Telecommunications Instrument Market

The telecommunications instrument market is projected to decrease over the 2022-2030 period, with consumption trends showing fluctuations in key countries like the US, China, and Lithuania. Global consumption and production have seen ups and downs, with notable growth rates in certain regions. Import and export patterns also show changes in market dynamics over the years, with key players like China, the US, and Germany leading in production and exports.

Market Forecast

The telecommunications instrument market is expected to start a downward consumption trend over the next eight years. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -1.8% for the eight-year period from 2022 to 2030, which is projected to depress the market volume to 6.6M units by the end of 2030.

In value terms, the market is forecast to contract with an anticipated CAGR of +0.6% for the period from 2022 to 2030, which is projected to bring the market value to $5.8B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Telecommunications Instruments

In 2022, global telecommunications instrument consumption skyrocketed to 7.6M units, rising by 24% against the year before. Overall, the total consumption indicated a temperate expansion from 2012 to 2022: its volume increased at an average annual rate of +4.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +82.9% against 2020 indices. Global consumption peaked in 2022 and is expected to retain growth in years to come.

The global telecommunications instrument market revenue rose significantly to $5.6B in 2022, growing by 8.4% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption recorded a relatively flat trend pattern. Global consumption peaked at $5.7B in 2013; however, from 2014 to 2022, consumption remained at a lower figure.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were the United States (2.2M units), China (2M units) and Lithuania (527K units), together accounting for 62% of global consumption.

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by Lithuania (with a CAGR of +55.5%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest telecommunications instrument markets worldwide were China ($1.3B), the United States ($1.3B) and India ($560M), with a combined 57% share of the global market. Japan, Russia, the UK, France, Spain and Lithuania lagged somewhat behind, together accounting for a further 16%.

Lithuania, with a CAGR of +40.9%, recorded the highest growth rate of market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2022, the highest levels of telecommunications instrument per capita consumption was registered in Lithuania (192 units per 1000 persons), followed by the United States (6.5 units per 1000 persons), Spain (4.5 units per 1000 persons) and the UK (2.2 units per 1000 persons), while the world average per capita consumption of telecommunications instrument was estimated at 1 units per 1000 persons.

In Lithuania, telecommunications instrument per capita consumption expanded at an average annual rate of +57.1% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: the United States (+20.0% per year) and Spain (+22.6% per year).

Production

World Production of Telecommunications Instruments

In 2022, production of telecommunications instruments increased by 12% to 6.5M units, rising for the fourth consecutive year after two years of decline. Over the period under review, the total production indicated a noticeable expansion from 2012 to 2022: its volume increased at an average annual rate of +4.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +92.8% against 2018 indices. The pace of growth was the most pronounced in 2021 with an increase of 38% against the previous year. Over the period under review, global production attained the peak volume in 2022 and is likely to see gradual growth in years to come.

In value terms, telecommunications instrument production expanded slightly to $5.3B in 2022 estimated in export price. The total output value increased at an average annual rate of +1.1% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2019 when the production volume increased by 18%. Over the period under review, global production hit record highs at $5.3B in 2020; afterwards, it flattened through to 2022.

Production By Country

China (2.6M units) remains the largest telecommunications instrument producing country worldwide, comprising approx. 40% of total volume. Moreover, telecommunications instrument production in China exceeded the figures recorded by the second-largest producer, Malaysia (683K units), fourfold. The third position in this ranking was taken by Lithuania (520K units), with an 8% share.

In China, telecommunications instrument production increased at an average annual rate of +338.1% over the period from 2012-2022. The remaining producing countries recorded the following average annual rates of production growth: Malaysia (+0.4% per year) and Lithuania (+58.1% per year).

Imports

World Imports of Telecommunications Instruments

In 2022, purchases abroad of telecommunications instruments increased by 30% to 6.3M units, rising for the second consecutive year after two years of decline. Over the period under review, imports saw a relatively flat trend pattern. As a result, imports attained the peak and are likely to continue growth in the immediate term.

In value terms, telecommunications instrument imports contracted slightly to $4.7B in 2022. Overall, imports, however, recorded a noticeable slump. The growth pace was the most rapid in 2018 when imports increased by 12%. Global imports peaked at $6B in 2012; however, from 2013 to 2022, imports failed to regain momentum.

