The telecom electronics manufacturing services (EMS) market is estimated at US$10.222 billion for the year 2019 growing at a CAGR of 6.18% to reach the market size of US$14.648 billion by 2025. The primary growth factors for the market growth of the telecom electronics manufacturing industry include the rising demand for communication devices and the continuously evolving trend and the expansion of wireless communication. The telecom manufacturing services majorly include the design and manufacturing of the electronic components used across the telecom industry. The rising trend of contract manufacturing or subcontracting in the telecom sector across the globe is also one of the key factors which is expected to positively impact the growth of the market throughout the forecast period. Furthermore, the adoption of these services further enhances the manufacturing services as it reduces the lead time and further helps to reduce the time to market. Also, it helps to move towards the leading and advanced manufacturing technologies with considerably fewer capital investments, which is also anticipated to boost the adoption of these services throughout the forecast period.
Moreover, the technological innovation in the telecom industry and rising investments by key telecom companies for the adoption of the latest technology and provide enhanced and highly efficient services to the customers is anticipated to propel the growth opportunities for the manufacturers throughout the forecast period. The shifting focus of telecom manufacturers on the activities that are majorly attributed for providing high value-added to the customers is leading to the sub contraction of activities where the core competencies are not required is also projected to positively impact the growth of the market during the next five years. The economic growth of the major emerging economies such as China and India is leading to rising disposable income and the growing middle-class population. This, in turn, is boosting the demand for communication devices and efficient services, which is further expected to increased investments by telecom providers for the expansion of quality services and thereby anticipating the demand for these services.
Furthermore, the continuous technology is further leading to the adoption of sub-contracting of services as the rapid innovations in the products and services due to growing consumer requirements often leads to the decreased focus of the manufacturers to maintain their focus over the core competencies. Furthermore, rising investments by major electronics companies for availing the manufacturing services in order to expand the production capacity on account of the growing market demand also show the potential for the growth of the market for the coming years. For instance, recently in 2020, Rohde & Schwarz, a German company dealing in the field of electronic, cybersecurity, radio monitoring and radiolocation, test equipment, broadcast & media, and radio communication entered into a partnership agreement with Benchmark Electronics Inc. a leading EMS, ODM, and OEM company as a global manufacturing partner to expand its manufacturing capacity and meet the growing demand of the products manufactured by the company by availing the manufacturing expertise of the company.
The rising internet penetration is anticipated to boost the market growth
The growing internet penetration coupled with rapid advancements in wireless technology is further expected to augment the demand for telecom infrastructure. The growing number of internet users globally is further leading to budding investments by the service providers for the development of faster and advanced services in order to meet the requirement of the users by providing better services and gain an advantage over other providers. For instance, in 2008 there were only 22.959% of people across the globe were using the internet, and this number increased to 49.723% by 2017 (Source: The World Bank Group), a rising trend is expected during the coming years, which will further snowball the demand for fast and high-speed internet. Thereby, anticipated to propel the investments in the telecom infrastructure and significantly adding up to the market growth.
Booming investments in 5G technology is anticipated to propel the market growth opportunities
Budding investments for the deployment of 5G technology is further leading to innovations in the test technology as key market players are investing heavily in order to gain a competitive advantage over others. For instance, National Instruments, a provider of a software-defined platform for accelerating the performance of automated tests and measurement systems, announced its latest mmWave Test Solution in May 2019, to address the test challenges of the 5G mmWave and RFIC transceivers and amplifiers in order to accelerate the commercialization of 5G technology. Moreover, 5G is expected to operate on much higher frequencies which are further anticipated to the adoption of new interface and component technologies which may further positively impact the growth of the market.
Design and engineering segment to grow substantially over the forecast period
On the basis of services, the market has been segmented into design & engineering, manufacturing, assembly, testing, others. The design and engineering segment is anticipated to show decent growth over the forecast period. The growth for this segment is majorly attributed to the rising investments in R&D by key market players due to rising consumer demand for efficient services.
North America is anticipated to hold a decent share in the market
Geographically, the global telecom electronics manufacturing services market has been segmented as North America, South America, Europe, Middle East and Africa, and the Asia Pacific. The North American region is expected to hold a noteworthy share in the market on account of well-established infrastructure and the presence of a highly advanced telecom industry. The market in the Asia Pacific region is expected to show notable growth during the forecast period owing to burgeoning investments in the telecom industry coupled with rapidly increasing investments in the 5G technology in countries like China and South Korea.
Competitive Insights
Prominent key market players in the telecom electronics services market include benchmark Electronics, Flex Ltd., Plexus Corp, and Foxconn Electronics Inc., among others. These companies hold a noteworthy share in the market on account of their good brand image and product offerings.
Major players in the telecom electronics services market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.
| Report Metric | Details |
| Market size value in 2019 | US$10.222 billion |
| Market size value in 2025 | US$14.648 billion |
| Growth Rate | CAGR of 6.18% from 2019 to 2025 |
| Base year | 2019 |
| Forecast period | 2020–2025 |
| Forecast Unit (Value) | USD Billion |
| Segments covered | Services, And Geography |
| Regions covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies covered | Benchmark Electronics, Flex Ltd., Plexus Corp, Jabil Inc., Celestica Inc., Compal Inc., Creation Technologies, Foxconn Electronics Inc., Sanmina Corporation, Venture Corporation Limited |
| Customization scope | Free report customization with purchase |
Segmentation
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