Telecom Electronic Manufacturing Services Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Service (Electronic Design and Engineering, Electronics Assembly, Electric Manufacturing, Supply Chain Management, Others), By Application (Large Enterprise, Small and Medium Enterprise), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 34.31 Billion
CAGR (2026-2031)	7.02%
Fastest Growing Segment	Electronics Assembly
Largest Market	North America
Market Size (2031)	USD 51.55 Billion

Market Overview

The Global Telecom Electronic Manufacturing Services Market will grow from USD 34.31 Billion in 2025 to USD 51.55 Billion by 2031 at a 7.02% CAGR. Telecom Electronic Manufacturing Services encompass the design, assembly, testing, and distribution of essential hardware such as printed circuit board assemblies, routers, and base station equipment for the telecommunications sector. This market is primarily propelled by the aggressive global rollout of 5G networks and the resultant necessity for robust infrastructure upgrades to support enhanced connectivity. A key driver for this manufacturing demand is the massive capital allocation toward network modernization. According to the GSMA, in 2025, annual investments in mobile internet infrastructure excluding end-user devices reached $127 billion. This substantial financial commitment underscores the critical reliance on specialized manufacturing partners to deliver high-performance network components at scale.

Despite this positive momentum, the industry faces a significant challenge in the form of persistent supply chain volatility and fluctuating raw material costs. These disruptions often lead to production delays and inventory uncertainties, forcing manufacturers to continuously recalibrate their procurement strategies to maintain operational efficiency. Consequently, while the appetite for advanced telecom hardware remains strong, navigational complexities within the global supply network continue to pose a tangible risk to consistent market expansion and profitability.

Key Market Drivers

Accelerated Global Deployment of 5G Network Infrastructure is the primary catalyst propelling the Telecom Electronic Manufacturing Services market, necessitating the large-scale production of complex hardware such as massive MIMO units, active antennas, and dense small cell configurations. As telecommunications operators aggressively densify their networks to deliver ultra-low latency and high-bandwidth capabilities, EMS providers must scale operations to manufacture high-frequency RF components and thermal management solutions that meet stringent carrier-grade standards. The sheer volume of this deployment is evident in recent adoption metrics; according to 5G Americas, September 2025, in the 'Global 5G Commercial Networks' update, global 5G wireless connections reached 2.6 billion, signaling a massive, sustained requirement for the underlying physical infrastructure and base station equipment that EMS firms supply.

Simultaneously, the Rapid Proliferation of Internet of Things (IoT) and Connected Devices is expanding the addressable market for manufacturers beyond traditional networking gear into a diverse array of industrial and consumer endpoints. This driver forces EMS partners to adapt production lines for high-mix, high-volume assembly of miniaturized modules, sensors, and low-power wide-area network (LPWAN) devices essential for smart city and industrial automation ecosystems. According to the GSMA, February 2025, in 'The Mobile Economy 2025' report, the total number of IoT connections is projected to reach 38.7 billion by 2030, creating a long-term production pipeline for specialized electronic assemblies. However, the market demand remains uneven across regions; for instance, according to IPC, February 2025, in the 'Annual Survey of the European EMS Industry', the European EMS sector experienced a negative 14 percent growth in printed circuit board assembly production in 2024, highlighting how regional economic variances can impact local manufacturing output despite global technology trends.

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Key Market Challenges

Persistent supply chain volatility and fluctuating raw material costs serve as a substantial impediment to the stability and expansion of the Global Telecom Electronic Manufacturing Services Market. These disruptions create an environment of operational unpredictability where manufacturers struggle to forecast production timelines or manage procurement budgets effectively. When component availability becomes erratic or prices spike unexpectedly, companies are compelled to allocate excessive capital toward securing safety stock rather than investing in necessary facility upgrades or capacity expansion. This defensive allocation of resources directly reduces the liquidity required to scale operations to meet the aggressive schedules of global 5G deployment.

The severity of this financial pressure is evident in recent industry sentiment. According to IPC, in 2025, 64% of electronics manufacturers anticipated further material price increases, highlighting the intense inflationary environment facing the sector. This sustained trend of rising input costs erodes profit margins and complicates the negotiation of fixed price contracts with telecommunications providers. Consequently, the industry faces a paradox where the inability to secure materials at stable rates restricts production throughput and delays market growth despite strong demand for network infrastructure.

Key Market Trends

Regionalization and Nearshoring of Supply Chain Networks is fundamentally restructuring the Global Telecom Electronic Manufacturing Services Market as companies actively diversify production bases to mitigate geopolitical risks and tariff uncertainties. Manufacturers are increasingly moving away from single-source dependence on China, establishing robust operational hubs in regions like India, Southeast Asia, and Mexico to serve local demands and ensure export resilience. This strategic pivot allows EMS providers to optimize logistics costs while adhering to stringent "China Plus One" sourcing policies mandated by major telecommunications operators. According to The Economic Times, May 2025, in the 'Foxconn to expand India focus with $1.5 billion investment' report, Foxconn disclosed a capital injection of approximately $1.5 billion into its Indian operating unit, underscoring the massive scale of capital shifting toward these emerging manufacturing ecosystems.

