The average price for industrial encoders has increased steadily over the past three years; however, price growth has been subdued due to falling steel prices and high import competition
Los Angeles, CA (PRWEB) July 31, 2014
Industrial encoders have a buyer power score of 3.8 out of 5. This score indicates a clear advantage for buyers when negotiating supply agreements in this market.
Buyers have benefited from slow and steady price growth in the past three years, with the average price for industrial rotary encoders expected to increase from 2011 to 2014. Despite the surge in post-recession demand from industrial industries, declining steel prices and high import competition have kept price growth in check during the past three years. “High import competition from low-cost suppliers overseas fosters additional price competition in an already fragmented and price competitive market,” according to IBISWorld Business Reseach Analyst, Sean Windle. In addition, import competition gives buyers additional supplier options from which to choose when sourcing industrial encoders.
The low level of product specialization and low switching costs also enhance buyer leverage. In this fragmented supplier market, buyers have a large number of suppliers from which to choose, many of which offer comparable products. “Low product specialization also supports price competition because competitive pricing is one of the primary ways in which suppliers differentiate themselves,” says Windle.
The main disadvantage for buyers is the lack of viable substitutes. Industrial encoders provide valuable feedback on the positions and movements of industrial machinery and equipment. Nonetheless, the lack of substitutes does not significantly hamper buyer power, because there are a plethora of different types of industrial encoders, and the supplier market for these products is highly price-competitive. Major vendors in this market include Renishaw PLC, General Electric Company, Honeywell International Inc. and Emerson Electric Co. For more information, visit IBISWorld’s Industrial Encoders procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of industrial encoders. These products are electromechanical devices that can convert the position or motion of an axle or shaft, in the case of a rotary encoder, or physical position of any device, in the case of a linear encoder, into a digital signal. Encoders are therefore used to track and control the movement of mechanical devices using digital signals. Suppliers include manufacturers and wholesalers. This report does not cover encoders used in computer software applications.
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.