The Global Telecom Electronic Manufacturing Services Market size is expected to reach $331.5 billion by 2030, rising at a market growth of 7.3% CAGR during the forecast period.
Electronic advances are penetrating product engineering and designing processes owing to increasing consumer expectations and requirements. Thus, the Electronic design & engineering segment would account for nearly 22% of the total market share by 2030. This multidisciplinary field integrates electrical engineering, computer science, and physics principles to design, develop, and optimize electronic circuits and systems. Advancements in wireless communication sensor technologies and big data capabilities enable IoT to transform the technology landscape.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, in August, 2023, Sanmina Corporation entered a partnership with Nokia. Under the partnership, Sanmina would manufacture broadband network electronics products for Nokia at its Prairie facility in Wisconsin. Moreover, in February, 2023, Jabil, Inc. partnered with Mavenir, a cloud-native network software provider. Under the partnership, Jabil would manufacture MIMO (mMIMO) radios for Mavenir.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Flex Ltd, Jabil, Inc., Plexus Corporation, Benchmark Electronics, Inc., Celestica, Inc., Compal Electronics, Inc., Creation Technologies LP, Hon Hai Precision Industry Co., Ltd., Venture Corporation Limited and Sanmina Corporation
Electronic advances are penetrating product engineering and designing processes owing to increasing consumer expectations and requirements. Thus, the Electronic design & engineering segment would account for nearly 22% of the total market share by 2030. This multidisciplinary field integrates electrical engineering, computer science, and physics principles to design, develop, and optimize electronic circuits and systems. Advancements in wireless communication sensor technologies and big data capabilities enable IoT to transform the technology landscape.
The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, in August, 2023, Sanmina Corporation entered a partnership with Nokia. Under the partnership, Sanmina would manufacture broadband network electronics products for Nokia at its Prairie facility in Wisconsin. Moreover, in February, 2023, Jabil, Inc. partnered with Mavenir, a cloud-native network software provider. Under the partnership, Jabil would manufacture MIMO (mMIMO) radios for Mavenir.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal matrix; Hon Hai Precision Industry Co., Ltd. is the forerunner in the Market. Companies such as Jabil, Inc., Sanmina Corporation and Compal Electronics, Inc. are some of the key innovators in Market. In February, 2023, Compal Electronics, Inc. signed a partnership with Lanner Electronics to deliver a joint 5G Open RAN Solution. The solution features Compal’s O-RAN inline acceleration card and Lanner’s DU/CU network appliances and would deliver a fully separated and programmable 5G RAN platform with high efficiency in power consumption and data transfer.Market Growth Factors
Increasing demand for EMS technology in the telecom sector
The telecom industry is characterized by constant innovation and the rapid evolution of technology. As telecommunications networks transition to 5G and beyond, there is a heightened demand for cutting-edge electronic components and systems. With their manufacturing and technology integration expertise, EMS providers have become crucial partners for telecom companies. Moreover, EMS providers bring cost-effective solutions to the table through economies of scale and optimized manufacturing processes. Telecom companies benefit from cost savings in production, procurement, and logistics, allowing them to allocate resources strategically and invest in research and development. The expansion of the telecom electronics manufacturing services market is a testament to the integral partnership between EMS providers and the dynamic telecom industry.Rising demand for electronic devices in developed and developing nations
The growing popularity of smartphones, tablets, wearables, and other smart devices has significantly increased the demand for electronic components. Telecom EMS providers are crucial in manufacturing the complex electronic systems that power these devices, contributing to the market's growth. From entertainment systems to gaming consoles, the demand for innovative and feature-rich electronic devices has grown, leading to increased manufacturing requirements for EMS providers. The rising demand for electronic devices, driven by technological advancements, connectivity needs, and economic growth, has created a conducive environment for expanding the telecom electronics manufacturing services market.Market Restraining Factors
High labor costs in the manufacturing sector
High labor costs can make manufacturing services more expensive, impacting the overall cost competitiveness of Telecom EMS providers. This challenge becomes particularly significant in a highly competitive market where cost efficiency is crucial. The impact of high labor costs varies by region. Manufacturers in regions with higher labor costs may face increased competition from regions where labor is more affordable. This can lead to a shift in manufacturing locations and global supply chain strategies to optimize costs. The above factors will hamper market growth in the coming years.Product Outlook
