A spike in construction and a growing number of businesses are expected to create higher demand for motion detectors over the next three years, leading to further price growth.
Los Angeles, CA (PRWEB) October 23, 2014
Motion detectors have a buyer power score of 2.7 out of 5. Buyers have a slight disadvantage over suppliers during the negotiation process. Demand for motion detectors has been driven primarily by an increase in corporate profit and construction over the past three years. “The lack of substitute goods and high market share concentration limit buyer power,” says IBISWorld procurement analyst Aileen Weiss. “However, buyers may use the low level of product specialization and minimal switching costs to their advantage.”
High market share concentration is attributed to a small number of powerful suppliers that control the majority of the market. This factor makes it difficult for new suppliers to join the market, limiting buyers' options. “Large companies with extensive economies of scope are less likely to encounter financial hardships, but smaller and regionally based suppliers offer less room to negotiate lower prices because their profit margins are typically lower,” adds Weiss. Additionally, with limited substitute goods available, buyers have few alternatives to motion detectors, further reducing buyer power.
To the buyer's advantage, a wide range of vendors supply motion detectors. Imported motion detectors are also a practical option, especially because many foreign electronic companies specialize in security products, making it easier for buyers to bundle purchases of related goods. However, higher freight costs and longer shipping times may affect their buying lead time and the final price of the product.
New innovations have enabled motion detectors to be integrated with more security systems. Although buyers benefit from the additional uses, suppliers raise prices in response to higher demand and greater production costs. Even in light of higher prices, low product specialization makes it easier for buyers to find more than one supplier that sells a similar device.
As motion detectors continue to rise in popularity, prices will continue to grow. Furthermore, devices will continue to be innovated, and buyers may choose to postpone purchases as better technology becomes available. To avoid price increases brought on by higher demand and greater production costs, though, buyers may lock in lower prices now. For more information, visit IBISWorld’s Motion Detectors procurement category market research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Like IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of security motion detectors. Motion detector manufacturers produce devices used to detect moving objects. Motion detectors are often integrated into a system that automatically alerts users of motion in an area. This report excludes motion sensors as well as motion detection applications and motion detectors used on rotating, reciprocating or conveying equipment. This report also excludes other surveillance and detection equipment such as sirens, alarm systems, security cameras and radar detectors.
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.