Price growth is expected to strengthen over the next three years, as demand from commercial building and leasing activity picks up
Los Angeles, CA (PRWEB) October 13, 2014
Card key lock systems have a buyer power score of 2.7 out of 5. “This score indicates a mostly shared power balance between buyers and sellers, with a slight advantage for buyers,” according to IBISWorld business research analyst Sean Windle.
Card key lock systems offer a more convenient and modern approach to access control for businesses, schools, hospitals, government agencies and other commercial and public enterprises. As such, demand for these products is largely dependent on the level of nonresidential building and leasing activity. While building and leasing activity plummeted during the economic downturn, growth in these external demand drivers has been strong following the recession. For example, in the three years to 2014, the value of private nonresidential construction has risen and the office rental vacancy rate has fallen. “These factors have driven up the average benchmark price for card key lock systems, which has increased at an in the past three years,” says Windle.
While rising demand means higher prices for buyers, other factors have bolstered buyer power during the past three years. Firstly, traditional mechanical locks are widely available as a substitute good, and in many cases are more affordable. While traditional lock systems do not provide the automated features that card key locks do, they offer a similar level of access control, often at a lower price. Secondly, market share concentration is low, giving buyers a variety of suppliers to choose from, including overseas manufacturers. In fact, import competition has bolstered buyer power by spurring more price competition among domestic suppliers. Lastly, although prices have risen, price growth has been steady in the past three years, allowing buyers to more accurately budget future expenses. Consequently, buyers are encouraged to purchase card key lock systems now, before building and leasing activity strengthen further, and demand and prices increase. Major vendors include United Technologies Corporation, HID Global and Hirsch Indentive. For more information, visit IBISWorld’s Card Key Lock Systems procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of card key lock systems. Card key lock systems manufacturers produce electronic security systems, which consist of locks that are compatible with card keys required to gain entrance to businesses, schools, hospitals, government agencies and other commercial and public enterprises. In addition to manufacturers, wholesalers also sell card key lock systems. This report does not include mechanical or biometric lock systems.
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
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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.