Telecom Electronic Manufacturing Services Market Size, Future Opportunities and Top Companies

The global telecom electronic manufacturing services market size was valued at USD 0.23 billion in 2023 and is anticipated to reach around USD 0.47 billion by 2033, growing at a CAGR of 7.44% from 2024 to 2033.

Electronic manufacturing services (EMS) are provided by businesses that offer original equipment manufacturers (OEMs) services such as the design, fabrication, assembly, and testing of electronic components and printed circuit board (PCB) assemblies. These electronic components and PCBs are extensively used in the telecom industry. Some companies require only a design file from the client before beginning product development. They then procure parts from reputable vendors, assemble the product, and conduct testing.

The growth of the telecom electronic manufacturing services market is primarily driven by the rising demand for EMS technology in the telecom sector, the increasing demand for electronic devices in both developed and developing countries, and supportive government initiatives. However, high labor costs in the manufacturing industry are expected to impede market expansion. On the other hand, the increasing adoption of 5G and the emergence of Internet of Things (IoT) technology are anticipated to present lucrative opportunities for the market.

Telecom Electronic Manufacturing Services Market Statistics:

• Regional Dominance: Asia Pacific held the largest market share in 2023, accounting for 47%. This suggests that this region is a major hub for EMS activities.
• North American Growth: North America is expected to see significant growth in the coming years. This could be due to factors like increasing demand for electronic devices or a shift in manufacturing focus.
• Manufacturing Strength: The electronic manufacturing segment captured the biggest share (45%) within the EMS market in 2023. This indicates the dominance of core manufacturing services in this industry.
• Design and Engineering on the Rise: The electronic design and engineering segment is projected to experience impressive growth (CAGR of 9.33%) from 2024 to 2033. This suggests a growing emphasis on innovation and upfront design work in the EMS sector.

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Telecom Electronic Manufacturing Services Market Future Opportunities

• Rising Demand for Telecom Equipment: The rollout of 5G networks, increasing demand for data centers, and growing adoption of internet of things (IoT) devices will all necessitate more telecom equipment, fueling the need for EMS providers.
• Focus on Core Competencies: Telecom companies are increasingly outsourcing manufacturing to focus on core areas like design, research, and development. This trend creates ample opportunities for EMS providers.
• Advancements in Technology: The growing complexity of telecom equipment, with miniaturization and integration of various functionalities, will require expertise that EMS providers can deliver.
• High-Growth Areas: EMS providers who can cater to the manufacturing needs of 5G infrastructure, edge computing devices, and Open Radio Access Network (Open RAN) equipment will be well-positioned for growth.
• Value-Added Services: Going beyond basic assembly, EMS providers offering services like design engineering, testing, and logistics will be more attractive to telecom companies.
• Nearshoring and Onshoring: Concerns over geopolitical tensions and supply chain disruptions might lead to a shift towards near-shoring or onshoring of manufacturing facilities, creating opportunities for regional EMS providers.
• Sustainability: Telecom companies are increasingly looking for environmentally friendly manufacturing practices. EMS providers with sustainable solutions will be at an advantage.

Global Telecom Electronic Manufacturing Service Market Drivers

Rising Need for EMS Technology in the Telecom Industry The telecom EMS market is expanding due to the increasing demand for mobile phones, products, and intelligent electronic devices. Rapidly evolving technology is driving collaborations and partnerships between original service providers and equipment manufacturers (OEMs). This encourages EMS market participants to establish efficient manufacturing equipment and service delivery facilities, fueling sector growth. Additionally, OEMs' growing investments in outsourcing their manufacturing, testing, and logistics operations create opportunities for new players to enter this market. This positions EMS companies to support and thrive in the telecom industry, given their extensive global supply networks and advanced technological capabilities. The telecom EMS market is anticipated to benefit significantly from these growth opportunities.

Rising Demand in both Developed and Developing Countries A key factor driving the global growth of electronic manufacturing services is the increasing demand for electronic devices in both developed and developing countries. The primary driver of the telecom EMS market expansion is the rapidly growing demand for electronic devices, including smartphones, in developing countries. Additionally, the introduction of 5G-enabled smartphones and telecom equipment is expected to boost the demand for 5G chipsets in developed economies, creating lucrative opportunities for the telecom EMS market. Developing nations, particularly China and India, also offer opportunities for long-term growth in the telecom EMS market due to population growth.

Telecom Electronic Manufacturing Services Market Regional Study

In 2023, the Asia Pacific region led the market, securing the largest revenue share of 47% and is projected to grow at the fastest CAGR of 7.9% over the forecast period. OEMs in this region are increasingly outsourcing product design processes, allowing them to focus on core competencies. For nearly a decade, Asia Pacific has been a crucial hub for electronic production due to low labor costs, which has significantly strengthened its market dominance in recent years.

However, rising labor costs in countries like China and other Southeast Asian nations have spurred efforts to reposition themselves as manufacturers of more complex products. For instance, Vietnam is emerging as a key hub for electronics component production, supported by investments from major players such as Samsung Electronics and LG Electronics. These developments are expected to further enhance the region's market position.

North America is also anticipated to experience substantial growth during the forecast period, driven by the proliferation of smart devices and increasing demand for environmentally friendly component manufacturing. Additionally, the thriving telecom industry in the region is set to significantly bolster market growth.

Top Companies in Telecom Electronic Manufacturing Services Market

• FLEX LTD.- Flex Ltd. is a global electronics manufacturing services provider. It offers design, engineering, manufacturing, and supply chain services to various industries, including telecommunications.
• Jabil Inc. - Jabil Inc. provides comprehensive electronics manufacturing services, including design, production, and aftermarket services. It serves diverse industries, including telecommunications.
• Plexus Corp. - Plexus Corp. specializes in providing product realization services to companies in the healthcare and life sciences, industrial and commercial, and communications markets
• Benchmark Electronics, Inc. - Benchmark Electronics, Inc. offers manufacturing and design services to original equipment manufacturers (OEMs) in various industries, including telecommunications.
• Celestica Inc. - Celestica Inc. is a multinational electronics manufacturing services company that provides design, manufacturing, and supply chain solutions to various industries, including telecommunications.
• COMPAL Inc. - COMPAL Inc. is a Taiwanese electronics manufacturing company that provides OEM and ODM services to global technology brands, including telecommunications companies.
• Creation Technologies LP
• Fabrinet
• Foxconn Technology
• Sanmina Corporation
• Venture Corporation Limited

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