The Telecommunication Networking Equipment Manufacturing industry in the US is undergoing substantial transformations due to a blend of rising input costs, technological advancements, and evolving market demands. While the sector faces challenges from increased production expenses linked to soaring copper prices and a global semiconductor shortage, there’s hope on the horizon from federal support through the CHIPS Act and the $42.45 billion Broadband Equity, Access and Deployment Program (BEAD). Recent shifts toward cloud computing and software-defined networks underscore a pivotal moment for the industry, compelling traditional hardware manufacturers to adapt quickly or risk obsolescence. Revenue has plummeted, declining at a CAGR of 11.5% to $2.9 billion in 2024. This includes a drop of 5.5% in 2024, in tandem with falling profit, as the industry continues to struggle due to the pandemic and a shifting technological landscape. The telecommunications equipment industry has navigated a complex landscape marked by competitive pressures and mounting input costs. The semiconductor shortage stoked by the COVID-19 pandemic revealed vulnerabilities within the supply chain, compelling companies to seek innovative supply solutions. Meanwhile, the accelerated shift to cloud computing reduced demand for traditional networking hardware, prompting manufacturers to pivot toward integrated and software-centric solutions. The industry is also experiencing increased automation within manufacturing processes, reducing labor demand and driving employment toward more technically skilled positions. As market saturation grows, telecom companies have intensified efforts to innovate and upgrade systems, as obsoletion of products begins to cut into revenue. Industry revenue is posied to continue its downward trajectory sliding at a CAGR of 4.3% to reach $2.4 billion in 2029. Federal endorsements through infrastructure and semiconductor initiatives should enhance stateside production and aid market growth. Manufacturers will need to maintain investment in R&D to keep pace with rapid technological advancements, particularly as the market embraces software-driven solutions over traditional hardware. The stability in copper prices could further spur innovative solutions, opening doors to sustainable alternatives like fiber optics. However, with uncertain international trade dynamics, US companies may have to bolster domestic manufacturing capabilities while navigating geopolitics. The industry's trajectory will hinge on its ability to blend resilience with innovation, adapting to future demands in an ever-evolving digital landscape.

Snapshot img { margin: 10px !important; } Global outlook of the enterprise communication infrastructure marketTechnavio’s market research analysts have predicted that the global enterprise communication infrastructure market will post an impressive CAGR of more than 16% by 2020. The rise in the use of mobile devices such as smartphones and tablets has increased mobility. It also facilitates real-time tasking such as online chatting and instant messaging and also non-real-time communication services such as integrated voice mail, e-mail, and unified messaging. This has led to the increase in adoption of BYOD (bring your device) initiatives by IT organizations. This, in turn, will result in the consumerization of IT which is considered to be one of the major factors that will contribute to the growth of the market during the forecast period. IT consumerization allows employees to use their personally preferred mobile devices and personal computers instead of corporate-sanctioned devices, thereby increasing employee satisfaction and productivity.This market research report identifies the integration of social networking into enterprise communication infrastructure as one of the major trends that will gain traction in this market in the coming years. Enterprises have started utilizing social media as a platform for marketing and communication. Though the way of communication through the integration of communication tools and social networking is yet to be standardized, enterprise social networking is already being integrated into enterprise communication infrastructure. The Americas will post a tremendous revenue of almost USD 32 billion by 2020. This market analysis identifies the presence of large enterprises, the availability of high-speed broadband networking, and the increasing number of hosted servers as major factors that will lead to this region dominating the market throughout the forecast period.Competitive landscape and key vendorsCharacterized by the presence of several multinational business communication solution providers, this market appears highly fragmented. The rise in demand for enterprise communication infrastructure among large enterprises and SMEs is likely to intensify vendor competition in the market. Established vendors have started acquiring small companies to expand their product portfolio, increase their market share, and enter new markets. Due to the rapid increase in the number of vendors, the enterprise communication system market is expected to witness more acquisitions in the next four years.The leading vendors in the market are –Alcatel-Lucent Avaya Cisco Ericsson Genband IBM Microsoft Mitel NEC Unify VerizonThe other prominent vendors in the market 8x8, Aastra, Broadsoft, Configure, Corex, CSC, Damovo, Dell, Genesys, HP, Huawei, Interactive Intelligence, ITALTEL, Juniper Networks, Logitech, Mindtree, Orange, Polycom, RingCentral, ShoreTel, and Toshiba.Segmentation by end-user and analysis of the enterprise communication infrastructure marketEnterprises GovernmentDuring 2015, the enterprises segment accounted for approximately 85% of the total share and dominated the market. The estimated increase in adoption of enterprise communication products and services by IT enterprises, favorable government policies in the healthcare and BFSI industries, and the establishment of new SMEs in the IT industry will fuel the growth of the market in the coming years.Segmentation by application and analysis of the enterprise communication infrastructure marketTelephony (includes VoIP and PBX(private branch exchange)) Conferencing (audio, video, and web) Email and messaging (instant and unified) Collaboration applications Contact centers CEBP (communication-enabled business process)According to this market research and analysis, the telephony segment will dominate the enterprise communication infrastructure market throughout the forecast period and will account for about 40% of the total market share by 2020. VoIP (voice over internet protocol) allows both voice and data communications over a single network thereby reducing operational costs. Additionally, the decreasing price of IP telephony components has induced many SMEs to adopt unified communication IP (internet protocol) telephony, which will fuel the growth of the business communication system market in this segment during the forecast period.Key questions answered in the report includeWhat will the market size and the growth rate be in 2020? What are the key factors driving the enterprise communication infrastructure market? What are the key market trends impacting the growth of the enterprise communication infrastructure market? What are the challenges to market growth? Who are the key vendors in the enterprise communication infrastructure market? What are the market opportunities and threats faced by the vendors in the enterprise communication infrastructure market? Trending factors influencing the market shares of the Americas