Telecom Electronic Manufacturing Services Market Size, Share & Trends Analysis growing at a CAGR of 7.4% from 2023 to 2030
The global telecom electronic manufacturing services market size was valued at USD 191.8 billion in 2022 and is projected to reach USD 339.7 billion by 2030, growing at a CAGR of 7.4% from 2023 to 2030. Contract manufacturing or subcontracting plays a key role in the telecom industry.
Key Market Trends & Insights
- North America is expected to register a significant CAGR over the forecast period.
- Asia Pacific dominated the market and accounted for the largest revenue share of 46.2% in 2022.
- By services, the electronic manufacturing segment accounted for the largest revenue share of 44.5% in 2022.
- By services, the electronic design & engineering segment is expected to grow at the fastest CAGR of 9.3% during the forecast period.
Market Size & Forecast
- 2022 Market Size: USD 191.8 Billion
- 2030 Projected Market Size: USD 339.7 Billion
- CAGR (2023-2030): 7.4%
- Asia Pacific: Largest market in 2022
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Traditional telecom manufacturers are shifting their focus to activities aimed at bringing the highest value to their customers. At the same time, they subcontract activities where they need to have the required core competencies. This trend is anticipated to influence the growth of the market positively.
Subcontracting offers many benefits, such as reduced time to market, access to leading manufacturing technologies, logistic capabilities, and reduced capital investments. It is estimated to be a primary factor driving the market over the forecast years.
Additionally, economic growth, surging demand for communication services, technological innovations, and expansion of wireless communication are poised to be among the key trends escalating market growth. The telecommunication equipment vendor business model is highly technology-driven.
Equipment manufacturers are evolving from manufacturing switches to developing their equipment and integrating products with their service offerings. Vendors often face challenges while focusing on core competencies owing to rapid technological changes in product and service offerings, and thus, they prefer subcontracting.
Regional Insights
Asia Pacific dominated the market and accounted for the largest revenue share of 46.2% in 2022 and is expected to grow at the fastest CAGR of 7.9% over the forecast period. There is a burgeoning trend among OEMs to outsource product design processes, which allows them to focus on core competencies. The trend is gaining significant momentum in the region, estimated to supplement the market’s growth. Furthermore, Asia Pacific has been an irreplaceable electronic production hub for almost a decade owing to low labor costs, and this factor has played a pivotal role in the region’s dominance over the past few years.
However, in recent times, with a rise in labor costs in the region, several countries, such as China and other Southeast Asian countries, are focusing on re-inventing themselves as manufacturers of complex products. For instance, Vietnam is projected to emerge as the next hub of electronics component production owing to funds offered by giants such as Samsung Electronics and LG Electronics, which has increased the country’s prominence in this supply chain. All these factors are poised to augment the regional market.
North America is expected to register a significant CAGR over the forecast period. The proliferation of smart devices and surging demand for green component manufacturing are likely to stoke the regional market’s growth. Furthermore, the booming telecom industry in the region is providing a boost to the market in the region.
