Five Areas in Radio Frequency Test & Measurement that Will Create Over $30 Billion in New Revenues by 2023
February 21, 2018 | Frost & SullivanEstimated reading time: 2 minutes
Frost & Sullivan’s latest analysis, Radio Frequency (RF) Test and Measurement (T&M) Market, Forecast to 2023, finds that high demand from the connected car industry, advancements in wireless communication standards, and pre-5G and 5G technologies are driving industry expansion. The study provides a detailed assessment of key market dynamics, drivers and restraints, revenue forecasts by region, and market share and competitive analysis.
Frost & Sullivan expects Asia Pacific to be the largest and fastest growing region for RF T&M vendors, with estimated revenues of $1.99 billion by 2023.
“Asia has become the manufacturing hub of the world and holds special importance for vendors, but it is also making inroads in research and development (R&D), which will further increase its importance going forward,” explained Jessy Cavazos, Measurement & Instrumentation Industry Director at Frost & Sullivan. “This region will also create significant opportunities for T&M vendors in the aerospace & defense industry.”
Meanwhile, North America and Europe will benefit from wireless technologies. Growth in these regions will be bolstered by R&D activity around new wireless communications standards, the connected car and Industrial Internet of Things (IIoT). With lower activities in emerging regions, the Latin America, Middle East and Africa segment represents only about 5% of the total market revenues.
The five major growth opportunities in the RF T&M market, that are expected to generate over $30 billion in new revenues by 2023, include:
- Connected car and autonomous driving: Infotainment systems have evolved tremendously and are now at the core of the value proposition of automakers. Adoption of wireless communications standards like LTE and Wi-Fi is driving demand for more RF testing, and important R&D investments are being made in automotive radar and target simulation.
- 5G: Extensive ongoing research on 5G technologies is increasing demand for RF T&M equipment and will continueto do so over the forecast period. Demand will go to higher frequencies in the long term to the detriment of the < 8 GHz market.
- Modular instrumentation: The penetration of modular electronic instrumentation is expected to continue to align with the multi-channel nature of upcoming end-user technologies; the CAGR from 2016 to 2023 for the modular RF T&M market is 14%.
- Asia Pacific: Asia Pacific is expected to witness higher growth than other regions, which will drive an increase in its share to 43.2% in 2023.
- IoT Devices: Market participants expect NarrowBand IoT and mobile IoT standards such as Bluetooth Low Energy (BLE), LTE-M and SigFox LoRa to create a new part of the market. This trend translates into an increase in parallel testing and generates a market for low-cost instrumentation.
“Market development is being impinged upon by RF instruments having a high price tag, especially high-end test equipment used in R&D applications,” noted Cavazos. “Companies across industry verticals are facing customer and competitor pressures to reduce prices, which is spreading throughout the value chain.”
Radio Frequency (RF) Test and Measurement (T&M) Market, Forecast to 2023 is part of Frost & Sullivan’s global Test & Measurement Growth Partnership Service program.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.
Suggested Items
Lockheed Martin Skunk Works, the Royal Netherlands Aerospace Centre (NLR) Announce Strategic Collaboration
10/21/2024 | Lockheed MartinSkunk Works®, the renowned advanced development organization within Lockheed Martin Corporation and the Royal Netherlands Aerospace Centre (NLR), a premier knowledge institute and connecting link among science, industry, and government in the Netherlands, announced a strategic collaboration to advance mutual interests for enhanced security at the Netherlands Defense Industry Days event.
Altair Drives Aerospace Innovation at Motivo
10/17/2024 | AltairAltair, a global leader in computational intelligence, is proud to announce its collaboration with Motivo, a product engineering firm focused on translating forward-thinking visions into best-in-class products for clients in the mobility, energy, agriculture technology, and aerospace sectors. Motivo utilizes Altair’s unique combination of engineering consulting and software to drive innovation for organizations in the aerospace industry.
Airbus, Toshiba to Partner on Superconductivity Research
10/16/2024 | AirbusAirbus UpNext, a wholly-owned subsidiary of Airbus, and Toshiba Energy Systems & Solutions Corporation (Toshiba), Toshiba Group’s energy arm, will cooperate and mutualise experience on superconducting technologies for future hydrogen-powered aircraft.
Cicor Group Continues to Thrive in a Challenging Market
10/15/2024 | CicorRevenue increased by 26.3% to CHF 120.4 million, bringing the year-to-date total to CHF 351.7 million. The company's strong order intake, with a book-to-bill ratio of 1.01, indicates a healthy pipeline of future business.
Thinking Out of the Box: Pacific Northwest EMS Manufacturer Employs Successful Strategies With IPC
10/15/2024 | Michelle Te, IPC CommunityAllison and Chad Budvarson started Out of the Box Manufacturing, an EMS company in Renton, Washington, just one month after they were married in 2008. To stay competitive, they’ve utilized IPC’s workforce subscription and apprenticeship programs to train and maintain their staff. "Our relationship with IPC has evolved over the past several years," Allison says. "Initially, we saw IPC for its standards. But when I started attending the EMS Leadership Summit at APEX EXPO, I realized there was so much more to IPC, which opened more doors for us, creating growth and partnership opportunities I didn't realize were possible. For one, I like having frank conversations with EMS owners from other areas of the country, and I’m not worried they will steal my 'secret sauce.'"