While surging business activity and stringent regulations are forecast to drive demand and prices over the next three years, the increasing use of digital records will somewhat restrain price growth
Los Angeles, California (PRWEB) November 14, 2014
Document storage services have a buyer power score of 3.8 out of 5. This score reflects favorable conditions in the market that have boosted buyer negotiation power in the three years to 2014. IBISWorld market research analyst, Anna Son, says, "While prices for document storage services have been rising during the period on the back of robust demand, the increase has been marginal." Moreover, price volatility has been extremely low, which benefits buyers because they can take time in making their purchasing decisions without fear of major price spikes. Although strengthening business activity is projected to lift up demand for document storage services over the next three years, mounting market competition will compel suppliers to offer competitive prices. Consequently, prices are forecast to trend upward, albeit at a very slow rate, thus sustaining buyer negotiation power.
Low product specialization and minimal switching costs further underscore buyer power. Buyers will find the end product to be nearly identical across service providers. "Suppliers also strive to adhere to high standards established for document management services to avoid possible litigation costs relating to privacy breaches and to maintain their reputation, which is crucial in the document storage market," says Son. As a result, suppliers are reluctant to deviate from these security standards. These factors allow buyers to procure document storage services from a larger pool of suppliers without fear of compromising quality.
Despite a medium level of overall market share concentration, moderate capital investments required to start and support operations, combined with efforts to minimize transportation of sensitive documents, have contributed to market fragmentation. The number of regional and local suppliers has grown as buyers have gravitated to locally based firms to minimize potential privacy breaches by reducing the amount of travel required for document storage. Nevertheless, market share concentration has been rising slightly during the past three years as larger players like Iron Mountain and Recall have expanded their consolidation efforts. Increased consolidation activity has the potential to hurt buyers by giving suppliers more price control. For more information, visit IBISWorld’s Document Storage Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of document storage services. Companies that provide document storage services archive paper records for long periods of time in accordance with applicable laws, regulations and industry best practices. Some of the documents that suppliers store and retrieve include employee information, medical records and legal documents. This report does not include cloud-based storage or other nonphysical types of storage.
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.