U.S. Communication Equipment Market Size, Share & Trends Analysis Report By Product (Mobile, Fixed-line), Competitive Landscape, And Segment Forecasts, 2018 - 2025

Industry Insights

The U.S. communication equipment market size was valued at USD 83.22 billion in 2016. Rapidly expanding the communication sector is expected to trigger the growth of this market. Supportive regulations for fixed-line devices by the telecom regulatory bodies are further contributing to the market demand. Rising need for significant investments to expand the current fiber optic infrastructure in the country is gaining prominence to support the upcoming 5G wireless technology. This factor is also anticipated to fuel market expansion over the forecast period.

Increased smartphone penetration in the U.S. is estimated to drive the market. On the other hand, extensive usage of wireless communication equipment has led to a subsequent decline in the sales of traditional fixed-line devices and equipment. Mobile devices have become predominant communication equipment owing to the launch of new smartphones with enhanced features and in-built applications.

According to the U.S. General Services Administration, mobile device penetration in the country increased by nearly 4.7 % in 2016. The survey further indicated that mobile is the primary way of accessing the Internet. Furthermore, need for enterprises to become digital in order to remain competitive is expected to increase the significance of communication equipment in the country.

Enterprises are upgrading their network infrastructure to increase wireless capacity. They are further investing to modernize their network, which is expected to fuel industry growth over the forecast period. Rising mobility applications for enterprise IT will drive new investments in wireless infrastructure. As the Internet-of-Things (IoT) ecosystem continues to expand, the market for wireless devices is expected to witness growth over the forecast period.

The expansion of wireless bandwidth capabilities and the increasing investment by telecom operators to deploy high-speed network infrastructure is expected to provide an impetus to the demand for communication equipment compatible with the changing network dynamics. Furthermore, faster and efficient communication needs, and the growing rage of social media is enabling users to adopt Voice over Internet Protocol services, thereby contributing to industry growth.

Product Insights

The fixed-line communication equipment segment contributed to a revenue share of less than 4.0% in 2016. The fixed-line segment is expected to witness a decline owing to the increasing popularity and penetration of wireless devices. Furthermore, as the innovations are comparatively low in fixed-line segment, there has been a growing trend of transition toward better and efficient networking devices. The industry is witnessing high demand in the mobile devices segment.

Integration of new features and advanced technologies encourages customers to replace their smartphones quite often with the latest devices. Moreover, ubiquitous access to the Internet, popular Bring-Your-Own-Device (BYOD) trend and rising user mobility is boosting the demand for these products in the country. Growing deployment of affordable and converged security solutions for mobile devices is also expected to contribute toward the industry growth. Moreover, extensive usage of mobile phones to access the Internet would also augment the demand for U.S. communication equipment market.

According to the U.S. Census Bureau, in 2015, 77.2 % and 76.7 % of the households had internet and broadband subscriptions, respectively. Changing budget allocations and growing IT spending in the country are propelling the demand for technologically advanced products to upgrade the existing enterprise infrastructure. Additionally, increasing usage of wireless LAN by enterprises is also expected to augment the industry growth.

U.S. Communication Equipment Market Share Insights

Key industry players include Apple, Inc.; Samsung Electronics Co. Ltd.; LG Electronics, Inc.; and Lenovo Group Ltd. Manufacturers focus on enhancing their product portfolio to retain their market presence. The equipment manufacturers are also replacing slower Digital Subscriber Line (DSL) Internet service and cable systems with fiber-optic networks to sustain in the highly competitive market.

Furthermore, the telecom equipment industry witnesses intense competition owing to the presence of a large number of companies. Product launch, R&D, collaborations, and M&A activities are some of the key strategies adopted by prominent companies to sustain the competition. For instance, in October 2014, Lenovo Group Limited acquired Motorola Mobility from Google, Inc. and in September 2017, Google, Inc. entered into an agreement with HTC to acquire its smartphone division team to work on the Pixel smartphone line.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country level and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the U.S. communication equipment market report on the basis of product:

• Product Outlook (Revenue, USD Billion, 2014 - 2025)

  • Mobile

  • Fixed-line