Prices are expected to slowly increase as demand rises
Los Angeles, CA (PRWEB) April 21, 2014
Document scanning services have a buyer power score of 4.0 on a 5-point scale. According to IBISWorld procurement analyst Erich Abellera, “this score reflects positive market conditions that increase purchasing power”. Although prices have been increasing over the past three years, the rate of growth has been slow. Document scanning services have a low level of specialization. Although various services are offered, the process of scanning is fairly standardized. As a result, competition in this market is high despite the presence of large suppliers that account for large portions of total market revenue. With the exception of these large suppliers, the document scanning services market is fragmented and consists of many local suppliers. Therefore, strong competition has helped to moderate price growth.
In addition to slow price growth, buyers benefit from low volatility in prices. “Suppliers of document scanning services face little risk in their upstream supply chains,” says Abellera. This factor contributes to low volatility in prices, and buyers are unlikely to experience disruptions in service due to supply chain issues. Suppliers have relatively fixed costs. High volume scanning equipment is capable of scanning large amounts of documents. Therefore, even as demand increases, costs to suppliers do not increase significantly unless additional labor is required.
Prices are forecast to increase at a slightly faster rate over the next three years. Demand for document scanning services is projected to rise as the number of US businesses, local and state government spending and private investment in computers and software are all expected to increase. Businesses, governments and other organization will drive demand as they convert physical documents to electronic versions for increased efficiency and access. Paperless offices will also become more popular as awareness of environmental issues rises. Growing demand is expected to contribute to the rise in prices over the next three years. Nevertheless, slow growth will be favorable overall for buyers. The four largest players in the market are Xerox Corporation, Iron Mountain Inc., Brambles Inc., and Cintas Corporation.
For more information, visit IBISWorld’s Document Scanning 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 scanning services. Document scanning services primarily helps businesses and individuals make digital archives of paper documents. Also, document scanning services provide consumers and businesses with the digital management and organization of scanned documents.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
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.