Telecom equipment market poised for 6.13 % growth

The telecom equipment market is estimated to grow by USD 195.93 billion from 2022 to 2027. Moreover, the growth momentum will progress at a CAGR of 6.13% during the forecast period.

Factors such as the increasing demand for high-speed internet connectivity, the growing adoption of cloud-based services, and the increasing demand for network security will offer immense growth opportunities. To leverage the current opportunities, market vendors must strengthen their foothold in the fast-growing segments, while maintaining their positions in the slow-growing segments. The telecom equipment market is fragmented, and fragmentation will accelerate during the forecast period.

The market share growth by the BFSI segment will be significant for the growth of the market during the forecast period. The BFSI sector is a major end-user of telecommunications equipment. It includes organizations such as banks, insurance companies, and other financial service providers. This segment widely uses communication devices for various applications, such as data management and transaction processing.

Technavio has announced its latest market research report titled Global Telecom Equipment Market 2023-2027.

Key Drivers. Increasing demand for high-speed internet connectivity drives the growth of the market during the forecast period. Due to the advent of the digital age and the proliferation of connected devices, consumers and businesses are demanding faster and more reliable Internet connections. Furthermore, communication devices provide high-speed Internet connections such as routers, modems, switches, and other network infrastructure. Resultantly, the demand for communication equipment has increased significantly in recent years. Hence, such factors boost the market growth during the forecast period.

Significant Trends. The rising proliferation of IoT and connected devices is an emerging trend shaping the telecom equipment market. The proliferation of IoT has led to the development of various connected devices, such as smartphones, tablets, wearable devices, and other smart devices. This is increasing the demand for communication equipment. Telecommunications equipment includes a wide range of hardware and software products, such as routers, switches, gateways, network interfaces, and other devices. The rise in the number of connected devices increases the demand for data transmission. The increasing adoption of new technologies such as 5G and edge computing is also boosting the growth of the market. In addition, the growing need for network infrastructure upgrades drives the demand for telecommunications equipment.

Major Challenges. The high cost of telecom equipment challenges the growth of the telecom equipment market during the forecast period. The cost of telecommunications equipment, such as hardware, software, installation, and maintenance, is high. This can be a significant barrier for new entrants and can also limit the ability of SMEs to invest in new equipment. As a result, the market may be dominated by large players, thereby reducing innovation and competition. The high cost of telecommunications equipment may limit investment in developing countries. Thus, the high costs are likely to hinder the market growth during the forecast period.

The market share growth by the BFSI segment will be significant for the growth of the market during the forecast period. The BFSI sector is a major end-user of telecommunications equipment. It includes organizations such as banks, insurance companies, and other financial service providers. This segment widely uses communication devices for various applications, such as data management and transaction processing.
Some of the major vendors of the telecom equipment market include 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.. To help businesses improve their market position.

CT Bureau