Economic downturn casts cloud over network analyzer markets

March 15, 2004

Reduced capital expenditures in various end-user markets has caused a steep revenue decline in the scalar and vector network analyzer segments in 2002. The economic downturn also led to the development of the second-hand network analyzer market, which influenced revenues as well.

New analysis from Frost & Sullivan, World Network Analyzer Markets, reveals that this industry generated revenues of $262.3 million in 2002. Total market revenues are expected to reach $369.7 million in 2009.

Manufacturers now face the challenge of selling test gear to a smaller pool of customers with reduced budgets. As a result, they are under pressure to align their test equipment costs with prevailing market conditions.

"Network analyzer vendors with a broader range of products catering to different types of end users can overcome the challenge better than those that focus on a narrow range of customers," states Frost & Sullivan Research Analyst Jessy Cavazos.

The varied customer base challenges vendors to provide required test solutions since they have different requirements regarding product performance, for example. In addition to this, the early signs of popularity of 3G technologies and the introduction of initial versions of wireless devices have forced vendors to provide easily upgradeable test equipment.

"It is important to have an open systems design, modularity, and flexibility in hardware and software architecture so that test equipment can be designed to accommodate newly emerging technologies," notes Cavazos.

The World Network Analyzer Markets, a part of the General Purpose Test Equipment Subscription, provides a comprehensive demand analysis for network analyzers to help companies develop highly effective and successful business strategies.