Telecom Equipment Market Size

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.