Imports By Country

The United States dominates imports structure, reaching 3.5M units, which was approx. 57% of total imports in 2022. The UK (270K units), Hong Kong SAR (210K units), India (194K units), Spain (157K units), Germany (137K units), Singapore (108K units) and Canada (106K units) held a minor share of total imports.

Imports into the United States increased at an average annual rate of +15.0% from 2012 to 2022. At the same time, Spain (+16.8%), India (+10.4%), Singapore (+7.0%) and the UK (+1.5%) displayed positive paces of growth. Moreover, Spain emerged as the fastest-growing importer imported in the world, with a CAGR of +16.8% from 2012-2022. Germany experienced a relatively flat trend pattern. By contrast, Canada (-4.6%) and Hong Kong SAR (-11.9%) illustrated a downward trend over the same period. The United States (+42 p.p.), Spain (+2 p.p.) and India (+1.9 p.p.) significantly strengthened its position in terms of the global imports, while Hong Kong SAR saw its share reduced by -9.1% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United States ($1.2B) constitutes the largest market for imported telecommunications instruments worldwide, comprising 25% of global imports. The second position in the ranking was held by Hong Kong SAR ($294M), with a 6.3% share of global imports. It was followed by India, with a 5.8% share.

In the United States, telecommunications instrument imports increased at an average annual rate of +2.0% over the period from 2012-2022. In the other countries, the average annual rates were as follows: Hong Kong SAR (-9.7% per year) and India (+11.9% per year).

Import Prices By Country

In 2022, the average telecommunications instrument import price amounted to $746 per unit, declining by -25.9% against the previous year. In general, the import price continues to indicate a noticeable decrease. The growth pace was the most rapid in 2020 an increase of 11%. As a result, import price reached the peak level of $1,219 per unit. From 2021 to 2022, the average import prices remained at a lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Canada ($1,434 per unit), while Spain ($189 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Singapore (+2.9%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Telecommunications Instruments

In 2022, overseas shipments of telecommunications instruments increased by 16% to 5.1M units, rising for the fifth year in a row after five years of decline. In general, exports saw a relatively flat trend pattern. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

In value terms, telecommunications instrument exports declined modestly to $4.6B in 2022. Over the period under review, exports, however, recorded a perceptible decline. The most prominent rate of growth was recorded in 2018 with an increase of 13% against the previous year. Over the period under review, the global exports reached the maximum at $5.8B in 2012; however, from 2013 to 2022, the exports stood at a somewhat lower figure.

Exports By Country

The United States was the key exporting country with an export of about 1.5M units, which amounted to 29% of total exports. Malaysia (715K units) ranks second in terms of the total exports with a 14% share, followed by China (12%), Germany (5.3%) and Hong Kong SAR (4.5%). Taiwan (Chinese) (221K units), the UK (219K units), France (175K units), South Korea (157K units), Singapore (146K units), Canada (99K units) and the Netherlands (92K units) took a minor share of total exports.

The United States experienced a relatively flat trend pattern with regard to volume of exports of telecommunications instruments. At the same time, China (+20.0%), Taiwan (Chinese) (+9.4%), the Netherlands (+9.0%), France (+8.3%), South Korea (+2.4%) and Singapore (+1.6%) displayed positive paces of growth. Moreover, China emerged as the fastest-growing exporter exported in the world, with a CAGR of +20.0% from 2012-2022. Canada and Malaysia experienced a relatively flat trend pattern. By contrast, the UK (-2.1%), Germany (-3.8%) and Hong Kong SAR (-10.2%) illustrated a downward trend over the same period. From 2012 to 2022, the share of China, Taiwan (Chinese) and France increased by +10, +2.5 and +1.8 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United States ($941M), Malaysia ($926M) and Germany ($544M) appeared to be the countries with the highest levels of exports in 2022, together accounting for 52% of global exports. Hong Kong SAR, Taiwan (Chinese), the UK, China, Singapore, Canada, South Korea, France and the Netherlands lagged somewhat behind, together accounting for a further 36%.

Taiwan (Chinese), with a CAGR of +23.7%, saw the highest growth rate of the value of exports, among the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average telecommunications instrument export price amounted to $909 per unit, declining by -15% against the previous year. Overall, the export price showed a perceptible slump. The growth pace was the most rapid in 2018 an increase of 9.6% against the previous year. Over the period under review, the average export prices attained the maximum at $1,259 per unit in 2019; however, from 2020 to 2022, the export prices failed to regain momentum.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Germany ($2,020 per unit), while France ($311 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Taiwan (Chinese) (+13.0%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform