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Countries covered: Global
Intense Competition due to Reduced Capital Expenditure Challenges Test Equipment Vendors to Find Strategies to Boost Sales Shrinking demand for test equipment in the signal generator market has resulted in escalating competition among major test equipment vendors. Key end users of test equipment have tightened capital expenditure budgets due to the unfavorable economic conditions, slowing sales. End users seek to maximize the performance of existing signal sources or procure used test equipment at auctions instead of investing in new ones. Market participants need to pursue effective survival strategies such as developing good customer relationships to generate profits when the economy improves. This new research service from Frost & Sullivan analyzes the world signal sources markets and provides an analysis of drivers and restraints that are expected to affect sales. It also evaluates key customer trends and provides an analysis of the radio frequency (RF) and microwave (MW) signal sources markets, offering an indication of the demand potential for each product segment. Increasing Focus on Defense Spending To Spur Demand for Signal Generators "With countries across the world increasing their military budgets in the interest of national security, there are opportunities for test equipment vendors to sell completely new systems or provide refurbishment services for existing signal sources," says the analyst of this research service. The turn of events following September 11 and the 'War on Terror' initiated by the United States, has resulted in incremental defense spending, stimulating demand for signal generators from the defense and aerospace sector. MW signal generators are primarily required for developing, testing, and troubleshooting microwave-based systems such as satellite systems, radars, communications systems, and electronic warfare equipment. RF signal generators are used in wireless communication, GPS-based navigation systems, and avionics systems. Recovery of the Wireless Communication Market Provides Growth Opportunities The adoption of 2.5G services such as GPRS and CDMA2000 that require signal generators with greater modulation capabilities, coupled with the progressive introduction of 3G services is expected to drive demand for a new breed of signal generators in the wireless market. Further, the rapid customer adoption of wireless LAN 802.11b technology has fuelled market expectations of future growth in demand for signal sources. "The increasing adoption of 802.11a and the ratification of 802.11g standards in the wireless LAN markets create a potential market for specialized equipment that can test dual-mode chipsets," adds the analyst. Greater demand for Bluetooth chipsets that can be incorporated in a wide array of applications offers opportunities for sales of interoperability test equipment. |
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