I.T. Strategies estimates that the US market for T-shirt printing is about $20 billion. Additionally, the related $13 billion promotional products market brings the total market possibility for direct and transfer printing to about $33 billion.

"The majority of the printing today is done by a range of screen and digital printers," said Patti Williams, consulting partner at I.T. Strategies. "The screen-printing sector is where the volume products are printed and represent a lucrative opportunity for digital printers." According to I.T. Strategies' research, there are about 130,000 sites in the US today that are primarily printing T-shirts as well as other related products, such as sweat shirts/pants, caps and bags as well as mouse pads and magnets.

I.T. Strategies has identified at least six different groups that decorate T-shirts either by direct or transfer printing. The six groups are:

1. POP printers
2. Garage printers
3. Custom decorators
4. In-house/preprint shops
5. Contract houses
6. Transfer print houses

Custom decorators are the most likely initial target for a digital printing system -- either direct or transfer -- because they already do digital printing today and see a need for it.

Current Printing Technologies
Currently three technologies are used for printing on decorated textiles:

1. Screen printing makes up the majority of the market.
2. Offset printing is used for long runs of transfers.
3. Digital printing, which includes thermal transfer, laser (printer & copier) and ink jet, is used for transfer printing only. There is no direct printing with digital technology today.

The primary print technology today is screen printing, however digital transfer printing is growing as the need for short runs, fast turnaround and wild designs increases. Today digital printing is only used for transfer printing. A key limitation of digital printing is its inability to print on dark fabrics. A further limitation is the inability to directly print on finished. Screen printers interviewed by I.T. Strategies indicated that they would welcome a transfer solution that would allow printing on dark fabrics as well as a direct digital printing solution to meet the demand today for more graphics, more art and photography, and more wild colors and off-the-wall graphics.

Why Digital Printing?

Today screen printers are faced with tight profit margins, a lot of competition, and they are looking for ways to differentiate themselves and to meet the increasing demands of their customers who are demanding:

• Faster turnaround - customers are keeping less inventory which means they need a printer who can produce immediately forcing work to be done in the US. In this situation the cost is relative, it's worth more to deliver on time and to give the customer what he needs when he needs it. Screen printing takes time: time to make the screens and time to print the garment.
• Lower prices - lower priced screen printing equipment has increased the number of screen printers looking for work
• New designs, more vivid colors, photographic images - impossible or very expensive to do with screen printing.

In addition to the digital printing initiatives occurring in the US, a number of companies are experimenting with an ink jet model for volume production of T-shirt transfers in Japan. According to I.T. Strategies' research, there is a market for several hundred-thousand T-shirts per year, printed digitally, either direct or by thermal transfer, but most certainly by ink jet.