Anatech Electronics Newsletter - December 2014

Anatech Electronics

Anatech Electronics, a manufacturer of RF and microwave filters, has published its December 2014 newsletter. As always, it includes both company news and some tidbits about relevant industry happenings. This month, Sam Benzacar looks into his crystal ball and dares to predict the RF / microwave market's future for defense, the wireless industry, the Internet of Things (IoT), Wi-Fi, and industry, medical, and scientific applications in 2015. Sam has been in the business of designing and selling filters for all these industries for a long time and keeps his finger on the pulses of them all. We'll see this time next hear how good of a procrastinator he is.

What's New

Funding Cuts Delay Next-Generation Jammer

Funding Cuts Delay Next-Generation Jammer (Anatech image) - RF CafeThis program, one of the most visible in the defense industry, is developing well, and prime contractor Raytheon demonstrated the system on an airborne platform for the first time in October, reportedly with excellent results. However, a position report from the Navy suggests that funding cuts will delay its deployment for a year – until 2021.

3G Slowly Fading

Verizon is converting its 3G network (CDMA Rev. A) to LTE on its PCS bands in 10 markets as usage of the company's previous standard decreases with upgrades to LTE-enabled devices. A complete transition is not possible—yet—because there is still a fair amount of 3G hardware around, but 80% of its traffic is now LTE. Verizon's 2G capacity will fade as well, but since 2G requires only 2.5 MHz of spectrum, it not as great an issue. The company is also testing carrier aggregation, a feature of LTE Advanced feature that combines LTE frequencies to enable better performance and capacity.

Radar Market to Grow at 3.6% through 2023

Early warning and surveillance along with fire control radars will account for around 76% of the global military radar market through 2023 for a total of $18.5 billion, according to a Strategy Analytics report that includes land, air, sea and space segments. North America will continue to be the largest regional market, but the fastest growth will be in Asia-Pacific region. Airborne radar will represent the largest market both in dollar terms as well as in terms of total shipments, and L, S and C bands will represent the largest market followed by radars operating at X-band reflecting the primary frequencies used by surveillance/early warning and fire control radars. The report also says that the market for semiconductors and other components employed in these systems will grow to $2.1 billion with gallium nitride becoming an established technology as it grows at a CAGR of 26.4%

Project Loon Looming

Project Loon Looming (Anatech image) - RF CafeGoogle, in an interview with Slate, says it will begin to sell LTE-based Internet service to customers via balloons as early as 2016. Next year, the company will align a "50-mile-wide ring of Internet service around the globe", and in 2016 will initiative its service in Oceania, South America, and South Africa. Problems to date include tiny holes in the balloons that cause them to fail in days, for which a solution was provided. The balloons float in the stratosphere, twice as high as airplanes and the weather, and go where they're needed by rising or descending to a layer of wind blowing in the desired direction. Google will create partnerships with telecom companies to share cellular spectrum to let people connect to the balloon network directly from their phones and other LTE-enabled devices. The signal is then passed across the balloon network and back down to the global Internet on Earth.

NASA Lets You Listen to Space

The global electronic warfare (EW) market is currently going through a period of growth, reaching $13.72 billion this year, as many countries are realizing its benefits and expand their capabilities, according to a market research report from Visiongain. The report says there has also been a significant increase in R&D. European and Northern American markets will keep contracting throughout the period, with the BRICS and other Southeast Asian countries moving in to take larger shares of the market due to their commitment to modernization.

Looking Ahead to 2015

Anatech Electronics Newsletter for September 2014 (Sam Benzacar) - RF CafeBy Sam Benzacar

As the year closes, it's only natural to reflect on the last 12 months and peer ahead to the New Year. So let's take a look.

