Digital Pen Market Overview
The global digital pen market is estimated to be valued at $773.5 million in 2017 and is forecasted to witness a CAGR of 18.4% during 2018–2023.Rising disposable income, increasing use of digital pens in art and design works, and growing adoption of digital learning tools are some of the key factors driving the growth of the digital pen market.
Global digital pen Market, by compatibility, $M (2013 - 2023)
On the basis of compatibility, the digital pen market is categorized into multiple OS and single OS. Between the two, digital pens with multiple OS compatibility are more popular among the users, with an estimated revenue contribution of more than 60% to the market in 2017. This can be attributed to the growing number of consumers using more than one phone, with different operating systems. This has increased the demand for these pens with multiple OS compatibility in the market.
Based on technology, the digital pen market is categorized into active digital pen, camera-based digital pen, accelerometer-based digital pen, positional digital pen, and trackball-based digital pen. Among these, active digital pens are more preferred by the consumers. The high adoption rate of these pens can be attributed to the multiple features offered by these pens as compared to passive digital pens. The active digital pen market is expected to cross $800 million by 2023, demonstrating a CAGR of 16.1% during the forecast period. The high growth rate of this category of pens can be attributed to advancements in digital technologies, including electronic learning in the education sector.
On the basis of application, the digital pen market is categorized into clinical documentation, education, billing and back office, communication, and others (CAD, and form filling). Of these, the usage of digital pens in clinical documentation applications is growing at the fastest pace. During 2013–2017, the digital pen market registered a CAGR of 18.1% from clinical documentation applications.
During the forecast period, the market is expected to witness high growth in APAC and North America. North America is expected to continue leading the market in the coming years and is estimated to generate over 44% revenue in the market in 2017. The market in APAC has been growing at the fastest pace, because of the large untapped consumer base for these pens.
Digital Pen Market Dynamics
One of the major trends shaping the digital pen market is the increasing deployment of digital tools, such as digital pens, computers, mobile devices, and other hand-held computing devices, in learning. These digital devices are proving beneficial for students and teachers, as they continue to replace books, pens, and other tools of learning. The use of digital devices, including digital pens, for the development of educational and interpersonal skills is one of the major trends. These pens help in the digitization of handwritten notes in academic institutions. They also allow students to record and share educational content provided by teachers and use it later, whenever needed. The growing usage of these pens on interactive whiteboards is increasing interactive learning among students in academic institutes, which is expected to propel the market growth of these pens.
Rising disposable income of people and growing demand for advanced features offered by these pens are the major factors driving the demand for these pens globally.
Advanced features associated with digital pens play a pivotal role in driving their market growth. With the growing popularity of electronic gadgets, the demand for innovative pens offering features beyond just writing is on the rise. The introduction of multifunctional writing instruments with enhanced features, such as pens with tablets and smartphone-optimized pens, is driving the growth of the digital pen market. Features of these pens, such as time-based and patient-specific reminders, decision support and data interpretation, audio recording, and data storage, data sharing, and data transformation into audio-based text, are driving the growth of the digital pen market.
Disposable income of people in emerging countries has increased considerably over the years. This has encouraged people in these countries to spend additional money on digital technology solutions, such as digital pens. These pens are widely being used for various purposes, such as creating instructional content and note-taking. With rising disposable income, people are largely investing in digital technology tools to save effort as well as time. According to the National Bureau of Statistics of China, the per capita disposable income in China increased by 8.3% in 2017 from the previous year. Part of this increased income is being spent on digital tools, such as digital pens. Thus, growing disposable income in emerging economies is expected to drive the digital pen market in the coming years.
One of the major factors restraining the growth of the digital pen market is the high cost of these pens. Most of these pens available in the market are costly because of the incorporation of multiple features, which requires extensive hardware integration. Due to the high costs associated with these pens, the middle class and the lower class find it difficult to afford them, which hinders the market growth of these pens. Also, these pens need to be recharged at regular intervals, which does not make them suitable for usage for longer hours of writing. The digital pen market growth is also being hampered due to lower technology readiness levels in underdeveloped nations like Ethiopia and Africa.
Significant advancements in technology integration and product development have been witnessed in the developed economies of Europe and North America in recent years. But in the developing countries of Asia-Pacific, the Middle East and Africa, and Latin America, the digital pen market is still in its nascent stage. Vendors are launching consumer electronics equipped with digital pens in order to meet the demandsupply gap. Increase in product innovations is expected to expand the scope of application of these pens in the countries of emerging economies. This, in turn, is expected to create growth opportunities for the players in the digital pen market in the coming years.
Digital Pen Market Competitive Landscape
There is a moderate number of regional and international players operating in the market, which makes the intensity of rivalry moderate. Some of the key players in the global digital pen market are Apple Inc., HP Inc., Microsoft Corporation, Anoto Group AB, Wacom Co. Ltd., Toshiba Corporation, Canon Inc., STAEDTLER Mars GmbH & Co. KG, Hanwang Technology Co. Ltd. NeoLAB Convergnece, Luidia Inc., and Moleskine S.p.A.