Prices are expected to decrease in the next three years as a result of more automated manufacturing processes, import competition and lower input costs
Los Angeles, California (PRWEB) April 30, 2015
Light bulbs and tubes have a buyer power score of 4.0 out of 5, which represents a high degree of buyer power. According to IBISWorld market research analyst, Sean Windle, "Market share concentration is high due to the sales dominance of a few manufacturers in this market, but many of those manufacturers' products can be bought through distributors." The downward trend of prices and easy availability of light bulbs and tubes have also been favorable to buyers.
Buyers have benefited from decreasing prices during the past three years, a trend that is expected to continue heading into 2018. "This decrease is the result of several factors, including the phasing out of traditional incandescent bulbs, more efficient manufacturing processes and increasing import competition (which represents more than 60.0% of domestic demand for light bulbs)," says Windle. LED lights are expected to replace much of the incandescent bulb's market share. Further, the cost to produce these lights has been declining in the past three years.
It is not essential for buyers to enter long-term supply agreements because of the downward price trend and the abundance of light bulbs and tubes in the market. Because manufacturers benefit strongly from economies of scale and demand for light bulbs and tubes is virtually assured, production capacity and inventories are substantial. Furthermore, lead times are short and availability is widespread because of this relative abundance, which reinforces buyer power. Furthermore, declining prices have largely offset recent high price volatility.
The main disadvantage for buyers is a lack of viable substitutes for light bulbs and tubes. However, due to the availability of an abundance of different types of bulbs and tubes, buyers have plenty of options from which to choose. Major vendors in the market include General Electric Company, Philips and Osram Sylvania. For more information, visit IBISWorld’s Light Bulbs & Tubes procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of light bulbs and tubes. These products emit various types of light to illuminate the interiors and exteriors of buildings and structures for extended periods. Light bulbs and tubes are the primary products used to make light with electricity. This report includes incandescent, LED and fluorescent bulbs, but excludes flashlights, security lighting and light fixtures.
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.