Prices have declined due to falling input costs; however, price declines have slowed due to a recovering economy
Los Angeles, California (PRWEB) December 24, 2014
GPS antennas have a buyer power score of 4.3 out of 5, indicating a positive purchasing environment for buyers with declining costs and negotiating room on price. According to IBISWorld market research analyst, Andrew Krabeepetcharat, "Buyers benefit from the falling cost of inputs that have driven suppliers' operational costs down." Because the price of semiconductors and electronic components is declining, suppliers are better able to reduce prices. In addition, technological change has made GPS antennas less costly to produce, allowing suppliers to pass on their cost reductions to buyers.
Changes in demand from downstream market have placed downward pressure on the price of GPS antennas. "Because the government is the largest buyer of GPS antennas, drops in government consumption and investment during the past three years have prompted suppliers to reduce prices," says Krabeepetcharat. Overall declines in demand have benefited buyers, because lower demand prompts suppliers to reduce prices. However, the recovering economy has incentivized many businesses to invest in more GPS antennas for their operations where GPS signals are weak or nonexistent, creating upward pressure on demand and consequently mitigating the rate of price declines during the period.
The price of GPS antennas has declined at a steady rate, providing buyers with a stable purchasing environment. Low price volatility allows buyers to plan for expenses and reduces the risk of future price hikes. Also, the low level of supply chain risk benefits buyers as it reduces the risk of potential price hikes and discontinuity of customer support.
However, moderate level of market share concentration cuts into buyer negotiating power. With only a few manufacturers in the market, buyers face slightly reduced supplier options when purchasing GPS antennas. Also, the low number of manufacturers reduces the incentive for suppliers to engage in price competition. Major vendors in the market include Cisco, Garmin and Motorola Solutions. As only a small number of suppliers manufacture GPS antennas, buyers are less able to negotiate on price with fewer alternative suppliers to use as leverage. For more information, visit IBISWorld’s GPS Antennas 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 GPS antennas. GPS antennas enhance the ability for a GPS device to receive satellite signals, which are used to determine the location of various people, objects or buildings. GPS antennas are distributed by manufacturers, wholesalers and retailers.
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.