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Welcome to this week’s edition of the Thomas Index Report.
The telecommunications sector continues to show strong market increases in 2022. According to recent reports from GMI, digital infrastructure is expected to grow from $90 billion in 2020 to $120 billion in 2027. This $30 billion expansion dollars is attributed to a number of technology-related trends. , including the increased integration of cloud computing, the Internet of Things (IoT), as well as major increases in the use of mobile phones around the world.
In particular, demand for next-generation services and devices, such as 5G and smart technologies, is expected to exceed $50 billion over the next five years.
The Broadband Internet Technical Advisory Group reports that COVID-19 – which has led to a dramatic and immediate increase in remote working and learning – has also contributed to this unprecedented growth. With more and more people hiding at home, there has been a corresponding demand for faster and more efficient connectivity. Social distancing requirements due to COVID-19 restrictions have also increased consumption of digital entertainment and media among residences around the world. Looking ahead, the Pew Research Center reports that even if pandemic-related restrictions are lifted, demand for and consumption of digital services will continue for a long time.
The rapid increase in Internet traffic at the business and consumer level has, in turn, spurred government action. The Trillion-Dollar Federal Infrastructure and Jobs Act specifically earmarked $65 billion to expand and improve telecommunications services, especially in suburban and rural communities. While reliance on network services shows no signs of slowing down, the demand for greater cybersecurity is also growing. Companies, in particular, are looking to harden their systems and fix security vulnerabilities in their corporate networks.
With the rise of digital densification, we are witnessing a parallel increase in demands for the supply of telecommunications equipment and related products. On the Thomasnet.com platform, the supply of telecommunications-related equipment reflects a 253% increase compared to last year. As part of this dramatic increase, we are seeing robust traffic in the supply of copper coaxial cables, fiber optics, batteries, patch cords, switch boxes and consoles.
I’m Cathy Ma, and this is the Thomas Index report.
Top 10 categories with the most sourcing activity month over month
- Containers: Metal: 26,666.7%
- Switches: 12975.0%
- Lockers: 10,333.3%
- Manufacturing: Aeronautics and aerospace: 9,250.0%
- Reactors: 8675.0%
- Pumps: Piston: 7316.7%
- Engineering Services: Design: 7293.0%
- Energy services: 6625.0%
- Contractors: Industrialists: 6058.3%
- Chemical processing equipment: 5,971.4%
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Image credit: TIR