Growing demand will drive prices up, but declining key input costs will keep growth low
Los Angeles, CA (PRWEB) January 20, 2015
Energy management control systems have a buyer power score of 3.0 out of 5. This score indicates buying power that is strengthened by the high level of competition and low price volatility. However, IBISWorld research analyst Ian Buchanan adds that “buyer power is moderated by the limited availability of substitutes and high switching costs associated with the software.”
The market for energy management control systems has a low level of market share concentration due to the increasing demand for these systems, which has caused new vendors to emerge and keep market share low. As the number of vendors continues to grow, buyers' choice in suppliers rises and competition intensifies. Consequently, says Buchanan, “suppliers will be more willing to offer the buyer a lower price to undercut their competitors and to attract clients, increasing the buyer's negotiating power.” In addition, buyers have benefited from a low price volatility during the three years to 2014. Although prices are forecast to increase, the low volatility shields the buyer from extreme price fluctuations. This has allowed buyers to make more accurate cost estimates and budgets. Furthermore, volatility is anticipated to remain minimal during the three years to 2017, continuing the buyer's advantage of precise cost estimation.
However, buyers that are seeking methods for reducing the amount of energy their building consumes have a limited number of practical options from which to choose. Buyers can use devices, such as smart meters, to manually monitor and regulate their energy usage, or they can install expensive renewable energy systems such as solar panels. However, these methods are typically not as practical or as effective and often do not provide equal benefits as a standalone energy reduction solution. Consequently, the low availability of alternatives to energy management control systems reduces the amount of outside competition for suppliers. As a result, suppliers are less willing to reduce prices knowing that buyers have limited options for lowering energy costs. Current suppliers include Siemens, Schneider Electric, Honeywell International and GE Engery. Unfortunately for buyers, the limited number of alternatives to energy management control systems slightly offsets the boosted buyer power that stems from the competitive market. For more information, visit IBISWorld’s Energy Management Control Systems procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of energy management control systems. Energy management control systems optimize the energy used by heating, lighting, ventilation and building electrical infrastructure to reduce energy costs. These systems increase energy usage awareness through the reporting of energy consumption. Suppliers typically provide both the equipment and installation and setup of theses systems.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics
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