Test and measurement (T&M) equipment vendors, particularly those offering spectrum analyzers, are challenged by the growing need to develop test equipment that can keep pace with emerging technologies in various end-user industries. This calls for designing of sophisticated open testing systems that are highly modular and flexible. Additionally, T&M vendors need to keep a close watch on developments in key industries such as the communications market, which is likely to witness a plethora of new products embracing 3G technologies in the near future. By doing so, they will be able to develop test equipment that can easily be upgraded to accommodate revisions in design and specification.

This research examines the world spectrum analyzer market by frequency range (upto 3GHz; upto 18GHz; and upto 26GHz and above), end-user industries (communications; aerospace, military and defense; electronics manufacturing; industrial and automotive electronics; and others), and key geographic regions. The study also discusses the prevailing market challenges and estimates the impact of each of these over the forecast period.

Emergence of New Application Markets Signifies Revenue Growth for Vendors

A spectrum analyzer is the preferred tool to measure emission from cellular communication as well as radio and television transmission towers. "The proliferation of wireless local area networks (WLANs) is likely to provide greater revenue-generating opportunities to market participants," says the analyst. "In addition, the emergence of other application markets such as satellite-based personal networks, home automation networks, and wireless Internet are likely to fuel demand."

Significant development in mobile communication standards have led to tighter controls on factors influencing crosstalk measurements and have created a positive impact on the spectrum analyzers market.

Increasing Defense Expenditure Drives Sales

Security apprehensions have compelled the U.S. Government to once again channel funds for revamping its defense programs after years of military cutbacks. This reversal in trend has increased the demand for spectrum analyzers in 2001 and is expected to continue as these instruments are essential to maintain sophisticated military equipment.

"The events of the past two years have significantly increased worldwide concerns regarding terrorism," says the analyst. "This has brought about a realization in test equipment vendors that the aerospace, military, and defense markets hold enormous revenue potential in the short to medium term."