$28.7bn
$X.Xbn
52,948
551
$X.Xbn
Communication equipment manufacturers have endured multiple challenges and have struggled to maintain profit levels. This trend is mainly driven by high research and development (R&D) costs and falling equipment prices driven by elevated price competition. Since the industry is diverse, specific product segments may perform better than others, and large companies with contracts in place will be less affected than smaller manufacturers. The need for work-from-home equipment boosted demand for manufacturers, although falling input and product prices resulted in contracting revenue. The pandemic and other supply chain disruptions have greatly hindered the industry, and the volatility in the cost of semiconductors, along with investor uncertainty, has posed immense challenges for manufacturers. As a result, revenue has been falling at an estimated CAGR of 2.4% to $28.7 billion by the end of 2024, including a 3.2% drop in 2024 alone.
The decades-long trend of offshoring manufacturing capabilities harms domestic manufacturers, as they cannot compete with the lower prices because of labor and environmental regulations. Many companies have moved operations to Asian countries, particularly China and Vietnam; these countries contribute over 50.0% of total imports. Rising overhead costs have pushed domestic manufacturers to continue offshoring manufacturing activities, resulting in declining enterprise numbers and workforces. However, restrictions imposed on imports from China for national security reasons incentivize some mid-size manufacturers to return to national production.
Manufacturing revenue is expected to slow down over the upcoming years, resulting from declining TV and radio subscriptions. Widespread adoption of 5G technologies will boost communication equipment sales, as the new network will support new products and improve performance. Despite this, import penetration will still remain high overall, although they will wane, motivated by international scrutiny and a reversing trade-weighted index. Domestic manufacturers are poised to entirely shift toward high-end or niche products to differentiate from low-cost imports, propelling the export market toward growth. Overall, communication equipment manufacturing revenue is slated to recover, growing at an estimated CAGR of 1.5% to $30.8 billion in 2029.
Industry revenue has declined at a CAGR of 2.4 % over the past five years, to reach an estimated $28.7bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Commscope Inc. | 5,767.2 | 857.9 | 14.9 | |
L3harris Technologies, Inc. | 4,780.6 | 361.8 | 7.6 | |
Garmin Ltd. | 3,636.4 | 40.0 | 1.1 |
To view the market share and analysis for all 22 top companies in this industry, view purchase options.
Industry revenue is measured across several distinct product and services lines, including Broadcast, studio and related electronic equipment, Wireless networking equipment and Radio station equipment. Broadcast, studio and related electronic equipment is the largest segment of the Communication Equipment Manufacturing in the US.
Radio station equipment is slowly expanding
Operators in this industry primarily manufacture broadcasting and other wireless communication equipment. Examples of such equipment include antennas, set-top boxes, GPS systems, cell phones, satellite uplink technologies and radio and TV broadcasting equipment. Operators in this industry do not manufacture radio or TV sets, intercoms or equipment to test communication signals.
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NAICS 33422 - Communication Equipment Manufacturing in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Imports force domestic manufacturers to produce high-end products. The inability to compete with low-priced imports forced manufacturers to change their pricing strategy. Wit...
Learn about an industry's products and services, markets and trends in international trade.
Cord-cutting trends and subscription services threaten markets. These replace traditional radio and TV broadcasts and require significantly less equipment distribution.
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Proximity to trade routes benefits manufacturers engaging in imports and exports. Companies in the West have easy access to Asian imports, while Mid-Atlantic and Southeast ma...
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.
Imports of communication equipment are strong and unlikely to face significant losses. Most manufacturers have fully or partially offshored operations to lower production cos...
Learn about the performance of the top companies in the industry.
Large companies offering network services rolled out 5G networks. The new network supports other technologies besides cell phones and computers, creating growth opportunities...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
FCC Regulations Keep Devices in Check. The FCC ensures that devices don’t disrupt others by strictly regulating radio frequency usage. Companies must get FCC approval before ...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Profitability is shrinking under economic pressure. With weakened demand from major markets and rising input costs, especially semiconductors, many manufacturers are dwindlin...
Including values and annual change:
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Key data sources in the US include:
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:
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The market size of the Communication Equipment Manufacturing in the US industry in United States is $28.7bn in 2024.
There are 551 businesses in the Communication Equipment Manufacturing in the US industry in United States, which has declined at a CAGR of 3.0 % between 2019 and 2024.
The market size of the Communication Equipment Manufacturing in the US industry in United States has been declining at a CAGR of 2.4 % between 2019 and 2024.
Over the next five years, the Communication Equipment Manufacturing in the US industry in United States is expected to grow.
The biggest companies operating in the Communication Equipment Manufacturing market in United States are Commscope Inc., L3harris Technologies, Inc. and Garmin Ltd.
Manufacturing transmitting-and-receiving antennas and Manufacturing cable TV equipment are part of the Communication Equipment Manufacturing in the US industry.
The company holding the most market share in United States is Commscope Inc..
The level of competition is high and increasing in the Communication Equipment Manufacturing in the US industry in United States.