USD 720.1 billion
Report ID:
SQMIG50C2039 |
Region:
Global |
Published Date: May, 2025
Pages:
197
|Tables:
92
|Figures:
71
Global Telecom Equipment Market size was valued at USD 720.1 billion in 2023 and is poised to grow from USD 757.55 billion in 2024 to USD 1136.41 billion by 2032, growing at a CAGR of 5.2% during the forecast period (2025-2032).
The rollout of 5G networks drives the global telecom equipment market to a considerable extent. Governments and private players are joining hands with telecom operators to invest in 5G infrastructure to cope with the increasing need for increased speeds, greater reliability, and faster connectivity. With 5G making ultra-low latency, increased data transfer rates, and massive device connections a reality, the demand for telecom equipment such as base stations, antennas, routers, and switches becomes crucial. This growth not only enhances mobile broadband performance but also opens opportunities for next-generation technologies like autonomous vehicles, smart cities, and industrial automation, resulting in a strong demand for telecom equipment worldwide.
One of the key trends driving the global telecom equipment sector is the explosive growth in mobile data traffic. With the explosion of smartphones, video streaming, social media, and IoT devices, mobile data usage has seen a dramatic surge. This increased data traffic puts tremendous pressure on current telecom networks, leading operators to invest in advanced infrastructure and equipment that can support the enhanced bandwidth demand. To provide smooth connectivity, telecom operators need equipment that has higher capacity, higher speeds, and improved network management; hence it is a major driver for the demand for telecom equipment in the market.
What role does AI Play in Optimizing Resource Utilization and Reducing Congestion in Telecom Networks?
Artificial Intelligence (AI) is deeply impacting the global telecom equipment market strategy by improving network performance and operational efficiency. AI-based technologies help telecom operators to anticipate and manage network traffic, ensuring maximum utilization of resources and minimizing congestion. This results in better user experience and lower operating expenses. Moreover, AI enables predictive maintenance by monitoring equipment data to predict impending failures, enabling timely interventions and reducing downtime. These innovations not only improve upon current infrastructure but also fuel the need for next-generation telecom gear that can handle AI applications. For example, vendors such as Nokia and Ericsson are embedding AI in their offerings to improve network automation and efficiency.
In April 2025, Qualcomm has acquired Movian AI, the generative AI business of VinAI, a Vietnamese research firm. The move strengthens Qualcomm's AI-driven telecom solution capabilities, allowing it to create sophisticated AI models for future mobile networks. The acquisition places Qualcomm in a better position to cater to the increasing need for AI-enabled telecom infrastructure, as seen in the global trend of AI adoption in the telecom equipment space.
Market snapshot - 2025-2032
Global Market Size
USD 720.1 billion
Largest Segment
Network Communication Equipment
Fastest Growth
Network Communication Equipment
Growth Rate
5.2% CAGR
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Global Telecom Equipment Market is segmented by Component, Technology, Infrastructure, End Use and region. Based on Component, the market is segmented into Hardware, Software and Services. Based on Technology, the market is segmented into 5G, 4G/LTE and 2G & 3G. Based on Infrastructure, the market is segmented into Wired and Wireless. Based on End Use, the market is segmented into Consumer electronics, BFSI, Retail, Media, Defense and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Network Communication Equipment, including Type, Application, and base stations, is driving innovation in the global telecom equipment market. With the advent of 5G, IoT, and growing mobile data requirements, these devices are being developed to enable higher speeds, increased capacity, and reduced latency. Their prevalence is due to their critical function within network infrastructure, providing unobstructed connectivity, enabling support for emerging technologies, and enhancing global telecom operators' capability to deliver growing service demands.
The Mobile Communication Device segment is expected to be the highest growing within the global telecom equipment market because of the fast pace of adoption of 5G technology and demand for high-speed connections. Smartphones, wearables, and other connected devices are leading this growth, as businesses and customers look for seamless, real-time communication and access to data.
