Hanover, MA…January 2006 -- I.T. Strategies forecasts that ink jet (both narrow and wide format) and color electrophotography (EP) together generated worldwide revenues from sales of hardware, media and chemistry of $85 billion in 2004. By 2009, total digital color revenues are forecast to reach more $146 billion, a CAGR of 11%. Chemistry (ink and toner), with revenues of more than $40 billion, made up almost half (48%) of all revenues in 2004. By 2009, revenues from chemistry are expected to top $83 billion, representing 57% of the market and growing at a CAGR of 15%. Hardware revenues will drop from 33% ($27.8 billion) of total revenues in 2004, to 18% ($26.7 billion) in 2009, reflecting the continuing decline in hardware pricing. Total Digital Color Market: Ink Jet vs. Color EP In 2004, total ink jet revenues of $42 billion, made up 49% of total digital color revenues. By 2009, the percentage is expected to drop to 39% ($57.7 billion) as color EP grows by taking more share from monochrome EP printer and copier applications. EP revenue, growing from $43 billion in 2004 to almost $89 billion in 2009, a CAGR of 15%, is expected to continue to be the largest revenue driver in the digital color printing market. According to Mark Hanley, President of I.T. Strategies, “This reflects the effect of page volume increases and the corresponding increases in media and chemistry revenues as monochrome laser printers and copiers are replaced by color laser printers and MFP products.”