By Melissa Donovan
Suffice to stay 2025 has been a year filled with turbulence and uncertainty. What we do know is that the graphic arts is thriving—maybe not in ways we had hoped—but there is certainly a bevy of latest and greatest applications that if print service providers (PSPs) choose to take advantage of, will reap the benefits.
Annually we poll marketshare leaders on where the industry stands, and the range and quantity of commentary in terms of content was vast. So much so, we include part of the reflections in this piece, and much more online.
Here, we look at market segments where growth is current if not imminent, pain points for PSPs and what they can do to combat them, and finally, future projections for the industry.
Above: WrapSesh from AZ used Mutoh printers for this car wrap application.
Segments with Growth
Applications with potential for growth include décor, direct to film/garment, packaging, and vehicle graphics.
According to Thomas Giglio, segment manager, large format Latex production business in NA, HP Inc., emerging markets with continued growth are those that “require higher value, image quality, and capabilities.”
Erik Norman, president, swissQprint America, agrees that there is an increased interest in those applications that are considered higher value print. “PSPs seek more opportunities for embellishments and new ways to drive more profit to print.”
Other reasons for growth listed by Adam J. Tourville, channel manager, Fluid Color, stem from market demand for faster turnaround, personalized products, and greater substrate versatility.
Décor
Applications that fall under the category of décor are profitable, they project high quality and value. These include home furnishings to wallpaper or wall murals, even window graphics that are used for a design aesthetic instead of a promotional purpose.
“Décor has compound annual growth rate numbers above ten percent and a total addressable market that gives PSPs a longer runway than common applications such as banners, posters, and decals. It is important to note that décor applications also deliver opportunity to capture printing with white ink—something that many of our customers note adds up to 40 percent of gross margin to their offerings,” explains Giglio.
Tobias Sternbeck, CEO, Beaver Paper & Graphic Media, Inc., says that “in 2025, growth is in soft signage, interior décor, and textile applications, especially in customized home furnishings and fashions.”
Alex Wixted, commercial innovation platform manager, Avery Dennison Graphics Solutions, notices growth in the decorative and window film space in a range of building types such as hospitals, schools, and hotels.
“Segments like interior décor are thriving due to increasing demand for bespoke, short-run production—something traditional analog methods struggle to deliver cost effectively,” adds Patrick Donigain, senior manager, LFP business planning and strategy group, Canon U.S.A., Inc.
Direct to Film/Garment
They seem like buzzwords, but everyone interviewed for this article made it clear that is not the case. Direct to film (DTF) and direct to garment (DTG) is here to stay.
Touring trade shows this year, Lieven Bertier, CMO, Summa, says it was apparent that DTF in particular is experiencing significant momentum. “The sheer number of vendors showcasing DTF solutions and the consistent interest from attendees underline its rapid growth. The rise in DTF is driven by its flexibility and cost effectiveness, especially for short runs and customized apparel.”
“As a RIP software company, we are experiencing significant growth in demand for DTF and DTG printer drivers and color profiles. The number of new entrants in this segment of the printing industry is remarkable, reflecting a strong market trend,” agrees Bobby Cagle, NA sales director, SAi.
It’s DTF’s simplicity, low equipment cost, and vibrant transfer capabilities that make it attractive, especially to smaller businesses, suggests Tourville. “DTF is also expanding to include DTF UV films for UV printers. These films can be applied to various items that are not able to be inkjet printed.”
Packaging
Digital print and finishing is ideal for short runs, which is why the packaging segment continues to benefit from the technology.
“There is increasing demand from packaging producers for shorter lead times; smaller, customizable production runs; and smarter production systems that don’t require large-scale infrastructure. Brands today want more variation in lower volumes delivered faster. This is evident in corrugated packaging and point of sale displays, where converters must be able to switch between jobs seamlessly and minimize waste to remain competitive,” notes David Preskett, VP EMEA & APAC, Kongsberg Precision Cutting Systems.
Packaging design also plays a role, as it is “experiencing a significant uptick as brands move away from the minimalist trends of the mid-2010s in favor of more cohesive, creative, and visually engaging portfolios. Packaging offers a unique opportunity to explore bold, three-dimensional (3D) designs that capture attention and reinforce brand identity,” share Emilio Rangel and Tony Simmering, product managers, Mutoh America, Inc.
Vehicle Graphics
A mature application, what’s interesting is the growth many continue to witness in the vehicle graphics space.
One trend is vehicle wraps expanding beyond cars. “More vehicles are being wrapped, not just cars and trucks but planes, boats, trains, and helicopters,” admits Tourville. “Vehicle wraps continue growing due to advertising effectiveness and fleet branding.”
It isn’t just commercial branding. “There is a personalization trend in the consumer market. This segment is thriving thanks to its strong visual impact and versatility,” notes Bertier.
