Network Communications Equipment Market

The article discusses the increasing demand for network communications equipment globally, with a forecasted growth in market volume and value from 2022 to 2030. Consumption, production, and imports all showed positive trends in 2022, with the United States, China, and Malaysia leading in consumption. The market performance is expected to continue growing, driven by various factors influencing the network communications equipment industry.

Market Forecast

Driven by increasing demand for network communications equipment worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +1.7% for the period from 2022 to 2030, which is projected to bring the market volume to 314M units by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.2% for the period from 2022 to 2030, which is projected to bring the market value to $48.2B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Network Communications Equipment

In 2022, consumption of network communications equipment increased by 9.3% to 273M units, rising for the second consecutive year after three years of decline. The total consumption volume increased at an average annual rate of +3.5% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. Over the period under review, global consumption hit record highs at 284M units in 2017; however, from 2018 to 2022, consumption failed to regain momentum.

The global network communications equipment market value reached $37.4B in 2022, growing by 8.3% 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). The market value increased at an average annual rate of +2.7% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. Over the period under review, the global market hit record highs in 2022 and is expected to retain growth in the near future.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were the United States (70M units), China (57M units) and Malaysia (15M units), together accounting for 52% of global consumption. France, Germany, Japan, Mexico, Russia, the Netherlands, South Korea, Australia, the UK and Poland lagged somewhat behind, together accounting for a further 27%.

From 2012 to 2022, the biggest increases were recorded for Russia (with a CAGR of +15.3%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest network communications equipment markets worldwide were Japan ($6B), the United States ($4.6B) and China ($2.8B), with a combined 36% share of the global market. France, Germany, Malaysia, the Netherlands, South Korea, Russia, Australia, Mexico, the UK and Poland lagged somewhat behind, together accounting for a further 28%.

The Netherlands, with a CAGR of +16.7%, recorded the highest growth rate of market size in terms of the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of network communications equipment per capita consumption in 2022 were Malaysia (450 units per 1000 persons), the Netherlands (292 units per 1000 persons) and the United States (208 units per 1000 persons).

From 2012 to 2022, the biggest increases were recorded for Russia (with a CAGR of +15.2%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Network Communications Equipment

Global network communications equipment production totaled 246M units in 2022, growing by 1.6% against 2021. Over the period under review, production recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 when the production volume increased by 11%. As a result, production reached the peak volume of 259M units. From 2018 to 2022, global production growth remained at a lower figure.

In value terms, network communications equipment production declined to $28.8B in 2022 estimated in export price. In general, production recorded a relatively flat trend pattern. The growth pace was the most rapid in 2015 when the production volume increased by 25% against the previous year. Over the period under review, global production hit record highs at $34.1B in 2018; however, from 2019 to 2022, production failed to regain momentum.

Production By Country

China (160M units) remains the largest network communications equipment producing country worldwide, comprising approx. 65% of total volume. Moreover, network communications equipment production in China exceeded the figures recorded by the second-largest producer, Malaysia (20M units), eightfold. France (9.6M units) ranked third in terms of total production with a 3.9% share.

From 2012 to 2022, the average annual growth rate of volume in China was relatively modest. In the other countries, the average annual rates were as follows: Malaysia (+5.7% per year) and France (+8.5% per year).

Imports

World Imports of Network Communications Equipment

For the third year in a row, the global market recorded growth in purchases abroad of network communications equipment, which increased by 9.1% to 289M units in 2022. Overall, total imports indicated pronounced growth 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, imports increased by +70.4% against 2016 indices. The pace of growth appeared the most rapid in 2018 when imports increased by 14%. Over the period under review, global imports attained the maximum in 2022 and are likely to see steady growth in years to come.

In value terms, network communications equipment imports skyrocketed to $42.1B in 2022. In general, imports continue to indicate a prominent expansion. The pace of growth appeared the most rapid in 2021 with an increase of 37% against the previous year. Over the period under review, global imports hit record highs in 2022 and are expected to retain growth in the near future.

Imports By Country

The United States represented the key importing country with an import of about 76M units, which accounted for 26% of total imports. Taiwan (Chinese) (21M units) ranks second in terms of the total imports with a 7.3% share, followed by Hong Kong SAR (7.2%), Mexico (7.1%), Germany (5.5%), the Netherlands (5.1%) and China (5%). Poland (8.7M units), the Czech Republic (8.2M units), Singapore (8.2M units), Malaysia (7.3M units), the UK (7.3M units) and Russia (7.1M units) followed a long way behind the leaders.

