The Global Telecom Equipment Market accounted for US$ 538.9 Bn in 2021 and is expected to reach US$ 967.9 Bn by 2030 with a considerable CAGR of 6.9% during the forecast timeframe of 2022 to 2030.
Telecommunications equipment is made up of telecom software and hardware that is utilized in data transmission and networking systems. Since the early nineties, the distinction between telecom equipment and IT systems has become increasingly blurred as the Internet's rise has resulted in an increased reliance on telecommunication networks for data transfer. To meet the continuing demand for higher-speed connectivity in 2021, the telecom sector continues to make headway in boosting its network infrastructure with further fiber and wireless deployments.
With the acceptance and integration of developing communication technologies like IoT, 5G, NB-IoT, and others, the global telecommunications market is always continuously transforming. Telecommunication is an infrastructure that allows the flow of various types of data such as text, voice, sound, and video around the world at any time and from any location via a wired or wireless medium. However, the expanding telecom industry will drive the worldwide telecom equipment market in the coming years.
· The growing expansion of the IoT, Smart Infrastructure, and connected device
· The increased number of smartphone users
· Rising Interest in 5G Technology
· High production and implementation costs
· Concerns about data security
· Increasing the number of smart city projects in developing nations
|Market||Telecom Equipment Market|
|Market Size 2021||US$ 538.9 Bn|
|Market Forecast 2030||US$ 967.9 Bn|
|CAGR||6.9% During 2022 - 2030|
|Analysis Period||2018 - 2030|
|Forecast Data||2022 - 2030|
|Segments Covered||By Component, By Infrastructure, By Technology, By End-user, And By Geography
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Telefonaktiebolaget LM Ericsson, Huawei Technologies Co. Ltd, Barcodes, Inc., Nokia Corporation, Samsung Electronics Co, Fujitsu Limited, Juniper Networks, Inc., Ciena Corporation, FiberHome Telecom Technologies Co. LTD., ZTE Corporation, Qualcomm Technologies, Inc, and Ribbon Communications Operating Company, Inc.|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
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Telecom Equipment Market Dynamics
The expansions in the smartphone sector, as well as the accessibility of smartphones, are expected to drive growth in the telecom equipment market. Furthermore, digitalization has accelerated the development of modern communication infrastructure and gadgets. As a result, growing digitization across sectors has emerged as a crucial factor driving the telecom equipment market's growth. In addition, many businesses are investing in data hardware such as cell towers, communication satellites, and broadband spectrum. All of these factors have contributed to an increase in the sale of telecom equipment such as micro transmitters, telephones, and ethernet connectors.
As each industry digitizes, the telecommunications industry is booming. Over the last few decades, the sector has evolved from telephonic voice service to wireless data calls, text, internet calls, and television broadcast services. The use of advanced telecommunications equipment in smartphones is growing in parallel with the growing population and digitization of society. Aside from this, significant technology advances in the telecommunications sector have strengthened the military defense sector's reliance on various products and services for better and improved communication. As a result, the global need for advanced telecom equipment is increasing.
Market Segmentation of Telecom Equipment Market
Market by Component
o Network Hardware
o Automation and Monitoring Hardware
o VoIP Telephony and IP Intercom Hardware
o Cable Products and Components
o IT Infrastructure
o Servers and Storage Hardware
o Monitoring Software
o Contact Center Software
o Security Software (CCTV)
In terms of components, the hardware segment is expected to account for the lion's share of market share in the coming years. In 2021, the telecom industry will face new opportunities and difficulties as a result of dynamic regulations, advancements in technologies, and a competitive environment. However, rising smartphone penetration, expanding telecom infrastructure, technological improvement in IoT, and the deployment of 5G networks are the primary factors driving the global hardware segment in the industry. Additionally, this market deals with equipment such as PBX, LAN modems, multi-user modems, central office switching hardware, and other data communications hardware such as routers, bridges, and gateways.
