Lost signal: Industry revenue is expected to decline as overseas competition intensifies

The Telecommunications Networking Equipment Manufacturing industry in Canada has become a mere fragment of what it was in 2000. This decline is primarily the result of external competition from foreign companies that have more-efficient cost structures and lower manufacturing costs. Nonetheless, from a nadir in 2013, the industry has recovered to an extent. This recovery was founded on improved supply chains and a dependence on contract manufacturing services to more effectively spread risk while cutting costs. Thus, revenue for wired telecommunications equipment, which includes products such as network switches and routers, is projected to rise over the five years to 2018, although this belies the broader historical decline of the industry in which this growth is situated...read more.

Industry Statistics & Market Size
Revenue
$129m
Annual Growth 13-18
12.5%
Forecast Growth 18-23
Profit
Employment
712
Businesses
62

Industry Threats & Opportunities

  • The industry has grown during the current period from a historical low
  • Operators continue to experience mounting competition from manufacturers abroad
  • The industry is expected to experience stronger domestic demand for high-margin products
  • Industry Report - Starting a New Business Chapter

    Barriers to entry in the Telecommunications Networking Equipment Manufacturing industry in Canada are high, primarily because the level of technological change in the industry is great and requires industry players to significantly invest in research and development (R&D). Furthermore, operators require highly paid and experienced computer scientists, programmers and electrical engineers to design and develop new products. As a result, funding labour is a substantial barrier to entry.Furthermore, over the years, large operators in Canada and overseas have greatly developed their reputation and brands. This puts companies in a strong position to offer “end-to-end” and “all-in-one” solutions to customers, either by themselves or via strategic alliances with other players. The...purchase to read more.

    Additional Insights for the Telecommunications Networking Equipment Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Telecommunications Networking Equipment Manufacturing Industry are

  • Effective quality control
  • Production of a range, which accommodates future developments
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Number of fixed broadband connections and Number of mobile telephone subscriptions in the Telecommunications Networking Equipment Manufacturing industry impact industry performance..

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    What's in this report

    What is the Telecommunications Networking Equipment Manufacturing Industry?

    Operators in this industry manufacture wired (voice and data) telecommunications equipment, including telephone switching systems, telephones, answering machines, data bridges, routers, modems and gateways. Over the past 10 years, this industry has increasingly focused on manufacturing internet protocol-based telecommunications and networking equipment.

    Industry Products
  • Telephone sets, base stations, headphones and speakers
  • Facsimile machines
  • Answering machines
  • Switches and switchboard equipment
  • Parts/other
  • Industry Activities
  • Manufacturing cordless telephones (except cellular)
  • Manufacturing facsimile equipment
  • Manufacturing modems and carrier equipment
  • Manufacturing private branch exchange (PBX) equipment
  • Manufacturing telephone answering machines
  • Manufacturing telephone carrier line equipment
  • Manufacturing telephone carrier switching equipment
  • Manufacturing telephones (except cellular telephones)
  • Manufacturing wide (WAN) and local area network (LAN) communication equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of fixed broadband connections
  • Number of mobile telephone subscriptions
  • Aggregate private investment
  • Canadian effective exchange rate index

  • Current Performance
  • Shifting media consumption trends
  • Global restructuring
  • Globalization and structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Uncertain demand
  • Growing competition
  • Shifting operations
  • Industry landscape
  • Table: Telecommunications Networking Equipment Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Telecommunications Networking Equipment Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Computer & Packaged Software Wholesaling in Canada
  • Cable Networks in Canada
  • Wireless Telecommunications Carriers in Canada
  • Wired Telecommunications Carriers in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Plastic Pipe & Parts Manufacturing in Canada
  • Semiconductor & Other Electronic Component Manufacturing in Canada
  • Wire & Cable Manufacturing in Canada

  • Products & Services
  • Switches and switchboard equipment
  • Answering machines
  • Parts/other
  • Facsimile machines
  • Telephone sets, base stations, headphones and speakers
  • Chart: Telecommunications Networking Equipment Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retailers
  • Exports
  • Wholesalers/distributors
  • Government
  • Repair and maintenance companies
  • Chart: Major Market Segmentation for the Telecommunications Networking Equipment Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    Profit (before interest and taxes)PurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Telecommunications Networking Equipment Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Telecommunications Networking Equipment Manufacturing Industry

  • Industry Globalization
    Sangoma Technology Corporation, Circa Enterprises Inc.,
  • Table: Sangoma Technology Corporation - financial performance
  • Table: Circa Enterprises Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Telecommunications Networking Equipment Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Telecommunications Networking Equipment Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Number of fixed broadband connections (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Broadband
  • Type of data transmission in which a single medium (wire) can carry several channels at once. It can concurrently transmit data, audio and video over long distances.
  • Cloud
  • An IT hosting and delivery system in which resources are no longer tethered to a user's physical infrastructure but are delivered to and consumed by the user as an Internet-based service.
  • Ethernet
  • The most common type of connection computers use in a local area network (LAN).
  • Internet Protocol (Ip)
  • Method by which data is sent from one computer to another on the internet.
  • Internet Service Provider (Isp)
  • A company that offers access to the internet using a data transmission technology that delivers IP packets, such as dial-up, DSL, cable modem, wireless or dedicated high-speed interconnects.
  • Research And Development (R&D)
  • Creative work undertaken by a company to increase the stock of knowledge, which can then be applied to developing a new product or improving an existing one.
  • Self-Optimizing Network (Son) Software
  • A system that enables mobile carriers to plan, configure, manage, optimize and heal cellular networks automatically, according to real-time changing network demands.
  • Telephony
  • The general use of equipment to provide voice communication over distances.
  • Wide Area Network (Wan)
  • Wireline and wireless long-distance communications network that covers a wide geographic area, like a state or country, to connect LANs.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Telecommunications Networking Equipment Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Telecommunications Networking Equipment Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Telecommunications Networking Equipment Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Telecommunications Networking Equipment Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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