to the fact that signal generators provide high signal purity, create low noise, and give frequency
stability in wireless communication networks. Wireless technology has been greatly influenced by
signal generators due to the advent of cellular technologies such as 2G, 3G, and 4G that use
signal generators for generating signals. Furthermore, signal generators are also used in other
mobile technologies such as Code Division Multiple Access (CDMA), Global System for Mobile
communications (GSM), Long Term Evolution (LTE), and Wideband Code Division Multiple Access
(WCDMA) that is tested using ‘real-world’ signals. Increase in budgetary allocations of aerospace
and defense industry also acts as one of the major growth drivers of the market of signal
generators. This is due to use of signal generators in applications such as Radio Frequency &
Intermediate Frequency (RF/IF) signal generation and Low Order (LO) substitution, which helps in
achieving greater precision in avionic instruments. For instance, according to a 2018 report by
Invest India (National Investment Promotion and Facilitation Agency) in India, the financial
allocation for defense in budget of 2017-18 was nearly US$ 41 billion with US$ 13.3 billion
allocated for capital expenditure. This was equivalent to 31.7 percent of the total budgetary
allocation for all sectors put together.
Growing automotive industry is also one of the major growth drivers of the signal generators
market. This is owing to the fact that signal generators are used for functional testing and
optimization of engine control units (ECU) for automotive applications by simulating various
automotive sensor signals such as pressure, temperature, speed, rotation, and angular position.
For instance, according to a 2017 report by, India Brand Equity Foundation (IBEF), the Indian
automotive industry (including component manufacturing) is expected to reach US$ 251.4-282.8
billion by 2026. Furthermore, signal generators are used in automotive applications to simulate
crankshaft, camshaft, wheel, knock, and to check the working of automotive sensors such as
position sensors, image sensors, and parking assist sensors, which are used in all modern day
automobiles.
High Investment to Set Up and Maintain Signal Generators is Restraining Growth of
the Market
High cost is one of the key restraints, which is adversely impacting growth of the signal
generators market. Furthermore, lack of knowledge regarding the use of signal generators has
led to minimalistic adoption of signal generators across numerous industries. Moreover, refusal of
existing companies within the electronics sector to invest in such an advanced technology
inhibits the growth of signal generator market.
Regional Analysis of Signal Generator Market
On the basis of geography, the global signal generator market is segmented into North America,
Europe, Asia Pacific, Latin America, Middle East, and Africa. North America and Europe are the
leading market for signal generators. This is due to high presence of signal generator
manufacturers such as Keysight Technologies, Inc., National Instruments Corporation, and