Expanding military budgets mean more signal source sales

A new study from Frost & Sullivan, World Signal Sources Markets, reveals that revenues in the signal source industry totaled $492.1 million in 2002 and should reach $684.4 million by 2009.

The major impetus behind this increase is the military. Demand in other key markets for signal sources, such as the electronics and communications industries, have shrunk due to unfavorable economic conditions. For instance, network operators that spent millions of dollars buying spectrum licenses for 3G are now left with limited resources to invest in deploying the new networks and acquiring new test equipment.

In addition, a significant surplus of second-hand signal generators is available, as many users have either sold off unneeded equipment or gone out of business. These factors have increased competition among vendors trying to sell new signal sources.

The report advises established signal source vendors to combat the competition they face from the sales of second-hand equipment by offering refurbished products. They can cash in on the fact that customers would potentially prefer to buy less-expensive refurbished test equipment from the original source with a product guarantee and service assurance.

Fostering strong relationships with customers by participating in their product development process can also help boost sales. Vendors can focus on offering modular signal sources with user-friendly interfaces and multi-functionalities to match end-user requirements in the future.

The increasing demand for bandwidth and frequency modulation required for the new communications, defense, and satellite technologies are expected to result in greater sales for signal sources. http://www.testandmeasurement.frost.com.