Telecommunications Networking Equipment Manufacturing in Canada - Market Research Report (2013-2028)
New York, United States
Last Updated: August 2023
NAICS 33421CARevenue
$230.7m
Past 5-Year Growth
Profit
$XX.Xm
Employees
706
Businesses
49
Wages
$XX.Xm
Telecommunications Networking Equipment Manufacturing in Canada industry analysis
The Telecommunications Networking Equipment Manufacturing industry in Canada is a mere fragment of what it was, though the industry has recently expanded. The industry's historical decay is primarily the result of competition from foreign companies that have more efficient cost structures and lower manufacturing costs alongside technological displacement of many fixed telecom products. Starting from a low point in 2013, the industry has recovered to an extent, though only slightly amid more difficult economic operating conditions like COVID-19. This recovery was founded on improving supply chains and a dependence on contract manufacturing services to spread risk while cutting costs more effectively. It is also due to product specialization of the few companies that have been able to remain competitive. Industry revenue, which includes products such as network switches and routers, has stagnated to $230.7 million through the end of 2023, including an incline of 1.6% in 2023 as profit reaches 10.9%.Like many Canadian-produced goods, most industry exports target US markets. The appreciation of the Canadian dollar has hindered export growth, forcing manufacturers to rely on domestic demand, which is consistently under threat from imports. The industry has been able to expand as remaining companies manufacture specialized telecom products and parts, which are still used in many business operations. Industry profit has had volatile behavior amid adverse macroeconomic conditions stemming from the pandemic, the Russian-Ukraine conflict and record high inflation levels.Canadian manufacturers' sluggish response to the changing nature of the manufacturing sector has given industry counterparts in emerging economies time to grow into robust competitors. Foreign enterprises also have developed capabilities to compete with Canadian manufacturers in terms of high value-added goods. Moving forward, Canadian manufacturers will diversify their trade partners, take advantage of global resources and invest heavily in new product development. Industry revenue is forecast to bounce back, rising an annualized 1.6% to an estimated $249.9 million over the five years to 2028, despite enduring heavy competition from abroad.
Trends and Insights
- Import penetration has continuously pressured the industry. Emerging foreign competitors that previously only competed with domestic manufacturers via low-cost alternatives have begun to produce high-value products that rival the industry.
- More routers and network switches have been sold as broadband-enabled devices have rapidly proliferated, resulting in steady demand for switch boards and base stations.
- Ontario and Quebec dominate the industry, with both regions leveraging their proximity to the United States. Location near the Great Lakes facilitates low cost and efficient trade with a key importer.
- There is intense price competition in the industry that stems from low product differentiation. This has given rise to specialization companies that are able to find a niche in the market.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 0.0 % over the past five years, to reach an estimated $230.7m in 2023.
Trends and Insights
Shifting media consumption trends cause an industry slump
- The way individuals work, communicate and consume media has rapidly evolved alongside this digital infrastructure development. To keep up with the evolving medium, internet service providers have had to invest in and update their networks regularly, demanding more high-end networking equipment from industry enterprises.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Demand grows as consumers and businesses rely on voice, video, and data
- With network traffic intensifying, the number of fixed broadband connections will continue rising to serve increasing demand for bandwidth, preventing more robust declines in revenue.
Biggest companies in the Telecommunications Networking Equipment Manufacturing in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Circa Enterprises Inc. | 22.2 | 2.4 | 10.8 | |
Sangoma Technologies Corporation | 3.0 | N/A | N/A |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Telephone sets, switchboards and related equipment, Base stations and Other networking equipment and devices . Telephone sets, switchboards and related equipment is the largest segment of the Telecommunications Networking Equipment Manufacturing in Canada.
Trends and Insights
Trending broadband connectivity benefits telephone sets, switchboards and related equipment
- Telephone switches manufactured in the industry include telecommunications systems used in large companies or in the public switched telephone network, which is the network that enables any telephone in the world to communicate with another.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Wireless Telecommunications Carriers in Canada
- Wired Telecommunications Carriers in Canada
Complementors
- Computer Manufacturing in Canada
- Communications Equipment Manufacturing in Canada
International industries
- Global Computer Hardware Manufacturing
- Telecommunication Networking Equipment Manufacturing in the US
- ATM Manufacturing in the US
- Computer and Electronic Office Equipment Manufacturing in Australia
- Communication Equipment Manufacturing in Australia
Table of Contents
About this industry
Industry definition
Operators in this industry manufacture wired (voice and data) telecommunications equipment, including telephone switching systems, telephones, answering machines, data bridges, routers, modems and gateways. This industry has increasingly focused on manufacturing internet protocol-based telecommunications and networking equipment.
