Function Generators Market

Function Generators Market Outlook (2022-2032)

The global function generators market is expected to hold a market value of US$ 1.53 Billion in 2022, against US$ 1.44 Billion in 2021, with a Y-o-Y growth rate of 6.25%.

Report Attributes	Details
Estimated Base Year Value (2021)	US$ 1.44 Billion
Expected Market Value (2022)	US$ 1.53 Billion
Predicted Forecast Value (2022-2032)	US$ 2.4 Billion
Anticipated Market Value of the U.S (2032)	US$ 852.1 Million
Expected Market Value of the U.K (2032)	US$ 103.4 Million
Projected CAGR of China (2022-2032)	4.2%
Key Players in the Global Function Generators Market	Teledyne Technologies Rigol Tektronix Teradyne Kikusui Electronics

The rising adoption of high-performing devices for aerospace and defense and government services is anticipated to hike the revenue to US$ 2.4 Billion while exhibiting a CAGR of 4.6% during the forecast period from 2022 to 2032.

The global IoT sensors market is likely to garner absolute dollar growth of US$ 863 Million by 2032. Growing investments in R&D activities by several end-user players, majorly, the automotive and aerospace, and defense sectors. In addition, players are also involved in partnerships.

For instance, in November 2021, Lockheed Martin, a known security and aerospace company, and Keysight Technologies Inc., disclosed a partnership to develop 5G to regulate the security and response by signal generators to enhance mission-critical communications for aerospace and defense applications.

Based on type, the market can be segmented into analog and digital. The analog segment is expected to lead the market in the assessment period. The domination of the analog segment can be attributed to the ease of operation. Besides, the segment experiences significant demand from sectors such as education and research, majorly for R&D and product development. Such factors are expected to benefit the market in the forecast period.

Global Function Generators Market Revenue Analysis 2015-2021 Vs Future Outlook 2022-2032

During the timeframe of 2015-2021, the global function generator market is anticipated to have exhibited a CAGR of 5.3%. The growth of the market can be attributed to the growth of the automotive sector. The rising adoption of electric cars in evolving economies is likely to have provided a significant push to the development of industry during the aforementioned timeframe.

It is likely that the development of autonomous cars boosted the demand for sensors and radar-based systems implemented for safe operation and benefitted the market. With the growing popularity of in-car entertainment systems and rising investments in R&D, and modern automotive systems, the market is expected to have flourished during the time span of 2015-to 2021.

During the forecast period of 2022-2032, the market is expected to record a CAGR of 4.6%. Expansion of the market can be attributed to the growing need for testing, measurement, and regulation resulting in the surged usage of the function generators, thus, likely to benefit the market in the assessment period.

Moreover, increasing adoption of high-performance and power-efficient equipment in sectors such as healthcare, consumer electronics, and others, are projected to positively influence the market during the prior mentioned time period. From 2022 to 2032, the market is likely to flourish 1.5x.

Major Function Generators Market Growth Drivers

Growing Demand from the Aerospace Sector to Strengthen the Market

Increasing demand for military equipment is expected to play a salient role in driving the market in the forecast period. With rising security concerns across the globe, the market is likely to witness various opportunities for expansion. Also, increased expenditure in the defense sector by the government of several countries is likely to provide a significant boost to the market.

According to SIPRI, the total global military expenditure surpassed US$ 2 trillion in 2022, which was an increment of 0.7% as compared to 2021. Such factors are expected to benefit the industry in the forecast period. According to the report, the largest contributors are the U.S, Russia, and China. Thus, these countries are expected to be remunerative lands for the expansion of the market.

Ongoing development and modernization of military technologies across several countries, which is principally the electrification of weapon and communication systems, can boost the market in the forthcoming time. Moreover, the equipment is projected to witness significant demand for testing of satellites and navigation systems, thus, fuelling the industry size.

In addition, there has been a significant rise in demand for these equipment, since they offer testing and repairing services to electronic weapon systems. Owing to such causes, the market is projected to evolve significantly in the assessment period.

In addition, the advent of AI in aerospace and the rising implementation of favorable policies of the government are expected to bolster the market expansion in the assessment period. Due to the aforementioned factors, the market is set to flourish in the coming time.

Increasing demand for Energy across the Globe to Drive the Market

With significant growth in demand for power, especially among the evolving countries, the market size is expected to grow in the forecast period. Also, the ongoing development of new-generation distribution and transmission networks is expected to favor the industry growth in the coming time.

In addition, increasing testing of electronic components of various devices like solar photovoltaic (PV), metering devices, electronically-assisted, and others are projected to benefit the market in the forthcoming time.

As per the U.S Energy Information Administration (EIA) report 2020, global energy consumption is likely to increase by 50% by 2050.  With rising demand for green energy technologies such as; wind, hydro, and solar are anticipated to augment their adoption, thereby, strengthening the industry growth in the forecast period.

Key Challenges Affecting the Function Generators Market

High Costs Associated with Function Generators to Impede the Market Growth

Function generators demand an oscilloscope, supply, USB port, and fixed and variable power supply. The cost associated with each device is high, which is likely to hamper the market growth. Moreover, these generators require large space, which is another factor that is expected to limit the market rise in the forecast period. Also, complexities associated with the equipment are anticipated to hinder the market expansion.

However, with the rising adoption of AI in the aerospace, healthcare, and automotive sector, the market can witness significant opportunities for expansion. This can also act as a counter to the impeding cause, and propel the market in the forecast period.