From 2012 to 2022, average annual rates of growth with regard to network communications equipment imports into the United States stood at +4.3%. At the same time, Taiwan (Chinese) (+25.4%), Malaysia (+16.8%), China (+16.4%), Russia (+15.1%), Singapore (+15.0%), Poland (+14.5%), the Czech Republic (+6.3%), Mexico (+5.5%), Germany (+4.9%), the UK (+2.7%) and the Netherlands (+1.9%) displayed positive paces of growth. Moreover, Taiwan (Chinese) emerged as the fastest-growing importer imported in the world, with a CAGR of +25.4% from 2012-2022. By contrast, Hong Kong SAR (-4.0%) illustrated a downward trend over the same period. From 2012 to 2022, the share of Taiwan (Chinese), China, Poland, Singapore, Malaysia and Russia increased by +6.1, +3.3, +1.8, +1.7, +1.7 and +1.5 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest network communications equipment importing markets worldwide were Hong Kong SAR ($6.9B), China ($5.6B) and the United States ($5.3B), together accounting for 42% of global imports. Taiwan (Chinese), the Netherlands, Germany, Mexico, the Czech Republic, Singapore, the UK, Poland, Malaysia and Russia lagged somewhat behind, together accounting for a further 39%.

Among the main importing countries, Taiwan (Chinese), with a CAGR of +49.6%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average network communications equipment import price stood at $146 per unit in 2022, surging by 5.5% against the previous year. Overall, import price indicated prominent growth from 2012 to 2022: its price increased at an average annual rate of +5.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, network communications equipment import price increased by +51.5% against 2019 indices. The growth pace was the most rapid in 2021 when the average import price increased by 23%. Over the period under review, average import prices hit record highs in 2022 and is likely to see steady growth in the immediate term.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was China ($384 per unit), while Russia ($60 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) (+19.4%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Network Communications Equipment

In 2022, shipments abroad of network communications equipment increased by 1.8% to 261M units, rising for the sixth year in a row after three years of decline. In general, total exports indicated a slight expansion from 2012 to 2022: its volume increased at an average annual rate of +1.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +86.0% against 2016 indices. The pace of growth was the most pronounced in 2018 when exports increased by 35%. Over the period under review, the global exports attained the maximum in 2022 and are expected to retain growth in years to come.

In value terms, network communications equipment exports rose notably to $41.3B in 2022. Overall, exports enjoyed a buoyant expansion. The most prominent rate of growth was recorded in 2021 when exports increased by 27% against the previous year. Over the period under review, the global exports hit record highs in 2022 and are expected to retain growth in the immediate term.

Exports By Country

In 2022, China (118M units) represented the main exporter of network communications equipment, constituting 45% of total exports. Taiwan (Chinese) (25M units) took the second position in the ranking, followed by Hong Kong SAR (23M units), Mexico (13M units) and Malaysia (13M units). All these countries together held approx. 28% share of total exports. The following exporters - the Netherlands (10M units), Singapore (8.7M units), Germany (7.5M units), the United States (6.5M units), the Czech Republic (6.5M units), Poland (5.6M units) and Vietnam (4.6M units) - together made up 19% of total exports.

China experienced a relatively flat trend pattern with regard to volume of exports of network communications equipment. At the same time, Vietnam (+70.6%), Poland (+24.9%), Mexico (+15.5%), Germany (+12.1%), Singapore (+9.3%), Malaysia (+6.5%), the Czech Republic (+3.5%) and Taiwan (Chinese) (+2.2%) displayed positive paces of growth. Moreover, Vietnam emerged as the fastest-growing exporter exported in the world, with a CAGR of +70.6% from 2012-2022. The Netherlands and the United States experienced a relatively flat trend pattern. By contrast, Hong Kong SAR (-3.0%) illustrated a downward trend over the same period. While the share of Mexico (+3.6 p.p.), Poland (+1.9 p.p.), Malaysia (+1.8 p.p.), Germany (+1.8 p.p.), Vietnam (+1.8 p.p.) and Singapore (+1.7 p.p.) increased significantly in terms of the global exports from 2012-2022, the share of Hong Kong SAR (-5 p.p.) and China (-9.1 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, Hong Kong SAR ($11.1B), China ($9.8B) and Taiwan (Chinese) ($3.4B) constituted the countries with the highest levels of exports in 2022, together comprising 59% of global exports. The Netherlands, the United States, Malaysia, Mexico, Germany, Vietnam, the Czech Republic, Singapore and Poland lagged somewhat behind, together accounting for a further 33%.

Vietnam, with a CAGR of +62.3%, 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

The average network communications equipment export price stood at $158 per unit in 2022, increasing by 11% against the previous year. Over the period under review, export price indicated a resilient expansion from 2012 to 2022: its price increased at an average annual rate of +5.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, network communications equipment export price increased by +46.5% against 2019 indices. The pace of growth appeared the most rapid in 2015 when the average export price increased by 27% against the previous year. Over the period under review, the average export prices reached the peak figure in 2022 and is likely to see steady growth in the immediate term.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Hong Kong SAR ($487 per unit), while Poland ($40 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Hong Kong SAR (+24.5%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform