Telecom Electronic Manufacturing Services Market size was over USD 229.4 billion in 2023 and is anticipated to reach USD 492.7 billion by the end of 2036, expanding around 6% CAGR during the forecast period, i.e., 2024-2036. In 2024, the industry size of telecom electronic manufacturing services is estimated at USD 251.5 billion.
The rise in consumer electronics demand significantly drives the telecom electronic manufacturing services (EMS) market. The consumer electronic industry worldwide will amount to a staggering USD 956.0 billion by the end of 2024. The growing number of connected devices requires enhanced telecom infrastructure and components to support seamless communication. Also, the demand for high-speed and reliable internet connections drives the need for advanced telecom equipment and electronics.
The deployment of advanced technologies like 5G networks and the growing need for network densification require specialized manufacturing and assembly services for telecom equipment. EMS providers play a crucial role in offering cost-effective, high-quality manufacturing solutions, including the production of complex components, assembly, and testing services, to meet the evolving needs of the telecom sector.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
6% |
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Base Year Market Size (2023) |
USD 229.4 billion |
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Forecast Year Market Size (2036) |
USD 492.7 billion |
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Regional Scope |
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Service (Electronic Design & Engineering, Electronics Assembly, Electronic Manufacturing, Supply Chain Management)
Electronic manufacturing segment is poised to dominate over 45.1% telecom electronic manufacturing services market share by 2036 owing to the growing production of printed circuit boards (PCBs). The development of high-performance and complex PCBs is essential for advanced telecom equipment, including 5G infrastructure and network devices. Innovations in PCB technology enable better signal integrity, higher speed, and increased functionality, driving demand in the telecom EMS market. Moreover, the trend towards smaller, more compact telecom devices requires miniaturized PCBs with higher-density interconnects.
The rise of IoT and smart devices in telecom, such as smart meters and connected sensors, drives demand for specialized electronics and PCBs. EMS providers are essential in manufacturing these devices. The Internet of Things is rapidly growing, and its impact on the telecom business is becoming more substantial. It is anticipated that there will be over 75 billion Internet-connected devices by 2025.
Product Type (Computing Devices and Equipment, Servers and Routers, RF and Microwave, Fiber Optic Devices, Transceivers and Transmitters)
The transceivers and transmitters segment in the telecom electronic manufacturing services market is projected to register a CAGR of 5.1% during the projected timeframe on account of the flourishing telecommunications sector. For many years, the telecommunication sector has been one of the world's fastest-growing industries and is set to grow rapidly as 5G and other emerging technologies become more widely used. Innovations in transceiver and transmitter technologies, such as improved signal processing and higher frequency ranges, are pushing the envelope for performance and efficiency in telecom networks.
Our in-depth analysis of the telecom electronic manufacturing services market includes the following segments:
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Service |
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Product Type |
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APAC Market Statistics
The Asia Pacific telecom electronic manufacturing services market is poised to gather the largest revenue share of 47.5% during the forecast timeline. The increasing number of mobile subscribers and the rise in internet penetration across Asia Pacific countries boost the need for advanced telecom equipment and services. In 2023, the region's unique mobile subscriber penetration rate was 63%, excluding Greater China. This value is expected to reach 70% by 2030.
Japan's telecommunications industry is expected to grow rapidly by 2030 propelled by an increasing number of 5G subscriptions and higher government investments in the development standardization of 6G networks.
The Asia Pacific telecom electronic manufacturing services market is foreseen to be controlled by the market in China, since the country is a global center for foreign electronic manufacturers and commands a leading position in the market for electronic manufacturing services worldwide.
Moreover, the presence of prominent electronic manufacturers in South Korea such as SK Hynix, Hanwha Techwin, LG Electronics, Samsung Electronics, Partron Corporation, and Simmtech, which consistently introduce cutting-edge products to the market and place a high priority on research and development may boost market demand for telecom electronic manufacturing services.
North American Market Analysis
The North America telecom electronic manufacturing services market is projected to experience a significant rise in revenue encouraged by the surging investments by the government. The government has designated future telecommunications as one of its five essential priority technologies, which will help the market for telecom electronic manufacturing services to expand in the region. EMS providers discover a favorable climate for growth in areas where governments support investment and development which is essential for both economic expansion and competitiveness.
Companies in the U.S. may invest significantly in digital transformation, which will raise the demand for robust telecom infrastructure to support reliable connectivity. Moreover, leading EMS providers in the U.S. include companies such as Flex Ltd., Jabil Inc., and Sanmina Corporation. These companies offer a range f services from design and prototyping to full-scale manufacturing and logistics.
Furthermore, Canada boasts a strong and varied manufacturing industry that includes automobiles, telecommunications, and healthcare, which may create a greater need for telecom electronic manufacturing services (EMS). Investment in 5G infrastructure is a significant driver for the telecom electronic manufacturing services market , with increasing demand for high-speed network equipment.
The telecom electronic manufacturing services market is set to rise owing to the growth of key players in this market. These key players are focusing on advancing their services and adopting novel methods for telecom electronic manufacturing services to sustain themselves in the market. Some of these key players include:
Author Credits: Abhishek Verma
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