Telecom Equipment Market Research Report - Forecast to 2027

Telecom Equipment Market Research Report: by Offerings Products [Broadband Access, Core Network (Evolved Packet Core, IP Multimedia Subsystem, Signal Transfer Point and Multiaccess Edge Computing)], Software, Services [Professional Services (Consulting Services, Installation and Implementation Services, Maintenance Services and other Support Services), Managed Services], Infrastructure [Wireless Infrastructure and Wired Infrastructure], End User [Consumer Electronics, BFSI, Retail, Media, Defense and others] and Region [North America, Europe, Asia-Pacific and Rest of the World] - Forecast till 2027

ID: MRFR/SEM/3030-CR | April 2020 | Region: Global | 185 pages

Market Overview


The Telecom equipment market is growing at a CAGR of 11% during the forecast period 2021-2027.


Telecommunications is the fastest-growing industry around the world. Telecommunication equipment is made up of hardware components that are used for communication purposes like broadband access, home networking, microwave transmission & mobile backhaul, mobile radio access network (ran), carrier IP technology, optical transport, and routers & carriers ethernet switches.


The telecommunication equipment industry manufactures the components, technologies, and services that are required for communication. Networking devices like routers & switches, wireless & landline infrastructure equipment, cable modems, cell phones, digital subscriber-line(DSL), cable modems, and chipsets are the major products manufactured by the telecom industry. According to the EPW Research Foundation report, one of the major sectors attracting foreign direct investment to India is telecommunications.

COVID-19 Analysis:


The COVID-19 outbreak shows little impact on the telecom equipment market due to the lockdowns imposed by the governments to control the spread of the coronavirus. This lockdown is not much impacted on the telecom infrastructure supply chains that are between with the major equipment suppliers such as Nokia, Cisco, Ericsson, and ZTE provides access to technology components. But these companies faced a few problems like lack of raw materials required for the production to deliver the end-products.


Telecom equipment manufacturers also faced some problems like shortage of workers, supply chain disruptions, attracting workers from quarantine, and lack of raw materials. These factors lead to a spike in the price of telecom tools and equipment. Anyway, the COVID-19 pandemic offers some unique opportunities to the telecom equipment market industry which propels the market growth. The Telecom equipment market uses this opportunity and shows the radical catalytic event as the industrial automation, fast-forwarded digitization, and work from home (WFH) trend. Due to the lockdowns and other few reasons, there was an upward trend in remote working and industrial automation during the last two years and an increase in data suggests are boosting the IT & Telecom industry and digital transformation.

Market Dynamics:


Drivers:


An increase in the number of internet users across the globe has boosted the demand for wireless access points. Low internet tariffs, digitalization, and the need for high-bandwidth communication are increasing the adoption rate of internet and fiber optic cables which leads to rising demand for the telecom test equipment market.  The telecom equipment market growth is highly dependent on the purchases from cable companies, businesses, telephone equipment companies, data communication providers, and TV & radio broadcasters. Among them, TV & radio broadcasters and line-based communication equipment are the wireless communications equipment that gains most of the industry revenue and gains the telecom equipment manufacturer’s market share.


Moreover, with rising radio & TV broadcasting and social media channels, the global telecom equipment market size is growing. The innovations in the telecom equipment industry are done owing to the rising deployment of 4G and LTE networks. However, the rise in the growth of cellular stations and the need for next-generation ready network equipment for 5G telecom equipment networks are boosting the telecom cabling equipment market growth rate.


Restraint:


The new product development costs are very expensive which is hampering the growth of the telecom technology equipment market.


Opportunities:


There will be constant opportunities for the innovations of smartphone technology and communication. Innovations in smartphones include improved processing power, enhanced graphics, camera capabilities which increase the demand for smartphones. Moreover, improved security and advanced features like AR and VR, and the rise in the use of internet-based applications have accelerated the growth of the smartphone market that leads to the increasing demand for cellular base stations. The next technology 5G network, IoT, high bandwidth broadband, low latency industry apps, and cloud computing are the opportunities of the telecom market.


Challenges:


The EY Transformation Report states that the telecom industries are facing the challenges like disruptive competition from manufacturers in technology, service management, and others.

Study Objectives -



  • To provide detailed information about the telecom equipment market structure along with various forecast segments and subsegments for the next 10 years.

  • To provide the factors that are affecting the growth of the telecom equipment market value.

  • To analyze the telecom equipment market industry analysis based on porter’s five force analysis, factors-price analysis, supply chain analysis, etc.

  • To provide history and forecast revenue segments and sub-segments of the telecom equipment market revenue for the main geographies.

  • To provide the country-level analysis of the current telecom equipment market size and future prospective.

  • To provide country-level analysis of the telecom equipment market industry growth by region, form, and application.

  • To provide a strategic profile of the prominent key players in the market, analyze their core competencies, and draw a global telecom equipment market growth landscape.

  • To track and analyze new product developments, strategic alliances, and global telecom equipment market research.


Segment Overview:

The global telecom equipment market has been segmented based on offerings, Infrastructure, End-User, and region.


Based on Offerings



  • The global telecom equipment company based on the offerings segment are divided into Software, Services [Professional Services (Maintenance Services, Consulting Services, Installation, and Implementation Services, other support services), Managed Services], Products [Broadband Access, Core Network(IP Multimedia Subsystem, Evolved Packet Core, Multiaccess Edge Computing, Signal Transfer Point)].


Based on Infrastructure



  • Based on the infrastructure, the telecom technology equipment is classified into two types as Wired Infrastructure and Wireless Infrastructure.


Based on End-user



  • The telecom equipment vendors based on end-user are bifurcated into few segments such as BFSI, Media, Defense, Retail, Consumer Electronics, and others. Consumer Electronics accounted for the largest telecom equipment market hare in 2019.


