Frequency Synthesizer Market Overview
The frequency synthesizer market was valued at $837.8 million in 2017 and is forecasted to witness a CAGR of 6.8% during 2018–2023. Frequency synthesizers are the electronic devices or chips that generate desired frequencies with the combination of other certain frequencies. Frequency synthesizers work by multiplying or dividing a base frequency and achieve a desired output frequency. The synthesizers can be used in cell phones, global positioning systems (GPS), radio receivers, and satellite receivers.
GLOBAL FREQUENCY SYNTHESIZER MARKET, BY TYPE, $M (2013-2023)
Based on type, the market has been segmented into analog and digital frequency synthesizers, of which, analog contributed a major chunk to the frequency synthesizer market in 2017. The higher demand for the analog frequency synthesizers is attributed to its requirement of strong signal clarity and low noise production capability in industries like telecommunication, military and aerospace.
On the basis of component, the frequency synthesizer market has been segmented into receivers, tuners, phase detectors, converters, mixers, dividers, oscillators and loop filters. The growth rate for mixers is expected to be the highest during the forecast period owing to the untapped market for frequency synthesizers in RoW and APAC region, which is anticipated to offer huge growth potential.
Frequency synthesizers find their major applications in telecommunications, military and aerospace and research and measurement sectors. Telecommunications held the largest market share in 2017 and is expected to remain the largest frequency synthesizer market during the forecast period, owing to the growing telecom sector in developing countries such as India and China.
Geographically, North America was the largest market during the historical period, with a revenue share of over 32% in 2017. The market growth in North America can be attributed to the presence of large number of key manufacturers in the region. Apart from this, in recent years, frequency synthesizer vendors from North America have made major investments in telecommunication, military and aerospace and research application sectors, further contributing towards the growth of the market in the region.
APAC is expected to be the fastest growing frequency synthesizer market, during the forecast period owing to increasing demand for digital cable television (CATV) equipment in the region and further expansion and upgradation of telecommunication networks. The rise in mobile penetration and decreasing internet data cost is expected to add around 500 million new internet users by 2025. This will further drive the demand for frequency synthesizers in the region.
Frequency Synthesizer Market Dynamics
Growth in the use of digital frequency synthesizers in modern wireless and communication applications, such as cellular telephony, radar, electronic imaging, satellite communications, and spectroscopy, has been observed in recent years. With advancements in technology and evolution of IoT, digital frequency synthesizers are increasingly finding application in a wide range of electronic devices, including smart watches, mobile phones, personal computers, and routers.
Globally, governments are increasing their spending on defense equipment in the wake of rising security concerns. Growing geopolitical tension is a major factor contributing to the rising security concern across various countries of the world. Thus, these countries are increasingly focusing on equipping themselves with advanced technologies in order to strengthen their military capabilities. For instance, China is planning to increase its military budget by 8.1% in 2019. Since technologies like radar, missile guidance, navigation require frequency synthesizers for communication purposes, any increase in the demand for military equipment will have a positive impact on the frequency synthesizer market growth.
The growing need for the miniaturization of devices used in aerospace and military is resulting in the increased demand for modular frequency synthesizers. However, since modular frequency synthesizers are in their nascent stage, their price is quite high, which refrains end-use industries from adopting these devices. The higher cost of these devices can be attributed to the costs associated with the R&D and technology upgradation required for battery management, power processing, and implementation of increased frequency range and higher bandwidth in these devices. Thus, the high cost of modular frequency synthesizers is a key factor hindering the growth of the frequency synthesizer market.
Network technologies such as 1G, 2G, 3G, and 4G arrived at an average gap of 10 years, wherein 4G arrived in 2009. The 5G technology is expected to arrive in late 2018 or early 2019 in the U.S., where AT&T, T-Mobile, Sprint, Verizon, and Charter are expected to be the first to offer 5G services. However, the new generation of network would require significant expansion of telecommunication infrastructure in which networking hardware, such as routers, switches, LAN cards, and wireless routers, require frequency synthesizers. A low-noise, X-band frequency synthesizer based on a self-mixing technique, proposed recently for 5G application, can avoid the local pulling effect from power amplifiers and help the frequency synthesizer market growth.
Frequency Synthesizer Market Competitive Landscape
The intensity of rivalry in the frequency synthesizer market is moderate. Most of the major vendors in the market are actively focusing on partnerships and facility expansion to meet the growing demand in the emerging markets.
Some of the key players operating in the market are National Instruments Corporation, Texas Instruments Incorporated, EM Research Inc., Analog Devices Inc., Qorvo Inc., Micro Lambda Wireless Inc., Sivers IMA Holding AB, MERCURY Electronic Ind Co. Ltd, Ultra Electronics Holdings plc, Programmed Test Sources Inc., Cobham plc and FEI-Elcom Tech Inc.