“We also continue to see an uptick in the desire for vehicle customization, both for personal use and advertising with fleet vehicles,” agrees Wixted.
Other Segments to Note
UV ink advancements push the use of the technology into markets that were once not possible. One of which is ADA braille signage. “The versatility of UV ink on a range of objects and materials is a major driver, enabling creative applications that go beyond traditional signage. One standout area is printable ADA signage, where older production methods are replaced by the speed, efficiency, and design flexibility of UV digital print,” explain Rangel and Simmering.
“Look at unconventional spaces with huge returns on investment. ADA braille signage has insane margins and is required in many of our public buildings and throughout most of our public lives,” they add.
Whether a label or type of outdoor signage, more requests are made for material that can withstand everything from fluctuation in temperature to heavy traffic. “Durable signage is a big one, with customers requesting materials that hold up outdoors. Industrial labeling is growing too, as companies look for adhesives that can handle heat, moisture, and rough surfaces,” explains Michael Richardson, business development manager – graphics media, Jessup Manufacturing Co.
Shifts in Demand
PSPs want options to grow their business, this is apparent in the type of products they request. More importantly, successful PSPs are those who don’t pigeonhole themselves into one particular application, but are able to offer versatility to customers.
“The most consistent response from print providers is that they’re ‘doing a bit of everything.’ Sign shops and commercial printers alike are pushing forward with creativity and tenacity, exploring every possible avenue for growth. Rather than a single standout segment, we’re seeing companies diversifying to stay competitive and meet evolving customer needs,” notes Jay Kroll, director of product education, General Formulations.
Sustainability is a constant ask when it comes to materials for windows to rigid signage and fabrics. “There is a major shift towards non-PVC, environmentally friendly window films. Brands and retailers are under pressure to reduce environmental impact, and PVC-free options like polyester-based and olefin films or PET-based optically clear films offer better recyclability and a lower carbon footprint,” shares James Halloran, VP, sales and marketing, Lintec of America, Inc.
“There is continued pressure from the market to produce more but shorter production runs in a wide variety of substrates. This is definitely trending away from the most toxic, non-recyclable plastics in favor of more sustainable, often paper-based materials,” adds Martin Thornton, executive sales manager, Zund America, Inc.
Sternbeck says “fabric-based solutions, particularly polyester for dye-sublimation, continue to gain ground due to their sustainability profile and compatibility with high-speed printers. Customers are looking for multi-use or eco-certified materials.”
Donigain agrees. “Print buyers are priotitizing unique, eco-conscious solutions that either meet evolving regulations or help brands differentiate visually.”
Michelle Kempf, VP, sales & marketing, Continental Grafix USA, Inc. admits that as of recent, there is a regional market interest and demand for sustainable or “green” alternatives to PVC. “In areas like the Northeast and along the coasts, there is a higher concentration of LEED certified buildings. These buildings often require PVC-free materials be used for interior graphics and signage to maintain compliance with LEED certification. Retailers increasingly prioritize sustainability by demanding recycled or recyclable material for packaging as well as exploring PVC-free and recyclable alternatives for in-store branding and promotions for walls, windows, and floors.”
Brian Buisker, president, Advanced Greig Laminators, Inc., also observes a regional interest in its recyclable media and overlaminates, however, they are not overly requested. “Customers do value environmentally friendly solutions but only if they don’t have to make big sacrifices in performance and price.” Buisker adds that the ability to provide reliable and consistent pricing on time is a huge benefit right now.
Speaking of performance and price, due to the current economy, Tourville notices PSPs looking to print on to more inexpensive substrates to help cut costs. “With these products there is more of a need to test the surface energy to ensure adhesion of ink to the substrate. These can have an adverse effect of using flame or wipe-on adhesion promoters, which increase the cost of manufacturing due to cost of the primer and the added time for the operator.”
Sales and Usage Impact
Supply chains, lead times, and pricing pressures are challenging for most PSPs.
The recent tariff situation plays a role and at press time it was presumed to impact the print industry. “Tariffs increase the cost of imported goods, such as substrates, inks, and toner; while steel and aluminum tariffs raise the price of offset presses, plates, inkjet printers, digital cutters, and other equipment. This leads to higher input costs, shrinking margins, and print shops adjusting their pricing models to remain competitive,” advises Marc Raad, president, Significans Automation.
“The instability in global trade and the uncertainties regarding U.S. tariffs are definitely on everyone’s mind. While this translates into a ‘wait-and-see’ attitude for some, others use it as a negotiating tool in the hope of locking in more favorable pricing before the fallout begins to manifest itself. All in all, it seems like a continuation of the near-constant turmoil in recent years brought about by the pandemic and its aftermath,” suggests Thornton.
