Price declines are forecast to continue as demand for LED fixtures picks up, causing more suppliers to enter the market and competition to intensify
Los Angeles, California (PRWEB) October 21, 2014
Buyers have benefited from the declining price of LED street lighting fixtures and the market's moderate concentration, both of which have provided buyers with more leverage in negotiations with suppliers. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Street Lighting Fixtures to its growing collection of procurement category market research reports.
Street lighting fixtures have a buyer power score of 4.0 out of 5. IBISWorld market research analyst, Sean Windle, says, "This score indicates a clear advantage for buyers when purchasing these products." Major vendors in the market include General Electric Company, Philips, Acuity Brands and Cooper Industries.
The biggest factor aiding buyer power is the declining price of street lighting fixtures, specifically light-emitting diode (LED) street lighting fixtures. "Although the majority of streetlights in operation today are sodium-vapor fixtures, businesses and local and state governments are gradually retrofitting existing street lighting systems with LED fixtures to take advantage of annual energy and maintenance cost savings, which can easily reach 50.0% or higher," says Windle. Additionally, LED fixtures help reduce the level of carbon dioxide released into the atmosphere, an important benefit for cities with air pollution problems. Despite the long-term energy and cost savings and smaller environmental impact, the high initial price of LED street lighting fixtures has held back their widespread adoption. Local and state governments, the largest buying market for streetlights, have been cash-strapped during the past three years, with local and state government investment falling at an annualized rate of 2.2%. Nonetheless, rather than purchase cheaper alternatives, many cities and states are holding out for lower prices before making the switch to LED. This stalemate has spurred suppliers to continue to lower prices in an effort to generate stronger demand for LED street lighting fixtures, which are expected to account for the majority of streetlights over the next three to five years.
These factors provide an ideal purchasing environment for buyers, which can continue to hold out for lower prices. In addition, the moderately fragmented supplier market and low level of product specialization foster price competition and give buyers a plethora of vendors from which to choose, all of which offer similar products. For more information, visit IBISWorld’s Street Lighting Fixtures procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of street lighting fixtures, which are attached to poles and used to illuminate streets, highways, parking lots and other roadway areas at night. Suppliers include manufacturers and wholesalers. This report excludes individual bulbs and the poles to which street lighting fixtures are attached, as well as traffic lights and other outdoor or infrastructure lighting.
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.