The Global Telecom Electronic Manufacturing Service Market has been valued at US$ 138.83 Billion in 2021 and it is expected to reach the high market capital of US$ 210.03 Billion by 2027. During this forecast period it is anticipated to grow with the healthy CAGR of 5.93% over 2022-2027.
Global Telecom Electronic Manufacturing Service Market Overview:
Companies that design, manufacture, assemble, and test electronic components and printed circuit board (PCB) assemblies for original equipment manufacturers (OEMs) provide electronic manufacturing services (EMS) (OEMs). In the telecom industry, several electronic gadgets and PCBs are commonly utilized. Before manufacturing the product, sourcing the components from a trustworthy distributor, and assembling and testing the product, some of the companies only demand a design file from the customer. EMS suppliers who specialise in assembly, on the other hand, may need the customer to deliver the design, the essential components for manufacturing, and an assembled sample. Additional onsite services, such as PCB etching, can be provided by EMS businesses, or these services can be provided by another contractor.
In addition, telecommunications applications commonly use radio frequency (RF) or wireless equipment. Radio frequency identification devices (RFID) and other telecommunication and wireless technologies may be assembled by EMS providers. Furthermore, the telecom EMS market is growing due to rising demand for mobile phones, telecom products, and smart electronic gadgets. Furthermore, quickly evolving gadgets such as smartphones and tablets have made it possible for service providers and original equipment manufacturers to form innovative collaborations and partnerships (OEMs).
Global Telecom Electronic Manufacturing Service Market Drivers & Restraints:
Drivers:
The rise in the demand for consumer electronics is likely to drive the expansion of the telecom electronic manufacturing services market in the forecast years. In addition, the increased need for vehicle electronics is expected to boost the telecom electronic manufacturing services market forward. The increased demand for mobile phones, telecom products, and smart electronic gadgets is also expected to support the telecom electronic manufacturing services market's expansion. On the other side, rising labour costs in the manufacturing sector are expected to stifle the telecom electronic manufacturing services market's expansion throughout the forecast period.
Because of new trends in wireless network technology, expanding acceptance of cloud platforms, and a growing preference for overall cost reduction for connected devices, the Internet of Things is gaining significant traction in the global telecom electronic manufacturing service industry. In addition, new product development and strategic collaborations among key companies have accelerated the adoption of IoT technology, which is likely to provide the telecom electronic manufacturing service industry with significant growth potential.
Restraints:
However, one of the greatest stumbling blocks is the manufacturing sector's high labour expenses. Higher labour expenditures, such as higher compensation rates and employee perks, drive employees to work efficiently, but they might diminish corporate earnings and restrict the number of jobs available, limiting the company's ability to grow.
Recent Developments in Global Telecom Electronic Manufacturing Service Market:
China has approved a mega-project for data clusters, indicating that its strategy to channel more computing resources from the country's eastern regions to its less developed but resource-rich western regions is in full swing. Guizhou opens a new chapter in the digital economy by taking on more computing power.
Vedanta has signed an agreement with Foxconn to produce semiconductors in India. Anil Agarwal's Vedanta and Hon Hai Technology Group (commonly known as Foxconn) have formed a joint venture (JV) to produce semiconductors in India, which is a significant development for the performance-linked incentive (PLI) plan. According to a joint statement released by the firms, this is the first JV in the electronics manufacturing industry following the PLI strategy.
REPORT COVERAGE:
REPORT METRIC |
DETAILS |
Market Size Available |
2022 – 2027 |
Base Year |
2021 |
Forecast Period |
2022 - 2027 |
CAGR |
5.93% |
Segments Covered |
By Application, Type and Region |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
|
Global Telecom Electronic Manufacturing Service Market Segmentation:
By Service:
Electronic Manufacturing is expected to have the dominant share in the Global Telecom Electronic Manufacturing Service Market During the Forecast Period. In terms of revenue, the electronic manufacturing category held the largest proportion of the Telecom Electronic Manufacturing Service Market. OEMs are capitalising on the trend of outsourcing product design and development to subcontractors in order to reap two primary benefits: a shift from fixed to variable costs and a cost reduction overall. Several electronic contract manufacturers in the telecommunications industry are working on extending their capabilities by providing new services with larger profit margins. Over the projected period, this initiative by electronic makers is expected to propel segment expansion.
Electronics Design & Engineering segment is expected to witness the high CAGR growth in the Global Telecom Electronic Manufacturing Service Market During the Forecast Period. IoT is transforming the technology environment because to advancements in wireless communication and sensor technologies, as well as big data capabilities. Because of rising consumer expectations and requirements, electronic improvements are infiltrating the product engineering and design process. This, in turn, is expected to add to the segment's growth.
Global Telecom Electronic Manufacturing Service Market Regional Analysis:
Key Players in Global Telecom Electronic Manufacturing Service Market:
Frequently Asked Questions
The Telecom Electronic Manufacturing Service Market is expected grow with the 5.93% CAGR over the forecast period of 2022-2027.
Asia-Pacific Countries is expected to have the largest market dynamic/shar in the Global Telecom Electronic Manufacturing Service Market.
The rise in the demand for consumer electronics is likely to drive the expansion of the Global Telecom Electronic Manufacturing Service Market During the Forecast Period.
By Service and Regions are the segmentations covered in the Global Telecom Electronic Manufacturing Service Market.
Hon Hai Technology Group (Foxconn), FLEX LTD., Benchmark, Jabil Inc., Plexus Corp, Celestica Inc., Creation Technologies, Sanmina Corporation, Pegatron Corporation, and Wistron Corporation are among the prominent players highlighted in the Market.
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