Telecom Electronic Manufacturing Services is designing and manufacturing of telecom electronics and providing related services on contract basis. The market for this is expected to have a significant growth driven by the rise in demand for communication devices and expansion of wireless communication. There is a trend of contract manufacturing or subcontracting in the telecom industry which is expected to positively affect the market growth. It offers a number of benefits such as reduced time to market, access to leading manufacturing technologies and reduced capital investment. The adoption of technological innovation is also expected to be a major driver for market growth. By service, the electronic design and engineering segment is expected to have a significant growth due to technological advancement and growing consumer expectation. By geography, the Asia Pacific region is estimated to have a considerable market share due to the outsourcing of product design and manufacturing of electronics and low cost of labour in the region.
Rising demand for communication devices
Growth of telecommunication services and IoT application in emerging economies
In March 2018, Taiwanese giant Foxconn, the company that manufactures the iPhone for Apple, bought accessory maker Belkin, as well as associated brands Wemo, Linksys and Phyn.
In June 2019, Apple Inc asked its largest suppliers to consider the feasibility of shifting 15% to 30% of its output from China to Southeast Asia. The suppliers include iPhone assemblers Foxconn Technology Group, Pegatron Corp. and Wistron Corp., MacBook maker Quanta Computer Inc., iPad maker Compal Electronics Inc. and AirPods makers Inventec Corp., Luxshare-ICT and GoerTek Inc.
The telecom electronic manufacturing services market has been analyzed through the following segments:
Design & engineering
Middle East and Africa