If there is one activity that to me defines 2014 it was how many acquisitions there were. It haven't taken the time to compile a complete list, but by my count there were at least a dozen, totaling more than $4 billion – which is big number considering the industry's size. I think they represent a consolidation that will continue in 2015, as large manufacturers combine for greater strength and smaller ones and acquire new capabilities. This was also a year of uncertainly, stoked (as usual) by the DoD budget, which as I write this is a whole lot more appealing thanks to a $3 billion boost in procurement funding over what the President – and even the Pentagon – requested. Good news indeed for the RF and microwave industry.

I am going out on a limb and make some projections (which I'll be either gloating or eating crow about in our December 2015 newsletter).

DEFENSE

My projection: A good year for those companies on existing upgrade programs, new systems, and development contracts. A so-so year for everyone else.

We've seen no slow-down in order for filters and other products destined for defense systems, which is not all that surprising considering that filters are used in every type of system. I think that will continue in 2015 but from which programs is difficult to say. The best news in defense is that EW is coming on strong as DoD has awakened to the fact that years of lackluster interest are coming back to haunt us as there has been no slowdown in threats from our adversaries. Emerging markets trying to build up their defense system may be a bright spot as well. DOD funds a huge number of programs and an increasing number employ RF and microwave technology.

THE WIRELESS INDUSTRY
(Infrastructure, excluding Wi-Fi hotspots)

My projection: Small cells are finally being produced in large numbers and backhaul via microwave links is growing as well. Big business potential for a broad slice of the microwave industry. 

Small cells (anything smaller than a macro cell) require the same types of components as their larger macro counterparts and wireless carriers are deploying them in increasing numbers. So if your company makes these devices, significant potential exists. Microwave links are proving their worth for backhaul as well, another likely growth spot. Macro cell upgrades, which in some cases requires only software and others hardware as well, will be a smaller overall revenue contributor than in previous years.

THE WIRELESS INDUSTRY
(End-user devices)

My projection: Continued growth in consumer wireless-enabled devices, currently running at 1 billion a year (just for smartphones). A big revenue producer but for a relatively narrow swatch in the industry – primarily semiconductors (transceivers, systems on a chip, SAW filters, and others). 

The semiconductor portion of the microwave industry will continue to be the primary beneficiary of the continuing growth of the smartphone, tablet, and other "battery-powered wireless-enabled device" market. I'm referring to small-signal devices, RF power transistors and MMICs, as well as SAW filters, duplexers, and other components. Whether or not this will be able to support the still relatively large number of device manufacturers (many of which are not in the U.S.) remains to be seem. Expect more consolidation.

THE INTERNET OF THINGS (IOT)

My projection: Lots of business for semiconductor manufacturers, not much of a bounce for anyone else.

There's really nothing new here other than someone coming up with a name for it – although a bad one (I think) since without wireless connectivity the ability to connect every person, place, or thing would be severely constrained. What is new is that much of what was supposed to be happening years ago is actually coming to fruition thanks to high-speed broadband and Wi-Fi. Gartner predicts 26 billion IoT-enabled devices by 2020 and ABI Research says 30 billion. We'll see.

WI-FI HOTSPOTS

My projection: If your company makes components for Wi-Fi hotspots this ought to be great year, as they're popping up like mushrooms after a rain. 

There are hundreds of thousands of Wi-Fi hotspots in North America already and I wouldn't be surprised if there are twice as many this time next year as they offer big benefits for wireless carriers (backhaul) and cable MSOs (value-added), and advertising opportunities for both.

IN-BUILDING RF DISTRIBUTION AND DAS

My projection: The market for Distributed Antenna Systems (DAS) is growing, even though DAS system in many of the largest venues have already been deployed. There are, of course, a lot more that aren't. In-building systems built around signal boosters (BDAs), coax, and passive components are still being built when a DAS architecture is overkill. Expect DAS to move to all-digital, fiber-delivered architectures, but slowly 

DAS and in-building systems require large number of RF and microwave components, and not just semiconductors either but RF power amplifiers up to about 40 W, and many others. Next year is likely to be lucrative for these manufacturers.

INDUSTRIAL, MEDICAL, AND AUTOMOTIVE

My projection: The healthcare industry needs more of that RF and microwave technology, from telemetry systems to Wi-Fi enabled instruments, than ever. Good news for some in the microwave industry. Industrial applications such as heat sealing, drying, cooking, and various forms of energy-driven processing of consumer products get little coverage but add considerably to industry revenue. Vehicles of all types are sporting more connectivity every year, as well as more sensors (including 77 GHz radar), and this market is growing with the slow but steady move toward more "vehicle autonomy".

PUBLIC SAFETY COMMUNICATIONS

My projection: A good year for RF and microwave device through subsystem manufacturers thanks to upgrades and (possibly) the first revenue from the FirstNet broadband initiative.

EVERYTHING ELSE

I would love to go on and on – but you'd probably glaze over. However, there are many, many other sectors that generate revenue for the industry, from satcom to GPS, and assorted industrial, commercial, and other vertical markets. They support or add to the revenues of many companies in the RF and microwave industry – including Anatech electronics.

HAPPY NEW YEAR!

From all of us here, I hope my projections, or at least the rosy ones, come true for you and we wish you a healthy and profitable 2015! 

Why You Should Buy from Anatech Electronics, Inc. (AEI)

Unlike other Supplier/Vendors, Anatech Electronics, Inc. (AEI) is also a manufacturer that designs, and makes those products. While most supplier, and distributors are selling their products "as is", AEI has the flexibility, and technical knowledge to modify many of its products to better match the customer's requirements.  For example:

Changing the connectors from one type to another. Shifting the frequency to meet the exact frequency requirement. Possibility to build the filter in a smaller package, should size is a problem. Modifying the bandwidth to closely match the customer's requirement. Modifying the package from an indoor version to an outdoor (weatherproof) one. Slight modifications to the design to get sharper transition from pass band to stop band. Adding brackets, or mechanical elements for mounting requirements, such as mounting the filter on an antenna pole. Propose different design options, based on size, cost, and performance.

and more..

AEI will typically bend over backwards to provide you with first rate customer service, and being a manufacturer/Supplier, we cater to small quantities as well as large. After all AEI has a personal interest in ensuring fast quote, quick custom/ new designs feedbacks, and excellent service before and after the sale is made.

But these are just some of the reasons why you may want to use AEI for your RF filters and related RF products requirements. Flexibility, ability for quick changes in requirements, before and after sale customer service, quality, and cost are good reasons to buy from a manufacturer/supplier versus non-manufacturer suppliers, vendors or distributors. 

Choosing from a large database of products, and the ability to custom design almost any product, enables AEI to recommend products and solutions that most closely meets your requirements needs, pricing, and corporate objectives.

Purchasing products from AEI can provide the customer with expertise, flexibility, cost saving, and of utmost importance continuous professional relationship.

Proof is the redesign of our website where our customers or potential customers have the option to request a quote for specific standard products in multiple quantity levels, or request a quotation for a custom product with the ability to enter your own specifications.

Please visit us at www.anatechelectronics.com and find out how easy it is to request a quote on either standard or custom products.

 

About Anatech Electronics

Anatech Electronics, Inc. (AEI) specializes in the design and manufacture of standard and custom RF and microwave filters and other passive components and subsystems employed in commercial, industrial, and aerospace and applications. Products are available from an operating frequency range of 10 kHz to 30 GHz and include cavity, ceramic, crystal, LC, and surface acoustic wave (SAW), as well as power combiners/dividers, duplexers and diplexers, directional couplers, terminations, attenuators, circulators, EMI filters, and lightning arrestors. The company's custom products and capabilities are available at www.anatechelectronics.com and standard products are available for purchase at the Anatech Electronics Web store, AMCrf.com.

 

Contact:

Anatech Electronics, Inc.
70 Outwater Lane
Garfield, NJ 07026
(201) 772-4242
sales@anatechelectronics.com

 

 

 

 

Posted  December 16, 2014