What's included in this industry?
Manufacturing base stationsManufacturing telephone sets, switchboards and related equipmentManufacturing partsManufacturing other networking equipment and devicesCompanies
Circa Enterprises Inc.Sangoma Technologies CorporationPurchase this report to view all 2 major companies in this industry.
Related Terms
INTERNET PROTOCOL (IP)BROADBANDETHERNETWIDE AREA NETWORK (WAN)RESEARCH AND DEVELOPMENT (R&D) INTERNET SERVICE PROVIDER (ISP) TELEPHONY CLOUD SELF-OPTIMIZING NETWORK (SON) SOFTWAREIndustry Code
NAICS 334210 - Telecommunications Networking Equipment Manufacturing in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Import penetration has continuously pressured the industry. Emerging foreign competitors that previously only competed with domestic manufacturers via low-cost alternatives h...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
More routers and network switches have been sold as broadband-enabled devices have rapidly proliferated, resulting in steady demand for switch boards and base stations.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario and Quebec dominate the industry, with both regions leveraging their proximity to the United States. Location near the Great Lakes facilitates low cost and efficient ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each province in 2023
- Number and share of revenue each province accounts for in 2023
- Number and share of wages each province accounts for in 2023
- Number and share of employees in each province in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
There is intense price competition in the industry that stems from low product differentiation. This has given rise to specialization companies that are able to find a niche ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
In 2023, Circa Enterprises announced that it has been acquired by Sicame Group, a world leader in transport and distribution of electrical energy, electro-mobility, safety equ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Circa Enterprises Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Sangoma Technologies Corporation's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Circa Enterprises Inc., and factors influencing its performance in the industry
- Description and key data for Sangoma Technologies Corporation, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
A surge in demand for broadband connectivity has supported the industry and mitigated historic declines. As broadband service becomes more popular, industry products like rou...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit has recovered from the doldrums in 2018 but has stagnated, behaving volatilely in recent years. The uncertain economic conditions brought on by COVID-19, coupled with ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Assets (2016-2021)
- Liabilities (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Telecommunications Networking Equipment Manufacturing industry in Canada in 2024?
The market size of the Telecommunications Networking Equipment Manufacturing industry in Canada is $230.7m in 2024.
How many businesses are there in the Telecommunications Networking Equipment Manufacturing in Canada industry in 2023?
There are 49 businesses in the Telecommunications Networking Equipment Manufacturing industry in Canada, which has declined at a CAGR of 4.3 % between 2018 and 2023.
Has the Telecommunications Networking Equipment Manufacturing industry in Canada grown or declined over the past 5 years?
The market size of the Telecommunications Networking Equipment Manufacturing industry in Canada has been growing at a CAGR of 0.0 % between 2018 and 2023.
What is the forecast growth of the Telecommunications Networking Equipment Manufacturing industry in Canada over the next 5 years?
Over the next five years, the Telecommunications Networking Equipment Manufacturing industry in Canada is expected to grow.
What are the biggest companies in the Telecommunications Networking Equipment Manufacturing market in Canada?
The biggest companies operating in the Telecommunications Networking Equipment Manufacturing market in Canada are Circa Enterprises Inc. and Sangoma Technologies Corporation
What does the Telecommunications Networking Equipment Manufacturing in Canada include?
Manufacturing base stations and Manufacturing telephone sets, switchboards and related equipment are part of the Telecommunications Networking Equipment Manufacturing industry.
Which companies have the highest market share in the Telecommunications Networking Equipment Manufacturing in Canada?
The company holding the most market share in Canada is Circa Enterprises Inc..
How competitive is the Telecommunications Networking Equipment Manufacturing industry in Canada?
The level of competition is high and increasing in the Telecommunications Networking Equipment Manufacturing industry in Canada.
