통신 하드웨어 시장 보고서 : 동향, 예측, 경쟁 분석(-2035년)

Communications Hardware Market

The future of the global communications hardware market looks promising with opportunities in the telecom operator, internet service provider, cable operator, business and government, and personal user markets. The global communications hardware market is expected to reach an estimated $1,410.2 billion by 2035 from $846.2 billion in 2027 with a CAGR of 7.8% from 2027 to 2035. The major drivers for this market are continuous innovation in communication technologies drives demand for upgraded hardware solutions, the growing adoption of internet of things (IoT) devices increases the need for reliable communication hardware for connectivity, and advanced communication hardware to support faster data transfer speeds.

• Lucintel forecasts that, within the type category, routers is expected to witness the highest growth over the forecast period due to the growing number of connected devices, the expansion of 5g networks, and the rising need for high-speed data transfer..
• Within the application category, internet service provider is expected to witness the highest growth over the forecast period due to significant demand for communication hardware like routers, gateways, and network servers.
• In terms of regions, APAC is expected to witness the highest growth over the forecast period due to the rapid technological advancements and large-scale infrastructure development.

Emerging Trends in Communications Hardware Market

Between 2025 and 2027, the communications hardware market will shift toward cloud based energy efficient systems. More financial resources will flow towards high-speed network switching, optical components and edge systems to support AI workloads and deployment of 5G Advanced and cloud interconnection. According to Lucintel, there will be increased demand for architectures that are resilient and upgradable.

• Digital Manufacturing: Automated Test, Virtual Prototyping and Modular Production are all growing in network equipment and are expected to grow especially fast in Europe due to the EU Chips Act and the €43 billion in local Semiconductor investment by 2030. This will enable rapid development with an even better supply response in the next 3 to 5 years.
• Optical Migration: The proliferation of AI clusters is increasing East-West traffic in data centers, and data center operators are migrating to 800G and 1.6T optical links. The Ethernet Alliance has identified 800GbE as a top industry goal for 2025, and more bandwidth demand will sustain the demand for transceivers and related hardware.
• Energy Efficiency: Purchasing decisions for data center equipment will be more dependent on power consumption. By 2026, the IEA predicts that data center consumption of electricity globally will exceed 1,000 TWh. Consequently, suppliers will integrate liquid cooling, silicon photonics and efficient power systems.
• Open Architectures: Telecom operators are continuing to separate hardware from software through Open RAN, virtualization and interoperable interfaces. Japan's NTT DOCOMO has stated that more than 10,000 Open RAN base stations will be deployed by 2025. Standards-based procurement will pressure incumbent vendors to offer disaggregated, upgradeable systems.
• Regional Supply Chains: Export restrictions and resilience initiatives are promoting dual sourcing for semiconductors, fiber components and assembly. The United States has allocated $39 billion in CHIPS Act incentives until 2025. This will lead to a more dispersed manufacturing base, but will be limited by qualification costs and the disjointed nature of the standards.

From 2025 through 2027, vendors in the communications hardware space will compete on the economics of systems as opposed to port counts. Purchasing decisions will be based on energy efficiency, optical capacity, open architectures and regional production. Vendors that offer hardware with software will capture a significant and sustainable share of the market, while the rest will face negative pressures on their profitability as operators require more upgradability, lower power consumption and rapid deployment.

Recent Developments in the Communications Hardware Market

The communications hardware market is experiencing a new level of activity that will peak around 2027. Operators are upgrading their networks to support innovations in AI, 5G-Advanced, and fiber density. During this period, investors will funnel capital towards optical and data center networking solutions, as supplier consolidation transforms the market. According to Lucintel, legacy networking equipment will face price competition, while new, higher-growth networking technology raises capital.

• Optical Consolidation: In February 2025, Nokia finalized its $6.65 billion purchase of Infinera. With the acquisition, Nokia gained more coherent optics market share to support the anticipated need to serve the cloud and artificial intelligence networks with increased bandwidth.
• AI Switching Launch: In March 2025, Broadcom released its Tomahawk 6. It is aimed at deploying 102.4 Tbps of Ethernet switching capacity in data centres. Higher switching capacity at lower costs will allow operator spending on data center fabric, compared to deploying traditional enterprise switching infrastructure.
• Supplier Merger: In July 2025, HPE completed its $14 billion purchase of Juniper Networks. This creates even greater market pressure on Cisco, and the combined networking hardware and software with services offerings may further encourage bundled product sales to enterprise and telecom customers.
• Photonic Networking: In March 2025, NVIDIA revealed Spectrum-X Photonics with networking technology aimed at large AI and data center cluster deployments with 1.6 terabit links. It offers a larger addressable market for copackaged co-packaged optics and seamless electrical interconnects, which have distance and power consumption constraints.
• Incentives To Build Things in India: In May 2025, Indian government approved other domestic manufacturing of semiconductors and electronics projects worth ₹1.26 trillion. Regional manufacturing will help create more regional supply chains, help create less reliance on imports, and help get communications hardware vendors to make assembly units and component units near where the demand is highly concentrated.

The market is entering a phase where capacity investment will spur more investments, but the returns will greatly vary based on the category. Optical components, high speed switching, and AI interconnects are expected to grow rapidly in the next 4 years. The market will get fewer number of suppliers with more orders, thus larger purchasing potential for larger audiences while strengthening their business integrations. Vendors of manufacturing units that are flexible and boast significant advancements in energy efficiency have a strong competitive advantage.

Strategic Growth Opportunities in the Communications Hardware Market

The 2024 to 2026 market cycle for communications hardware will be defined by changes to network architecture due to the impact of artificial intelligence (AI) workloads, private 5G, edge computing, and data center investments. According to Lucintel, market demand will focus on bandwidth, latency, energy efficiency, and special purpose infrastructure beyond connectivity.

• AI Data Center Networking: High-speed networking switches and transceivers along with associated products will command a significant share of the market due to the increased need for model training. In January 2025, Meta announced it would spend between $40 - $65 billion. This will influence the market in the next few years with the need for higher port speeds, denser designs, and lower latency.
• Private 5G Solutions: Manufacturers will be able to sell integrated radios, small cells, core equipment, and industrial gateways to factories, ports, and utilities. In February 2025, Ericsson stated that they deployed enterprise 5G in North America more than 50 times. Markets will continue to grow as companies shift from disparate wireless systems to dedicated private, application-specific networks.
• Optical Connectivity: Special use cases in data center networking will provide high opportunity for activities such as co-packaged optics, modules, and fiber-based designs. In March 2025, NVIDIA revealed Spectrum -X Ethernet systems with 800Gb/s. This will increase demand for optical hardware to support east-west traffic across AI clusters.
• Edge Hardware: Hardened routers and gateways along with compact servers can be sold for rugged environments and remote industrial sites, defense, and energy. In April 2025, the €1.8 billion Space Connectivity project was approved by the European Commission. Edge deployment will increase as local processing limits the need for cloud infrastructure.
• Circular and Energy-efficient Devices: With regard to procurement emissions, refurbishment opportunities, modular repair, low-power designs, and take-back equipment programs offer circular revenue streams. In May 2025, the final scope of the EU's Ecodesign framework extended repairability to a broader range of product categories. An emphasis on lifecycle sustainability performance in supplier evaluations will become more prominent in tenders.

in Terms of Early Adoptions, Suppliers of Communications Hardware May Adopt Architectural Shifts Rather than Focus on Each Device in Turn. Higher Returns Will Be Generated from Equipment that is Closely Correlated To Customer Outcomes that Matter Most: Density and control of computing and networking, latency and power consumption, and extended equipment lifespans. There is considerable value to forming partnerships with cloud computing providers and service integrators and with industrial customers who make buying decisions that span the entire value chain (hardware, software, installation, and support). Competitive advantage will come to those suppliers who can offer a standardized integrated platform with a high degree of flexibility at the component level. Traditional competitors will have a more difficult time competing against deep engineering specialization companies in this industry, and will be forced to rely on rugged edge systems with specialized optical components. There is clear evidence that over the next five years, performance in the field will be a more important criteria for investors than product breadth.

Communications Hardware Market Drivers and Challenges

The market for communications hardware will be influenced by both demand and supply in the next wave of technological advancement. Verticals focused on data transfer and storage will continue to grow in the marketplace as will their requirements for Jones. Traditional equipment in the supply chain, such as cabling, routers, and switches, will see increased demand due to the growing popularity of devices and cloud-based technologies. However, there will be challenges in manufacturing hardware due to pressures in the supply chain, security threats, and capital costs. Lucintel will tell us how these issues will impact competition and funding worldwide.

The driving forces in the market for communications hardware will include:

• Customer Demand: Customer demand will be driven primarily by the shift to work-from-home, learning-from-home, and increased use of online cloud services and data-intensive applications such as video streaming. The number of Internet users increased to over 5.5 billion and will increase the need for more capacity and higher data transfer speeds. Rapidly growing demand for faster connectivity will drive businesses to upgrade their deployment of hardware in the next 3-5 years.
• Technology: New advancements in networking technologies combined with the introduction of 5G Advanced and Open RAN will make networks more intelligent and flexible. The release of specifications for 5G Advanced by the 3GPP in March 2025 facilitated the development of higher and improved vendor equipment. New developments will require replacement of current hardware, and there will be a market pull for hardware capable of supporting high levels of Artificial Intelligence, dense connectivity, and real-time services.
• Government Support: Subsidized access to broadband, access to deployment of spectrums, digital sovereignty, and safe telecommunications infrastructure effectively create demand for equipment investments. The EU Digital Decade aims to achieve gigabit connectivity for all households by 2030, thus creating a long-term market drive for fiber, transmission, and access gear. For the next 3 to 5 years, governments will provide public funding, universal service obligations, and infrastructure mandates. These will create additional opportunities for equipment suppliers and stimulate investments in equipment designed to comply with security, interoperability, and energy efficiency requirements.
• Sustainability: Operators of telecommunications and data centers are focusing their efforts on reducing energy use while encouraging the innovation of equipment that incorporates recyclable materials, can be reused, and employs efficient cooling techniques. The IEA reported in 2020 that data centers consumed 415 terawatt-hours of electricity (approximately 15% of the total electricity consumed) in 2024, creating a great sense of urgency to address the growing need to reduce the energy demand of networks. Over the next 3 to 5 years the emphasis on sustainability will spur demand for power management software, modular equipment, passive optical systems, and low-energy consumption chips. In addition, environmental reporting will influence procurement decisions.
• Manufacturing Efficiency: Manufacturers of telecommunications equipment employing semiconductor automation, advanced semiconductors, modular designs, and localized production are able to reduce production times while improving quality and reducing component lead times. The semiconductor industry's 2025 revenue was $600 billion, showing the huge support of the industry for continued investment in communications components and manufacturing capacity. For the next 3 to 5 years, efficient manufacturing will allow equipment to be available and customized while suppliers maintain profitability through volatile raw material costs and complex international supply chains.

The market faces challenges pertaining to:

• Supply Chain Volatility: Communications hardware relies on customized semiconductors as well as various optics, rare materials, and complex supply chains. Most manufacturing is concentrated, production is complicated by geopolitical situations, shipping is unpredictable, and certain materials are subject to export controls. 2025 semiconductor sales reached $600 billion. Strong demand means supply of choice components will remain highly constrained in the next 3 to 5 years. Suppliers will need to dual source, manufacture regionally, develop better supply chain control, and implement flexible inventory management systems to reduce disruptions and maintain trustworthy delivery schedules.
• Cybersecurity and Interoperability Concerns: Increasingly connected hardware creates concern for the operators, enterprises, governments, and end users. Products developed by different vendors and different generations can create interoperability issues, as well as software and firmware update, and management concerns. The EU's Cyber Resilience Act came into force in December 2024 and placed significant requirements on vendors of connected products starting in 2027. In the next 3 to 5 years, connected products will incur increased costs of secure design, testing, and certification, with an even greater cost of vulnerability management and long-term software support.
• High Capital Expenditure: Fiber deployment, satellite, 5G, data center, and advanced manufacturing facilities require a significant capital investment and a lengthy return on investment. Capital budgets will be constrained, and the uncertainty of the return on investment of projects will lead to slower investment resulting in a delay of deployment in rural areas. The International Telecommunication Union (ITU) 2025 assessments showed that billions of people remain without internet access, illustrating the need for substantial investment and the gap that remains to be filled. In the next 3 to 5 years, investments are expected to remain limited and deployment will favor a phased approach with shared infrastructure and deployment of equipment that can measurably reduce operating costs.

Increased demand for data traffic, digital services and artificial intelligence, as well as the adoption of cloud computing, connectivity, and other services and offerings, will lead to market growth for all equipment and components. Innovations in technology will be driven by the principles of sustainability. In the communications hardware market, the first movers will build secure and interoperable infrastructure due to the expected future regulations. However, volatility of the supply chain, mandatory cybersecurity spending, and significant outlays of capital will constrain market growth and exacerbate profitability challenges. High growth and profitability in this sector will be achieved by manufacturers who can sell equipment that is energy efficient, modularly designed, sourced regionally, have a long service lifespan, and low cost. The market will retain its positive outlook for the long-term, but challenges due to rapid advancement of technologies will be balanced against affordability and consistency while maintaining performance and service levels in various geographic segments and customer groups.

List of Communications Hardware Market Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies communications hardware market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the communications hardware market companies profiled in this report include-

• Ericsson
• Nokia
• ZTE
• Telefonica
• Huawei
• Samsung
• Bharti Airtel
• Vodafone
• China Mobile
• Korea Telecom

Communications Hardware Market by Segment

The study includes a forecast for the global communications hardware market by type, application, and region.

Communications Hardware Market by Type [Value ($B) from 2019 to 2035]:

• Switches
• Routers
• Networking WLAN Equipment
• Set-Top Boxes
• Network Servers
• Gateway
• Others

Communications Hardware Market by Application [Value ($B) from 2019 to 2035]:

• Telecom Operators
• Internet Service Provider
• Cable Operator
• Business and Government
• Personal User

Communications Hardware Market by Region [Value ($B) from 2019 to 2035]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the Communications Hardware Market

The market of communications hardware is being redefined with an emphasis on semiconductor sovereignty and the advanced packaging of 5G infrastructure. Until at least 2027, governments are offering subsidies that are tied to local production and supply-chain resilience. Competitive manufacturing positions are reliant on these strategies, according to the latest analysis by Lucintel.

• United States: TSMC has pledged to invest $165 billion to set up U.S. manufacturing with three additional fabs and two advanced-packaging facilities and an R&D center (March 2025). This investment is intended to enhance the country's supply of processors and networking and communications equipment as well as the advanced-node ecosystem in the U.S. This will also support domestic supplies over the next three to five years.
• China: 5G-Advanced: China Mobile reported the provision of 5G-A services in more than 300 cities and exceeding 20,000 base stations (May 2025). An even larger deployment of this service will sustain the purchase of radio units, antennas, optical equipment, and hardware of core networks as operators continue to upgrade their networks through 2030.
• Germany: Semiconductor manufacturing: Infineon intends to invest €5 billion to expand its power-semiconductor manufacturing facility in Dresden (February 2025). This investments will help fulfill demand for semiconductors in the automotive, industrial and communications sectors across Europe and set up equipment manufacturing and localize the supply chain of semiconductors in Europe.
• India: Semiconductor ecosystem: Tata Electronics' Dholera semiconductor fab is an estimated ₹91,000 crore investment and aims to begin operations in 2026 (February 2025). This investment will fulfill onsite fabrication and packaging and will reduce the dependence on imports of communications equipment.
• Japan: Milestones in advanced node technology: Rapidus started building its 2-nanometer pilot line in Hokkaido IIM-1 in preparation for prototype production in 2025 (April 2025). The government's support will drive the future supply of high-end processors and networking components in Japan and bring with it materials, equipment and package partners.

Features of the Global Communications Hardware Market

• Market Size Estimates: communications hardware market size estimation in terms of value ($B).
• Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions.
• Segmentation Analysis: communications hardware market size by type, application, and region in terms of value ($B).
• Regional Analysis: communications hardware market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the communications hardware market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape of the communications hardware market.

Analysis of competitive intensity of the industry based on Porter's Five Forces model.

If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.

This report answers following 11 key questions:

• Q.1. What are some of the most promising, high-growth opportunities for the communications hardware market by type (switches, routers, networking WLAN equipment, set-top boxes, network servers, gateway, and others), application (telecom operators, internet service provider, cable operator, business and government, and personal user), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
• Q.2. Which segments will grow at a faster pace and why?
• Q.3. Which region will grow at a faster pace and why?
• Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
• Q.5. What are the business risks and competitive threats in this market?
• Q.6. What are the emerging trends in this market and the reasons behind them?
• Q.7. What are some of the changing demands of customers in the market?
• Q.8. What are the new developments in the market? Which companies are leading these developments?
• Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
• Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
• Q.11. What M&A activity has occurred in the last 6 years and what has its impact been on the industry?

Table of Contents

1. Executive Summary

2. Market Overview

• 2.1 Background and Classifications
• 2.2 Supply Chain

3. Market Trends & Forecast Analysis

• 3.2 Industry Drivers and Challenges
• 3.3 PESTLE Analysis
• 3.4 Patent Analysis
• 3.5 Regulatory Environment

4. Global Communications Hardware Market by Type

• 4.1 Overview
• 4.2 Attractiveness Analysis by Type
• 4.3 Switches: Trends and Forecast (2019-2035)
• 4.4 Routers: Trends and Forecast (2019-2035)
• 4.5 Networking WLAN Equipment: Trends and Forecast (2019-2035)
• 4.6 Set-Top Boxes: Trends and Forecast (2019-2035)
• 4.7 Network Servers: Trends and Forecast (2019-2035)
• 4.8 Gateway: Trends and Forecast (2019-2035)
• 4.9 Others: Trends and Forecast (2019-2035)

5. Global Communications Hardware Market by Application

• 5.1 Overview
• 5.2 Attractiveness Analysis by Application
• 5.3 Telecom Operators: Trends and Forecast (2019-2035)
• 5.4 Internet Service Provider: Trends and Forecast (2019-2035)
• 5.5 Cable Operator: Trends and Forecast (2019-2035)
• 5.6 Business and Government: Trends and Forecast (2019-2035)
• 5.7 Personal User: Trends and Forecast (2019-2035)

6. Regional Analysis

• 6.1 Overview
• 6.2 Global Communications Hardware Market by Region

7. North American Communications Hardware Market

• 7.1 Overview
• 7.2 North American Communications Hardware Market by Type
• 7.3 North American Communications Hardware Market by Application
• 7.4 United States Communications Hardware Market
• 7.5 Mexican Communications Hardware Market
• 7.6 Canadian Communications Hardware Market

8. European Communications Hardware Market

• 8.1 Overview
• 8.2 European Communications Hardware Market by Type
• 8.3 European Communications Hardware Market by Application
• 8.4 German Communications Hardware Market
• 8.5 French Communications Hardware Market
• 8.6 Spanish Communications Hardware Market
• 8.7 Italian Communications Hardware Market
• 8.8 United Kingdom Communications Hardware Market

9. APAC Communications Hardware Market

• 9.1 Overview
• 9.2 APAC Communications Hardware Market by Type
• 9.3 APAC Communications Hardware Market by Application
• 9.4 Japanese Communications Hardware Market
• 9.5 Indian Communications Hardware Market
• 9.6 Chinese Communications Hardware Market
• 9.7 South Korean Communications Hardware Market
• 9.8 Indonesian Communications Hardware Market

10. ROW Communications Hardware Market

• 10.1 Overview
• 10.2 ROW Communications Hardware Market by Type
• 10.3 ROW Communications Hardware Market by Application
• 10.4 Middle Eastern Communications Hardware Market
• 10.5 South American Communications Hardware Market
• 10.6 African Communications Hardware Market

11. Competitor Analysis

• 11.1 Product Portfolio Analysis
• 11.2 Operational Integration
• 11.3 Porter's Five Forces Analysis
  • Competitive Rivalry
  • Bargaining Power of Buyers
  • Bargaining Power of Suppliers
  • Threat of Substitutes
  • Threat of New Entrants
• 11.4 Market Share Analysis

12. Opportunities & Strategic Analysis

• 12.1 Value Chain Analysis
• 12.2 Growth Opportunity Analysis
  • 12.2.1 Growth Opportunities by Type
  • 12.2.2 Growth Opportunities by Application
• 12.3 Emerging Trends in the Global Communications Hardware Market
• 12.4 Strategic Analysis
  • 12.4.1 New Product Development
  • 12.4.2 Certification and Licensing
  • 12.4.3 Mergers, Acquisitions, Agreements, Collaborations, and Joint Ventures

13. Company Profiles of the Leading Players Across the Value Chain

• 13.1 Competitive Analysis
• 13.2 Ericsson
  • Company Overview
  • Communications Hardware Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.3 Nokia
  • Company Overview
  • Communications Hardware Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.4 ZTE
  • Company Overview
  • Communications Hardware Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.5 Telefonica
  • Company Overview
  • Communications Hardware Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.6 Huawei
  • Company Overview
  • Communications Hardware Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.7 Samsung
  • Company Overview
  • Communications Hardware Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.8 Bharti Airtel
  • Company Overview
  • Communications Hardware Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.9 Vodafone
  • Company Overview
  • Communications Hardware Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.10 China Mobile
  • Company Overview
  • Communications Hardware Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing
• 13.11 Korea Telecom
  • Company Overview
  • Communications Hardware Business Overview
  • New Product Development
  • Merger, Acquisition, and Collaboration
  • Certification and Licensing

14. Appendix

• 14.1 List of Figures
• 14.2 List of Tables
• 14.3 Research Methodology
• 14.4 Disclaimer
• 14.5 Copyright
• 14.6 Abbreviations and Technical Units
• 14.7 About Us
• 14.8 Contact Us