According to Norman, “the tariff situation has given some pause to capital spending decisions, yet market leaders are still moving forward. This disruption, while frustrating for many of us, is still just a speed bump—it only slows you down for a brief moment.”
With the situation in flux, it seems there is a “growing effort to re-shore manufacturing and reduce reliance on overseas materials, which is influencing substrate choices and planning,” notes Kroll.
“Regionally, focusing on the local market—specifically within a four hour radius of production facilities—can significantly enhance competitive advantage. This proximity allows for faster turnaround times and stronger client relationships, which are increasingly important as lead times and pricing pressures fluctuate due to ongoing supply chain adjustments,” admits a representative from Flexcon.
There is a growing interest in U.S.-made materials, as this reduces supply chain risk, explains Richardson. With products available at a local/regional level, faster turnaround times are met. “Lead times are more stable, but customers are still being cautious—keeping more inventory and prioritizing vendors who can deliver consistently. And while pricing pressures persist, there’s a clear understanding that quality materials save time and money in the long run.”
Indeed, working with well-made, quality hardware and substrates is an important element. Preskett believes PSPs are adapting to the uncertainty of the market “by seeking more resilient, future-proof technology and systems that are modular, upgradeable, and reduce downtime. They also require greater flexibility from equipment providers to support a wider range of applications, helping them stay agile in response to fluctuating material availability and customer demand.”
Another way for PSPs to manage this disruptive point in time is to analyze and capitalize on specific occurrences where profitability can occur. “It’s essential to recognize the cyclical nature of certain market segments. For instance, advertising on public transit for the film industry ramps up between Memorial Day and Labor Day, aligning with movie release schedules. Understanding these seasonal patterns enables providers to better allocate resources and anticipate demand,” recommends the representative from Flexcon.
Labor Shortage
Impacted by lack of qualified workers, PSPs try and rely on automated systems to combat this loss. However, some human-type of “intervention” is needed.
“The industry faces a shortage of skilled labor, exacerbated by ‘the great resignation’ and an aging workforce. Attracting younger generations to the printing profession remains a significant hurdle. To address labor shortages and improve efficiency, businesses are investing in automation and artificial intelligence (AI) tools. These technologies streamline workflows, reduce errors, and enhance productivity,” shares Nick Dinunzio, director of business development, Alpina Manufacturing, LLC.
In tandem with the current economic uncertainty, print shops are trying to do more with less. For example, “they are currently focusing on doing more with the staff and equipment they already have—rather than making investments in new equipment or hiring additional staff. They meet these challenges head-on by implementing customized workflow automation solutions and full, end-to-end integration of all their business-critical processes, from order intake to final delivery,” explains Raad.
Kempf says finding and retaining experienced, skilled operators, installers, and color management experts is a pain point for PSPs. This, coupled with faster, shorter turnaround times, means “PSPs have a greater need to invest in automation and rely on vendor expertise as well as invest in faster, more versatile printers and leaner workflows to reduce turnaround times. The investments needed to stay competitive can be daunting.”
“The talent shortage is real, and it’s pushing the industry to prioritize ease of use and intuitive machinery. Equipment that requires less specialized training but delivers high-quality output is valuable,” agrees Bertier.
It’s all about remaining lean. “Print providers are increasingly challenged by the rapid pace of technological change. They actively seek innovative software and equipment solutions that enable greater automation, allowing them to operate more efficiently with leaner teams. Selecting the right printing technology and software is essential to achieving these operational goals,” admits Cagle.
Preskett brings up a good point, that in “investing in automation and smart finishing systems to maintain productivity with fewer manual steps, this also means skilled labor can be used in other areas of the business to add value.”
PSPs Across the Board
From the one to five person mom-and-pop shop to the multi-million dollar in revenue corporation with five different locations, PSPs across the board remain active in a volatile economy. There are investments in technology, growth in profitability, and staff and income changes no matter the business size.
According to Giglio, “smaller PSPs are more active in looking at investments, whereas larger PSPs would like to extend their capital investments while at the same time keeping their current hardware relevant. It’s much easier for a smaller PSP to increase its offering by implementing innovative hardware solutions that drive application growth.”
“There is interest in new technologies from both large and small print providers, but the approach often differs,” agree Rangel and Simmering. “Smaller print shops show a growing willingness to invest in ‘like-new’ technologies—those that have been proven and adopted by larger players first. With today’s market conditions, many prefer to wait until new solutions are battle tested before fully committing.”
Norman believes the common denominator isn’t the size of the shop, but its growth mindset in ownership. “We see those printers who believe in their teams, and their ability to grow, continually invest in new technology.”
