Communications Equipment Manufacturers

The 1,070 Communications equipment manufacturers in the US produce radio and TV broadcasting and wireless communications equipment, telephone apparatus, alarm system equipment, computer equipment and peripherals, electronic components, and software. Firms may also provide design, installation, maintenance, and repair services as well as contract manufacturing services. Distribution channels for communications equipment include wholesalers, retailers, resellers, third-party cellular network carriers, and system integrators.

Complex Supply Chain and Outsourcing

The supply chain in the communications equipment manufacturing industry is lengthy and complex and involves foreign sources and contract manufacturers.

Variable Costs

The cost of raw materials, components, and labor can vary and affect profitability for communications equipment manufacturers.

Sep 4, 2026 - State, Local Officials Investigate "Ghost" Data Center Demand

• Data centers have requested roughly as much electricity across the middle swath of the United States as it takes to power every home in the country, but much of that demand may be an illusion, according to Reuters news service. Communications equipment manufacturers may be negatively impacted if data center construction falls below expectations. A Reuters review of utility and grid data found that electricity requests from very large power users, mostly data centers, exceed 700 gigawatts, or more than 10 times industry estimates of current US data center power use, across portions of the Midwest, Mid-Atlantic and the South. Consumer advocates and regulators have cautioned that many requests are likely to be duplicative or made by companies without the funds or expertise to see the projects through, according to Reuters. The uncertainty is leading data center hot spots like Texas, Pennsylvania, and Ohio to enact rules to filter out projects that could drive up prices and provoke political backlash without ever being built. Some major utilities are cutting their data center demand figures once financial guardrails, like requiring upfront payments, are put in place, according to Reuters.
• The Federal Communications Commission is expanding its ban on Chinese telecommunications equipment to older models. US communications equipment manufacturers may benefit from the ban. The new rules prohibit the import of previously approved equipment manufactured by Chinese companies including Huawei Technologies, ZTE, Hytera Communications, Hikvision and Dahua Technology. The restrictions take effect in early July. The FCC first barred approvals for new models of equipment from those companies in 2022 after placing them on its "Covered List" of firms deemed to pose unacceptable risks to US national security. Products that had received authorization before the 2022 order will also be prohibited from entering the US market under the expanded policy.
• The burden of the Secure and Trusted Communications Networks Act (aka the Huawei rip & replace program) has fallen disproportionately on smaller carriers, which relied more on the cheaper gear from the Chinese firms than large companies like AT&T and Verizon, according to the Federal Communications Commission (FCC). Some smaller wireless companies now say they may not be able to upgrade their networks and continue serving their communities, where they are often the only internet providers. US Senator Deb Fischer introduced legislation to close the gap in rip-and-replace funding for carriers. Passing it will be challenging, with similar legislation failing twice over the past year. Congress only appropriated $1.9 billion to fund the program but the cost has exceeded $5 billion, according to the FCC.
• Communications equipment manufacturing industry employment increased slightly and average wages for nonsupervisory employees decreased slightly during the first five months of 2026, according to the BLS. Communications equipment manufacturing firms slightly increased their prices during the first six months of 2026, according to the US Bureau of Labor Statistics (BLS). Communications equipment manufacturer sales are forecast to decrease at a 0.14% compounded annual rate from 2026 to 2030, slower than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.

Industry size & Structure

The average communications equipment manufacturer employs 78 workers and generates $39 million annually.

• The communications equipment manufacturing industry consists of about 1,070 firms that employ about 83,000 workers, and generates over $42 billion annually.
• The industry is concentrated with the top 50 companies accounting for over 75% of industry revenue.
• The communications equipment manufacturing industry overlaps with other industries. For example, electronic component manufacturer Amphenol produces antennas. Samsung, which makes consumer electronics, computers, and peripherals, also produces smartphones and telecommunications equipment. Other large companies that produce communications equipment include Apple, CommScope, and Motorola.
• Defense work accounted for 6.7% to 15.9% of annual industry revenue between 2011 and 2021.