Prices are expected to rise in the three years to 2017 due to increased demand and stabilizing input costs.
Los Angeles, CA (PRWEB) July 16, 2014
Graphics cards have a buyer power score of 3.9 out of 5, which generally benefits buyers, reflecting a fragmented market structure, low market risks and mixed price trends. “This score indicates that buyers will have leverage in negotiating lower prices or receiving additional features or products included with the purchase of graphics cards,” says IBISWorld business research analyst Andrew Yang.
Pricing trends have been somewhat favorable for graphics cards because input costs have decreased. Graphics 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, which has lowered input costs for graphics card suppliers. As a result, graphics card prices have been stable in the three years to 2014. “However, due to increased demand and stabilizing input costs, IBISWorld forecasts that prices will increase in the three years to 2017,” says Yang.
The market structure is very favorable for buyers. Buyers have easy access to substitutes through integrated graphics processors. These processors are not as powerful as dedicated graphics cards, but they perform the same function and come included with almost all personal computers. 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 graphics cards. However, supply chain risks are moderate for graphics card suppliers. Graphics cards manufacturers depend on graphical processing units (GPUs) and two suppliers dominate the GPU market for graphics cards. This monopoly on GPUs presents risks for graphics card manufacturers because they depend on a small number of suppliers for a critical component. Major vendors include Advanced Micro Devices Inc., ASUSTek Computer Inc., Dell and EVGA Corporation. For more information, visit IBISWorld’s Graphics & Video Accelerator Cards procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of graphics and video accelerator cards. Graphics and video accelerator cards or simply graphics cards are additional attachments for personal computers that can help computers manage and process complex high-definition images and video. A graphics card consists of a circuit board with a graphical processing unit (GPU), software, heat sinks, memory, input and output interfaces. Graphics cards are primarily used by graphic designers and researchers. Graphics cards may also be known as video or display cards. This report excludes GPUs and integrated graphical units.
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.