Telecom Electronic Manufacturing Services Market Growth Drivers and Challenges:
Growth Drivers
- Increasing installation of 5G networks: As telecom operators expand and upgrade their networks to support 5G technology, they require advanced electronic components, complex assemblies, and high-precision manufacturing services. This creates a strong demand for EMS providers who offer expertise in producing and assembling the necessary equipment, including base stations, antennas, and other critical infrastructure components. The rapid rollout of 5G networks accelerates the need for these services, fueling telecom electronic manufacturing services market growth. By 2025, 5G will account for up to 1.2 billion connections, covering one-third of the global population.
- Rising popularity of IoT (Internet of Things): The proliferation of IoT devices requires a wide range of specialized electronic components and systems for connectivity, data processing, and communication. EMS providers are crucial in delivering the necessary hardware and manufacturing solutions to support this growing ecosystem. As more IoT applications emerge across various industries such as industrial automation, and connected vehicles the demand for tailored electronic solutions and efficient manufacturing processes increases, thereby boosting the telecom electronic manufacturing services market.
Challenges
- Exorbitant capital needs: The industry requires high expenditures for personnel training, state-of-the-art machinery, and technology which may operate as a deterrent to entry and expansion for new entrants and some small businesses that may find it difficult to navigate these stringent capital requirements.
- Substantial labor expenses: High labor costs may hamper the telecom electronic manufacturing services market as it has a major impact on the total cost of producing electronic goods. These costs are influenced by several factors, including design decisions, regional variations in labor prices, and shortages of skilled labor, and are likely to increase the overall cost of manufacturing.
Telecom Electronic Manufacturing Services Market Size and Forecast:
|
Base Year |
2025 |
|
Forecast Period |
2026-2035 |
|
CAGR |
6.5% |
|
Base Year Market Size (2025) |
USD 220.92 billion |
|
Forecast Year Market Size (2035) |
USD 414.7 billion |
|
Regional Scope |
|
Browse key industry insights with market data tables & charts from the report:
Frequently Asked Questions (FAQ)
In the year 2026, the industry size of telecom electronic manufacturing services is assessed at USD 233.84 billion.
The global telecom electronic manufacturing services market size was valued at over USD 220.92 billion in 2025 and is expected to register a CAGR of more than 6.5%, exceeding USD 414.7 billion revenue by 2035.
The Asia Pacific telecom electronic manufacturing services market will dominate around 47% share by 2035, driven by the increasing number of mobile subscribers and the rise in internet penetration across the region.
Key players in the market include Foxconn Technology Co. Ltd., Plexus Corp., Kimball Electronics, Inc., Wistron Corporation, Flex Ltd., Celestica Inc., Reliance Strategic Business Ventures Limited, Benchmark Electronics, Inc., Sanmina Corporation.
