(Norwell, MA) May 15, 2001In a CAP Ventures forecast released last week, analysts predict a robust on demand market, projecting an overall growth in the retail value of print of 20% compound annual growth rate (CAGR). This will grow the U.S. on-demand market from $21.4 billion in 2000 to $52.5 billion in 2005. The On Demand market grew from $16.7 billion in 1999 to $21.4 billion in 2000, a 28% increase in retail value of print. Placements in the print-on-demand market will grow at 9% CAGR over the forecast period. This includes black & white and color products in all forecast segments. The total annual revenue to equipment suppliers (in equipment, service, and supplies) grows at 17% CAGR, from $7.1 billion in 2000 to $15.7 billion in 2005. "2000 was a good year for the On Demand market, with overall results slightly exceeding our previous expectations. The forecast shows healthy growth particularly in areas like black & white systems and production color systems," commented Charlie Corr, group director, CAP Ventures. "2000 was also the year for rapid adoption of digital technologies in high-speed copying, which had been primarily analog," continued Corr. This forecast covers more than just the on-demand marketplace. CAP Ventures analysts also follow the data processing and high-speed copying markets. This provides readers of the forecast with a unique viewpoint that includes digital printing (on demand and data processing) and the copying market, which is undergoing rapid transition from analog to digital. The total production copying and digital printing market (including print on demand, data processing, and high-speed copying) accounts for over 95,000 units in 2000 and grows to more than 125,000 units in 2005. This market accounted for 806 billion impressions in 2000 and will grow to 1.3 trillion impressions by 2005. In 2000, the total market generated equipment, service, and supply revenue of over $13 billion, as well as over $32.3 billion in retail value of print. By 2005, it will generate total equipment, service, and supply revenue of nearly $21 billion, and $61.5 billion dollars in retail value of print. Ron Gilboa, director of CAP VenturesÕ On Demand Printing & Publishing Consulting Service noted that, "in developing this forecast, CAP Ventures analysts examined establishment dynamics, equipment introductions, economic conditions, and existing installations. We also gauged market receptivity, vendorsÕ distribution strategies, and plans of end users." Ron added that, "we examined service and consumable cost as well as market pricing issues for each product in the forecast. In addition, we evaluated the results from 2000 and factored in anticipated product developments in the later years of the forecast." "CAP Ventures is unique in the way that it handles the forecast with its focus on the print on demand opportunity as well as the way that it forecasts print volumes and the retail value of print. This differentiates CAP Ventures forecast from other industry forecasts," commented Corr.