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World Signal Generators and Arbitrary Waveform Generators Market

Frost & Sullivan, Sep 2006


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The World Signal Generators and Arbitrary Waveform Generators Market is segmented into Radio Frequency Signal Generators, Microwave Signal Generators and Arbitrary Waveform Generators. Each segment discusses current issues facing the market, revenue and distribution forecasts, market and technology trends, and competitive analysis. Challenges and strategies specific to each segment are discussed at the total level.
This Frost & Sullivan research service entitled World Signal Generators and Arbitrary Waveform Generators Market provides an overview of this market for different product segments in terms of revenues by end users and geographic regions. It also offers a thorough analysis of key drivers, restraints, and trends that are likely to impact the growth of this market. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following markets: communications, electronics manufacturing, aerospace and defense, industrial, and automotive.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Product Type:

- Radio frequency (RF) signal generators

- Microwave signal generators
- Arbitrary waveform signal generators (AWGs)

By End-user Vertical:

- Communications

- Electronics manufacturing

- Aerospace and defense

- Industrial and automotive

- Others

By Geographic Region

:

- North America

- Europe

- Asia Pacific

- Rest-of-the-world

Technologies

The following technologies are covered in this research:

- Worldwide Interoperability for Microwave Access (WiMAX)
- Third generation (3G) wireless
- Wideband code division multiple access (WCDMA)

Market Overview

Mature Market to Grow at a Moderate Rate
The global signal generator and arbitrary waveform generator market is expected to experience steady growth despite being relatively mature. In 2005, the market generated revenues of $601.5 million, representing an increase of 5.3 per cent over the previous year. Revenues are expected to reach $888.5 million in 2012 at a compound annual growth rate (CAGR) of 5.7 per cent between 2005 and 2012. This market has undergone several changes in the last few years, with the initial boom severely affected by the global economic downturn in 2001 and the slump in the North American IT and communications industry. However, 2003 signaled a turnaround, with the recovery of key end-user industries such as communications and aerospace and defense creating fresh demand for both signal and arbitrary waveform generators.
The emergence of new wireless technologies and standards combined with the continued expansion of the aerospace and defense sector is likely to drive steady and moderate growth in the mature signal and arbitrary waveform generators market, says the analyst of this research service. In recent years, the communications industry has been flooded with numerous new technologies such as Worldwide Interoperability for Microwave Access (WiMAX), third generation (3G) wireless and wideband code division multiple access (WCDMA) and is closer to achieving true broadband wireless. This has significantly intensified the demand for better and more sophisticated generators.

Strong Customer Relationships and Focus on Critical End-user Segments to Drive Growth
Understanding customer needs and keeping pace with constantly changing standards and trends continue to be key criteria for success in this market. Participants are also realizing the importance of concentrating on specific end-user or niche segments in this market known to have high entry barriers. The key to success for test equipment vendors in today’s competitive scenario is their ability to establish and nurture strong relationships with customers, observes the analyst. By devoting resources to meet the requirements of major customers, vendors can establish trust and thereby gain repeat business as well as enhanced customer loyalty.
While Europe is expected to see a decline in demand over the next two to three years, Asia Pacific will experience a substantial increase. Vendors are increasingly shifting focus to the Asia Pacific markets, as they are perceived to hold strong growth opportunities. Many manufacturing units and research and development centers are also setting up facilities in this region, further indicating that this trend is fast gathering pace.





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