Magnetic Ink Character Recognition (MICR) is a technology that uses special magnetic ink to print sensitive & crucial data. MICR devices are used majorly across sectors like banking & finance, healthcare, retail, government, etc., to print checks & vouchers and eliminate the possibility of fraud & forgery of documents.
The Global Magnetic Ink Character Recognition (MICR) Printer Market is projected to grow at a CAGR of around 1.4% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the capabilities & efficiency of MICR printers to print checks in-house and reduce the hassle of issuing new ones from banks.
Moreover, the mounting awareness about easy customization of checks is another prominent aspect propelling the demand for MICR printers across the banking & finance, retail, healthcare, & government sectors to enhance the security of signed checks, print certificates, etc. It, in turn, is projecting the presence of immense growth opportunities for the leading market players.
However, the high costs of MICR devices and rapid digitalization across different sectors with the adoption of advanced payment technologies can hamper the market growth, with market size declining from USD107 million in 2020 to USD 87 million by 2026.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: US, Canada, Mexico|
|Europe: Germany, UK, France, Italy, Spain|
|Asia-Pacific: China, India, Japan, South Korea, Australia|
|South America: Brazil|
|Middle East & Afric: UAE, Saudi Arabia, South Africa|
|Key Companies Profiled||HP, Lexmark, Xerox, Ricoh, Canon, IBM, Fuji, Lenovo, Delphax Technologies Inc., Relyco, etc.|
|Unit Denominations||USD Million/Billion|
Impact of Covid-19 on the Global Magnetic Ink Character Recognition (MICR) Printer Market
The Covid-19 pandemic in 2020 severely impacted most industries worldwide, where the Global Magnetic Ink Character Recognition (MICR) Printer Market was no exception. In the initial phase of the pandemic, stringent movement restrictions & lockdowns imposed by governments of different countries to curb the spread of this dreadful disease directly impacted the demand for MICR printers across banking, retail, tourism, hospitality, & many other sectors. Additionally, challenges like disrupted supply chain, reduced manufacturing, delays in the delivery of pre-produced products, among others, were faced by the market players.
In the second quarter, the restrictions on economic activities limited the public visits to crowded places, reducing the footfall across banks, retails, etc., and displayed an increasing inclination toward digitalization, which, in turn, challenged the market sustainability.
Later, some countries began witnessing a gradually declining number of Covid-19 cases, owing to which restrictions & lockdowns were uplifted, which resulted in the partial revival of business operations. However, these recommencement benefits were seen mostly across regions like North America & Europe.
Furthermore, there was recommencement & recovery for different sectors like aviation, banking & finance, & healthcare, among others. It generated immense growth opportunities for the leading market players & projected their recovery from revenue losses over the coming years.
Based on the Application:
Of all Applications, the Banking & Finance sector is projected to witness the fastest market growth during the forecast period. It owes principally to the increasing use of MICR printers across banks & financial institutions for identifying & processing checks and altering the banks about photocopied or duplicate MICR lines to avoid fraud & forgery.
Besides, MICR printers provide secure printing solutions to eliminate fraud & counterfeiting. The rapidly expanding banking sector and its growing inclination toward creating a secure platform for finances & achieving a fast, easy, & safe printing of checks & sensitive data are other crucial aspects anticipated to generate growth opportunities for the leading players in the market across the banking & finance sector through 2026.
On the other hand, the Retail sector acquired a significant share in the Magnetic Ink Character Recognition (MICR) Printer Market in recent years across regions like the Middle East & Asia-Pacific. It is attributed primarily to applications like printing vouchers that can be redeemed at retail stores, coupled with an increasing number of Business-to-Business (B2B) transactions across the expanding retail sector dominated by checks as a preferred payment mode.
Based on the Type:
Of both, the Laser MICR Printer is anticipated to dominate the global market with the largest share during the forecast period. It owes principally to the economical printing prices through these printers for an extended period. Besides, these printers use the laser to form a pattern of electrostatically charged dots on a light-sensitive drum that transfers the toner to a piece of paper & fixes it in a heating process.
