According to a new report published by Allied Market Research, titled, "Telecom Electronic Manufacturing Service Market by Product Type and Service: Global Opportunity Analysis and Industry Forecast, 2020–2027" the global telecom electronic manufacturing service market size was $137.37billion in 2019 and is projected to reach $209.17 billion by 2027, to register a CAGR of 6.50% during the forecast period. Asia-Pacific is expected to be the leading contributor to the global telecom electronic manufacturing service market, followed by North America and Europe.

Electronics manufacturing service (EMS) refers to an overall industry and also to a specific class of subcontractor or company. EMS is also often used interchangeably with the more generic term contract manufacturing (CM). EMS companies also provide value-added engineering and manufacturing outsourcing services to original equipment manufacturers (OEMs), which allows them to improve effective productivities and focus on core activities such as R&D. The telecom EMS market is dynamic, and the demand for electronic components and outsourced manufacturing services is witnessing rapid growth.

As a leader in mix low-volume manufacturing, the EMS industry is witnessing a critical role in the electronics value chain. Rapid innovation is initiating the need for speed and disrupting the supply chain model that creates growth opportunities for the telecom electronic manufacturing service market share. Forces such as the digital age, customization, globalization, software integration, complexity, and environmental changes has driven the need for a robust supply chain and backed up with complete traceability and transparency. Dynamic electronic manufacturing service (EMS) works with customers and supply chain at both the design stage, and throughout the life-cycle of a product.

The most prominent factors that drive the telecom electronic manufacturing service market growth are increasing demand for EMS technology in telecom sector, rising demand for electronics devices in developed and developing nations, and government initiatives. However, high labor costs in the manufacturing sector are expected to hinder the market growth. Conversely, rising adoption of 5G technology and emerging internet of things (IoT) technology are expected to offer lucrative opportunities for the market globally.

Electronic manufacturing segment contributed the maximum in terms of revenue to the market and accounted for 40% share in 2019. Factor such as increasing demand for communication devices, continuously developing trend, and the expansion of wireless communication technology is expected to create growth opportunities for electronic manufacturing service companies to manufacture more electronics components However, the electronic manufacturing is expected to grow at a rate 5.80%.Original equipment manufacturers (OEMs) are also tapping into the trend of outsourcing product design and development to subcontractors in order to subsequently gain major advantages, including shift from fixed to variable cost and reduction in the overall cost.Supply chain management segment was the contributor maximum revenue in 2019 and is expected to grow at a CAGR of 7.90% from 2020 to 2027. Rapid innovation is initiating the need for speed and disrupting the supply chain model that creates growth opportunities for the telecom electronic manufacturing service industry.

By region, the telecom electronic manufacturing service market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. The analysis had identified that Asia-Pacific contributed maximum revenue in 2019. The telecom electronic manufacturing service market growth in LAMEA is expected to grow at a faster rate as compared to other regions. Telecom service is anticipated to be hosted enormously on the cloud, due to many mobile users in every area.

Key Findings of the Study:

• In 2019, the electronic manufacturing segment accounted for the maximum revenue and is projected to grow at a notable CAGR of 5.80% during the forecast period.
• The Electronic manufacturing segment accounted for more than 40.0% of the telecom electronic manufacturing service market share in 2019.
• The supply chain management segment witness highest growth rate during the forecast period.

The key players profiled in the report include Hon Hai Technology Group (Foxconn), FLEX .LTD, Benchmark Electronics Inc., Jabil Inc., Plexus Corp, Celestica Inc., Creation Technologies, Sanmina Corporation, Pegatron Corporation, and Wistron Corporation. Market players have adopted various strategies such as product launch, collaboration & partnership, and acquisition, to expand their foothold in the telecom electronic manufacturing service industry.