Performance glitches: Falling demand from computer retailers limited revenue growth

Enterprises in the Computer and Peripheral Equipment Wholesaling industry distribute items such as computer hardware, software and storage devices. The products are acquired from manufacturers and then sold to a variety of markets, including corporations, the government, retailers and resellers. The industry is vulnerable to volatility in terms of downstream demand, which remained low in the aftermath of the recession. Although the industry has since shown some signs of recovery, it has been limited by certain factors.At the start of the five-year period through 2018-19, the industry was affected by falling demand from downstream computer retailers, although business confidence was strong owing to the UK's economic recovery...read more.

Industry Statistics & Market Size
Revenue
£29.5bn
Annual Growth 14-19
1.2%
Forecast Growth 19-24
Profit
Employment
40,881
Businesses
2,028
Market Share of Companies

Industry Threats & Opportunities

  • Product innovation has helped compensate for wholesale bypass, resulting in overall growth
  • Computer retailers have struggled over the past five years, which has weighed on industry performance
  • Innovation at the manufacturing level is expected to increase demand for computer products
  • Industry Report - Industry Key Buyers Chapter

    The Computer and Peripheral Equipment Wholesaling industry has a low level of market share concentration. The level of concentration measures the extent to which the top players dominate an industry. Traditionally, the industry is characterised by smaller companies that cater to local regions. According to the Office for National Statistics, approximately 77.1% of enterprises employ fewer than 10 employees. The four largest players in the industry, which are Tech Data Ltd, Ingram Micro, Hewlett-Packard Limited and IBM, are estimated to control 18.4% of the market in 2018-19.Market share concentration has been increasing over the past five years, with the number of enterprises declining as operators struggled to maintain margins due to falling sales. Lar...purchase to read more.

    Additional Insights for the Computer & Peripheral Equipment Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Computer & Peripheral Equipment Wholesaling Industry are

  • Ability to control stock on hand
  • Having a cost effective distribution system
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Business capital expenditure and Demand from computer and gaming product retailers in the Computer & Peripheral Equipment Wholesaling industry impact industry performance..

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    What's in this report

    What is the Computer & Peripheral Equipment Wholesaling Industry?

    Operators in this industry wholesale and distribute computers and peripheral equipment. Products include computer hardware, software, printers and scanners, servers, storage and other computer peripheral equipment. The industry does not include the wholesale of office equipment.

    Industry Products
  • Laptop computers
  • Desktop computers
  • Mainframe computers
  • Servers and storage
  • Printers and scanners
  • Software
  • Tablet computers
  • Industry Activities
  • computers
  • peripheral equipment
  • software and storage products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business capital expenditure
  • Demand from computer and gaming product retailers
  • Government capital expenditure
  • Real household disposable income
  • IT and telecommunications adoption

  • Current Performance
  • Volatile conditions and employment
  • Retail demand
  • Corporate market
  • Wholesale bypass
  • Chart: Revenue Growth

  • Industry Outlook
  • Rebounding demand
  • Equipment advances
  • Wholesale bypass
  • International technology sector
  • Table: Computer & Peripheral Equipment Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Computer & Peripheral Equipment Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Computer & Peripheral Equipment Wholesaling
  • Department Stores
  • Computer & Gaming Product Retailers
  • E-Commerce & Online Auctions

  • Key Selling Industries
  • Computer & Peripheral Equipment Manufacturing
  • Software Publishing

  • Products & Services
  • Laptop computers
  • Desktop computers
  • Software
  • Tablet computers
  • Printers and scanners
  • Mainframe computers
  • Servers and storage
  • Other
  • Chart: Computer & Peripheral Equipment Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses and the government
  • Retailers
  • Resellers
  • Direct sales
  • Other
  • Chart: Major Market Segmentation for the Computer & Peripheral Equipment Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and depreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Computer & Peripheral Equipment Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Computer & Peripheral Equipment Wholesaling Industry

  • Industry Globalization
    Tech Data Ltd,
  • Table: Tech Data Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Computer & Peripheral Equipment Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Computer & Peripheral Equipment Wholesaling Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Mainframe Computer
  • Computers used primarily by large organisations for complex and critical applications such as bulk data processing and analysing consumer statistics.
  • Tablet Computer
  • A relatively new technology, it is a mobile computer contained in a flat touch screen.
  • Wholesale Bypass
  • A trend whereby the manufacturer sells directly to the retailer or the end user, choosing not to use the services of the wholesaler.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Computer & Peripheral Equipment Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Computer & Peripheral Equipment Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Computer & Peripheral Equipment Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Computer & Peripheral Equipment Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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