The Global Telecom Equipment Market accounted for US$ 538.9 Bn in 2021 and is expected to reach US$ 967.9 Bn by 2030 with a considerable CAGR of 6.9% during the forecast timeframe of 2022 to 2030.

Telecommunications equipment is made up of telecom software and hardware that is utilized in data transmission and networking systems. Since the early nineties, the distinction between telecom equipment and IT systems has become increasingly blurred as the Internet's rise has resulted in an increased reliance on telecommunication networks for data transfer. To meet the continuing demand for higher-speed connectivity in 2021, the telecom sector continues to make headway in boosting its network infrastructure with further fiber and wireless deployments.

With the acceptance and integration of developing communication technologies like IoT, 5G, NB-IoT, and others, the global telecommunications market is always continuously transforming. Telecommunication is an infrastructure that allows the flow of various types of data such as text, voice, sound, and video around the world at any time and from any location via a wired or wireless medium. However, the expanding telecom industry will drive the worldwide telecom equipment market in the coming years.

Drivers

·         The growing expansion of the IoT, Smart Infrastructure, and connected device

·         The increased number of smartphone users

·         Rising Interest in 5G Technology

Restraints

·         High production and implementation costs

·         Concerns about data security

Opportunity

·         Increasing the number of smart city projects in developing nations

Report Coverage

Telecom Equipment Market Dynamics

The expansions in the smartphone sector, as well as the accessibility of smartphones, are expected to drive growth in the telecom equipment market. Furthermore, digitalization has accelerated the development of modern communication infrastructure and gadgets. As a result, growing digitization across sectors has emerged as a crucial factor driving the telecom equipment market's growth. In addition, many businesses are investing in data hardware such as cell towers, communication satellites, and broadband spectrum. All of these factors have contributed to an increase in the sale of telecom equipment such as micro transmitters, telephones, and ethernet connectors.

As each industry digitizes, the telecommunications industry is booming. Over the last few decades, the sector has evolved from telephonic voice service to wireless data calls, text, internet calls, and television broadcast services. The use of advanced telecommunications equipment in smartphones is growing in parallel with the growing population and digitization of society. Aside from this, significant technology advances in the telecommunications sector have strengthened the military defense sector's reliance on various products and services for better and improved communication. As a result, the global need for advanced telecom equipment is increasing.

Market Segmentation of Telecom Equipment Market

Market by Component

·         Hardware

o   Network Hardware

o   Automation and Monitoring Hardware

o   VoIP Telephony and IP Intercom Hardware

o   Cable Products and Components

o   IT Infrastructure

o   Servers and Storage Hardware

o   Others

·         Software

o   Monitoring Software

o   Contact Center Software

o   Security Software (CCTV)

o   Others

In terms of components, the hardware segment is expected to account for the lion's share of market share in the coming years. In 2021, the telecom industry will face new opportunities and difficulties as a result of dynamic regulations, advancements in technologies, and a competitive environment. However, rising smartphone penetration, expanding telecom infrastructure, technological improvement in IoT, and the deployment of 5G networks are the primary factors driving the global hardware segment in the industry. Additionally, this market deals with equipment such as PBX, LAN modems, multi-user modems, central office switching hardware, and other data communications hardware such as routers, bridges, and gateways.

Market by Infrastructure

·         Wired

·         Wireless

Based on infrastructure, the wireless segment is estimated to grow significantly in the market over the next few years, owing to the growing number of smart city projects in developing countries. Wireless infrastructure is a collection of communication assets, connectivity standards, and networking solutions that collaborate to provide wireless networks to users. The increase in operator investments to deploy high-speed networking is expected to influence the growth of the wireless infrastructure segment from 2022 to 2030. Furthermore, increased demand for high-speed mobile internet and 4G connections around the globe, as well as significant investments by operators in developing high-speed networks, are expected to drive market growth in the wireless infrastructure segment.

Market by Technology

·         2G and 3G

·         4G LTE

·         5G

Based on technology, the 5G segment in the telecom equipment market is expected to grow significantly in the coming years. When compared to conventional telecom network infrastructure, the 5G network offers more bandwidth and faster speeds. Due to rising market demand for the next generation 5G network, various end-users are able to deploy advanced telecom network infrastructure. Telecom operators are conducting 5G network trials to hasten the commercialization of the 5G network. Furthermore, the increased initiative for 5G technology deployments in developing countries, as well as increasing preference from SMEs and various industry verticals, is expected to positively impact market growth.

Market by End-user

·         BFSI

·         Retail

·         IT and Telecommunication

·         Media and Entertainment

·         Healthcare

·         Military and Defense

·         Consumer Electronics

·         Others

In terms of end-user, the consumer electronics segment held the largest market share in 2021. Consumer electronics are non-commercial electronic devices. Consumer electronics include mobile devices, smartphones, smart wearables, computers, laptops, television sets, refrigerators, and home appliances. Rising demand for various home improvement products and electronic devices for professional and personal use is propelling global consumer electronics demand. Furthermore, rising disposable income, technological advancements, increased demand for luxury goods, and an improvement in the standard of living are some of the major factors driving market growth in the consumer electronics segment.

Telecom Equipment Market Regional Overview