Telecom Electronics Manufacturing Services (EMS) Market Size, Share, Opportunities, and Trends By Devices (Routers, Server, Base Station Transmitter and Receiver, Others), By Services (Design & engineering, Manufacturing, Assembly, Testing, Others), And By Geography - Forecasts from 2023 to 2028

The telecom electronics manufacturing services (EMS) market is estimated to grow at a CAGR of 6.41% to reach US$318.622 billion in 2028 from US$206.202 billion in 2021.

The telecom EMS industry is developing due to increased demand for mobile phones, internet services, and smart electronic gadgets. For instance, according to Oberlo, a Shopify affiliate and supplier of dropshipping solutions, there were 6.8 billion smartphone users worldwide in February 2023, and mobile online traffic accounted for 54.8% of all web traffic worldwide. Mobile-related internet traffic made up 60.67% of all internet traffic in February 2023. The market is expanding rapidly as a result of the digital transformation of various sectors and the rising number of mobile subscriptions.

Increasing Adoption of 5G Technology

The development of 5G technology, a rise in demand for relevant applications, and connecting gadgets are anticipated to propel the wave of growth in communication and electronic items. The development of 5G technology is fueled by a variety of wireless connectivity capabilities, which are roughly categorized as improved mobile internet access, ultra-reliable and low latency connectivity, and large machine-type communications. As 5G technology usage rises and wireless communication develops, there will be a high demand for electronic manufacturing devices. For instance, by the end of 2028, 5G subscribers are projected to represent 55% of all mobile subscriptions worldwide, based on data and estimates from the Ericsson Mobility November 2022 study. The market benefits from the development of 5G technology and the ensuing deployment of 5G infrastructure.

Investments in the 5G Technology

Emerging investments for the implementation of 5G technology are further driving advancements in test technology as major companies are making significant efforts to gain a competitive edge over rivals.  For instance, National Instruments, the supplier of a software-defined system for boosting the performance of automated tests and measurement systems, provides mmWave Test Solution to address the test challenges of 5G mmWave and RFIC transceivers and amplifiers to speed the commercialization of 5G technology. Additionally, 5G is planned to run at significantly higher frequencies, which would likely lead to the adoption of new interface and component innovations, which might further boost market expansion.

Higher Internet Penetration Rate

The continuous advancement of technology plays a pivotal role, in driving innovation and creating demand for cutting-edge telecom and electronic devices. Moreover, the strong domestic demand for telecommunications infrastructure, fueled by increasing consumer reliance on mobile communication and data services, contributes to market growth. According to International Telecommunication Union, the high internet penetration rate in the USA, with approximately 80 to 90 percent of the population using the internet and approaching universal use, serves as a significant growth factor for the telecom electronics manufacturing services (EMS) market. As a vast majority of the population relies on internet connectivity, there is a substantial demand for telecom and electronic devices that support and enhance internet access. This creates opportunities for manufacturers to cater to the evolving needs of consumers and expand their offerings in the market.

Increasing Number of Truecaller Users

There is a positive correlation between the growth of Truecaller's active users and the growth of the telecom electronics manufacturing services (EMS) market. For instance, the number of monthly active users increased from 286 million in 2021 to 325 million in 2022 in the USA as per the World Bank. As the number of Truecaller users increases over the years, it indicates a rising demand for smartphones and telecommunication services. This surge in user base directly contributes to the expansion of the EMS market, as manufacturers respond to the growing need for telecom electronics devices. The increasing active user numbers reflect a higher market potential, driving manufacturers to invest in research, development, and production to meet the demands of the expanding user base.

North America and Asia-Pacific are Expected to Grow Considerably

The market growth is attributed to factors such as technological advancements, strong domestic demand, a robust telecommunications infrastructure, and the presence of leading industry players driving innovation and market expansion. Further, Canada’s growth in the market can be attributed to factors such as increased investment in telecommunications infrastructure, a strong focus on innovation and research, favourable government policies, and a skilled workforce driving the adoption of advanced technologies in the country. Additionally, the Asia Pacific region is expected to hold a considerable market share owing to factors such as advanced technological infrastructure, strong presence of key industry players, robust research and development activities, and high demand for telecommunications and electronic devices in the region.

Telecom Electronics Manufacturing Services (EMS) Market Scope:

 

Report Metric	Details
Market Size Value in 2021	US$206.202 billion
Market Size Value in 2028	US$318.622 billion
Growth Rate	CAGR of 6.41% from 2021 to 2028
Base Year	2021
Forecast Period	2023 – 2028
Forecast Unit (Value)	USD Billion
Segments Covered	Devices, Services, and Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	Benchmark, Flex Ltd. Flextronics International, LTD, Jabil Inc, Celestica Inc, Compal Inc, Sanmina Corporation
Customization Scope	Free report customization with purchase

 

Segmentation:

• By Devices
  • Routers
  • Server
  • Base Station Transmitter and Receiver
  • Others
• By Services
  • Design and Engineering
  • Manufacturing
  • Assembly
  • Testing
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • United Kingdom
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • Indonesia
    • South Korea
    • Thailand
    • Taiwan
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Sources

2.3. Research Design

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. TELECOM ELECTRONICS MANUFACTURING SERVICES (EMS) MARKET ANALYSIS, BY DEVICES

5.1. Introduction

5.2. Routers

5.3. Server

5.4. Base Station Transmitter and Receiver 

5.5. Others

6. TELECOM ELECTRONICS MANUFACTURING SERVICES (EMS) MARKET ANALYSIS, BY SERVICES

6.1. Introduction

6.2. Design and Engineering

6.3. Manufacturing

6.4. Assembly

6.5. Testing

6.6. Others

7. TELECOM ELECTRONICS MANUFACTURING SERVICES (EMS) MARKET ANALYSIS, BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. United States

7.2.2. Canada

7.2.3. Mexico

7.3. South America

7.3.1. Brazil

7.3.2. Argentina 

7.3.3. Others

7.4. Europe

7.4.1. Germany

7.4.2. United Kingdom

7.4.3. France

7.4.4. Spain

7.4.5. Others

7.5. Middle East and Africa

7.5.1. Saudi Arabia

7.5.2. Israel

7.5.3. UAE

7.5.4. Others

7.6. Asia Pacific

7.6.1. China

7.6.2. Japan

7.6.3. India

7.6.4. Indonesia

7.6.5. South Korea

7.6.6. Thailand

7.6.7. Taiwan

7.6.8. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES

9.1. Benchmark

9.2. Flex Ltd. Flextronics International, LTD

9.3. Jabil Inc

9.4. Celestica Inc

9.5. Compal Inc

9.6. Sanmina Corporation

Benchmark

Flex Ltd. Flextronics International, LTD

Jabil Inc

Celestica Inc

Compal Inc

Sanmina Corporation