Telecom Electronics Manufacturing Services (EMS) Market Report, Size, Share, Opportunities, and Trends By Devices, Services, and Geography - Forecast from 2025 to 2030

Description

Telecom Electronics Manufacturing Services (EMS) Market Sie:

The Telecom Electronic Manufacturing Services Market is expected to grow from US$250.620 million in 2025 to US$341.119 million in 2030, at a CAGR of 6.36%.

The Telecom Electronics Manufacturing Services (EMS) market is currently undergoing a structural transformation characterized by a transition from traditional contract manufacturing to a partnership-driven model involving complex system integration. In recent years, the market benefited from a robust recovery in semiconductor availability, allowing EMS providers to clear backlogs for critical networking equipment such as high-capacity routers and servers. The industry’s focus has pivoted toward the next generation of connectivity, with early-stage prototyping and design for 6G technologies beginning to surface in the portfolios of leading global manufacturers.

The need for Telecom EMS is inextricably linked to the capital expenditure cycles of major telecommunications operators. With the global number of commercial 5G networks surpassing 350 by mid-2025, the requirement for high-reliability, low-latency hardware has reached a critical mass. This environment favors EMS providers with established capabilities in advanced RF (Radio Frequency) and optical microelectronics. Furthermore, the convergence of AI with telecommunications, manifesting in AI-optimized edge computing and data center hardware, has created a high-growth segment for EMS partners capable of producing high-powered, liquid-cooled server architectures.

Telecom Electronics Manufacturing Services (EMS) Market Analysis:

• Growth Drivers

The primary growth driver in the Telecom EMS market is the sustained rollout of 5G and fiber-to-the-home (FTTH) infrastructure. This necessitates the large-scale production of complex PCBs and high-speed switching equipment. Additionally, the outsourcing of high-complexity services, such as design and engineering, creates direct demand for EMS providers who can offer end-to-end solutions. The increasing adoption of Internet of Things (IoT) devices further expands the market, as these connected endpoints require specialized assembly and miniaturized components. Finally, government-backed digital initiatives globally are mandating the modernization of core network equipment, ensuring a consistent pipeline of manufacturing orders for regional and global EMS players.

• Challenges and Opportunities

Geopolitical trade barriers and export controls on advanced semiconductor technologies remain the most significant challenges, creating chokepoints in the supply of high-end logic chips used in telecom servers. However, these headwinds present a substantial opportunity for "China Plus One" strategies, driving investments into emerging hubs like India, Vietnam, and Mexico. The rise of Open RAN (Radio Access Network) architectures offers another growth avenue, as it allows EMS providers to work with a broader range of hardware vendors rather than a few dominant OEMs. Providers that can master AI-driven manufacturing execution systems (MES) to optimize yield and reduce waste will likely capture a larger share of the increasingly price-sensitive telecom equipment market.

• Raw Material and Pricing Analysis

The pricing dynamics of telecom electronics are heavily influenced by the cost of medical-grade laminates, copper, and specialized semiconductor materials. In 2025, the PCB market reached significant valuations, with multilayer and HDI boards seeing price volatility due to fluctuations in epoxy resin and fiberglass supply. Strategic stockpiling of critical components has become a common practice to mitigate pricing spikes, particularly for RF filters and high-speed connectors. EMS providers are increasingly utilizing advanced materials like Gallium Nitride (GaN) for high-efficiency power amplifiers in 5G base stations. These materials, while offering superior performance, carry higher procurement costs that are typically passed through to the OEM under long-term supply agreements.

• Supply Chain Analysis

The Telecom EMS supply chain is evolving from a global, "just-in-time" model to a regionally resilient, "just-in-case" framework. Key production hubs are diversifying; while China remains a dominant force, the U.S. and India have seen multi-billion-dollar capacity additions in 2024-2025. Logistical complexities persist in the transportation of high-value, fragile equipment like macro base stations, which require specialized handling. Dependencies on foundry capacity in Taiwan for high-end networking chips remain a systemic risk. To counter this, top-tier EMS firms are integrating AI-powered supply chain platforms to provide real-time visibility into tier-2 and tier-3 supplier statuses, allowing for faster re-routing of components during localized disruptions.

• Government Regulations

Telecom Electronics Manufacturing Services (EMS) Market Segment Analysis:

By Devices: Base Station Transmitter and Receiver

The base station transmitter and receiver segment is the most capital-intensive and technologically arduous area of the Telecom EMS market. The transition to 5G Standalone (SA) architectures, which require a denser network of "small cells" and macro-cells compared to previous generations, propels this demand. These units must handle massive MIMO (Multiple Input, Multiple Output) technologies, necessitating the assembly of complex antenna arrays and high-power RF components. In 2025, the market saw a surge in demand for energy-efficient base station designs, as telecom operators sought to reduce the massive power consumption associated with 5G networks. EMS providers with specialized clean-room environments and advanced testing capabilities for RF interference are capturing the majority of this high-value segment. The complexity of these devices often leads to longer manufacturing cycles and higher margins for EMS partners compared to consumer-grade routers.

