Rise in demand for EMS technology in the telecom sector, surge in demand for electronics devices in the developed and emerging nations, and increased government initiatives have boosted the growth of the global telecom electronic manufacturing service market.
However, high labor costs in the manufacturing sector hamper the market growth.
On the contrary, increase in adoption of 5G technology coupled with advancements in Internet of Things (IoT) technology would open new opportunities for the market players.
Covid-19 scenario: The outbreak of Covid-19 has boosted the growth of the global telecom electronic manufacturing service market.
- Remote working, video conferencing, and increase in demand for telecommunication technology during the pandemic have positively affected the market growth.
- The increased demand for streaming services such as Netflix has increased demand for telecom electronic manufacturing services.
Transceivers and transmitters segment dominated the market
By product type, the transceivers and transmitters segment held the largest share in 2019, accounting for nearly one-fourth of the global telecom electronic manufacturing service market, owing to growth in need for data transfer capacity and storage processing for the telecommunication network.
However, the servers & routers segment is projected to manifest the highest CAGR of 7.6% during the forecast period, due to increasing adoption of IoT technology and 5G infrastructures in the telecom industry.
Supply chain management segment to manifest highest CAGR through 2027
By service, the supply chain management segment is projected to portray the highest CAGR of 7.9% during the forecast period, as SCM allows companies to manage better demand, deal with disruptions, carry the right amount of inventory, keep costs to a minimum and meet customer demand in the most effective way possible.
However, the electronic manufacturing segment held the largest share in 2019, accounting for around one-third of the global telecom electronic manufacturing service market, owing to increasing demand for communication devices, continuously developing trend, and the expansion of wireless communication technology.
Asia-Pacific, followed by North America, held the largest share
By region, the global telecom electronic manufacturing service market across Asia-Pacific, followed by North America, held the lion’s share in 2019, contributing to nearly half of the market, owing to rapid growth of industrialization, low operating cost, and increase in population coupled.
In addition, increased investments by several companies in the form of facility expansions and investments in R&D fuels the market growth in this region.
However, the market across LAMEA is expected to register the highest CAGR of 7.9% during the forecast period, due to the growth of the telecom EMS market in LAMEA and rapid developments in the Middle East in terms of infrastructure and technology.
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