The Consumer Electronics segment is the largest within the global telecom equipment industry, fueled by the widespread adoption of smartphones, smart TVs, wearables, and IoT products. All these devices require strong telecom infrastructure to provide high-speed connectivity and smooth communication. The proliferation of 5G networks increases the performance and functionality of consumer electronics, further driving the demand for next-generation telecom equipment. This application will be expected to continue to be at the top of the telecom equipment industry, fueling continuous growth and technological advancements in the industry.
The Media application segment is also coming forward as the most rapidly growing segment of the global telecom equipment market due to the explosion in demand for high-definition streaming, live, and immersive content such as AR/VR. Telecom companies are investing in enhanced infrastructure that will support such data-intensive applications, which will enhance the requirements of the network.
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As per the global telecom equipment market analysis, North America holds a significant share in the industry, driven by rapid 5G deployment, advanced infrastructure, and high consumer demand for connectivity. The region benefits from strong investments by major telecom operators and tech giants like AT&T, Verizon, and Cisco. Additionally, the increasing adoption of IoT, cloud services, and smart devices continues to fuel demand for next-generation telecom equipment across both consumer and enterprise sectors.
The United States significantly drives North America’s telecom equipment market through aggressive 5G rollouts, vast broadband expansion, and government initiatives like the Rural Digital Opportunity Fund. Major players such as Verizon, AT&T, and Cisco invest heavily in infrastructure, fueling demand for cutting-edge telecom gear. Additionally, the country’s strong R&D ecosystem and leadership in tech innovation support ongoing advancements in telecom equipment, keeping the U.S. at the forefront of global network transformation.
Canada contributes steadily to North America’s telecom equipment market by focusing on 5G expansion and improving broadband access in remote and rural areas. Backed by supportive regulations from the CRTC and competitive investments from operators like Bell and Rogers, Canada is enhancing connectivity infrastructure. High internet penetration rates, increasing consumer demand, and the government's commitment to universal service obligations continue to create robust opportunities for telecom equipment manufacturers across the country.
Asia Pacific is the fastest-growing region in the global telecom equipment market, driven by rapid urbanization, widespread mobile adoption, and aggressive 5G deployment across countries like China, India, Japan, and South Korea. Government-backed digital transformation initiatives, rising demand for IoT and smart infrastructure, and increasing investments in high-speed networks are fueling market growth. Additionally, the presence of major telecom equipment manufacturers enhances the region’s dominance in both production and innovation.
Japan contributes significantly to the Asia Pacific’s telecom equipment market through its advanced technological ecosystem and early adoption of 5G. Companies like NEC and Fujitsu are leading innovations in network infrastructure, particularly in Open RAN and next-gen wireless systems. Government initiatives promoting digital transformation and smart cities further drive demand. Japan’s strong manufacturing capabilities and focus on secure, high-performance telecom solutions position it as a global leader in telecom equipment development.
South Korea plays a vital role in the Asia Pacific’s telecom equipment market, propelled by its rapid nationwide 5G rollout and high consumer tech adoption. Major players like Samsung lead in producing 5G infrastructure and mobile devices. Government-backed digital policies, strong R&D investment, and a competitive telecom sector support constant innovation. South Korea’s focus on smart technologies and export-driven production makes it a key contributor to global telecom equipment growth.
Europe holds a robust position in the global telecom equipment market, fueled by widespread 5G deployment, strong regulatory support, and rising demand for high-speed connectivity. Major economies like Germany, the UK, and France are investing in telecom infrastructure modernization. The region emphasizes data privacy and security, driving demand for advanced equipment. Additionally, Europe's growing smart city initiatives and IoT adoption further contribute to the sustained expansion of its telecom equipment sector.
Germany plays a central role in Europe's telecom equipment market, driven by aggressive 5G deployment and Industry 4.0 initiatives. The country is modernizing its telecom infrastructure to support automation, smart manufacturing, and IoT integration. Key players like Deutsche Telekom invest heavily in network upgrades. Germany’s strong industrial base and focus on digital transformation continually boost demand for advanced telecom solutions and foster innovation in equipment manufacturing and deployment.
