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Telecommunication Networking Equipment Manufacturing in the US - Market Research Report (2014-2029)

Alex Petridis Alex Petridis New York, United States Last Updated: December 2024 NAICS 33421

Revenue

$3.0bn

2024

$3.0bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

8,250

Businesses

142

Wages

$XXX.Xm

Telecommunication Networking Equipment Manufacturing in the US industry analysis

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.

Trends and Insights

  • Rising input costs are squeezing the telecom equipment industry's profit. Soaring copper prices and a semiconductor shortage have hiked production expenses, forcing companies to innovate or face shrinking margins.
  • Businesses are shifting from physical offices to mobile connections to cut costs. As more employees work from home, companies are leaning towards broadband and mobile solutions instead of traditional office equipment.
  • High population density leads to a need for more bandwidth. This emphasis on population causes manufacturers to gravitate their establishments to the West and Mid-Atlantic.
  • Trade tensions and tariffs are shaking up the telecom export market. US companies are facing higher costs and losing their competitive edge in international markets, prompting them to explore other growth territories like India and Brazil.

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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 11.5 % over the past five years, to reach an estimated $3.0bn in 2024.

Trends and Insights

Rising input costs are stifling profit

  • The industry is burdened by rising input costs, which have eroded profitability. The price of copper, a key component in manufacturing processes, experienced a staggering surge of over 50% in 2021 alone. This spike significantly increased production expenses for US manufacturers, who cannot fully pass these costs onto consumers due to competitive market constraints.
  • Additional trends and insights available with purchase
Telecommunication Networking Equipment Manufacturing in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to decline over the next five years.

Trends and Insights

Manufacturers navigate uncertainty amid shifting policy and trade dynamics

  • The incoming Trump administration may bring a re-evaluation of existing technology and trade policies, directly impacting the telecommunications networking equipment industry. Key areas of focus could include the CHIPS Act and trade relations with major tech hubs like China.

Biggest companies in the Telecommunication Networking Equipment Manufacturing in the US

Company
Market Share (%)
2024
Revenue ($m)
2024
Profit ($m)
2024
Profit Margin (%)
2024
Cisco Systems, Inc.
1,105.8
212.1
19.2
Arista Networks, Inc.
149.5
56.4
37.7
Juniper Networks B.V.
147.4
5.8
4.0

To view the market share and analysis for all 8 top companies in this industry, view purchase options.

Products & Services Segmentation

Telecommunication Networking Equipment Manufacturing in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Ethernet switches and parts (LAN/WAN), Routers and Telephone equipment. Ethernet switches and parts (LAN/WAN) is the largest segment of the Telecommunication Networking Equipment Manufacturing in the US.

Trends and Insights

Businesses forgoing physical offices are using more mobile connections

  • Telephone equipment encompasses physical devices and network systems facilitating voice communication in traditional and IP-based telephony services. Switchboards help telephone and network switches function properly, ensuring voice transfer for telephones and data for computers.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry manufactures wired (voice and data) telecommunications equipment, including telephone switching systems, telephones and answering machines, data bridges, routers, modems and gateways. In addition, over the past 10 years, the industry has increasingly focused on manufacturing internet protocol-based telecommunications and networking equipment.

What's included in this industry?

Wide area network (WAN) communications equipment (e.g. bridges, routers, gateways) manufacturingModem manufacturingSwitching equipment manufacturingData communications equipment manufacturingTelephone systems and answering machine manufacturing

Companies

Cisco Systems, Inc.Arista Networks, Inc.Juniper Networks B.V.

Purchase this report to view all 8 major companies in this industry.

Related Terms

INTERNET PROTOCOL (IP)BROADBANDETHERNETWIDE AREA NETWORK (WAN)RESEARCH AND DEVELOPMENT (R&D)INTERNET SERVICE PROVIDER (ISP)TELEPHONYCLOUDSELF-OPTIMIZING NETWORK (SON) SOFTWARE

Industry Code

NAICS 2017

NAICS 33421 - Telecommunication Networking Equipment Manufacturing in the US

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

Rising input costs are squeezing the telecom equipment industry's profit. Soaring copper prices and a semiconductor shortage have hiked production expenses, forcing companies...

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

Businesses are shifting from physical offices to mobile connections to cut costs. As more employees work from home, companies are leaning towards broadband and mobile solutio...

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

High population density leads to a need for more bandwidth. This emphasis on population causes manufacturers to gravitate their establishments to the West and Mid-Atlantic.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each state in 2024
  • Number and share of revenue each state accounts for in 2024
  • Number and share of wages each state accounts for in 2024
  • Number and share of employees in each state in 2024

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

Trade tensions and tariffs are shaking up the telecom export market. US companies are facing higher costs and losing their competitive edge in international markets, promptin...

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

Many large telecom companies have outsourced manufacturing overseas. This has significantly reduced the market concentration, causing increased 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
  • Overview of Cisco Systems, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Arista Networks, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Juniper Networks B.V.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 5 additional companies

Detailed analysis

  • Description and key data for Cisco Systems, Inc., and factors influencing its performance in the industry
  • Description and key data for Arista Networks, Inc., and factors influencing its performance in the industry
  • Description and key data for Juniper Networks B.V., and factors influencing its performance in the industry
  • Description, key data and performance trends for 5 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

A strong dollar makes domestically produced goods more expensive, creating an environment where foreign goods are less expensive. Instead, prominent domestic manufacturers ha...

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

Input costs are squeezing profit for telecom manufacturers. The skyrocketing prices of semiconductors and disruptions from global supply chain issues have significantly infla...

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

  • Industry Multiples (2017-2022)
  • Industry Tax Structure (2017-2022)
  • Income Statement (2017-2022)
  • Balance Sheet (2017-2022)
  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • 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)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Telecommunication Networking Equipment Manufacturing in the US industry in United States in 2025?

The market size of the Telecommunication Networking Equipment Manufacturing in the US industry in United States is $3.0bn in 2025.

How many businesses are there in the Telecommunication Networking Equipment Manufacturing in the US industry in 2024?

There are 142 businesses in the Telecommunication Networking Equipment Manufacturing in the US industry in United States, which has declined at a CAGR of 4.7 % between 2019 and 2024.

Has the Telecommunication Networking Equipment Manufacturing in the US industry in United States grown or declined over the past 5 years?

The market size of the Telecommunication Networking Equipment Manufacturing in the US industry in United States has been declining at a CAGR of 11.5 % between 2019 and 2024.

What is the forecast growth of the Telecommunication Networking Equipment Manufacturing in the US industry in United States over the next 5 years?

Over the next five years, the Telecommunication Networking Equipment Manufacturing in the US industry in United States is expected to decline.

What are the biggest companies in the Telecommunication Networking Equipment Manufacturing in the US market in United States?

The biggest companies operating in the Telecommunication Networking Equipment Manufacturing market in United States are Cisco Systems, Inc., Arista Networks, Inc. and Juniper Networks B.V.

What does the Telecommunication Networking Equipment Manufacturing in the US in United States include?

Wide area network (WAN) communications equipment (e.g. bridges, routers, gateways) manufacturing and Modem manufacturing are part of the Telecommunication Networking Equipment Manufacturing in the US industry.

Which companies have the highest market share in the Telecommunication Networking Equipment Manufacturing in the US in United States?

The company holding the most market share in United States is Cisco Systems, Inc..

How competitive is the Telecommunication Networking Equipment Manufacturing in the US industry in United States?

The level of competition is high and increasing in the Telecommunication Networking Equipment Manufacturing in the US industry in United States.

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Methodology

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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 the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

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.

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