Smaller suppliers will grow as more small businesses adopt barcode systems, driving competition among suppliers and causing prices to decline further in the next three years
Los Angeles, California (PRWEB) April 15, 2015
Barcoding software has a buyer power score of 4.4 out of 5. This score reflects positive negotiating conditions for buyers. According to IBISWorld market research analyst Dale Schmidt, "The average price of barcoding software has steadily declined over the past three years." Despite high market share concentration, competition among suppliers is high. Widespread adoption of barcode systems results in suppliers competing on price to win new customers and encourage current users to upgrade. This trend has helped place downward pressure on prices, which are expected to continue declining over the next three years. In addition, prices for barcoding software are not particularly volatile, so buyers face little risk of prices increasing suddenly. Major vendors in the market include Seagull Scientific, Teklynx Newco SAS and Loftware Inc.
Barcodes are used internationally to help identify and track packages and documents; barcoding software helps businesses adhere to international standards of identification to ensure consistency and accuracy. As such,barcoding software is fairly standardized. "Although suppliers offer varying features and levels of support, the core functions of barcoding software are similar across suppliers," says Schmidt. Despite the low level of specialization, however, buyers face a lack of substitutes.
Although the software sector is quickly evolving, barcoding software is considered to be in the mature phase of its life cycle. Barcode systems have been in place for several decades, and updates to software are incremental. However, the widespread use of barcodes helps maintain high demand for the software, which prevents prices from dropping faster. Businesses rely on barcoding systems to operate efficiently, and the lack of substitutes somewhat limits buyer power. Nevertheless, overall market conditions greatly benefit buyers. For more information, visit IBISWorld’s Barcoding Software procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of barcoding software. This software allows businesses to generate barcodes, which are scanned to track inventory, production status, documents, shipping, healthcare patients and more. Barcodes typically consist of parallel lines of varying widths and spacing, although other shapes can also be scanned.
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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