This results in high-speed & quality printing capabilities of laser MICR Printers, which, in turn, is augmenting the demand for these printers & fueling the overall market growth. Moreover, enhanced suitability for mass printing, machine stability, low cost, high efficiency, etc., are other crucial characteristics of laser MICR printers projected to propel their demand and boost the global market through 2026.
Geographically, the Global Magnetic Ink Character Recognition (MICR) Printer Market expands across:
Amongst all regions globally, North America dominated the Magnetic Ink Character Recognition (MICR) Printer Market with the largest share in recent years. It owes to the extensive presence of prominent market players & their increasing number of research & development activities on developing new products & enhancing their product portfolio. Besides, the region has observed a considerable market growth for inkjet & laser MICR printers, owing to their precise positioning & printing capabilities.
In recent years, the US has dominated the regional market, principally due to the mounting adoption of MICR printers for several financial documentations like printing vouchers, credit cards, invoices, etc., on account of the rapidly expanding banking, finance, & retail sectors in the country. Additionally, the rising incidents of fraud in the US have further instigated the demand for prevention measures, thereby encouraging the adoption of MICR printers.
On the other hand, Asia-Pacific demonstrated substantial market growth in the previous few years, wherein countries like India, China, Japan, & South Korea are the major regional markets. It attributes primarily to the rapidly expanding retail & banking sector across the region, i.e., displaying a surging use of MICR codes to accelerate payment processing & checks clearance system. It, in turn, is helping to enhance transparency & traceability of money, coupons, & credit cards, among others, for customers.
Recent Developments by Leading Companies
Key Drivers & Opportunities
The high level of security provided by MICR printers that print characters following strict format & using specific ink and makes the document difficult to forge is the prime aspect projected to drive the Global Magnetic Ink Character Recognition (MICR) Printer Market during 2021-26.
The banking & finance sector is expanding swiftly across different regions worldwide due to massive investments by banks in the adoption of new technologies, increasing participation of governments toward integrating population with banking systems, along with a growing number of mergers & acquisitions. As a result, the demand for MICR printers is surging significantly, which would boost the global market through 2026.
With a rapidly increasing number of businesses & massive investments in them, Business-to-Business (B2B) & Business-to-Consumer (B2C) transactions are also proliferating dramatically. It is leading to the mounting use of checks, which, in turn, is stimulating the demand for MICR printers & driving the global market.
Possible Restraint: The Advent of Modern Payment Methods
In recent years, technology in payment methods has developed dramatically and introduced several new platforms in line with digitalization. As a result, there's a reduced prevalence of paper-based payments like checks & increasing adoption of digital payment methods such as Google Pay, Amazon Pay, etc. Hence, this aspect might restrain the growth of the Global Magnetic Ink Character Recognition (MICR) Printer Market during 2021-26.
According to MarkNtel Advisors, the key players with a considerable share of the Global Magnetic Ink Character Recognition (MICR) Printer market include HP, Lexmark, Xerox, Ricoh, Canon, IBM, Fuji, Lenovo, Delphax Technologies Inc., Relyco, etc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation and Statistics
Frequently Asked Questions
A. The Global Magnetic Ink Character Recognition (MICR) Printer Market is projected to grow at a CAGR of around 1.4% during 2021-26.
A. The Banking & Finance sector is anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Magnetic Ink Character Recognition (MICR) Printer Market during 2021-26.
A. A swiftly rising demand for a fast & secure technology to process documents, rapidly expanding banking & finance sector, entwined with progressing B2B & B2C payments would generate growth opportunities for the leading players in the Global Magnetic Ink Character Recognition (MICR) Printer Market through 2026.
A. In the coming years, the Global Magnetic Ink Character Recognition (MICR) Printer Market shall witness the active participation of the leading players in introducing technological advancements in MICR printing technology.