Based on product, the market is fragmented into transceivers & transmitters, servers & routers, RF & microwave, computing devices & equipment, fiber optic devices, and others. The servers & routers segment covered a considerable revenue share in the market in 2022. Servers and routers work together within a networked environment. Servers provide services, and routers facilitate the communication between these services and the connected devices. Both servers and routers need to be scalable to accommodate the growing demands of users and network traffic. In the context of Telecom EMS, customization of servers and routers is often necessary to align with the specific requirements of the telecommunications industry.Type Outlook
On the basis of type, the market is segmented into electronic design & engineering, electronics assembly, electronic manufacturing, supply chain management, and others. The electronics assembly segment acquired a substantial revenue share in the telecom electronics manufacturing services market in 2022. Electronics assembly allows for mass production, leveraging economies of scale to reduce per-unit production costs. Modern electronics assembly often involves automated processes, leading to increased speed and efficiency. Automated assembly lines can handle repetitive tasks quickly and accurately, contributing to higher overall productivity. Many modern electronics assembly processes adhere to environmentally friendly practices, such as lead-free soldering, contributing to reducing environmental impact.Regional Outlook
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific region held the highest revenue share in the market. OEMs increasingly opting to delegate product design processes to third parties, enabling them to concentrate on their fundamental capabilities. The trend is anticipated to contribute to the expansion of the market in the region, where it is acquiring substantial traction. Moreover, due to its low labor costs, Asia-Pacific has been an irreplaceable center for electronic production for nearly a decade, a significant factor in the region's recent dominance.The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Flex Ltd, Jabil, Inc., Plexus Corporation, Benchmark Electronics, Inc., Celestica, Inc., Compal Electronics, Inc., Creation Technologies LP, Hon Hai Precision Industry Co., Ltd., Venture Corporation Limited and Sanmina Corporation
Strategies deployed in the Market
Partnerships, Collaborations, and Agreements:
- 2023-Aug: Sanmina Corporation entered a partnership with Nokia, a Finnish telecommunications company. Under the partnership, Sanmina would manufacture broadband network electronics products for Nokia at its Prairie facility in Wisconsin.
- 2023-Feb: Jabil, Inc. partnered with Mavenir, a cloud-native network software provider. Under the partnership, Jabil would manufacture MIMO (mMIMO) radios for Mavenir.
- 2023-Feb: Compal Electronics, Inc. signed a partnership with Lanner Electronics, a network appliances manufacturer, to deliver a joint 5G Open RAN Solution. The solution features Compal’s O-RAN inline acceleration card and Lanner’s DU/CU network appliances and would deliver a fully separated and programmable 5G RAN platform with high efficiency in power consumption and data transfer.
Acquisition and Mergers:
- 2023-Nov: Jabil, Inc. took over Retronix, a leader in electronic components reclamation and refurbishment. The acquisition enhances Jabil’s circular economy services.
- 2021-Oct: Hon Hai Precision took over Lordstown Motors, an American electric vehicle automaker. Through this acquisition, Hon Hai Precision aimed to accelerate its entry into North America where it formed a contract manufacturing agreement with Fisker Motors and is in talks with other potential EV partners including Apple.
- 2021-Sep: Celestica, Inc. announced the acquisition of PCI Limited, an electronics manufacturing service. The acquisitions come in line with Celestica's transformation initiatives and add innovative capabilities to its overall service portfolio.
Geographical Expansions:
- 2023-May: Hon Hai Precision Industry Co., Ltd., doing business as Foxconn, established a new electronics manufacturing facility in Telangana, India. The new facility would be used to deliver best-in-class products to the Indian market. Additionally, the move comes in line with the company's global expansion strategy.
- 2023-Mar: Benchmark Electronics, Inc. opened a new Precision Technologies facility in Mesa, Arizona. The facility would be used to deliver a range of key engineering and manufacturing solution services.
- 2022-Nov: Jabil, Inc. announced the opening of a new design centre in Wroclaw, Poland. The centre would be used to develop industry-leading technologies for various industries.
Scope of the Study
Market Segments Covered in the Report:
By Type- Electronic Manufacturing
- Electronics Assembly
- Electronic Design & Engineering
- Supply Chain Management
- Others
- Transceivers & Transmitters
- Servers & Routers
- RF & Microwave
- Computing Devices & Equipment
- Fiber Optic Devices
- Others
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Flex Ltd
- Jabil, Inc.
- Plexus Corporation
- Benchmark Electronics, Inc.
- Celestica, Inc.
- Compal Electronics, Inc.
- Creation Technologies LP
- Hon Hai Precision Industry Co., Ltd.
- Venture Corporation Limited
- Sanmina Corporation
Unique Offerings
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Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Telecom Electronic Manufacturing Services Market by Type
Chapter 6. Global Telecom Electronic Manufacturing Services Market by Product
Chapter 7. Global Telecom Electronic Manufacturing Services Market by Region
Chapter 8. Company Profiles
Companies Mentioned
- Flex Ltd
- Jabil, Inc.
- Plexus Corporation
- Benchmark Electronics, Inc.
- Celestica, Inc.
- Compal Electronics, Inc.
- Creation Technologies LP
- Hon Hai Precision Industry Co., Ltd.
- Venture Corporation Limited
- Sanmina Corporation
Methodology
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