Higher demand as a result of improved corporate profit and more US businesses have pushed up prices
Los Angeles, CA (PRWEB) November 23, 2014
Night vision equipment has a buyer power score of 3.5 out of 5. This score indicates that buyers have a moderate level of negotiation power over suppliers. A moderate level of substitute goods offers buyers some alternative options to purchasing night vision equipment; however, high market share concentration and high product specialization that characterize this market limit buyer power. Furthermore, the top suppliers dominate the market, according to IBISWorld research. The extensive manufacturing process and the need for highly skilled labor make it more difficult for smaller suppliers to enter and compete in the national market. Because buyers have a limited number of suppliers to select from, they lose some power when negotiating prices. Current major vendors include L-3 Communications Holdings Inc., WW Grainger Inc., ITT Exelis and Flir.
Buyers have a moderate level of substitutes for night vision equipment. According to IBISWorld, buyers may save on short-term purchases if they elect to rent or lease the night vision equipment. Renting or leasing equipment reduces the total cost of ownership because the supplier providing the product typically covers maintenance and repair costs. Additionally, switching costs are lower because the buyer does not need to make as large of an investment.
As night vision equipment evolves technologically, its performance will improve. Though prices will continue to rise in the three years to 2017, buyers may elect to wait to make purchases as more enhanced equipment is introduced. Because demand from military buyers is anticipated to fall in the next three years as defense spending contracts, buyers will be able to negotiate prices more easily as suppliers attempt to maintain their sales. For more information, visit IBISWorld’s Night Vision Equipment 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 night vision equipment. Night vision equipment manufacturers produce devices that create images in levels of light that are near complete darkness. Night vision equipment includes a protective cover, an image intensifier tube and a mounting system. Night vision equipment can also be called night vision devices or night optical devices. This report excludes other optical instruments and lenses that are specifically intended for use in daylight, such as binoculars, camera lenses, field glasses, magnifying glasses, microscopes and telescopes. This report also excludes other surveillance and detection equipment, such as closed circuit television systems, X-ray inspection systems and security control 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
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.