Telecom Electronic Manufacturing Service Market Outlook - 2027
The global telecom electronic manufacturing service market size was valued at $137.37 billion in 2019 and is expected to reach $209.17 billion by 2027, growing at a CAGR of 6.50% from 2020 to 2027.
Electronic manufacturing services (EMS) are provided by companies that design, produce, assemble, and test electronic components and printed circuit board (PCB) assemblies for original equipment manufacturers (OEMs). These electronic devices and PCBs are widely used in the telecom sector. Some companies require only a design file from the customer before proceeding to develop the product, source the components from a trusted distributor, and assemble and test the product. Alternatively, EMS providers who specialize in assembly may require the customer to provide the design, the components necessary for manufacturing, and an assembled sample. In addition, EMS companies can also provide additional onsite services, such as PCB etching, or offer these services through another contractor.
In addition, radio frequency (RF) or wireless devices are frequently used in telecommunications applications. EMS providers may assemble radio frequency identification devices (RFID) and other telecommunication and wireless technologies. Furthermore, increasing demand for mobile phones, telecom products as well as smart electronic devices is driving the growth of the telecom EMS market. In addition, rapidly developing devices such as smartphones and tablets, have facilitated unique collaborations and partnerships between the service providers and original equipment manufacturers (OEMs).
The prominent factor that drives the telecom electronic manufacturing service market growth includes increasing demand for EMS technology in the telecom sector. Increasing demand for mobile phones, telecom products as well as smart electronic devices is driving the growth of the telecom EMS market. In addition, rapidly developing devices account for the imitation of unique collaborations and partnerships between the service providers and original equipment manufacturers (OEMs); rising demand for electronics devices in developed and developing nations; and government initiatives such as the Make in India initiative and increasing costs in China are the key factors for the rise in local manufacturing that fuels the growth of the global market.
However, one of the major restraints is the high labor costs in the manufacturing sector. Higher labor costs such as higher wage rates and employee benefits motivate employees to work seamlessly, but they can reduce the company's profits as well as decrease the number of jobs, which may impact the company’s growth.
On the contrary, the rising adoption of 5G Technology and the emerging Internet of Things (IoT) technology are anticipated to provide lucrative opportunities for the expansion of the telecom EMS industry during the forecast period. The Internet of Things is significantly gaining traction in the global telecom electronic manufacturing service market, due to emerging trends of wireless network technology, growing adoption of cloud platforms, and increasing preference for total cost reduction for connected devices. Also, new product development and strategic alliances among the key players accelerate the adoption of IoT technology, which is expected to create high growth opportunities for the telecom electronic manufacturing service industry.
Segmentation Overview:
The global telecom electronic manufacturing service industry is segmented based on product type, service, and region.
By product type, the market is further sub-segmented into computing devices & equipment, servers & routers, RF & microwave, fiber optic devices, transceivers & transmitters, and others.
By Product Type
Servers and Routers segment is projected as one of the most lucrative segments.
By service, the market is categorized into electronic design and engineering, electronics assembly, electronic manufacturing, supply chain management, and others.
By Service
Electronic Manufacturing segment is expected to secure leading position during forecast period.
Region-wise, the telecom electronic manufacturing service market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Taiwan, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa). Asia-Pacific accounted for the highest share, owing to an exponential rise in demand for small equipment and expansion efforts taken by the major EMS provider companies, which indicate the signaling growth for new EMS players who wish to penetrate the segment.
By Region
LAMEA region would exhibit the highest CAGR of 7.90% during 2020-2027
Top Impacting Factors
The prominent factors that drive the growth of the telecom electronic manufacturing service market include increasing demand for EMS technology in the telecom sector, rising demand for electronic devices in developed and developing nations, and government initiatives. However, high labor costs in the manufacturing sector restrict the market growth. Conversely, the rising adoption of 5G technology and the emerging Internet of Things (IoT) technology create lucrative opportunities for the telecom EMS industry.
Competition Analysis
Competitive analysis and profiles of the major Hon Hai Technology Group (Foxconn), FLEX.LTD, Benchmark, Jabil Inc., Plexus Corp, Celestica Inc., Creation Technologies, Sanmina Corporation, Pegatron Corporation, and Wistron Corporation are provided in this report. These key players have adopted various strategies such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations to strengthen their foothold in the telecom electronic manufacturing service market.
Key Benefits for Stakeholders:
- This study comprises an analytical depiction of the global telecom electronic manufacturing service market size along with the current trends and future estimations to depict the imminent investment pockets.
- The overall telecom electronic manufacturing service market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and telecom electronic manufacturing service market opportunities with a detailed impact analysis.
- The current telecom electronic manufacturing service market forecast is quantitatively analyzed from 2019 to 2027 to benchmark financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and the telecom electronic manufacturing service market share of key vendors.
- The report includes the market trends and the market share of key vendors.
Telecom Electronic Manufacturing Service Market Report Highlights
| Aspects | Details |
 By Product Type |
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 By Service |
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 By Region |
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 Key Market Players | WISTRON CORP, FLEX LTD, SANMINA CORPORATION, PEGATRON CORP, HON HAI TECHNOLOGY GROUP (FOXCONN), BENCHMARK ELECTRONICS INC., JABIL INC., CREATION TECHNOLOGIES, CELESTICA INC., PLEXUS CORP |
Analyst Review
According to the insights of the CXOs of leading companies, the telecom electronic manufacturing services market holds a significant scope for growth globally. Currently, it is in its continuous growing stage. There is an increasing demand for EMS technology in the telecom sector, rising demand for electronics devices in developed and developing nations, and government initiatives create lucrative growth opportunities for the telecom electronic manufacturing services market. Rising adoption of 5G technology and emerging internet of things (IoT) technology are expected to offer lucrative opportunities for the market globally in coming year.
Rapidly growing demand for electronics devices such as smartphones and other electronic devices, in developing nations is the major factor driving the growth of the telecom EMS market. In addition, the increasing demand for 5G chipsets in the developed economies with the introduction of 5G-enabled smartphones, and telecom equipment is expected to create lucrative opportunities for the telecom electronic manufacturing service market.
The major companies profiled in the report include Hon Hai Technology Group (Foxconn), FLEX .LTD, Benchmark, Jabil Inc., Plexus Corp, Celestica Inc., Creation Technologies, Sanmina Corporation, Pegatron Corporation, and Wistron Corporation.
The Global Telecom Electronic Manufacturing Service Market is expected to grow at a CAGR of 6.50% from 2020 to 2027.
The Telecom Electronic Manufacturing Service Market is projected to reach $209.17 billion by 2027.
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Increasing demand for EMS technology in the telecom sector, rising demand for electronics devices in developed and developing nations, and government initiatives drive the Telecom Electronic Manufacturing Service market growth.
The key players profiled in the report include Hon Hai Technology Group (Foxconn), FLEX LTD., Benchmark, Jabil Inc., Plexus Corp, Celestica Inc., Creation Technologies, Sanmina Corporation, Pegatron Corporation, and Wistron Corporation.
On the basis of top growing big corporations, we select top 10 players.
The Telecom Electronic Manufacturing Service Market is segmented on the basis of product type, service, and region.
The key growth strategies of Telecom Electronic Manufacturing Service market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Servers and Routers segment will dominate the market with a highest CAGR of 7.60%.
Asia-Pacific region will secure the leading the position throughout the forecast period.
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