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The telecom equipment market size is estimated to grow at a CAGR of 6.13% between 2022 and 2027. The market size is forecast to increase by USD 195.93 billion. The growth of the market depends on several factors, including increasing demand for high-speed internet connectivity, growing adoption of cloud-based services, and increasing demand for network security.
This telecom equipment market report extensively covers market segmentation by end-user (BFSI, IT and telecommunication, retail, media and entertainment, and others), component (hardware and software), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing demand for high-speed internet connectivity is notably driving the market growth, although the high cost of telecom equipment may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for high-speed internet connectivity is notably driving the telecom equipment market growth. Increasing demand for high-speed internet connectivity is one of the main drivers of the market. With the advent of the digital age and the proliferation of connected devices, consumers and businesses are demanding faster and more reliable Internet connections. Communication devices provide high-speed Internet connections such as routers, modems, switches, and other network infrastructure. As a result, the demand for communication equipment has increased significantly in recent years. The accelerating adoption of 5G technology is driving the market to seamless connectivity and high-speed internet growth. This technology can provide high-speed internet connectivity and has various applications in healthcare, manufacturing, and transportation.
Additionally, the growing popularity of streaming services such as Netflix, Hulu, and Amazon Prime Video has increased the demand for high-speed internet connections. These services require fast, reliable connections to stream content in high quality and resolution without interruption. Hence, increasing demand for high-speed internet connections will drive the market during the forecast period.
The rising proliferation of IoT and connected devices is a key trend influencing the telecom equipment market growth. The proliferation of IoT has led to the development of various connected devices such as smartphones, tablets, wearable devices, and other smart devices, increasing the demand for communication equipment. Telecommunications equipment includes a wide range of hardware and software products that enable communication between devices and networks. These products include routers, switches, gateways, network interfaces, and other devices. As the number of connected devices increases and the demand for data transmission increases, the demand for communication equipment increases significantly.
In addition to the increasing number of connected devices, the increasing adoption of new technologies such as 5G and edge computing is also boosting the growth of the market. 5G technology promises high-speed data transmission and low latency, which are essential for autonomous vehicles and long-distance operations. The growing need for network infrastructure upgrades is also driving increased demand for telecommunications equipment. Many existing networks are nearing the end of their useful life and must be replaced or upgraded to support new technologies and growing demands for data transmission. Hence, the increasing adoption of IoT and connected devices are driving the growth of the market during the forecast period.
The high cost of telecom equipment is challenging the telecom equipment market growth. The cost of telecommunications equipment, including hardware, software, installation, and maintenance, can be substantial. The high cost of telecommunications equipment can be a significant barrier to entry for new entrants. It can also limit the ability of small and medium enterprises (SMEs) to invest in new equipment. As a result, the market may be dominated by a few large players, limiting innovation and competition.
The high cost of telecommunications equipment can limit adoption by small businesses and can limit the potential customer base of telecommunications equipment manufacturers. This can slow market growth, limit the potential for new entrants, and stall innovation. In addition, the high cost of telecommunications equipment may limit investment in developing countries. Developing countries such as India and Japan may not have the financial resources to invest in expensive telecommunications equipment, limiting market growth in these regions. Telecom equipment manufacturers are likely to focus on developed countries such as the United States, the United Kingdom, and Germany, creating higher demand for their products and services and slowing global market expansion. High costs are likely to hamper the market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Telecom Equipment Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Actelis Networks Inc: The company offers different types of telecom types of equipment such as TeraFlex, OpenFabric Series, SDX 6000 Series, and many more.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the BFSI segment will be significant during the forecast period. The BFSI segment, which stands for Banking, Financial Services, and Insurance, is a major end-user of telecommunications equipment in the global market. This segment includes organizations such as banks, insurance companies, and other financial service providers. Communication devices are widely used in this segment for communication, data management, and transaction processing.
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The BFSI segment was valued at USD 142.57 billion in 2017 and continued to grow until 2021. Banks are one of the major users of telecommunications equipment in the BFSI segment. They use telecommunications devices to facilitate electronic transactions, manage customer information, and provide online banking services. Banks use communication equipment such as routers and switches to connect branches and enable transaction processing. It also provides customer service with a mobile banking application that relies on telecom infrastructure. Insurance companies use communication devices to manage customer information, process claims, and provide customer support. For example, communication devices such as call center software, Voice over Internet Protocol (VoIP) systems, and cloud computing are used to manage operations efficiently. The BFSI segment is therefore a significant end-user of telecommunications equipment, contributing to the growth of the market during the forecast period.
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North America is estimated to contribute 38% to the growth of the global telecom equipment market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is the largest market for telecommunications equipment in the world. North America is a mature market with a well-established telecommunications infrastructure and high internet penetration. One of the main drivers of the market in the North American region is the rollout of 5G networks. 5G is the next generation of wireless technology that promises higher speeds, lower latency, and more capacity than its predecessor. Telecom equipment suppliers will showcase new products and solutions designed to support the deployment of 5G networks, including 5G radios, antennas, and network management solutions. Ericsson, a leading telecommunications equipment and services provider, has announced the launch of its standalone 5G Core (SA) solution in North America. Ericsson's 5G SA core solution enables service providers to deploy their 5G networks with high speed and low latency. This solution aims to enable providers to offer new and innovative customer services.
In 2020, the COVID-19 outbreak had a mixed impact on the growth of the market. The growing demand for connectivity has led to a surge in demand for communication equipment such as routers, switches, and other network equipment. This has created new opportunities for market vendors, especially those specializing in home networking devices. However, the COVID-19 pandemic also brought challenges to the market. Supply chain disruptions and lockdowns, and other restrictions on businesses that have slowed the rollout of new network infrastructure have made it difficult for vendors to source the components and materials needed to manufacture their products. However, in 2021 several business and industrial activities resumed due to various vaccination campaigns. due to which manufacturing and installation of telecom equipment such as fiber optic cables and telecom routers became more efficient due to increased demand. Such developments are anticipated to boost the growth of the market during the forecast period.
The telecom equipment market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global telecom equipment market as a part of the global technology hardware, storage, and peripherals market within the overall global information technology market. The parent global technology hardware, storage, and peripherals market include manufacturers of mobile phones, PCs, servers, electronic computer components, and peripherals. This also includes data storage components, motherboards, audio and video cards, monitors, keyboards, printers, and other peripherals. Technavio calculates the size of the global technology hardware, storage, and peripherals market by considering the revenue generated from the sale of hardware devices, equipment, and components.
Telecom Equipment Market Scope |
|
Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.13% |
Market growth 2023-2027 |
USD 195.93 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.34 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading vendors, market positioning of vendors, competitive strategies, and industry risks |
Key companies profiled |
Actelis Networks Inc., Adtran Holdings Inc., ALE International, Aspocomp Group Plc, AT and T Inc., ATOP Corp., Comba Telecom Systems Holdings Ltd., CommScope Holding Co. Inc., Guangdong Lingyi Intelligent Manufacturing Co. Ltd., Hitech Circuits, Huawei Technologies Co. Ltd., Infinera Corp., Juniper Networks Inc., Motorola Solutions Inc., Qualcomm Inc., Semtech Corp., Siemens AG, Sonim Technologies Inc., Telefonaktiebolaget LM Ericsson, and ZTE Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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