IoT is the next key trend and is estimated to support the telecom industry in terms of revenue generation and infrastructure expansion
The global telecom electronic manufacturing services (EMS) market size is likely to reach USD 230.1 billion by 2025, expanding at a CAGR of 7.0% during the forecast period, according to a new report.
Market research analysts cited IoT as the next key trend, which is estimated to support the telecom industry in terms of revenue generation and infrastructure expansion, thus helping drive the market over the forecast years.
The report, published in the Research and Markets’ website, revealed that the global telecom EMS market is mainly driven by need to reduce overall costs while being competitive in international markets.
Additionally, need to reduce operating and manufacturing costs is playing a pivotal role in stimulating market growth, it added.
Significant growth expected in electronic design and engineering segment
The electronic design and engineering segment is projected to witness a CAGR close to 9.0% from 2017 to 2025.
The report explained that advancements in technology are making it necessary for firms to subcontract design and engineering services to cope with ever-changing dynamics associated with technological developments and innovations.
Asia Pacific expected to dominate the market
Asia Pacific is expected to dominate the market throughout the forecast horizon.
Increasing electronics production in the Southeast Asia region, supported by incentives and funding from a few electronic giants, is one of the primary growth stimulants for the market in the region, according to the report.
As per the report, the telecom electronic manufacturing services market is well-diversified. Researchers learned that companies focus on offering a wide range of services, thus enabling OEMs to focus on their core competent businesses.
Key players in the industry include Benchmark Electronics, Inc., Flex, Ltd., Plexus Corp, and Jabil Circuit, Inc.
The report also noted that mobile connectivity has improved tremendously over the past few years and penetration of wireless devices has witnessed healthy growth over the years.
The report predicted this trend to continue over the next few years and positively impact the telecom EMS market growth.