Surging business activity and stringent regulations regarding document security are forecast to underpin demand and prices, though increasing usage of digital records will somewhat restrain growth
Los Angeles, CA (PRWEB) February 28, 2014
Document storage services have a buyer power score of 4.0 out of 5. This high score reflects favorable conditions existing in the market that have been bolstering buyer negotiation power over the three years to 2014. While prices for document storage services have been trending upward during the period, the increase has been marginal and price volatility has been extremely low. Buyers benefit from a low level of price volatility because it means they can take time in making their purchasing decisions without fear of major price spikes in the near future. “Favorable price trends and low volatility boost buyer power for document storage services,” says IBISWorld business research analyst Anna Son. “During the three years to 2017, prices are forecast to continue to rise, though at a very slow rate.”
Despite a moderate level of overall market share concentration, medium capital investments required to start and support operations and efforts to minimize transportation of sensitive documents have contributed to significant market fragmentation. Regional and local suppliers have grown in numbers in response to buyers’ increased needs to minimize potential privacy breaches by reducing the amount of travel required for document storage when working with a locally based firm. “Nevertheless, market concentration has been rising slightly over the past three years, as larger players like Iron Mountain and Recall have expanded their consolidation efforts,” says Son. Increased consolidation activity has the potential to hurt buyers by giving suppliers more control over price.
Nevertheless, low product specialization and minimal switching costs further underscore buyer power. Buyers will find the end product to be nearly identical across service providers. Suppliers also strive to adhere to high standards established for document management services to avoid possible litigation costs relating to privacy breaches and to maintain their reputation, which is crucial in the document storage market. As a result, suppliers are reluctant to deviate from these security standards. These factors allow buyers to procure the services from a larger pool of suppliers without fear of compromising quality. For more information, visit IBISWorld’s Document Storage Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of document storage services. Companies that provide document storage services archive paper records based on customer recommendations. This report does not include cloud-based storage or other nonphysical types of storage.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement 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.