Video card prices are expected to rise in the three years to 2016 due to increased demand and stabilizing input costs
Los Angeles, CA (PRWEB) March 07, 2014
Graphics and video accelerator cards have a buyer power score of 4.3 out of 5, which reflects favorable price trends and market structure, and low market risks. This indicates that buyers will have significant leverage in negotiating lower prices or receiving additional features or products included with the purchase of video cards. According to IBISWorld procurement analyst Andrew Yang, “pricing trends have been mostly favorable for video cards as input costs have decreased”. Video cards are made out of semiconductors and various electronic components such as resistors, transistors, capacitors, inductors and diodes. Prices for these semiconductor and electronic components have fallen steadily, lowering input costs for video card suppliers. As a result, video card prices have fallen in the three years to 2013. However, pricing trends are expected to change due to increased demand and stabilizing input costs. IBISWorld forecasts that prices will increase in the three years to 2016. As such, buyers should take action to lock in prices now.
The market structure is also very favorable for buyers. Buyers have easy access to substitutes through integrated graphic processors. “These processors are not as powerful as dedicated video accelerator cards but they perform the same function and come included with almost all personal computers,” says Yang. In addition, market share concentration and product specialization is low meaning that buyers have access to a wide array of suppliers and there is no supplier that dominates the market. Switching costs are also low, reducing the risk that buyers will get locked in with a supplier.
Market risks are also fairly low because most vendors are large diversified manufacturers with diversity of products. This indicates that bankruptcy risks are low for suppliers, so buyers do not have to worry about their suppliers going out of business and disrupting a steady supply of video cards. However, supply chain risks are moderate for video card suppliers because they depend on graphical processing units. Two suppliers dominate the graphical processing unit market for video cards. This monopoly on graphical processing units presents risks for video card manufacturers because they depend on a small number of suppliers for a critical component. The four largest vendors in the market are Dell, ASUSTek Computer Inc., EVGA Corporation, and Micro-Star International Co. Ltd.
For more information, visit IBISWorld’s Graphics and Video Accelerator Cards procurement category market research report page.
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IBISWorld Procurement Report Key Topics
Graphics and video accelerator cards or simply video or graphics cards are additional attachments for personal computers that can help computers manage and process complex high-definition images and video. A video card consists of a circuit board with a graphical processing unit, software, heat sinks, memory, input and output interfaces. Video cards are primarily used by graphic designers and researchers. This report excludes graphical processing units and integrated graphical units.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
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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.