long-term strategy, providing immediate and successful results for enterprises.”

As part of the overall assessment of the Asia Pacific MPS market, Springboard recommends that in 2009 vendors invest in educating the market and change current perceptions of MPS as an “expensive and complex outsourced service.”

Springboard concludes its report with a prediction that in 2009 the MPS industry will witness its share of mergers and acquisitions, spurred by the entry of new players in the market.