The price of facilities management software has been rising the past three years due to growing demand resulting from increasing construction activity
Los Angeles, CA (PRWEB) September 21, 2014
The market for facilities management software exhibits a buyer power score of 3.1 out of 5, representing a moderate level of buyer power. “Buyers benefit from the fragmented, yet stable marketplace, but are hurt by rising wage costs, increasing demand and a lack of substitutes,” according to IBISWorld business research analyst, Dale Schmidt.
No facilities management software vendor is able to gain a powerful market share due to the low barriers to entry, which has allowed new entrants to consistently carve out market shares. This benefits buyers because it gives them many choices when looking for software, allowing them to compare vendors in order to secure the best deal. Despite the fragmented market, the average vendor enjoys financial stability due to the growing market for the software and the generally high profit margins.
On the other hand, facilities management software has no real substitutes. It is designed to increase the efficiency of facilities management professionals, and a similar efficiency enhancer does not exist. “This helps vendors generate high profit margins because buyers cannot find a comparable product elsewhere,” says Schmidt. In addition, the growing demand for the software has been driving prices up in recent years and is expected to continue to increase the price in coming years. As the price increases, buyer power diminishes.
The market also exhibits a moderate degree of specialization, meaning that each package is customized somewhat for each buyer, which can hinder a buyer's ability to compare competing products side-by-side. Facilities management software also includes significant setup costs, which can prove costly if a buyer needs to switch vendors. Major vendors include Archibus Inc., International Business Machines Corporation and Bentley Systems Inc. For more information, visit IBISWorld’s Facilities Management Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of facilities management software. These software packages track maintenance schedules and workflow, inventory levels and energy usage of the buyer's facilities, helping to reduce costs. Software functionality is typically split into modules including asset management, visitor management, maintenance management, space management and more.
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.