ID: MRFR/SEM/3030-CR | April 2020 | Region: Global | 185 pages
The telecom equipment market is growing at a CAGR of 8.1% during the forecast period 2020-2030.
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.
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.
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.
The new product development costs are very expensive which is hampering the growth of the telecom technology equipment market.
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.
The EY Transformation Report states that the telecom industries are facing the challenges like disruptive competition from manufacturers in technology, service management, and others.
The global telecom equipment market has been segmented based on offerings, Infrastructure, End-User, and region.
Based on Offerings
Based on Infrastructure
Based on End-user
Based on Region
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.
The prominent key players in the telecom equipment market trends are the following:
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.
The telecom equipment market trends have been segmented globally based on the offerings, Infrastructure, End-User, and region.
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)].
Wired Infrastructure and Wireless Infrastructure.
BFSI, Media, Defense, Retail, Consumer Electronics, and others.
Asia-Pacific, North America, Europe, and the rest of the world are the main geographies included in the telecom equipment market.
|Market Size||USD 916.54 Billion|
|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||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
Global telecom equipment market is projected to grow at approximately 8.1% CAGR during the assessment period (2020-2030).
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.