The global telecom electronic manufacturing services market size was valued at USD 191.8 billion in 2022 and is projected to reach USD 339.7 billion by 2030, growing at a CAGR of 7.4% from 2023 to 2030. One of the most significant factors influencing this market trajectory is the increasing reliance on contract manufacturing or subcontracting, which plays an essential role in the telecom sector.

In an effort to enhance efficiency and competitiveness, traditional telecom manufacturers are increasingly focusing on high-value activities that directly contribute to delivering greater value to their customers. These core activities may include areas such as product design, customer engagement, service delivery, and innovation. Meanwhile, they are choosing to outsource non-core functions—particularly those requiring specialized skills, advanced manufacturing capabilities, or cost efficiencies that are better provided by third-party vendors. This strategic shift toward subcontracting is expected to have a positive impact on the overall growth of the telecom EMS market.

Subcontracting brings with it a range of strategic advantages. These include a reduction in time-to-market, enabling companies to launch new products more quickly in response to rapidly changing consumer demands and technological trends. It also allows access to state-of-the-art manufacturing technologies and infrastructure that may otherwise require significant investment. Moreover, third-party manufacturers often offer robust logistics capabilities, streamlining supply chains and improving delivery timelines. By minimizing the need for capital-intensive investments in production facilities and equipment, subcontracting helps telecom companies optimize their financial resources. These benefits are widely recognized as key drivers of the market and are expected to significantly support its expansion during the forecast period.

In addition to the benefits of subcontracting, other macro-level factors are also contributing to the market's growth. These include sustained economic development, a rising global demand for communication services, ongoing technological advancements, and the widespread expansion of wireless communication networks. All these elements are helping to accelerate market dynamics. Furthermore, the business models of telecommunication equipment vendors are increasingly being shaped by technology-driven approaches, emphasizing innovation, scalability, and digital transformation, which further supports the growing reliance on EMS providers in the industry.

Key Market Trends Insights:

• North America is anticipated to witness a notable compound annual growth rate (CAGR) throughout the forecast period. This growth can be attributed to increasing investments in advanced telecom infrastructure, rising adoption of 5G technology, and growing demand for outsourced manufacturing services by regional telecom companies aiming to improve operational efficiency and reduce production costs.

• In contrast, the Asia Pacific region dominated the global telecom electronic manufacturing services market in 2022, accounting for the largest revenue share of 46.2%. This commanding position is primarily driven by the presence of major EMS providers, cost-effective manufacturing capabilities, robust supply chain networks, and the high concentration of telecom equipment production facilities in countries such as China, India, South Korea, and Taiwan. Additionally, strong domestic demand and ongoing digital transformation initiatives in the region further reinforce its market leadership.

• When segmented by services, the electronic manufacturing segment emerged as the leading contributor to overall market revenues in 2022, representing the largest revenue share of 44.5%. This segment includes the assembly and production of telecom hardware, printed circuit boards (PCBs), and other electronic components. The segment's dominance reflects the continued need for large-scale, efficient manufacturing solutions to support global telecom infrastructure.

• Meanwhile, within the same service segmentation, the electronic design engineering segment is projected to experience the fastest CAGR of 9.3% during the forecast period. This growth is driven by the rising complexity of telecom products, increased demand for customized hardware solutions, and a growing emphasis on RD and innovation. Companies are increasingly outsourcing design and engineering services to access specialized expertise, accelerate product development cycles, and stay competitive in a rapidly evolving technological landscape.

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Market Size Forecast:

• 2022 Market Size: USD 191.8 Billion

• 2030 Projected Market Size: USD 339.7 Billion

• CAGR (2023-2030): 7.4%

• Asia Pacific: Largest market in 2022

Key Companies Market Share Insights:

A number of growth opportunities are emerging for companies operating in the telecom electronic manufacturing services (EMS) market. Two key avenues include maintaining a diverse global presence and making strategic investments in robust supply chain models. These approaches help companies remain resilient in the face of regional disruptions and ensure timely delivery of high-quality products and components across international markets.

As the telecommunication sector continues to grow, fueled by the entry of new service providers, EMS providers are well-positioned to capitalize on this momentum. By leveraging their technical expertise, advanced manufacturing capabilities, and scalable operations, EMS firms can deliver high-performance, customized solutions to telecom companies. This support allows original equipment manufacturers (OEMs) to streamline their operations and focus on their core competencies, such as innovation, product development, and customer service, rather than managing complex manufacturing processes.

To further enhance their market presence and competitive positioning, industry players are actively pursuing strategic initiatives such as new product launches, geographic expansions, mergers and acquisitions, and collaborative partnerships. These efforts are aimed at broadening their global footprint and enhancing their ability to meet the evolving needs of telecom customers worldwide.

A notable example of such strategic activity took place in March 2022, when Sanmina Corporation and Reliance Strategic Business Ventures Limited (RSBVL)—a wholly-owned subsidiary of Reliance Industries Limited (RIL)—announced a significant partnership. The two companies agreed to form a joint venture by investing in Sanmina's existing Indian subsidiary, Sanmina SCI India Private Ltd (SIPL). This collaboration was designed to establish a world-class electronic manufacturing hub in India, with a particular focus on supporting the country’s ambitious “Make in India” initiative. The partnership underscores the importance of strategic alliances in driving regional manufacturing growth and strengthening supply chains.

Key Players

• FLEX LTD.

• Jabil Inc.

• Plexus Corp.

• Benchmark Electronics, Inc.

• Celestica Inc.

• COMPAL Inc.

• Creation Technologies LP

• Fabrinet

• Foxconn Technology

• Sanmina Corporation

• Venture Corporation Limited

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Conclusion:

The telecom EMS market is set for solid expansion, driven predominantly by the increasing rollout of IoT and 5G infrastructure, which fuel demand for sophisticated telecom components. A major driver behind this growth is the ongoing outsourcing shift, where telecom OEMs are offloading manufacturing tasks to EMS providers to reduce costs and enhance efficiency. As a result, EMS players are expanding their offerings—covering design, engineering, production, testing, and supply chain services—to deliver end-to-end solutions.