1.1 Porter’s Five Forces Model
Michael Porter’s Five Forces model is a framework to study the global RF filter market. Strategic business managers, trying to gain an edge over competing firms in the global RF filter market, can utilize this model to better comprehend the industry in which the company operates. The components of each of the forces and the degree of impact of each component in the context of the global RF filter market have been broken down and analyzed.
FIGURE 1: Porter’s five forces model: Global RF filter Market
Source: MRFR Analysis
1.1.1 THREAT OF NEW ENTRANTS
The development of RF filters requires high capital investments and technological expertise and structural knowledge for integrating high-power semiconductors. Most companies outsource the manufacturing and assembly of the devices and act as system integrators and service providers. However, due to the rapid increase in automation and development of smart factories, new players and start-ups are emphasizing investments to enter the market. Moreover, moderate government regulations regarding worker safety restrict the entry of new players into the market to a certain extent. Therefore, the threat of new entrants in the global RF filter market is expected to be moderate during the forecast period.
1.1.2 BARGAINING POWER OF SUPPLIERS
The suppliers in the global RF filter market are the suppliers of various components required for developing RF filter devices. There are several raw material suppliers, along with the manufacturers and suppliers of RF filter devices. The system integrators tend to engage more in horizontal integration of these suppliers with minimal requirement of platform developers. The integrators generally tend to have long-term agreements with suppliers, which increases the cost of switching from one supplier to another. The use of electronic components depends on the end-use applications. The differentiation in components is moderate. Thus, the bargaining power of suppliers in the global RF filter market is expected to be high throughout the forecast period.
1.1. THREAT OF SUBSTITUTES
The threat of substitutes for RF filter in the global market is expected to be low during the forecast period. There are hardly any substitutes for RF filter present in the market. However, the companies are continuously offering highly reliable RF filter devices for low and high-power applications that can operate in extreme conditions and have high load capacity and electrical fluctuations.
1.1.4 BARGAINING POWER OF BUYERS
The buyers in the RF filter market are the device manufacturers that have a high cost of purchasing components, which also limits the concentration of buyers. The buyers are price-sensitive and often opt for outsourcing their manufacturing processes instead of in-house manufacturing. The impact of brand identity on the global market is moderate. Thus, the bargaining power of buyers in the global RF filter market is expected to be moderate during the forecast period.
1.1.5 INTENSITY OF RIVALRY
The existing players in the global RF filter market compete in terms of industry expertise, geographic presence, and product offerings. Countries such as the US, China, Japan, Singapore, and Taiwan have several fabrication units manufacturing RF filter devices and are considered market influencers. The major players provide efficient solutions for RF filter devices. Thus, it becomes challenging for new players to compete with the established key players and provide users with better and advanced services. These factors are expected to create a high degree of rivalry among the players in the global RF filter market during the study period.