New York, US, June 24, 2021 (GLOBE NEWSWIRE) — Market Overview:
According to a comprehensive research report by Market Research Future (MRFR), “Global Telecom Equipment Market information by Offerings, by Infrastructure and Region – forecast to 2027” the market is expected to register a CAGR of 11.23% during the forecast period 2019–2025.
Telecommunications is one of the fastest-growing industries across the globe. The telecommunication equipment industry produces components, technologies, and services required to facilitate communication. Major products include networking devices, such as routers & switches, wireless & landline infrastructure equipment, digital subscriber-line (DSL), cable modems, cell phones, and chipsets.
Growing numbers of internet users worldwide has propelled the demand for high-bandwidth communication and wireless access points. This has further boosted the adoption rate of the Internet and fiber optic cables globally, cumulatively impacting the global telecom equipment market. On the other hand, high investments required for new product development is a major factor projected to hamper the growth of the market.
Dominant Key Players on Telecom Equipment Market Covered Are:
- Ciena (US)
- Nokia (Finland)
- Cisco Systems Inc. (US)
- Telefonaktiebolaget LM Ericsson (Sweden)
- Fujitsu Ltd (Japan)
- Qualcomm Technologies Inc. (US)
- Juniper Networks Inc. (US)
- Samsung Group (South Korea)
- CommScope Holding Co. Inc. (US)
- Extreme Networks Inc. (US)
- Ribbon Communications Operating Company Inc. (US)
- NEC Corporation (Japan)
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Market USP exclusively encompassed:
The growth of the telecom equipment market largely depends on purchases from telephone companies, data communications providers, cable companies, businesses, and TV & radio broadcasters. However, most industry revenue comes from wireless communications equipment, which includes radio & TV and line-based communication equipment.
The global telecom equipment market size is growing at a rapid pace, mainly due to the rising radio & TV broadcasting and social media channels. Besides, huge developments in the telecommunication industry due to the increasing deployment of 4G and LTE networks drive the communication equipment industry.
Moreover, increasing numbers of cellular stations and the demand for next-generation-ready network equipment led by the advent of 5G networks substantiate the market growth. According to Market Research Future (MRFR), the global telecom equipment market size is projected to grow at an 11.23% CAGR during the review period (2019–2025).
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The regional segment is bifurcated into the Asia Pacific (China, Japan, India, South Korea, and Rest-of-the-APAC), the Americas (Canada, Mexico, US, Rest-of-North America), and South America, Europe (the UK, Germany, France, Italy, and Rest-of-Europe), and Rest-of-the-World.
It is observed that North America has been consistently dominating the global telecom equipment market and is projected to maintain its market position in the coming years as well. Factors such as the strong growth in telecommunication networks and the growing governmental focus on developing LTE and 5G technologies drive the growth of the market.
The US, Canada, and Mexico are the largest markets for telecom equipment, among these, the US stands for the dominating market, accounting for the largest, as in, 79% share of the overall North American telecom equipment market. 5G has provided significant opportunities for telecom equipment providers in the US, benefitting many software, hardware, and semiconductor companies.
The US telecom equipment market is expected to grow at a 10.5% CAGR during the forecast period. Canada accounted for a 9% share of the North American telecom equipment market and is estimated to grow at an 8.42% CAGR during the forecast period. Developments in telecom infrastructure, enhanced wireless telecom networks, and the growing development of LTE technologies are major factors propelling the growth of the telecom equipment market in Canada.
The Asia Pacific region holds the second spot globally in terms of the telecom equipment market. The region accounted for a 31.05% share of the global telecom equipment market in 2018 and is likely to grow at a 13.07% CAGR during the assessment period.
Factors such as increasing investments in network infrastructure within the region and the presence of many telecom equipment & services providers boost the market growth. Additionally, vast developments in 5G and LTE networking services and technologies, such as IoT, security/ privacy, and sensor technologies, influence the region’s telecom equipment market share. Besides, increased demand for telecom equipment and Internet connectivity with high reliability pushes the market growth.
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Segmentation of Market covered in the research:
The telecom equipment market forecast is segmented into offerings, infrastructure, end users, and regions. The offerings segment is sub-segmented into products, software, and services. The product sub-segment is further bifurcated into broadband access and core network (evolved packet core, IP multimedia subsystem, signal transfer point, multi-access edge computing).
The services sub-segment is further bifurcated into managed services and professional services (consulting services, installation and implementation services, maintenance services, other support services). The infrastructure segment is sub-segmented into wireless infrastructure and wired infrastructure. The end user segment is sub-segmented into consumer electronics, BFSI, retail, media, defense, and others.
There have been rapid advancements in communication and smartphone technology. Resultantly, the telecom equipment markets worldwide are estimated to garner significant traction. Increasing numbers of smartphone users across the globe have fostered developments in security and Internet-based applications.
This, as a result, has increased the demand for cellular base stations that can support the transmission, routing through a significant volume of communication signals. 5G mobile networking technology would help improve the connectivity and power of new and emerging applications and IoT devices with the increased latency and bandwidth.
With the rising digital transformation, Industry 4.0, IoT & IIoT, and other megatrends, the penetration of smart connected devices is expected to grow regardless of vertical. These factors would cumulatively offer further revenue opportunities for the telecom equipment market, such as the need to advance mmWave technology, autonomous driving, power applications, Edge IoT, Next-gen data centers, and more.
COVID-19 Impact on the Global Telecom Equipment Market
The lockdown imposed to control the coronavirus spread had a negligible impact on the telecom infrastructure supply chain, with major equipment suppliers like Ericsson, Cisco, Nokia, and ZTE providing access to technology components. However, the COVID-19 crisis affected the ability of these companies to raw materials required for the production to deliver end products.
Telecom equipment manufacturers also faced an acute shortage of workforces and attracting workers from quarantine, which, in turn, spiked the prices of telecom components. However, the pandemic presented some unique business opportunities to the telecom industry that pushed the telecom equipment market forward.
The telecommunication equipment industry analysis shows the radical catalytic event of the COVID-19 pandemic fast-forwarded digitization, industrial automation, and work from the home (WFH) trend. There has been an upward trend in remote working and industrial automation during the last two years, and data suggest a substantial increase in the IT & telecom industry and digital transformation from 2021 onward.
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