The industry will continue to benefit from stiff competition among tech firms
Los Angeles, CA (PRWEB) March 08, 2013
In the five years to 2013, IBISWorld estimates that revenue for the Patent Broker Services industry will increase at an average annual rate of 3.0% to $67.2 million. According to IBISWorld industry analyst Kevin Culbert, “During that time, the industry has benefited from growth in research and development (R&D) expenditure, which ultimately leads to an increase in the number of patents that are available to be sold.” Furthermore, the industry has also benefited from increasing corporate profit. Rising corporate profit is important for industry growth because it boosts the amount of money companies have on hand to spend on intellectual property. In 2013, IBISWorld estimates that corporate profit will rise 2.5%, contributing to revenue growth of 3.2% during the year.
Still, the recession has slowed the industry's overall growth over the past five years. “The recession's impact on corporate profit diminished companies' abilities to buy patents,” says Culbert. However, the industry has a countercyclical element to it. The recession caused an increase in business bankruptcies, which often result in the sale of intangible assets, including patents. This factor mitigated declines during the recession. Furthermore, high profile technology companies, including Apple, Google and Samsung, have recently initiated patent wars to gain market share around the world. This trend has contributed to the industry's fast recovery over the past three years.
The Patent Broker Services industry has a low level of concentration with the four largest players holding less than 10.0% of total industry revenue. The industry's low level of concentration reflects a highly fragmented market, in which the majority of employing establishments have fewer than ten employees. Smaller firms typically generate significantly less revenue than large players. Competition between industry operators has caused larger participants to increase their patent sales and acquisition activities through greater promotion and leveraging of company reputation.
In the five years to 2018, IBISWorld estimates that revenue for the Patent Broker Services industry will increase. During that time, the industry will continue to benefit from stiff competition among high tech firms. Competition in downstream high tech industries will ultimately boost demand for patents, and in effect, the demand for patent broker services. This factor is expected to marginally increase the number of firms operating in the industry. IBISWorld estimates that the number of enterprises will increase in the five years to 2018. In spite of this, profit margins are expected to rise marginally as revenue growth will outstrip enterprise growth.
For more information, visit IBISWorld’s Patent Broker Services in the US industry report page.
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IBISWorld industry Report Key Topics
This industry provides professional, scientific or technical services in the field of patents. A patent broker helps patent holders monetize intellectual property assets, allows buyers to get new patents quickly and helps patent holders sell patents to other organizations.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.