Continued growth in demand for transistors is projected to incentivize suppliers to raise prices during the three years to 2017.
Los Angeles, CA (PRWEB) February 28, 2015
Transistors have a buyer power score of 3.8 out of 5, representing a moderate level of buyer power. Because transistors are used in all modern electronics, demand for transistors has grown quickly alongside demand for electronics. “As a result of rising demand, suppliers have been incentivized to raise prices,” says IBISWorld procurement analyst Andrew Krabeepetcharat. “Despite price growth from increased demand, the declining cost of raw materials like silicone and rising competition among suppliers have mitigated price growth.”
Prices for transistors have been rising due to increased demand from the growing level of investment in computers and other electronic products. “Per capita disposable income has risen, leading to increased purchases of electronics and placing upward pressure on demand and prices for transistors,” adds Krabeepetcharat. “However, the rising number of suppliers that have promoted price-based competition in the market has mitigated price growth.”
Despite rising prices, several factors benefit buyers. The low level of market share concentration increases the number of suppliers that buyers can choose from. Furthermore, low market share concentration increases competitive pressure in the market and encourages suppliers to offer lower prices as they jockey for higher market share. In addition, the market has a low level of product specialization due to a lack of customization options. Suppliers do not offer customization options because transistors are largely standardized, which simplifies the purchasing process and allows buyers to easily compare and contrast options. Additionally, the low level of product specialization reduces switching costs, allowing buyers to change suppliers if they are not satisfied.
Still, some market characteristics hamper buyer power. The lack of substitutes reduces buyers' ability to leverage options during the purchasing process. Also, due to the fast-changing pace of technology, the useful life of the product is short and buyers will need to purchase transistors frequently. For more information, visit IBISWorld’s Transistors procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of transistors. Transistors are semiconductor devices used to amplify and switch electronic signals. Transistors are an essential element in electronics and are used to build, prototype, repair and maintain a wide variety of electronics. Suppliers are either large technology firms or specialized electronic component manufacturers. This report does not cover circuit boards or other electronic components.
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
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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.