Telecom Electronic Manufacturing Services Market Insights:
Telecom Electronic Manufacturing Services Market was worth USD 144.9 Billion in 2021, and the market is anticipated to register a growth of USD 255.18 Billion by 2030 at a CAGR of 6.49% during the forecast period (2022-2030).
Telecom electronic manufacturing services involve the designing, production, assembly, and testing of electronic components. These services are offered by various organizations along with the return or repair services for electronic constituents and assemblies for the original equipment manufacturers (OEMs). The services are also applicable for the printed circuit board (PCB) assemblies to produce the equipment. This concept is also termed electronics contract manufacturing (ECM). Furthermore, these electronic equipment and PCBs are extensively used in the telecom sector. Also, the momentous progress in the telecommunications industry sector and the rapid modernization of the current industrial organizations are the key factors responsible for building a positive outlook of the market. The 5G infrastructure sector is estimated to generate higher than USD 1,280 Billion shares by 2030. Likewise, the global telecom equipment market held a market share of USD 540 Billion in 2021 due to the increasing adoption of IoT and 5G technologies in the telecom industry.
The demand for electronics manufacturing services is anticipated to rise in several sectors including healthcare, automotive, and other industries. The growing concern about the security of passengers and drivers is the key factor driving the growth of electronic manufacturing services in the automotive sector globally. North American telecom electronic manufacturing services market share generated over 34% shares in 2021. This is due to the manufacture of smart devices and eco-friendly components. Moreover, the Asia-Pacific telecom EMS market growth will hold substantial CAGR growth of above 8% from 2022 to 2030. According to the UN’s Global E-waste Monitor 2020, in July, the global e-waste volume grew by around 21% in 2019 and is estimated to get double in 16 years. This in turn directed government authorities and OEMs to develop several e-waste recycling strategies like green electronics.
Market Dynamics:
Driver:
- Increasing demand for Electronics manufacturing services in the telecom sector along with the healthcare, automotive and industrial sectors.The high use of telecom products, mobile phones, and other smart electronic devices increase the market growth during the forecast period.
- Rising trend of electronic devices all over the globe along with the increasing demand for green electronics
- Rising focus on timely service delivery.
Restraint:
- Unreliability in working of OEMs (original equipment manufacturer).
- The increase in the cost of labor cost in the manufacturing sector hinders the growth of the telecom electronic manufacturing services market.
Opportunity:
Growing demand for green electronics offers a profitable opportunity for various businesses. Along with this, the rising application and adoption of 5G and IoT technology are also proving a lucrative opportunity for market growth.
COVID-19 Impact:
The Telecom Electronic Manufacturing Services Market has been severely impacted by the COVID-19 pandemic in various regions of the world. In the early days, widespread lockdowns imposed in most countries severely disrupted supply chains and made it difficult for robot manufacturers to ramp up production. Moreover, the early impact of the pandemic in China was enormous. However, this was noted that the domestic situation remained stable and as a result, the overall impact of COVID-19 on the market was moderate. This will continue to benefit from the expansion of the Telecom Electronic Manufacturing Services Market after COVID-19, accelerating the market growth rate. Also, post-COVID-19, the need for electronics manufacturing services is projected to rise due to increasing healthcare, automotive, and industrial applications.
Telecom Electronic Manufacturing Services Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2016-2030 |
| Market Size in 2030 (USD Billion) | 255.18 Billion |
| CAGR (2022-2030) | 6.49 % |
| By Service | Electronic Design & Engineering, Electronic Assembly, Electronic Manufacturing, Supply Chain Management, and others. |
| By Application | Consumer Electronics, Automotive, Heavy Industrial Manufacturing, Aerospace and Defense, Healthcare, IT and Telecom, and others. |
| By Geography | North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa |
| Key Players | Benchmark Electronics Inc., Compal Inc., Celestica Inc., Venture Corporation Limited, Creation Technologies LP, Hon Hai Precision Industry Co. Ltd., FLEX LTD., Jabil Inc., Sanmina Corporation, Plexus Corporation, and Wistron Corporation. |
Market Segmentation:
By Service:
Depending on the service, the market is branched into electronic design & engineering, electronic assembly, electronic manufacturing, supply chain management, and others. Electronic manufacturing held around 47% of the overall share of the market in 2021 and is anticipated to increase the market growth during the forecast period. Furthermore, the electronic design & engineering services segment is expected to witness more than 8.0% CAGR growth during the forecast period. This is due to the manufacturer’s rising R&D of high-performance electronic materials. Technological advancements in big data, wireless communication, and sensors have updated the technology using IoT. Due to the rising consumer demand, product engineering and design processes have become electronically advanced. Thus, increasing the segment growth.
By Application:
The application segment is divided into consumer electronics, automotive, heavy industrial manufacturing, aerospace and defense, healthcare, IT and telecom, and others. The IT and telecom industry is estimated to hold the market with the largest CAGR over the estimated period due to initiatives taken by governments across the U.S., India, and other countries. This in turn led to the enhanced demand for computers, consumer electronics, and communication devices, thus propelling the market into IT and telecom applications.
The application segment of automotive and aerospace & defense is also advancing due to rising digitization, rising purchases of electric vehicles, and growing IoT-enabled cars during the estimated period. According to the International Energy Agency (IEA), the number of electric cars extended by 40% more in 2019 and reached 3 million sales in 2020. Furthermore, Europe leads the electric car market, followed by China and the U.S.
By Region
The regional segment includes Asia Pacific, Europe, North America, the Middle East & Africa, and Latin America. Asia-Pacific held the largest share of USD 171.66 billion in 2021 and is anticipated to dominate the telecom electronic manufacturing services market during the forecast period. This is due to the rising requirement for consumer electronics and telecommunication devices along with the increased adoption of technological advancements in this region. Moreover, the North American region is likely to observe the second-largest growth in the market after Asia Pacific due to the reduced labor costs. The rising demand for the manufacturing of smart devices and eco-friendly components is driving market growth in this region.
Europe is also anticipated to dominate the market as electronic manufacturing service companies collaborate with major European automobile manufacturers. This includes Volkswagen, Renault, and BMW for PCBA assembly, research, prototype, and building.
Telecom Electronic Manufacturing Services Market Competitive Landscape:
The competitive landscape of the market has been examined in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), various business strategies, and Deployment launches have accelerated the growth of the Sample Preparation market. Key players in the market include-
- Benchmark Electronics Inc.
- Compal Inc.
- Celestica Inc.
- Venture Corporation Limited
- Creation Technologies LP
- Hon Hai Precision Industry Co. Ltd.
- FLEX LTD.
- Jabil Inc.
- Sanmina Corporation
- Plexus Corporation
- Wistron Corporation
Recent Developments:
- In March 2021: A U.S.-based company called Geophysical Technologies Inc. choose Benchmark Electronics, Inc. for volume production of ‘NuSeis NRU 1C’ which is a next-gen seismic sensor.
- In November 2021: A company named Celestica Inc. situated in Canada attained a Singapore-based electronics manufacturing services (EMS) provider called PCI Private Limited to expand its IoT, embedded systems, telematics, and human-machine interface (HMI).
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