Market by Infrastructure
Based on infrastructure, the wireless segment is estimated to grow significantly in the market over the next few years, owing to the growing number of smart city projects in developing countries. Wireless infrastructure is a collection of communication assets, connectivity standards, and networking solutions that collaborate to provide wireless networks to users. The increase in operator investments to deploy high-speed networking is expected to influence the growth of the wireless infrastructure segment from 2022 to 2030. Furthermore, increased demand for high-speed mobile internet and 4G connections around the globe, as well as significant investments by operators in developing high-speed networks, are expected to drive market growth in the wireless infrastructure segment.
Market by Technology
· 2G and 3G
· 4G LTE
Based on technology, the 5G segment in the telecom equipment market is expected to grow significantly in the coming years. When compared to conventional telecom network infrastructure, the 5G network offers more bandwidth and faster speeds. Due to rising market demand for the next generation 5G network, various end-users are able to deploy advanced telecom network infrastructure. Telecom operators are conducting 5G network trials to hasten the commercialization of the 5G network. Furthermore, the increased initiative for 5G technology deployments in developing countries, as well as increasing preference from SMEs and various industry verticals, is expected to positively impact market growth.
Market by End-user
· IT and Telecommunication
· Media and Entertainment
· Military and Defense
· Consumer Electronics
In terms of end-user, the consumer electronics segment held the largest market share in 2021. Consumer electronics are non-commercial electronic devices. Consumer electronics include mobile devices, smartphones, smart wearables, computers, laptops, television sets, refrigerators, and home appliances. Rising demand for various home improvement products and electronic devices for professional and personal use is propelling global consumer electronics demand. Furthermore, rising disposable income, technological advancements, increased demand for luxury goods, and an improvement in the standard of living are some of the major factors driving market growth in the consumer electronics segment.
Telecom Equipment Market Regional Overview
· Rest of Europe
· Rest of Latin America
· South Korea
· Rest of Asia-Pacific
Middle East & Africa
· South Africa
· Rest of Middle East & Africa
North America is expected to have the largest global share due to its rapidly expanding wireless telecom network. The rising trend of work from home and enterprise mobility raises the need for a reliable, dependable, and high-speed communication infrastructure. Additionally, the increasing demand for high-speed communication systems is driving up demand for telecom equipment throughout North America. The existence of major market players across North America is a primary factor driving the region's market growth. The rapid growth and development of advanced telecom communication networks hasten telecom equipment adoption even further. The growing demand for IoT-based, applications and services drive the growth of the regional telecom equipment market. Aside from that, the market in North America is being fueled by expanding smart city projects as well as strong infrastructure.
Some of the leadingcompanies in global telecom equipmentmarket are Telefonaktiebolaget LM Ericsson, Huawei Technologies Co. Ltd, Barcodes, Inc., Nokia Corporation, Samsung Electronics Co, Fujitsu Limited, Juniper Networks, Inc., Ciena Corporation, FiberHome Telecom Technologies Co. LTD., ZTE Corporation, Qualcomm Technologies, Inc, and Ribbon Communications Operating Company, Inc.
The estimated value of global telecom equipment market in 2021 was accounted to be US$538.9 Bn.
The projected CAGR of telecom equipment during the analysis period of 2022 to 2030 is 6.9%.
The key companies in the global telecom equipment market involve Telefonaktiebolaget LM Ericsson, Huawei Technologies Co. Ltd, Barcodes, Inc., Nokia Corporation, Samsung Electronics Co, Fujitsu Limited, Juniper Networks, Inc., Ciena Corporation, FiberHome Telecom Technologies Co. LTD., ZTE Corporation, Qualcomm Technologies, Inc, and Ribbon Communications Operating Company, Inc.
North America held the dominating share for telecom equipment during the analysis period of 2022 to 2030.
Asia-Pacific region exhibited fastest growing CAGR for telecom equipment during the analysis period of 2022 to 2030.
The growing expansion of the IoT, Smart Infrastructure, and connected devices, increased number of smartphone users, rising attraction in 5G Technology are the prominent factors that fuel the growth of global telecom equipment market.
Based on component, hardware segment held the maximum share for telecom equipment market in 2021.