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U.S. Communications Equipment Market Worth $125B by 2025
July 23, 2018 | Grand View Research, Inc.Estimated reading time: 1 minute
The U.S. communication equipment market size is expected to reach $125.1 billion by 2025, according to a new report by Grand View Research Inc. The market is estimated to register a CAGR of 4.7% during the forecast period. Rising number of mobile internet users would be the key factor driving the industry growth. Emergence of 5G and 4G/LTE networks have increased the adoption of internet-enabled communication devices, thereby fostering the market growth.
The 4G technology has provided wide coverage and high speed to mobile users that also supports HD streaming. Moreover, it has been observed that the consumers are prefer the latest smartphones and other communication equipment, which is also likely to drive the market. Moreover, popular Bring-Your-Own-Device (BYOD) trend at workplaces has also increased the demand for wireless equipment.
Major companies such as IBM Corp., Cisco Systems, Inc. and Oracle Corp. have discontinued the traditional approach of providing smartphones and laptops to employees. Instead, they are inculcating the BYOD concept allowing the employees to access their smartphones and laptops to the workplace. Continuous improvements in technologies and wireless standards that address new applications, usage scenarios, and deployment costs are expected to fuel the adoption of wireless equipment.
On the other hand, the market is witnessing a decline in the fixed-line segment owing to less voice traffic. Increased adoption of mobile phones has further led to the decline in sales of fixed-line devices. Additionally, availability of alternative means of communication, such as Instant Messaging (IM) apps like Facebook Messenger and WhatsApp, is also contributing to the sluggish growth of this segment.
Further key findings from the study suggest:
- The mobile segment is expected to witness the fastest growth over the forecast period as a result of increasing number of smartphone users in the country
- Growing need for efficient and faster communication networks has encouraged customers to switch to wireless equipment. Thus, the fixed-line segment may witness a decline over the forecast period
- The key players in the industry include Apple, Inc.; Samsung Electronics Co. Ltd; LG Electronics, Inc.; and Lenovo Group Ltd.
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