Communications Hardware Global Market Report 2024

The communications hardware market size has grown strongly in recent years. It will grow from $713.21 billion in 2023 to $763.64 billion in 2024 at a compound annual growth rate (CAGR) of 7.1%. The growth observed during the historical period can be attributed to advancements in technology, greater connectivity, the proliferation of data traffic, the rise of e-commerce, and the ongoing process of digital transformation.

The communications hardware market size is expected to see strong growth in the next few years. It will grow to $1055.08 billion in 2028 at a compound annual growth rate (CAGR) of 8.4%. The anticipated growth in the forecast period can be attributed to various factors, including heightened security concerns, the prevalence of remote work and hybrid work models, government initiatives and regulations, and a growing emphasis on environmental and sustainability concerns.

The communications hardware market is expected to receive a significant boost from the rapid growth in investments in smart city projects worldwide. These smart city initiatives leverage information and communication technologies to efficiently manage and enhance various urban services, including transportation systems, water supply, and law enforcement. These technologies are made possible through the utilization of IoT (Internet of Things) technology, which represents the convergence of computing devices, mechanical systems, and digital objects. IoT enables the seamless transfer of data across networks with minimal human interaction. Smart cities heavily rely on communication equipment, and this trend is beneficial for companies operating in this market. As an illustration, APG Algemene Pensioen Groep N.V. has committed to investing €250 million in a 'Smart City Infrastructure Fund' dedicated to the development of smart city projects in North America, Europe, Australia, and other major urban areas worldwide. The concept of smart cities is gaining popularity in developing nations as well. For instance, more than 1,000 smart city pilot projects are either in progress or ready for implementation across the globe, with approximately 500 of these projects concentrated in China.

The primary categories of communication hardware include general communication equipment, broadcast communications equipment, and telecom infrastructure equipment. General communication equipment encompasses the various devices, switches, lines, and systems utilized for voice, data, and other forms of communication, facilitating exchanges between two stations, namely transmitters and receivers. These technologies serve both military and civilian purposes. The end users of such hardware encompass a broad spectrum, ranging from telecom operators, internet service providers, and cable operators to individual consumers, businesses, and governmental institutions.

The communications hardware market research report is one of a series of new reports that provides communications hardware market statistics, including communications hardware industry global market size, regional shares, competitors with a communications hardware market share, detailed communications hardware market segments, market trends and opportunities, and any further data you may need to thrive in the communications hardware industry. This communications hardware market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The communication hardware market is expected to experience significant growth due to the rising demand for smooth and efficient communication in the foreseeable future. Effective and seamless communication entails the clear and efficient exchange of information between parties, minimizing disruptions and ensuring mutual understanding. This growing need for seamless communication is propelling the communication hardware market, driving the demand for various devices such as routers, switches, modems, power line communication modems, and adapters. For example, data from Uswitch Limited, a UK-based financial conduct authority, indicates that starting in 2022, there were 71.8 million mobile connections in the UK, reflecting a 3.8% increase (equivalent to around 2.6 million) over 2021. By 2025, it is projected that there will be 68.3 million residents in the UK, with approximately 95% (roughly 65 million people) owning smartphones. Hence, the increasing demand for seamless and effective communication is a driving force behind the growth of the communication hardware market.

The communications hardware industry is facing an increasing threat from hackers, resulting in various security challenges. For example, a report from Darktrace, a UK-based AI-based cybersecurity provider, indicated that in 2021, the information technology (IT) and communications sector was projected to be the most targeted by cyber threats. Darktrace's research further revealed that in 2021, its artificial intelligence system autonomously thwarted an average of 150,000 threats per week against this industry. Moreover, email was identified as the most commonly used method for attempted security breaches, with businesses in this sector encountering an average of 600 distinct phishing campaigns each month during 2021. Consequently, these security issues posed obstacles to the growth of the communications hardware industry during the historic period.

The rapid rise in energy consumption poses a significant challenge to environmental preservation and sustainable progress, prompting the advancement of green technologies. For instance, communications hardware contributes to approximately 2%-4% of the overall global carbon emissions. The proliferation of data traffic, driven by widespread access to high-speed internet through next-generation wireless networks and increased smartphone utilization, has led to substantial growth in network infrastructures and heightened energy requirements. To mitigate carbon emissions, environmentally friendly batteries, renewable energy resources, and intelligent power system management are being actively developed and implemented.

Leading companies in the communications hardware market are placing a strong emphasis on the development of advanced routers catering to both gaming and business needs, aiming to secure a competitive advantage in the industry. These advanced gaming routers are engineered to deliver low latency and high-speed connectivity, ensuring a seamless online gaming experience. In contrast, business routers prioritize robust security and network management capabilities, providing support for professional environments. For instance, in 2023, ASUSTeK Computer Inc., a Taiwan-based manufacturer specializing in computer, phone hardware, and electronics, introduced two significant offerings such as the ROG Rapture GT-BE98, recognized as the world's first quad-band Wi-Fi 7 gaming router, and the ASUS RT-BE96U, a tri-band Wi-Fi 7 business router. ASUS gaming routers come equipped with an array of features and tools meticulously crafted to enhance online gaming performance, delivering an exceptional gaming experience. Meanwhile, the business routers are designed to provide rapid and dependable network performance tailored to the requirements of businesses, with features and tools aimed at simplifying network management.

In March 2021, Cisco Systems Inc., a US-based corporation specializing in digital communications technology, completed the acquisition of Acacia Communications Inc. The specific financial details of the acquisition were not disclosed. This strategic move was undertaken to further bolster Cisco's dedication to optics, positioning it as a crucial foundation for advancing Cisco's 'Internet for the Future' strategy. By integrating coherent optical solutions from Acacia Communications, Cisco aims to provide enhanced offerings to its customers. Acacia Communications Inc. is a US-based manufacturer in the field of communication hardware.

Major companies operating in the communications hardware market include Apple Inc., Huawei Technologies Co. Ltd., Samsung Electronics Co. Ltd., AT&T Inc., Cisco Systems Inc., Xiaomi Corporation, Hon Hai Precision Industry Co. Ltd., Lenovo Group Limited, Foxconn Industrial Internet Co. Ltd., Motorola Solutions Inc., Nokia Corporation, Telefonaktiebolaget LM Ericsson, ZTE Corporation, Juniper Networks Inc., Arris International Limited, CommScope Holding Company Inc., Extreme Networks Inc., Vocera Communications Inc., Viavi Solutions Inc., Impinj Inc., Harmonic Inc., EchoStar Corporation, Digi International Inc., Plantronics Inc., Infinera Corporation, Adtran Inc., Clearfield Inc., NETGEAR Inc., Cambium Networks Corporation, Aviat Networks Inc., Ribbon Communications Inc., Calix Inc., Casa Systems Inc., Sony Group Corporation.

Asia-Pacific was the largest region in communications hardware market in 2023. Western Europe was the second largest region in communications hardware market. The regions covered in the communications hardware market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the communications hardware market report are Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa

The communications hardware market consists of sales of telephone apparatus, and broadcasting and wireless communications hardware. It includes sales of wired and wireless communication hardware equipment. Examples of telephone apparatus hardware are central office switching equipment, cordless telephones (except cellular), PBX equipment, telephone answering machines, local area network (LAN) modems, multi-user modems and other data communications equipment such as bridges, routers and gateways. Examples of broadcasting and wireless communications hardware include transmitting and receiving antennas, cable television equipment, Global Positioning System (GPS) equipment, pagers, cellular phones, mobile communications equipment, and radio and television studio broadcasting equipment. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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