Communication devices market is anticipated to grow at a CAGR of 7.9% during the forecast period (2024-2031). Communication devices are electronic devices that can send digital or analog signals wirelessly or via a wired network.

Market Dynamics

Communication Infrastructure Expansion and Upgrade to Drive Global Communication Devices Market

One critical driver of the global communication devices market is the ongoing expansion and upgrade of communication infrastructure. For instance, the Shared Rural Network initiative, BDUK, DSIT, and MNOs hope to provide dependable 4G coverage to 95% of the UK's landmass by the end of December 2025. Programs that seek to establish favorable circumstances for technology investment in anticipation of the UK's future connectivity requirements are also funded by DSIT. Its ambitions are outlined in the Wireless Infrastructure Strategy until 2023. Further , in May 2023,  Texas lawmakers have passed a bill to allot $1.5 billion to an infrastructure fund, which will increase the availability of internet service to 7 million more people in a state where 7 million do not have it. Such huge scale investment in communication infrastructure development is driving the global market growth. 

Growing Demand for Effective Communication Demand to Drive Global Market

A major driver propelling the communication devices market is the burgeoning need for remote connectivity. This trend is primarily driven by the increasing adoption of flexible work arrangements and remote work models.  These models necessitate communication tools beyond mobile devices, creating a demand for high-quality webcams, microphones, and video conferencing systems to facilitate seamless virtual collaboration. For instance, in May 2023, a report published by The Chartered Institute of Personnel and Development indicates following the epidemic, two-fifths (40%) of businesses have noticed a surge in official requests for flexible working hours and One-fifth (20%) of organizations want to implement new policies or make greater financial investments to allow for more remote work or hybrid employment in the future.

Growing Focus of Healthcare Providers on Telehealth

The growing focus of healthcare providers on telehealth and remote patient monitoring creates a need for reliable communication devices for virtual consultations, data transmission, and remote health monitoring. In March 2022, India achieved a significant milestone in its digital health journey when it utilized its national telemedicine service, "eSanjeevani," to complete 170,000 teleconsultations in a single day. The education sector's shift towards online learning platforms also fuels the demand for devices that support online lectures, webinars, and interactive learning sessions. In essence, the growing demand for effective remote communication across various sectors is a key driver for the communication devices market, shaping the need for devices that cater to these evolving communication needs.

Market Segmentation

Our in-depth analysis of the global communication devices market includes the following segments bytype and by application:

• Based ontype, the market is sub-segmented walkie-talkies, phones, radios, tablets, AR glasses, and others (wearables, smart TVs, laptops, desktops, and gaming consoles). 

• Based on application the market is augmented into automotive, military, healthcare, telecommunication, consumer electronics, security and surveillance, and others.

Automotive Industry is Anticipated to Exhibit Considerable Growth 

A major factor propelling the growth of automotive communication devices is the rise of connected vehicles. The automotive industry is undergoing a significant transformation with the increasing adoption of connected car technology. These vehicles are equipped with communication devices that enable them to exchange data with other vehicles, infrastructure, and pedestrians using Vehicle-to-Everything (V2X) technology. In December 2023, The Ministry of Land, Infrastructure, and Transport and the Ministry of Science and ICT in South Korea announced that LTE-V2X will be used only in the development of Cooperative-Intelligent Transport Systems (C-ITS). This technology unlocks a range of benefits, including enhanced safety through real-time hazard and traffic information exchange, improved traffic flow through route optimization, and support for the development of autonomous vehicles. As the adoption of connected car technology accelerates, the demand for specialized communication devices within vehicles surges, driving growth in the automotive communication devices sub-segment of the global communication devices market.

Regional Outlook

The global communication devices market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). 

North America: A Leader in the Communication Devices Market

North America is witnessing significant investments in expanding and upgrading communication infrastructure for instance in September 2023, a $25 million investment from the U.S. National Science Foundation Directorate for Technology, Innovation and Partnerships (TIP) is helping five convergent teams move from Phase 1 to Phase 2 of NSF Convergence Accelerator Track G: Securely Operating Through 5G Infrastructure. The teams are tackling 5G communication infrastructure and operational challenges.

Global Communication Devices Market Growth by Region 2024-2031

Asia-Pacific is Anticipated to Exhibit Considerable Growth

The communication devices market in Asia-Pacific is experiencing robust growth fueled by the cohesive government initiatives. For instance in November 2023, Government of Albanese Australia extends free home broadband for school kids to 2025. The government is extending its innovative initiative, which offers free home broadband to students without access to the internet at home, until the end of 2025. In order to promote educational results and families facing financial strain, the government is giving NBN Co $4.3 million for this program. The School Student Broadband Initiative (SSBI), which was introduced in February 2023, offers free broadband over the National Broadband Network (NBN) for a year to up to 30,000 qualifying households with school-age children. With the increased money, eligible families will instead continue to be connected until December 31, 2025, bringing the total Federal Government commitment in the scheme with NBN Co to $8.8 million. 

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global communication devices market include Apple Inc., Google (Alphabet Inc.), Meta Platforms Inc, Microsoft Corp. and Samsung Electronics Co Ltd. among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance,in May 2022, Google acquired Raxium, a maker of single-panel Micro LED display technologies, was bought by Google. Over five years, the Raxium team has developed highly-resolution displays that are compact, economical, and energy-efficient. These displays have paved the way for future advancements in device display technology. We will continue to invest in our hardware endeavors, and Raxium's technological proficiency in this field will be crucial.

The Report Covers

• Market value data analysis of 2023and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the globalCommunication Devicesmarket. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.