Communication Equipment Manufacturing in China - Market Research Report (2014-2029)
Beijing, China
Last Updated: May 2024
4013Revenue
$8.0bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
82,195
Businesses
128
Wages
$XXX.Xm
Communication Equipment Manufacturing in China industry analysis
Over the past decade, the Mobile Telecommunications industry has been taking an increasing market share from the Wired Telecommunications industry due to mobile services' convenience and falling prices. This increasing substitution has reduced demand for wired terminal equipment, a major product segment in the Communication Equipment Manufacturing industry. Industry revenue is expected to decrease an annualized 2.6% over the five years through 2023. In 2023, industry revenue is expected to decline 2.4%, to $8.0 billion. This decline has been driven by the COVID-19 pandemic, China's economic downturn and the falling number of fixed-line telephone users.Industry exports has declined sharply over the past five years. The industry comprises 128 enterprises with approximately 82,195 employees. Both industry enterprise numbers and employment have declined over the past five years, reflecting the industry's declining life cycle phase.In the future, more consumers and household will choose to use mobile phones instead of fixed phones as mobile phone prices continue to fall. Industry revenue is forecast to decrease an annualized 2.0% over the five years through 2028, to $7.2 billion. The business sector will likely remain the industry's major market, while demand from the household sector is anticipated to continue declining.
Trends and Insights
- The industry has been performing poorly. Wired communication equipment demand in China has kept falling due to the rapid development of wireless communication services and the lower mobile communication equipment costs.
- Cordless phones are the largest product segment. Cordless phones sold with multiple handsets are suitable for large households and small offices and are very popular in the Chinese market.
- Industry activities are highly concentrated in Guangdong. As an important manufacturing base in China, Guangdong province has a well-developed and complete information industry chain, comprising over a half of industry revenue.
- The industry exhibits low concentration. The top four companies in the industry combined hold over one-quarter of market share in 2023, indicating low concentration.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.6 % over the past five years, to reach an estimated $8.0bn in 2024.
Trends and Insights
Decreasing fixed-line phone service subscribers has constrained industry growth
- A decline in the number of fixed-line phone subscribers in China, which peaked in 2006 at 367.8 million, has constrained the industry's performance over the past five years.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Wired telecommunication equipment demand will continue falling
- As new 5G (fifth generation) mobile networks and wireless internet networks continue to be rolled out across China, demand for wired telecommunication equipment is forecast to continue falling over the next five years.
Biggest companies in the Communication Equipment Manufacturing in China
| Company | Market Share (%)
2023 | Revenue ($short_0)
2023 |
|---|
There are no companies that hold a large enough market share in the Communication Equipment Manufacturing in China industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Cordless phones, Common phones and Facsimile machines. Cordless phones is the largest segment of the Communication Equipment Manufacturing in China.
Trends and Insights
Cordless phones have higher prices and larger demand
- Cordless phones are commonly used small-scale wireless telephones in daily life, usually composed of a main unit and movable sub machines.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Mobile Phone Manufacturing in China
- Computer Network Equipment Manufacturing in China
- Smart Phone Manufacturing in China
Complementors
- Electronic Transmission Equipment Manufacturing in China
- Switching Equipment Manufacturing in China
International industries
- Telecommunication Networking Equipment Manufacturing in the US
- Communication Equipment Manufacturing in the US
- Electronic Access Control System Manufacturing in the US
- Telecommunications Networking Equipment Manufacturing in Canada
- Communications Equipment Manufacturing in Canada
Table of Contents
About this industry
Industry definition
The Communication Equipment Manufacturing industry in China manufactures wired communication terminal equipment, including wired telephones, videophones, and facsimile equipment. Mobile telephones and modems are not included in this industry.
What's included in this industry?
Cordless phonesCommon phonesFacsimile machinesMultimedia communication terminals and other productsCompanies
Purchase this report to view all major companies in this industry.
Related Terms
PERSONAL DIGITAL ASSISTANT (PDA)PADSPERSONAL HEADPHONE SYSTEM (PHS)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
The industry has been performing poorly. Wired communication equipment demand in China has kept falling due to the rapid development of wireless communication services and th...
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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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
Cordless phones are the largest product segment. Cordless phones sold with multiple handsets are suitable for large households and small offices and are very popular in the C...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- 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
Industry activities are highly concentrated in Guangdong. As an important manufacturing base in China, Guangdong province has a well-developed and complete information indust...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, 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
The industry exhibits low concentration. The top four companies in the industry combined hold over one-quarter of market share in 2023, indicating low concentration.
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 2019-2024
- 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
Companies are exiting the market. This is due to the shrinking demand for communication equipment in China and intensified price competition.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulations are decreasing. The Chinese Government has adjusted its industry supervision and no longer requires network access licenses before production for 11 product categ...
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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
Industry profit margins are low. Shrinking demand and intensified competition have placed downward pressure on prices, pushing down industry profit margins.
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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 China include:
- National Bureau of Statistics China
- General Administration of Customs
- People’s Bank of China
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 Communication Equipment Manufacturing industry in China in 2024?
The market size of the Communication Equipment Manufacturing industry in China is $8.0bn in 2024.
How many businesses are there in the Communication Equipment Manufacturing in China industry in 2024?
There are 128 businesses in the Communication Equipment Manufacturing industry in China, which has declined at a CAGR of 3.0 % between 2019 and 2024.
Has the Communication Equipment Manufacturing industry in China grown or declined over the past 5 years?
The market size of the Communication Equipment Manufacturing industry in China has been declining at a CAGR of 2.6 % between 2019 and 2024.
What is the forecast growth of the Communication Equipment Manufacturing industry in China over the next 5 years?
Over the next five years, the Communication Equipment Manufacturing industry in China is expected to decline.
What does the Communication Equipment Manufacturing in China include?
Cordless phones and Common phones are part of the Communication Equipment Manufacturing industry.
How competitive is the Communication Equipment Manufacturing industry in China?
The level of competition is high and increasing in the Communication Equipment Manufacturing industry in China.