How a small versus a large shop operates in its media acquisitions differ and yet are also similar. “Smaller shops want versatile substrates that can work across a range of applications. Bigger shops are going more specialized. In both cases, they’re looking for ways to boost efficiency and stand out,” says Richardson.
“We see many examples of smaller print shops thriving by focusing on customer service and product quality. These businesses are growing alongside their clients—often moving from roll cutters to flatbeds and expanding their capabilities incrementally, but strategically. At the same time, larger companies, particularly those built around ecommerce and personalization, continue to invest. Their scale allows them to explore automation, workflow integration, and mass customization more aggressively—setting benchmarks that smaller providers can also learn from,” notes Bertier.
For Kroll, he sees growth and decline at both ends of the spectrum, but it is innovation and adaption that is essential to succeed no matter the size of the print shop. “I recently saw a post from a 70 year old shop owner whose thriving business collapsed when his main client—accounting for 60 percent of his work—shut down. He tried to pivot and diversify, but the foundation of his business was too tied to that one relationship. The takeaway—diversify early. A narrow focus can make any business vulnerable to disruption, but excessive diversification can also lead to inefficiency and a loss of identity. The key is finding the right balance—one that aligns with the business’ strengths and customer base.”
Thoughts into the Future
Pinpointing the trajectory of the industry and what it will look like in five years forces reflection on the current state of affairs. Studying the segments/applications where PSPs are currently succeeding and where demand is generated from are good benchmarks.
Kroll foresees continued growth in short-run, high-customization verticals like vehicle wraps, décor, and experiential graphics, as well as expansion in durable film applications beyond signage.
“Customers are moving toward high-performance, weather-resistant materials. Substrates that pair well with UV-curable inks are in demand, especially as large format printing continues to grow. Print providers want materials that deliver strong adhesion and clean, high-resolution results with minimal waste,” adds Richardson.
A strong push in luxury packaging is a segment where Bertier sees additional growth. “Premium materials and sophisticated designs are in high demand, driving innovation and value. Mass customization is another area. From personalized sportswear to bespoke labels and stickers, small-batch, high-impact production is resonating with modern consumers who want uniqueness and immediacy.”
“Other verticals to watch include interior décor and custom home textiles, sustainable fashion using pigment and sublimation on demand models, 3D textile applications, and wearable tech integrations,” foresees Sternbeck.
“As digital signage continues to displace some traditional print, success will hinge on offering tactile, high-value applications such as textured wallcoverings, soft signage, and interior décor that are difficult to replicate with screens,” adds Donigain.
Emerging technologies also include solutions “that combine efficiency and personalization through product and service offerings, with sustainability becoming more of a priority,” says Wixted. In addition, she sees AI and even augmented reality (AR) being creatively used in signage and graphics for both advertising and customization.
“Automation will continue to revolutionize print shop workflows. The integration of digital marketing with print will grow, leveraging quick response codes, AR, and near-field communication in print materials to create more engaging interactive experiences. Finally, AI, arguably the most disruptive technology in our lifetime, will continue to revolutionize almost every aspect of printing businesses worldwide,” attests Raad.
As for PSPs in the thick of it, recommendations on how to ride out the current state of affairs include adopting automation tactics and embracing ecommerce. “The market is shifting toward models that empower customers to design their own artwork and submit graphics directly to print providers for production. Organizations that adopt automation, leveraging advanced software and AI, are well positioned to support print providers in maintaining a competitive edge,” stresses Cagle.
A representative from Flexcon shares that “as consumer buying habits favor online convenience and personalization, print providers who invest in ecommerce platforms or marketplace integrations will be better positioned to capture new revenue streams.”
“While the impact of AI is still emerging in the large format industry, companies that have already implemented automation in their infrastructure are the ones most likely to benefit from enhancements that are set to completely redefine customer experiences,” stresses Giglio.
This is automation across the entire print production process, from real-time performance monitoring and predictive analytics to solutions that enhance material handling and contribute to higher throughput—all of which reduce downtime and extend equipment life, explains Preskett.
Strong into the Next Decade
Down the road, Buisker hopes the next three to five years “bring a lot of promise. By continuing to innovate and listen to what our customers are asking for, I believe the industry will remain strong, successful, and profitable.”
Thornton suggests that “print providers, and especially the equipment they invest in, need to be prepared to keep growing and adapting to changes—whatever those may be.”
“The next three to five years will continue to reward those who stay agile—able to pivot between markets, experiment with new media, and integrate emerging technology into their workflow,” concludes Kroll.
Hear more about what these industry leaders have to say about the current state of the industry in our July webinar.
Aug2025, Digital Output
State of the industry, graphic arts, wide format, printing
Links to other parts of this series:
Industry Influences
Reducing Errors, Enhancing Efficiency
Steps Taken Toward Sustainability
Consolidation in Print
