Water Quality Testing Equipment Procurement Category Market Research Report from IBISWorld has Been Updated

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Water quality testing equipment has a buyer power score of 3.1 out of 5, which represents a moderate level of buyer power stemming from a combination of low market share concentration, a low level of product specialization, a marginal number of substitutes available to buyers and rising product prices. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Water Quality Testing Equipment in its growing collection of procurement category market research reports.

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In the next three years, strengthening economic activity will facilitate demand for water quality testing equipment, compelling growth in prices; however, price growth will be limited due to a more rapid decline in the cost of key inputs

Water quality testing equipment has a buyer power score of 3.1 out of 5, which represents strengthened buying power that stems from a low market share concentration and a low level of product specialization. The marginal number of substitutes available to buyers and rising product prices, however, undermine buyer power. “In the three years to 2014, strengthening activity in the industrial production and construction sectors has facilitated demand for water quality testing equipment, causing prices to rise. During the next three years, prices are forecast to rise on the back of expanding demand as the economy continues to gain steam,” according to IBISWorld business research analyst Anna Son. However, the falling cost of key inputs will help mitigate more rapid price growth.

The market for water quality testing equipment is fragmented and highly competitive, which grants buyers greater negotiation leverage. The high level of competition increases the pressure on suppliers to offer flexible pricing or incentives, such as extended warranties or reduced shipping costs, to avoid being undercut by the competition. Suppliers in this market include Industrial Test Systems, First Alert and Aquaphoenix Scientific. The low level of customization generally required of water quality testing equipment further bolsters buyer power. Suppliers manufacture and sell set product lines with characteristics and prices that buyers can easily compare. “As a result, buyers are able to find multiple suppliers that provide the necessary product with little difficulty, which further strengthens competition among suppliers as well as the buyer's negotiation leverage,” Son says.

The power that buyers gain from high competition is, however, offset by the pricing leverage that sellers garner from the limited number of substitutes available to buyers. For example, buyers can choose to ship water samples to a laboratory where water quality testing can be conducted. However, although this method typically yields accurate results, it might not be practical for buyers seeking results quickly. Moreover, buyers that regularly require water quality testing will find this method costly and impractical. Armed with the knowledge that buyers have few alternatives to their products, suppliers are often less willing to reduce prices. Buyer power is, consequently, decreased. For more information, visit IBISWorld’s Water Quality Testing Equipment procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist buyers of water quality testing equipment. This equipment is typically either an electronic testing device or a chemical-based testing kit. These devices and kits are used to detect levels of contamination and the physical properties of water. Some buyers require water quality testing to meet various regulations regarding drinking water and wastewater. This report excludes water quality testing services and water treatment products.

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

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.

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Gavin Smith
IBISWorld Inc.
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