Based on Region



  • Region-wise, the telecom equipment providers are sub-segmented into Asia-Pacific, Europe, North America, and the rest of the world are the four main geographies included in this market. In telecom equipment market research North America is expected to hold the largest telecom equipment market share. Due to the change in consumer preference towards cloud-based technologies and mobile devices, there will be a growing investment in infrastructure and wireless communication.


Regional Analysis 


Globally, the telecom equipment market based on the worldwide regions is segmented into Asia-Pacific, Europe, North America, and the rest of the world. In 2018, North America is dominating the telecom equipment market share with a value of USD 66.38 billion and is expected to exhibit a significant CAGR of 10.25% during the forecast period. Owing to the presence of major players and the increasing need for 5G compatible network equipment in the region. Due to the increasing investments in network infrastructure and the presence of various telecom equipment & services providers, the Asia-Pacific region is predicted to propel the growth of the telecom equipment market.

Competitive Landscape


The prominent key players in the telecom equipment market trends are the following:



  • Huawei Technologies Co. Ltd (China)

  • Ciena (US)

  • Nokia (Finland)

  • ZTE Corporation (China)

  • Cisco Systems, Inc. (US)

  • Fujitsu Ltd (Japan)

  • Telefonaktiebolaget LM Ericsson. (Sweden)

  • Qualcomm Technologies, Inc. (US)

  • Samsung Group (South Kore)

  • Juniper Networkds, Inc. (US)

  • CommScope Holding Co., Inc. (US)

  • Extreme Networks, Inc. (US)

  • Ribbon Communications Operating Company, Inc.(US)

  • NEC Corporation (Japan)


Recent Developments


  • In February 2020, one of the popular key players, Huwaei Technologies Co.Ltd. introduced the innovation solution Smart 8T8R. This new solution fixes the FDD dual-band 8T8R RRUs, software-defined antennas (SDA), and innovative algorithms. This smart 8T8R solution supports multi-sector deployments across all the networks 2G, 3G, and 4G based on software configurations which help to achieve the simplified development to 5G.

  • Ericsson has an acquisition of the antennas and filter division with a world-leading provider of antenna and filter technologies, Kathrein, and this acquisition was completed and expanded the companies portfolio of antenna and filter product line.

  • In March 2020, the most popular company, Nokia expanded its fiber access portfolio to include innovations and the latest solutions which allows the service providers to give a little experience to everyone smoothly.


Report Overview:

This global telecom equipment market research includes the COVID-19 analysis, Competitive Landscape, Market Dynamics, Study Objectives, Regional Analysis, Market Overview, Segment Overview, Recent developments, Segmentation Table, and FAQs. The market scenario includes the telecom equipment market drivers, restraints, challenges, and opportunities. The telecom equipment forecast segments are offerings, Infrastructure, End-User, and region.

Segmentation Table


The telecom equipment market trends have been segmented globally based on the offerings, Infrastructure, End-User, and region.


By Offerings


Software, Services [Professional Services (Maintenance Services, Consulting Services, Installation, and Implementation Services, other support services), Managed Services], Products [Broadband Access, Core Network(IP Multimedia Subsystem, Evolved Packet Core, Multiaccess Edge Computing, Signal Transfer Point)].


By Infrastructure


Wired Infrastructure and Wireless Infrastructure.


By End-user


BFSI, Media, Defense, Retail, Consumer Electronics, and others.


By Region


Asia-Pacific, North America, Europe, and the rest of the world are the main geographies included in the telecom equipment market.



Report Scope:
Report Attribute/Metric Details
  Market Size   Significant Value
  CAGR   11%
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Offerings Products, Infrastructure, End User
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Huawei Technologies Co. Ltd (China), Ciena (US), Nokia (Finland), ZTE Corporation (China), Cisco Systems, Inc. (US), Fujitsu Ltd (Japan), Telefonaktiebolaget LM Ericsson. (Sweden), Qualcomm Technologies, Inc. (US), Samsung Group (South Korea), Juniper Networks, Inc. (US), CommScope Holding Co., Inc. (US), Extreme Networks, Inc. (US), Ribbon Communications Operating Company, Inc. (US), and NEC Corporation (Japan)
  Key Market Opportunities

  • Network demands for applications in IoT and connected devices.
  • Developments in the telecom industry infrastructure, enhanced wireless telecom networks, and the growing development of LTE technologies.
  •   Key Market Drivers

  • Increased growth of cellular stations.
  • The need for next-generation-ready network equipment for 5G networks.
  • The increasing investments in network infrastructure.


  • Frequently Asked Questions (FAQ) :


    Global telecom equipment market is projected to grow at approximately 11.23% CAGR during the assessment period (2021-2027).

    The increased growth of cellular stations, need for next-generation-ready network equipment for 5G networks, and constant advances in communication & smartphone technology, are major tailwinds pushing the growth of the global telecom equipment market.

    North America holds the largest share in the global telecom equipment market, followed by the Asia Pacific region and Europe, respectively.

    Ciena (US), Huawei Technologies Co. Ltd (China), Nokia (Finland), Cisco Systems, Inc. (US), ZTE Corporation (China), Fujitsu Ltd (Japan), Qualcomm Technologies, Inc. (US), Telefonaktiebolaget LM Ericsson (Sweden), Samsung Group (South Korea), CommScope Holding Co., Inc. (US), Juniper Networks, Inc. (US), Extreme Networks, Inc. (US), NEC Corporation (Japan), and Ribbon Communications Operating Company, Inc. (US), are some of the top players operating in the global telecom equipment market.

    Strategic initiatives such as mergers & acquisitions, collaborations, expansion, and technology/ product launch are some of the growth strategies that players operating in the global telecom equipment market adopt to gain a larger competitive advantage.