By Services: Design and Engineering

The design and engineering service segment is experiencing the fastest growth within the Telecom EMS landscape as OEMs pivot toward a "fabless" or "asset-light" model. Rather than providing blueprints for simple assembly, EMS firms like Jabil and Celestica are now co-developing hardware for AI-integrated servers and optical switching systems. This shift is driven by the need for faster time-to-market and the integration of advanced cooling solutions, such as liquid cooling, which are required for high-performance telecom data centers. By offloading design to manufacturing partners, OEMs can leverage Design for Manufacturability (DFM) and Design for Test (DFT) expertise, which significantly reduces production defects and total cost of ownership. This segment is characterized by high intellectual property (IP) collaboration and serves as a major differentiator for top-tier EMS providers looking to secure long-term, high-margin contracts.

Telecom Electronics Manufacturing Services (EMS) Market Geographical Analysis:

• US Market Analysis

The U.S. market for Telecom EMS is currently defined by an unprecedented wave of reshoring. Following the implementation of the Broadband Equity, Access, and Deployment (BEAD) program and the CHIPS Act, major OEMs like Nokia have partnered with EMS firms to manufacture fiber-optic broadband electronics domestically. In 2025, Jabil committed $500 million to expand U.S. manufacturing for cloud and AI data center infrastructure, specifically in North Carolina. This investment is a direct response to the demand for secure, U.S.-made networking hardware. The U.S. market also leads in the adoption of advanced cybersecurity-integrated hardware, driven by Department of Defense (DoD) requirements and the need to protect critical 5G communications infrastructure from foreign influence.

• India Market Analysis

India has rapidly emerged as a global hub for telecom manufacturing, second only to China in telephone subscriber volume. The PLI scheme for telecom and networking products has been a game-changer, incentivizing local production of routers, switches, and 5G equipment. In recent years, the Indian government's focus on "Digital India" and the expansion of the BharatNet project created a massive domestic market for low-cost but high-reliability telecom gear. EMS providers in India are not only serving the domestic market but are increasingly using their Indian facilities as export bases for the Middle East and Africa. The region’s competitive labor costs and improving infrastructure make it a primary destination for the "China Plus One" diversification strategies of global OEMs.

• Germany Market Analysis

Germany remains the technological heart of the European Telecom EMS market, with a focus on high-precision industrial networking. The "Industry 4.0" initiative, which requires robust, low-latency 5G private networks for automated manufacturing, drives market expansion. German EMS providers often specialize in low-volume, high-complexity production for specialized telecommunications equipment used in the automotive and aerospace sectors. Despite a brief contraction in 2024, the sector is rebounding in 2025 and 2026, supported by the EU Chips Act and a strong focus on "Green Electronics." German companies are at the forefront of developing sustainable manufacturing processes, including lead-free soldering and recyclable circuit board materials.

• Saudi Arabia Market Analysis

The Middle East market, led by Saudi Arabia, is expanding through the Vision 2030 digital transformation. The Kingdom is investing heavily in "giga-projects" like NEOM, which require a foundational layer of advanced 5G and future 6G connectivity. This has created a surge in demand for high-end networking servers and smart city sensors. Saudi Arabia is actively encouraging global EMS providers to establish local assembly lines to support its domestic tech ecosystem. The market is characterized by a preference for fully integrated, turnkey solutions that include not only the hardware but also the deployment and maintenance services, often delivered through joint ventures between local entities and global manufacturing giants.

• China Market Analysis

China continues to be the world's largest producer and consumer of telecom electronics, despite increasing trade tensions. The Chinese government’s 2025-2026 Action Plan for the electronic information manufacturing industry targets a considerable growth rate, focusing on the iterative upgrade of its massive 5G infrastructure. China's market is unique in its high level of vertical integration, with domestic EMS giants working closely with local semiconductor foundries to ensure a steady supply of components. However, the market faces significant headwinds from rising labor costs and U.S. export restrictions on advanced manufacturing equipment. To maintain its dominance, Chinese manufacturers are aggressively investing in fully automated "lights-out" factories and AI-driven quality control to offset labor costs and improve yield.

Telecom Electronics Manufacturing Services (EMS) Market Competitive Environment and Analysis:

The competitive landscape of the Telecom EMS market is highly consolidated, with a small group of "Tier 1" players controlling the majority of high-complexity telecom contracts. These companies differentiate themselves through global footprints and deep technical expertise in RF and optical technologies.

