More construction will encourage buyers to purchase CCTV systems for new facilities
Los Angeles, CA (PRWEB) October 14, 2014
Buyers of closed-circuit television (CCTV) systems have a buyer power score of 3.5 out of 5, indicating that buyers in this market have more leverage than suppliers. “Even though the low availability of substitutes limits buyers' options of purchasing alternative products, low switching costs, a moderate total cost of ownership and high levels of competition provide buyers with some negotiation power,” according to IBISWorld business research analyst Kevin Young.
CCTV systems have become widely accepted in recent years, especially as homeland security increased its security measures following the September 11 terrorist attacks. Additionally, CCTV systems gained popularity after the Boston Marathon bombing in April 2013 when they were used extensively. “Even as many groups argue against the use of such security cameras, the number of CCTV systems sold has increased,” says Young.
The recession delayed buyers from purchasing and installing new CCTV systems. In the past three years, however, as the unemployment rate slowly fell, disposable income increased, enabling more consumers to spend money. This resulted in an increase in corporate profit. Additionally, construction began to pick up as buyers were more willing to invest in long-term projects. Because buyers needed to outfit new buildings with CCTV systems, the price of the systems increased from the hike in demand.
In the next three years, government investment will pick up, enabling many buyers who were waiting for federal funding to purchase new CCTV systems. Additionally, an escalation in research and development (R&D) will bring advanced systems to market, providing buyers with a greater selection of products. Furthermore, the cost of production will decline with the price of semiconductors and other electrical components. Despite falling costs, strong demand trends will pressure CCTV system prices upward in the three years to 2017. Buyers are advised to purchase CCTV systems now instead of later, as the price of these products is projected to rise. Major vendors include Axis Communication AB, Samsung and Sony Corporation. For more information, visit IBISWorld’s Closed-Circuit Television Systems procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of closed-circuit television (CCTV) systems. Communication equipment manufacturers produce CCTV systems to allow users to connect remotely from a computer and view live or taped monitoring that is not publicly transmitted. CCTV systems are often used for surveillance purposes, crime prevention, industrial processes, traffic monitoring, transport safety and retail theft prevention. CCTV systems include the camera, recorder, television monitor and accessories. This report excludes security system installations.
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.