Price growth is projected to continue in the next three years, although rising competition will mitigate price growth
Los Angeles, California (PRWEB) March 18, 2015
Capacitors have a buyer power score of 4.1 out of 5, representing a high level of buyer power. Capacitors are a fundamental component for electronics. Thus, demand for the product has grown steadily over the past three years alongside the increasing investment in technology. According to IBISWorld market research analyst, Andrew Krabeepetcharat, "Rising private investment in computers and software, per capita disposable income and the industrial production index has continued to boost demand for electronics and the capacitors used to build them." As such, suppliers have increased product prices during the period in response to rising demand. Price growth has been stable, though, which has allowed buyers to more accurately plan for future expenses.
Despite growth in prices, several factors increase buyer power. "Due to the fragmented nature of the market, buyers have a wide selection of suppliers to choose from and are able to use these options as leverage during the negotiation process," says Krabeepetcharat. Major vendors in the market include Panasonic, Philips and Flextronics. In addition, because capacitors are a fundamental component of electronics used in all types of industries, buyers face a low risk of vendor bankruptcy. Furthermore, supply chain risk in the market is low because capacitors can be made from a variety of materials that are readily available.
Capacitors are highly commoditized and the manufacturing process is standardized, eliminating the need for customization. This factor allows buyers to easily compare and contrast specifications and price offerings across different suppliers. Consequently, the standardized nature of capacitors reduces the time and financial cost of switching to another supplier. Unfortunately, buyers are not able to switch to a different product due to the lack of substitutes for capacitors. For more information, visit IBISWorld’s Capacitors procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of capacitors. Capacitors, also known as condensers, are electrical components used to store energy in an electric field. These products are used in a variety of electronics to block direct current while permitting alternating currents. Manufacturers and wholesalers are the primary suppliers in this market. This report does not cover resistors 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
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.