Simultaneously, the Integration of Sustainable and Green Manufacturing Practices has evolved from a regulatory compliance checklist into a core competitive differentiator for telecom hardware production. EMS providers are aggressively adopting circular economy principles, such as utilizing recyclable substrates for printed circuit boards and implementing closed-loop water systems to reduce the environmental footprint of heavy industrial processes. This transition is driven by pressure from telecom carriers who now require verified carbon-neutral supply chains to meet their own net-zero commitments. The momentum behind this shift is substantial; according to IPC, March 2025, in its global electronics manufacturing industry survey, 59% of supply chain respondents anticipated directly increasing their investment in sustainability and eco-friendly production initiatives during the fiscal year.

Segmental Insights

The Electronics Assembly segment represents the fastest-growing category within the Global Telecom Electronic Manufacturing Services Market, driven by the critical need for printed circuit board configurations in expanding network infrastructure. As telecommunication operators deploy dense connectivity grids, Original Equipment Manufacturers are increasingly outsourcing assembly tasks to ensure high-volume production and technical precision. This strategic shift allows companies to maintain strict quality control over hardware components while focusing internal resources on network design. Consequently, the demand for professional assembly services continues to accelerate to support the operational reliability of global communication systems.

Regional Insights

North America commands a leading position in the Global Telecom Electronic Manufacturing Services Market, primarily driven by the rapid and extensive deployment of next-generation 5G infrastructure. The region benefits from a high concentration of major technology firms and original equipment manufacturers that prioritize research and development, fostering a strong demand for advanced engineering and high-value manufacturing solutions. Furthermore, supportive regulatory frameworks established by institutions like the Federal Communications Commission create a stable environment for infrastructure investment and spectrum allocation. This robust ecosystem encourages continuous innovation in connected devices and network equipment, securing North America’s dominance in the sector.

Recent Developments

• In October 2025, Flex launched a new globally manufactured AI infrastructure platform designed to accelerate the deployment of gigawatt-scale data centers. The platform integrated power, cooling, and compute technologies into pre-engineered modular designs, aiming to reduce installation times by significantly streamlining the construction process. This offering addressed the critical power and heat management challenges faced by hyperscale operators and telecom service providers building out next-generation networks. The launch leveraged the company's vertical integration and global production capabilities to provide a scalable solution for the rapidly expanding artificial intelligence and high-performance computing markets.
• In June 2025, Viking Enterprise Solutions, a division of Sanmina Corporation, launched the Viking Edge AI, a new computational storage appliance designed for edge computing environments. This product integrated advanced processing power with storage capabilities to address the latency and bandwidth challenges associated with traditional cloud-based AI models. The solution was engineered to support real-time data processing for applications in sectors such as smart manufacturing and video security. This launch expanded the company's portfolio of high-performance infrastructure hardware, targeting the increasing need for decentralized artificial intelligence processing in the telecom and industrial sectors.
• In April 2025, Ericsson entered into a strategic partnership with VVDN Technologies to localize the manufacturing of passive antenna systems in India. This collaboration was established to support the rapid deployment of 5G networks across the country and to serve global export markets. By leveraging the partner's engineering and manufacturing expertise, the initiative aimed to produce these critical telecom components locally. The partnership highlighted a shift towards regionalizing supply chains to enhance flexibility and reduce lead times for telecom operators upgrading their network infrastructure to meet increasing data demands.
• In August 2024, Hon Hai Technology Group (Foxconn) announced a significant investment of approximately $1.54 billion to expand its operational capabilities in India. This development underscored the company's commitment to diversifying its global manufacturing footprint and supporting the growing demand for electronic devices. The capital injection was aimed at establishing new production facilities, including a substantial commitment to a manufacturing plant in the state of Telangana. This strategic move was designed to position the region as a key hub for electronics manufacturing services, catering to both domestic and international markets while aligning with broader industry trends towards supply chain resilience.

Key Market Players

• Flextronics International, LTD.
• Jabil, Inc.
• Plexus Corp.
• Benchmark Electronics, Inc.
• Celestica Inc.
• COMPAL Electronics, Inc.
• Creation Technologies Inc.
• Fabrinet Company Limited
• Hon Hai Precision Industry Co. Ltd.
• Sanmina Corporation

By Service	By Application	By Region
Electronic Design and Engineering Electronics Assembly Electric Manufacturing Supply Chain Management Others	Large Enterprise Small Medium Enterprise	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Telecom Electronic Manufacturing Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Telecom Electronic Manufacturing Services Market, By Service:

• Electronic Design and Engineering
• Electronics Assembly
• Electric Manufacturing
• Supply Chain Management
• Others

• Telecom Electronic Manufacturing Services Market, By Application:

• Large Enterprise
• Small
• Medium Enterprise

• Telecom Electronic Manufacturing Services Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE