According to a new report published by Technavio, the RF Signal Generator market is anticipated to witness healthy growth at a CAGR of 7.71% through 2025. This growth can be attributed to increasing partnerships between vendors and value chain members. However, a rise in demand for rental test equipment can hamper the growth of the market during the next few years.
The RF Signal Generator Market research report expects 37% of the market's growth to originate from APAC during the forecast period. China and Japan are the key markets for radio frequency signal generators in APAC. Market growth in APAC will be faster than the growth of the market in other regions. The increasing disposable income and urbanization will facilitate the radio frequency signal generator market growth in APAC over the forecast period.
One of the key factors driving growth in the radio frequency signal generator market is the increasing partnerships between vendors and value chain members. Vendors in the global RF signal generator market are establishing strategic partnerships with value chain members to gain insights on the developments and upgrades of ISO standards across industries, particularly in the telecommunication industry. The need for higher bandwidth applications across all industries is leading to the upgrade of wired and wireless communication standards. Strategic partnerships enable RF signal generator manufacturers to upgrade and develop sophisticated equipment that meets the need for testing receivers, test systems, and electronic components across various industries. Such collaborations will enable players in the value chain to invest in upcoming technologies and conduct advanced R&D of newer products. This is expected to increase the demand for RF signal generators among players across the value chain as RF signal generators are used for testing components and electrical systems.
The rise in demand for rental test equipment will be a major challenge for the radio frequency signal generator market during the forecast period. Investments in high-performance RF signal generators for specific applications require significant CAPEX. The high ASP of RF signal generators has accelerated the demand for used and rental RF signal generators for T&M purposes. Industries such as aerospace and defense, telecommunication, and semiconductors, which extensively use RF signal generators, are capital-intensive in nature. Thus, end-users in these industries prefer using RF signal generators on a rental basis. This helps them reduce their investment costs and meet their demand for test equipment. Though this business model generates revenue for RF signal generator manufacturers, it is affecting the demand for new RF signal generators. This is expected to adversely affect the revenue inflow of vendors operating in the market, which could result in low profit margins.
Click here to view the RF Signal Generator Market research report.