Greater transportation funding and increased trade are expected to boost demand and prices
Los Angeles, CA (PRWEB) July 10, 2014
Variable message signage has a buyer power score of 3.8 out of 5, reflecting favorable market conditions for buyers. Factors that increase buyer power include slow recent price growth, low market share concentration, a wide variety of substitutes, little product specialization, low switching costs and very little price volatility. Says IBISWorld research analyst Michelle Hovanetz, “Thanks to these factors, the market is in great condition for buyers looking to negotiate low prices.”
Competition within the variable message signage market is high due to low market share concentration among suppliers. Buyers can purchase variable message signs directly from manufacturers, wholesalers, distributors or a variety of online resellers. Products are fairly standardized, according to Michelle Hovanetz, “which further increases competition because products across most brands are comparable, and switching costs to move between suppliers are low.” Also contributing to the high degree of competition is the wide variety of substitutes available to buyers, such as static signs, which have historically served the same purpose as variable message signs. Buyers also have the option of renting variable message signs for temporary use, limiting the large capital expenditure of a purchase. These additional options boost buyer negotiating power.
In the three years to 2014, the market's prices have risen very slightly. Slow growth is largely due to low demand from reduced government funding for highway infrastructure. These factors, along with falling input costs for electronic components, have benefited buyer power. Price volatility has also been low, helping buyers to accurately budget for purchases.
The only significant detractor from buyer power is the moderate supply chain risk in the market. This risk primarily stems from the small number of upstream light-emitting diode (LED) suppliers. To produce their products, manufacturers of variable message signage must rely on LED providers; therefore, the loss of a supplier could translate to large supplier costs, which would be passed on to buyers. Current major signage vendors include Daktronics, EBSCO Industries Inc. and Swarco AG. For more information, visit IBISWorld’s Variable Message Signage procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of variable message signage products for use in the transportation sector. These products include a wide range of LED-based displays for road management, parking and aviation applications. Variable message signs are most commonly used to direct traffic and provide information to motorists. They can be permanent or portable. Variable message signs can be purchased direct from manufacturers or from a variety of resellers.
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.