Los Angeles, CA (PRWEB) May 17, 2014
Buyers of closed-circuit television (CCTV) systems have a buyer power score of 3.4 out of 5.0, indicating that buyers in this market have more leverage than suppliers. “Even though the low availability of substitutes limits buyers' options of purchasing alternative products, low switching costs, a moderate total cost of ownership and high levels of competition provide buyers with some negotiation power,” according to IBISWorld procurement analyst Aileen Weiss.
CCTV systems have become widely accepted in recent years, especially as homeland security increased its security measures following the September 11 terrorist attacks. Additionally, CCTV systems gained popularity after the Boston Marathon bombing in April 2013 when they were used extensively. “Even as many groups argue against the use of such security cameras, the number of CCTV systems sold has increased,” says Weiss. Major vendors include Panasonic Corporation, Schneider Electric SA, Sony Corporation and Bosch AG.
The recession delayed buyers from purchasing and installing new CCTV systems. In the past three years, however, as the unemployment rate slowly fell, disposable income increased, enabling more consumers to spend money. This resulted in an increase in corporate profit. Additionally, construction began to pick up as buyers were more willing to invest in long-term projects. Because buyers needed to outfit new buildings with CCTV systems, the price of the systems increased from the hike in demand.
In the next three years, government investment will pick up, enabling many buyers who were waiting for federal funding to purchase new CCTV systems. Additionally, an escalation in research and development (R&D) will bring advanced systems to market, providing buyers with a greater selection of products. Furthermore, overhead costs will slowly rise, increasing suppliers' total production costs. From the rise in demand and increase in costs, prices of CCTV systems will go up.
As CCTV systems continue to be used to deter and solve crimes, their prices will continue to rise because buyers will increasingly demand such products. Unless buyers are waiting for more advanced systems to reach the market, they should purchase systems now before prices rise more quickly in the next three years.
For more information, visit IBISWorld’s Closed-Circuit Television Systems procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of closed-circuit television (CCTV) systems. Communication equipment manufacturers produce CCTV systems to allow users to connect remotely from a computer and view live or taped monitoring that is not publicly transmitted. CCTV systems are often used for surveillance purposes, crime prevention, industrial processes, traffic monitoring, transport safety and retail theft prevention. CCTV systems include the camera, recorder, television monitor and accessories. This report excludes security system installations.
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
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