• Jabil Inc.

Jabil is a primary contender in the high-value telecom and data center segment. In 2025, the company shifted its strategic focus toward high-margin, high-growth areas like AI-driven cloud infrastructure and silicon photonics. A key development was the $500 million investment in U.S. manufacturing announced in mid-2025 to support the rising demand for domestic cloud and telecom hardware. Jabil's competitive edge lies in its integrated supply chain platform, ID8 Global, a joint venture that uses autonomous AI to manage procurement and logistics. The company's ability to provide sophisticated PCB prototyping for defense-grade telecom requirements further cements its position as a leader in the North American market.

• Sanmina Corporation

Sanmina is recognized for its expertise in optical, RF, and microelectronics, making it a preferred partner for complex 5G infrastructure. In October 2024, Sanmina’s division, 42Q, launched Connected Manufacturing, a cloud-based Manufacturing Execution System (MES) that provides real-time visibility into distributed global production. This technology is critical for telecom OEMs that require high levels of traceability and quality control across multiple geographies. Sanmina’s strategy focuses on technical depth rather than sheer volume, often taking on the most challenging assembly and testing projects for advanced networking equipment. Its recent partnership with Axiado to incorporate AI-based cybersecurity into OCP-driven servers highlights its move into secure, next-generation telecom hardware.

• Flex Ltd.

Flex maintains one of the broadest global footprints in the EMS industry, with a significant presence in every major telecom hub. Its strategy in 2024-2026 centers on regionalization and sustainability. Flex has been a major beneficiary of the "China Plus One" trend, expanding its facilities in Mexico and India to serve the North American and South Asian markets, respectively. The company focuses on full-lifecycle services, from initial design and prototyping to complex assembly and end-of-life circular economy solutions. Flex’s ability to scale production rapidly for high-volume routers and base station components makes it a vital partner for the world’s largest telecommunications equipment vendors.

Telecom Electronics Manufacturing Services (EMS) Market Recent Developments:

• October 2025: Axiado Corporation and Jabil launched a strategic partnership to integrate next-generation AI-based cybersecurity solutions into Open Compute Project (OCP) Modular Hardware System (MHS)-driven servers, targeting secure telecommunications and data center markets.
• June 2025: Jabil announced a multi-year investment plan totaling $500 million to expand its U.S. manufacturing capacity in North Carolina, specifically to meet the growing demand for cloud and AI-driven data center and telecommunications infrastructure.
• October 2024: Sanmina’s 42Q division launched "Connected Manufacturing," a cloud-based solution providing real-time visibility and optimization for distributed global manufacturing, addressing supply chain staleness and improving decision-making for complex electronics.

Telecom Electronics Manufacturing Services (EMS) Market Scope:

Telecom Electronics Manufacturing Services (EMS) Market Segmentation:

• By Devices
  • Routers
  • Server
  • Base Station Transmitter and Receiver
  • Others
• By Services
  • Design and Engineering
  • Manufacturing
  • Assembly
  • Testing
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Indonesia
    • Taiwan
    • Thailand
    • Others

Table Of Contents

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

2. RESEARCH METHODOLOGY

2.1. Research Data

2.2. Sources

2.3. Research Design

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. TELECOM ELECTRONICS MANUFACTURING SERVICES (EMS) MARKET ANALYSIS, BY DEVICES

5.1. Introduction

5.2. Routers

5.3. Server

5.4. Base Station Transmitter and Receiver

5.5. Others

6. TELECOM ELECTRONICS MANUFACTURING SERVICES (EMS) MARKET ANALYSIS, BY SERVICES

6.1. Introduction

6.2. Design and Engineering

6.3. Manufacturing

6.4. Assembly

6.5. Testing

6.6. Others

7. TELECOM ELECTRONICS MANUFACTURING SERVICES (EMS) MARKET ANALYSIS, BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. United States

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina

7.3.3. Others

7.4. Europe

7.4.1. Germany

7.4.2. United Kingdom

7.4.3. France

7.4.4. Spain

7.4.5. Others

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. Israel

7.5.3. UAE

7.5.4. Others

7.6. Asia Pacific

7.6.1. China

7.6.2. Japan

7.6.3. India

7.6.4. Indonesia

7.6.5. South Korea

7.6.6. Thailand

7.6.7. Taiwan

7.6.8. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES

9.1. Benchmark

9.2. Flex Ltd.

9.3. Jabil Inc

9.4. Celestica Inc

9.5. Compal Inc

9.6. Sanmina Corporation

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Benchmark

Flex Ltd.

Jabil Inc

Celestica Inc

Compal Inc

Sanmina Corporation

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