Spectrum Analyzers Procurement Category Market Research Report From IBISWorld Has Been Updated

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Prices have risen moderately in recent years due to heavy demand from communications industries and internet usage, moderated by falling input costs. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Spectrum Analyzers in its growing collection of procurement category market research reports.

IBISWorld industry market research
Price growth is expected to continue through 2017 as demand stemming from internet usage, R&D expenditure and government investment rises.

Spectrum analyzers have a buyer power score of 3.6 out of 5, reflecting slightly favorable market conditions for buyers. Factors limiting buyer power include the relatively small number of suppliers, few available substitutes, a moderate degree of product specialization and volatile input costs. “Some market characteristics, however, favor buyer power,” says IBISWorld procurement analyst Michelle Hovanetz. “Factors that aid buyers include slow and steady price growth with very little volatility, low switching costs and low vendor financial risk.”

About 750 suppliers provide spectrum analyzers in the United States. There is a medium level of market share concentration among this relatively small number of suppliers, with a large portion of revenue being generated by top manufacturers. Agilent, Danaher (under the brand name Tektronix), Rohde & Schwarz and National Instruments are among the largest manufacturers by revenue. Vendors in the spectrum analyzer market have moderately high profit margins and diversified product lines, helping to contribute to an overall low level of financial risk among firms in the market. Substitute products do not exist, although monitoring systems can be rented or leased rather than purchased. In addition, spectrum analyzers generally have a medium level of product specialization. While basic, ready-to-order product options are available, most suppliers allow for configuration to buyer specifications with each order, making it easier for buyers to configure a system best suited for their particular application. “A small number of suppliers and a fairly specialized product decrease buyer power because they limit a buyer's purchasing options and also limit competition within the market,” adds Hovanetz. “These factors make buyer negotiation more difficult.”

Alternatively, low switching costs help improve buyer power because they make it easier for buyers to move from supplier to supplier. To maintain customers, suppliers must compete, often negotiating lower prices. Prices have risen very slowly from 2011 to 2014 and are expected to continue this trend in the three years to 2017. Price volatility has been low, indicating very little fluctuation in the price trend historically. Stable price trends benefit buyers by enabling them to more accurately budget for purchases. In addition, slow price growth helps to foster competition as suppliers work to boost market share to increase revenue. For more information, visit IBISWorld’s Spectrum Analyzers procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of spectrum analyzers. Spectrum analyzers are most commonly used to detect, monitor and analyze radio frequencies in communication services applications; however, this equipment may be used for a variety of technical purposes. Measuring and test equipment manufacturers produce spectrum analyzers. Depending on the purpose for which it is used, system components may vary.

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
Quality Control

Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs

Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements

Negotiation Questions

Buyer Power Factors

Key Statistics

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.

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Gavin Smith
IBISWorld Inc.
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