Country-Wise Analysis

What are the Growth Prospects in the U.S?

Adoption of Test and Measurement Equipment in Various Sectors to Boost the Market in Region

As per the analysis, the global function generators market is anticipated to be dominated by North America. According to Fact.MR, the market in North America shall be led by the U.S while recording a CAGR of 4.3% and securing a market value of US$ 852.1 Million by the end of 2032.

Domination of the region can be attributed to the increasing adoption of test and measurement equipment in sectors such as; wireless communication, infrastructure, and aerospace and defense & government services.

In addition, favorable initiatives taken by players in the region are expected to benefit the market in the forecast period. For instance, in May 2022, WPG Americas Inc., a subsidiary of WPG Holdings, announced that it had inked a new agreement with SPARK Microsystems, a company heading towards ultra-low-latency wireless communications. With such factors, the market in North America is expected to flourish significantly in the forecast period.

Moreover, the rising adoption of function generators for appropriate measurement of electrical components in electronics manufacturing and aerospace & defense is expected to be another salient cause expanding the market in the forecast period.

In addition, the rising number of 5G connections, which would demand wireless test equipment, network management, and test performance, is likely to propel the demand for function generators in the region.

In April 2022, Tech Mahindra announced a collaboration with KeySight Technologies to certify 5G equipment of open radio access network (O-RAN) in Tech Mahindra’s 5G O-RAN test lab facility situated in New Jersey, US. Such factors are projected to benefit the market in North America in the forecast period.

Why is APAC Projected to be a Lucrative Market in the Forecast Period?

Presence of Developing Countries in the Region to Boost the Market

As per the analysis, the global function generators market in APAC is projected to be very lucrative. Fact.MR reports reveal that the region is projected to be dominated by China, garnering a revenue of US$ 177.6 Million while recording a CAGR of 4.2% from 2022 to 2032. Japan and South Korea have been estimated at US$ 161.8 Million and US$ 100.8 Million respectively. India has also been identified as a remunerative market in the forecast period.

The growing investment by governments and private bodies to enhance the electronic sector is expected to benefit the regional market in the forecast period. For instance, in January 2022, the Government of India released a vision document that aimed at electronics manufacturing in India to quadruple to US$ 300 billion by 2026.

In addition, other initiatives taken by India are likely to benefit the market in the forecast period. For instance, Digital India and Startup India have given a significant boost to the Electronics System Design and Manufacturing sector in India. Such factors are expected to benefit the market in APAC in the forecast period.

In addition, growing consumption of power, rapid industrial growth, and expanding aerospace sector are other salient factors developing the regional market in the forecast period. For instance, as per the SIPRI report 2022, China was identified as one of the major contributors to strengthening the global defense budget, which crossed US$ 2 trillion for the first time.

Country	Estimated CAGR
U.S	4.3%
U.K	3.8%
China	4.2%
Japan	4.5%
South Korea	3.8%

Category-Wise Analysis

Which End-User is expected to be the primary Function Generator Consumer?

As per the analysis by Fact.MR, the global function generators market is expected to be dominated by the aerospace, defense, and government services segment, by end-users. The segment is projected to expand at a CAGR of 5.4% during the timeframe of 2022- to 2032.

Domination of the segment can be attributed to the growing investments of government in aerospace, defense & government services, which is likely to enhance the demand for corresponding services resulting in a rise in the demand for function generators.

The aerospace, defense & government sector use various electronic equipment, such as; radio amplifiers, filters for robust communication, and satellite system components to assure operational safety. They’re also used in devices like sensors and radars, which are anticipated to strengthen the market in the forecast period.

By Current, which type of Function Generators will amplify in Demand?

Based on the current, the global function generators market is projected to be dominated by up to 50 MHz in the forecast period. The segment is predicted to be the fastest-growing segment, exhibiting a CAGR of 5.6% during the forecast period.

Expansion of the segment can be attributed to the growing research and development in medical and consumer electronics along with the modernization in automotive in-car entertainment like head units, speakers, and others are expected to fuel the demand for equipment, thereby, strengthening the segment and industry.

Competitive Landscape

Players in the global function generators market take various initiatives such as; partnerships, acquisitions, and R&D to strengthen their position in the market. Key development in the market include:

• In February 2021, Tabor Electronics announced the inclusion of RF Arbitrary Waveform Generators to the Proteus series product line. The latest series provides the finest performance of direct digital RF generators and meets a significant objective in aerospace applications.
• In January 2020, GW Instek announced a new series of multi-channel function generators. GW Instek has propelled the MFG-2220 HM which provides the maximum frequency range of dual-channel signal generators.

Key Segments Covered in the Global Function Generators Market

• Global Function Generators Market by Type :

  • Analog Function Generators
  • Digital Function Generators

• Global Function Generators Market by Current :

  • Up to 50 MHz Function Generators
  • 50-100 MHz Function Generators 
  • Above 100 MHz Function Generators

• Global Function Generators Market by End User :

  • Automotive
  • Energy
  • Wireless Communication and Infrastructure
  • Aerospace, Defense, & Government Services
  • Others

• Global Function Generators Market by Region :

  • Function Generators in North America
  • Function Generators in Europe
  • Function Generators in Asia Pacific
  • Function Generators in South America
  • Function Generators in Middle East & Africa