France contributes significantly to the Euope’s telecom equipment market through strong public-private partnerships and nationwide 5G expansion plans. Operators like Orange are advancing infrastructure, while the government emphasizes digital inclusion and rural broadband access. France is also fostering innovation in cybersecurity and cloud-native telecom networks. These efforts, combined with its strategic push for data sovereignty, are positioning the country as a competitive and technologically advanced telecom equipment hub in regional outlook.
The UK’s telecom equipment market is shaped by major 5G investments, fiber broadband rollouts, and a pivot toward secure and diversified supply chains post-Huawei restrictions. Companies like BT Group lead infrastructure expansion, while the government supports Open RAN adoption to encourage innovation. The UK’s strong regulatory framework and digital economy strategy continue to drive demand for reliable, next-gen telecom equipment to support both urban and rural connectivity.
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The global telecom equipment market outlook is highly competitive, with key players including Huawei, Ericsson, Nokia, Cisco, and ZTE. These companies are investing heavily in 5G technologies, cloud infrastructure, and network automation. For instance, Huawei focuses on expanding its 5G portfolio and securing new markets, while Ericsson emphasizes strategic partnerships and acquisitions to strengthen its leadership in next-gen network solutions. Nokia is advancing with a focus on Open RAN technology to enhance flexibility and scalability.
The startup landscape in the global telecom equipment market penetration is thriving, with new players introducing cutting-edge technologies like 5G infrastructure, private networks, and AI-driven solutions. These startups are challenging established telecom giants by offering more agile, cost-effective, and scalable alternatives. Venture capital is pouring into these companies, driving rapid innovation and offering unique opportunities to reshape the telecom landscape across industries.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global telecom equipment industry is experiencing substantial growth driven by the rollout of 5G infrastructure, the surge in mobile data consumption, and the integration of AI technologies. The increasing demand for faster connectivity, low latency, and enhanced network management is propelling the market forward.
Telecom operators are investing heavily in next-gen equipment, from base stations to mobile communication devices, to meet the evolving needs of consumers and businesses. Additionally, advancements in AI and machine learning are improving network efficiency and reliability. As 5G continues to expand globally, the market is poised for significant innovation and development, further shaping the future of global connectivity.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 720.1 billion |
Market size value in 2032 | USD 1136.41 billion |
Growth Rate | 5.2% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Telecom Equipment Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Telecom Equipment Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Telecom Equipment Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Telecom Equipment Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Telecom Equipment Market size was valued at USD 718.6 Billion in 2023 poised to grow from USD 784.06 Billion in 2024 to USD 1031.68 Billion by 2032, growing at a CAGR of 4.10% in the forecast period (2025-2032).
The global telecom equipment market outlook is highly competitive, with key players including Huawei, Ericsson, Nokia, Cisco, and ZTE. These companies are investing heavily in 5G technologies, cloud infrastructure, and network automation. For instance, Huawei focuses on expanding its 5G portfolio and securing new markets, while Ericsson emphasizes strategic partnerships and acquisitions to strengthen its leadership in next-gen network solutions. Nokia is advancing with a focus on Open RAN technology to enhance flexibility and scalability. 'Huawei (China)', 'Ericsson (Sweden)', 'Nokia (Finland)', 'Cisco Systems (USA)', 'ZTE (China)', 'Qualcomm (USA)', 'Samsung Electronics (South Korea)', 'Alcatel-Lucent (France)', 'Juniper Networks (UStA)', 'Motorola Solutions (UA)', 'NEC Corporation (Japan)', 'Fujitsu (Japan)', 'Arista Networks (USA)', 'Ciena (USA)', 'Keysight Technologies (USA)'
The global rollout of 5G networks is a major driver for telecom equipment demand. As telecom operators upgrade infrastructure to support faster speeds, lower latency, and massive device connectivity, the need for advanced base stations, antennas, and core network equipment rises. This trend significantly accelerates market growth across regions.
Transition to 5G Infrastructure: The global telecom equipment market trends is witnessing a rapid transition towards 5G infrastructure, driven by the increasing demand for faster data speeds and low latency. Telecom companies are investing heavily in 5G equipment, including base stations, antennas, and core network technologies to support next-gen services.
How is North America’s Rapid 5G Deployment Influencing the Global Telecom Equipment Market?
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Report ID: SQMIG50C2039
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