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Telecom Electronic Manufacturing Services (EMS) is a concept used by companies which design, manufacture, test, distribute and provide return or repair services for electronics module and assemblies for original equipment manufacturers (OEMs).
What are the factors which support telecom EMS’s market growth?
The global Telecom Electronic Manufacturing Services (EMS) market size was around US$ 110 billion in 2018 and is expected to reach nearly US$ 200 billion by 2025.
The global EMS market for telecom is driven primarily by the need to reduce the overall costs and remain competitive.
The demand for telecom electronic manufacturing services (EMS) around the globe has been on the rise. Contract manufacturing or subcontracting plays a key role in the growth of the telecom industry.
The business model of manufacturers for telecom equipment is highly technical. In addition to combining products into their service offerings, the production companies move from producing to designing their own equipment. But they continuously face difficulties because of rapid changes in technologies.
The subcontracting is projected to be a key driver of the telecom EMS industry as it provides a wealth of benefits like reduced market time, access to leading manufacturing technologies or even logistical capabilities and reduced capital investment.
Moreover, economic growth, increased demand for telecom services, advances in technology and wireless communication expansion will further support the market.