Los Angeles, CA (PRWEB) August 06, 2014
Security system installation services have a buyer power score of 3.1 out of 5, implying that buyers have more leverage when negotiating with suppliers. Demand for security system installation stems from increased construction and business activity. In addition, security measures intensify after national or international incidents, such as the September 11 terrorist attacks, Boston Marathon bombings or Sandy Hook Elementary School shooting, that then prompt public and private buildings to install or upgrade security services.
“Buyers benefit from low market share concentration, high competition and low service specialization. Low market share concentration indicates that no one supplier controls the market,” according to IBISWorld business research analyst Aileen Weiss. Even the largest firms with multiple service lines do not have large shares of market revenue. Low barriers to entry encourage more suppliers to join, increasing competition and providing buyers with more suppliers to select from. In addition, low service specialization makes it easier for buyers to compare installers because the installation process is relatively similar.
“Moderate switching costs, a high total cost of ownership and few practical substitutes are detrimental to buyer power,” Weiss says. If the buyer switches installers, a new installer may require the buyer to purchase that supplier's particular security system. In addition, the buyer must consider total costs of ownership, including high operating and maintenance costs and regular subscription fees, which may drastically increase total costs over the long run. And though there are some substitute options available, buyers must assess whether they realistically replace needed installation services.
Security system installation services have a wide price range due to the fact that installation jobs require different amounts of labor and materials, and the average price serves as a benchmark for a typical installation in an average-size building. The price to install the security systems varies by the complexity of the project, the number of hours required to install the security systems, the type of subscription the buyer purchases and the length of the contract. Four of the top vendors providing security system installation services are ADT Security Services Inc., Stanley Black & Decker Inc., Tyco International Ltd. and Guardian Protection Services. For more information, visit IBISWorld’s Security System Installation procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of security system installation services. Vendors install a range of security systems, such as burglar alarms and locking devices. Vendors also provide repair services for existing systems, as well as monitoring services once the security system has been installed. The market is composed of public and private companies, subcontractors and locksmiths that specialize in security systems. This report does not include fire alarm installation or lock and security hardware.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration