Gas detectors have a buyer power score of 3.7 out of 5, indicating moderate buyer negotiation, according to IBISWorld business research.
The research report indicates the availability of inexpensive imports helps to keep prices low and indicates also low price driver volatility. Temperate price changes allow buyers to predict and budget gas detector purchases with higher confidence, according to IBISWorld.
“Gas detectors can be fixed or portable and range from basic household carbon monoxide detectors to sophisticated multi-gas detectors capable of reading gas concentrations in parts per million. Buyers benefit from moderate market concentration, which gives them the choice of many suppliers, especially amongst distributors,” according to IBISWorld business research analyst Kevin Young.
Major players are generally international corporations with established brand names, such as Honeywell International Inc., Home Depot Inc, Airgas Inc. and Dragerwerk AG, according to IBISWorld. The report states “It follows that such companies can produce huge quantities of detectors at a comparatively low cost, allowing them to achieve economies of scale and maintain dominant market shares. The availability of inexpensive imports helps to keep prices low, forcing domestic manufacturers to adjust prices to compete. Low price driver volatility has contributed to stable price growth in the past three years. Temperate price changes allow buyers to predict and budget gas detector purchases with higher confidence.”
The prices of semiconductors and other digital components required to produce gas detectors have fallen significantly during the past three years, putting downward pressure on market prices and benefiting buyer power, according to the research. Low switching costs provide suppliers with the opportunity to change suppliers in the event that a product or service becomes unsatisfactory. The total cost of ownership for gas detection products is also low, allowing buyers to operate these products for extensive service lives without the risk of unpredictable operational costs.
Alternatively, other aspects of the gas detector market are detrimental to buyer power, according to IBISWorld. Despite falling input prices, demand from the commercial sector caused gas detector prices to increase in the past three years. In the three years to 2017, demand from the housing, industrial and mining sectors is forecast to drive a price increase,” Young says.