Abstract
Keeping Pace with Changing End-user Requirements Benefits Manufacturers
Constantly evolving technologies of the end users, coupled with their
changing demands is likely to expand the test equipment market. Manufacturers of
arbitrary waveform generators (AWG) and function generators are challenged to
deliver cost-effective, consumer-friendly products that can deliver quality
performance at high speeds. This is especially pertinent in the electronics and
semiconductor manufacturing industry, which are 'high technology oriented'. In
the communications industry, the growing need for newer technologies like CDMA
and GPRS, wireless LAN network interface cards (NICs), and Bluetooth chipsets is
also expected to fuel demand for test equipment.
This research from Frost & Sullivan evaluates key trends in the testing
equipment market for arbitrary wave generators and function generators. It
provides a comprehensive insight of the drivers and restraints in each of these
segments and outlines the survival strategies adopted by leading participants.
Detailed revenue forecasts and regional analysis give a clear idea of the
expansion opportunities and marketing strategies that are likely to benefit the
industry.
Recovery of the Communications Industry Sustains Demand for AWGs
The communications and electronics manufacturing industries are emerging from
the economic slump and are well on their way to recovery. The need to transmit
signals at high speeds and manage a multitude of signal modulations in
communications applications such as pagers, cell phones, and digital televisions
has led to an increasing shift from analog to digital signals. The complexity
involved with such applications is expected to substantially boost the demand
for integrated test equipment.
"Several customers, especially in the communications end-user industry
require rapid testing and analysis of signals, which ideally require the use of
more than a single test equipment," says the analyst. "Vendors that
heed this trend and modify and integrate their test equipment to suit the needs
of the customer are expected to garner further market share and revenue."
Need for Low-cost Tools in Institutions Drives Sales for Function
Generators
Though the AWG has replaced the function generator in most applications,
customers in the manufacturing test, education, and service markets prefer
function generators. This is simply because the function generator is a much
more cost-effective option. Though the AWG is undoubtedly more efficient,
manufacturers of consumer products such as digital telephones, trade schools
teaching electronics, and service facilities with large staffs of technicians
have to equip their personnel at the lowest possible cost. The trend has been to
buy one lab-quality instrument to be used as a high-performance reference for
other scopes in the facility.
"Most educational and training institutions are hindered from using an
arbitrary waveform generator because they cannot justify the cost of such a
'premium' product," says the analyst. "Among such end users, there is
great demand for a low-cost tool similar to a function generator, yet offering
the many advantages of digital measurements."