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Telecom EMS Market Poised for Growth with Increasing 5G Adoption and High Internet Penetration
January 23, 2024 | Globe NewswireEstimated reading time: 2 minutes

The telecom electronics manufacturing services (EMS) market is set to witness significant expansion, bolstered by a compound annual growth rate (CAGR) of 6.41% from 2021 to 2028. The market value is predicted to ascend from US$206.202 billion to US$318.622 billion by the end of the forecast period. This growth trajectory is largely attributed to the escalating demand for smartphones, burgeoning internet services, and an uptrend in smart electronic gadgets.
5G Rollout Catalyzing EMS Industry Growth
The forthcoming widespread rollout of 5G technology presents numerous opportunities for the telecom EMS market, characterized by a variety of advantages, such as enhanced mobile broadband, ultra-reliable, low latency communications, and massive machine-type communication capabilities. A robust increase in the number of 5G subscriptions is anticipated to burgeon, which in turn, propels the demand for electronic manufacturing services in the telecom sector.
Investments aimed at enhancing 5G technology test systems are a critical component of the market’s growth, as prominent players strive to bolster their competitive stance. Innovations in interface and component technologies, necessary to accommodate the higher frequency spectrum utilized by 5G, further stimulate market expansion.
Exponential Growth in Online Traffic and Internet Usage
The telecom EMS market is also bolstered by the ever-increasing rates of internet penetration. In regions such as the United States, where internet use is highly pervasive, the need for reliable telecommunications infrastructure is imperative. The market thrives on this domestic demand, calling for the constant development and supply of sophisticated telecom and electronic devices.
Additionally, the rising trend of Truecaller application adoption signifies a direct correlation with market growth. An increase in the application’s user base represents an expanding need for smartphones and related telecommunications services, subsequently driving the production and innovation within the EMS sector.
Regional Market Insights
The North American region, particularly the United States and Canada, is forecast to undergo notable growth due to factors such as high investments in telecommunication infrastructures, a conducive environment for innovation, and the existence of a skilled workforce.
Moreover, the Asia Pacific region is projected to capture a considerable portion of the market share. This is owed to an advanced technological infrastructure, the strong presence of industry leaders, significant research and development activity, and a high demand for telecommunication and electronic devices across the region.
Market Segmentation
Analysts have segmented the global telecom EMS market based on various criteria to provide a comprehensive overview. The segmentation includes an analysis based on devices such as routers, servers, base station transmitters and receivers, and other components. It also explores the diverse services provided by the market, including design and engineering, manufacturing, assembly, and testing, among others. Geographically, the market study covers influential regions including North America, South America, Europe, the Middle East and Africa, and Asia Pacific.
This in-depth market analysis has been added to our collection of industry research publications. It provides critical insights into the current trends, growth drivers, and potential challenges of the telecom EMS market, serving as an essential tool for stakeholders and decision-makers within the industry.
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