Surging business activity among major sectors, such as construction and manufacturing, along with rising input costs, have underpinned the price of security lighting.
Los Angeles, CA (PRWEB) August 06, 2014
Security lighting products have a buyer power score of 3.2 out of 5. This score reflects a mix of favorable and hindering conditions existing in the market that have influenced buyer power in the three years to 2014. During the period, strengthening business activity across major downstream industries and rising input costs have lifted up prices. Buyers in various economic sectors, particularly construction and manufacturing, have revived their production capacity and construction projects. “As buyers have increasingly started investing in upgrading their facilities with more technologically advanced lighting fixtures, demand for security lights has picked up, causing prices to follow suit,” according to business research analyst, Anna Son. In the three years to 2017, surging construction activity will facilitate demand for security lights, while rising raw material prices will raise input costs, prompting prices to rise. Still, rising import penetration will warrant strong domestic price competition.
Despite rising product prices, low product specialization and switching costs buoy buyer negotiation power. There are multiple types of security lights in the market, including motion activated, dusk-to-dawn and solar security lights. While there are some exceptions among specialized products, most security lights are homogenous across suppliers by class. As a result, low product specialization and a plethora of viable suppliers provide buyers with a stronger hand in price negotiation and make it easier to switch suppliers without fear of incurring significant financial losses.
Alternatively, the lack of substitutes and rising market share concentration diminish buyer power. In the three years to 2014, market concentration has increased slightly as large suppliers have acquired smaller competitors, thus gaining greater control over market prices. “While more players are projected to enter the market, consolidation activity among suppliers will likely continue as they seek to expand their product offerings and customer base in the next three years,” says Son. Growing market share concentration can hurt buyer power by lessening price competition. Major vendors include Koninklijke Philips NV, Acuity Brands Inc., Cooper Industries Ltd. And Hubbell Inc. For more information, visit IBISWorld’s Security Lighting procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of security lighting. Businesses often require strategic outdoor lighting solutions to prevent intrusions and other criminal activity. Vendors provide a range of security lighting products, such as floodlights, area and wall lights, and outdoor mount area lights that can come with or without motion sensors. Security light manufacturers, distributors and retail serve the security light needs of the domestic market. This report excludes other outdoor lighting, such as residential streetlights, landscape lighting and roadway or highway lighting. This report focuses on the purchasing process of security lighting products instead of services.
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.