Market evolution: Telephone parts (CN 851779) — 2015–2025

Introduction

This report analyses the evolution of EU trade in parts of telephone sets, cellular network phones, and related transmission/reception apparatus (Combined Nomenclature code 851779) over the 2015–2025 period. CN 851779 is a residual category that captures components not classified under more specific headings such as smartphones (851713), base stations (851761), or antennas (851771). The product scope, available on the Trade Dashboard overview, covers a wide range of electronic and mechanical subcomponents used across the telecom value chain. The EU remains a significant importer of these parts, and the period under review reveals substantial shifts in trade volumes, partner geography, and internal market structure.

1. A Structural Trade Rebalancing: Imports Fall, the Deficit Narrows

The EU's import bill has contracted sharply since 2022

Between 2022 and 2025, the value of EU imports of CN 851779 parts fell from €3.80 billion to €2.57 billion, a decline of 32.4%. Over the same period, the quantity imported dropped by 25.2%, from 43,771 tonnes to 32,723 tonnes. The unit import price also declined, moving from €86,831 per tonne to €78,506 per tonne (−9.6%), indicating that the contraction was driven by both lower volumes and softer pricing. Full import and export trajectories are visible on the general trade overview.

Exports declined more moderately, and unit values rose

EU exports of CN 851779 parts decreased from €1.60 billion to €1.46 billion (−8.8%) in value terms, and from 9,351 tonnes to 6,917 tonnes (−26.0%) by volume. Critically, however, the unit export price increased from €171,579/t to €211,490/t (+23.3%). This divergence—falling volume but rising unit value—suggests that EU-based exporters shifted toward higher-value-added or more specialised components over the period, even as overall quantities receded.

The trade deficit has been nearly halved

As a consequence of these asymmetric dynamics, the EU's trade deficit in CN 851779 narrowed from €2.20 billion in 2022 to €1.11 billion in 2025, an improvement of 49.6%. Net import reliance fell from 40.7% to 32.3% (−20.7%), as documented on the net import reliance page. While the EU remains a net importer, the structural gap is closing, likely reflecting a combination of demand softening (e.g., market saturation in smartphones), supply-chain restructuring, and partial reshoring or nearshoring of component manufacturing.

2. Geographic Diversification in Progress: China Dominates but Loses Ground

China remains the EU's primary source, but its share has eroded significantly

China was the origin of €2.42 billion worth of CN 851779 imports in 2022, representing roughly 64% of total EU imports by value. By 2025, this figure had fallen to €1.54 billion—a contraction of 36.2%. This decline outpaced the overall import reduction (32.4%), meaning that China's share of EU imports has diminished. The full partner breakdown is available on the by-country partners view. Several factors may explain this shift: the EU's push for supply-chain diversification following geopolitical tensions, rising production costs in China, and the growth of alternative manufacturing hubs in Southeast Asia.

Vietnam has emerged as a major alternative supplier

Imports from Vietnam grew from a negligible base to become the EU's second-largest source, peaking at €481 million before settling at €265 million in 2025 (−43.2% from the 2022 level). While the year-on-year decline is notable, Vietnam's position as a key alternative to China has been consolidated, consistent with broader trends of "China+1" sourcing strategies adopted by major electronics firms.

India shows the strongest growth trajectory among EU import partners

Indian exports of CN 851779 parts to the EU rose from €12.8 million in 2022 to €18.9 million in 2025, a gain of 47.4%. Although India remains a small supplier in absolute terms, its rapid growth reflects the Indian government's Production-Linked Incentive (PLI) scheme for electronics manufacturing and the broader trend of global firms establishing component production in India.

Mexico has become a major EU export destination

One of the most striking shifts on the export side is the surge of EU exports to Mexico, which grew from €48 million in 2022 to €296 million in 2025—an extraordinary increase of 517.1%. This likely reflects Mexico's growing role in nearshoring for North American supply chains and its function as an assembly hub where EU-made components are integrated into finished products destined for the US market. Full export partner data is available on the by-country partners view.

Import concentration has decreased, while export concentration has risen

The Herfindahl-Hirschman Index (HHI) for imports declined from 4,263 to 3,811 (−10.6%), indicating a modest diversification of the EU's import base away from heavy reliance on a small number of suppliers. For exports, the HHI rose from 966 to 1,111 (+15.0%), suggesting that EU exports have become somewhat more concentrated toward a smaller set of destination markets—driven in part by the Mexico surge. These concentration metrics are displayed on the concentration dashboard.

3. Internal EU Dynamics: Czechia Emerges as an Export Powerhouse, Specialisation Varies Widely

The Netherlands and Hungary dominate EU imports but have seen sharp declines

Among EU member states, the Netherlands and Hungary are the two largest importers of CN 851779 parts. The Netherlands recorded imports of €1.17 billion in 2022, falling to €698 million in 2025 (−40.5%); Hungary's imports declined from €692 million to €405 million (−41.5%). These two countries alone accounted for a substantial share of the EU's total import bill, and their contraction mirrors the overall EU decline. Germany and Czechia, by contrast, showed relative stability: German imports fell only 2.0% (from €226M to €222M), and Czech imports dipped 3.5% (from €220M to €213M). Full member-state breakdowns are available on the reporters tab.

Czechia has consolidated its position as the EU's second-largest exporter

Czechia's exports of CN 851779 parts surged from €277 million in 2022 to €460 million in 2025, an increase of 65.9%, making it the EU's second-largest exporter behind the Netherlands. This growth likely reflects Czechia's deep integration into Central European electronics manufacturing clusters, with its proximity to both Western European OEMs and Eastern European assembly operations. Hungary, another Central European hub, also saw export growth from €73 million to €91 million (+25.5%). The Netherlands remained the largest EU exporter but contracted by 31.5% (from €419M to €287M).

Specialisation patterns reveal a highly uneven EU landscape

Export specialisation data for 2025, available on the specialisation page, shows a stark divide. Hungary leads the EU with a Revealed Symmetric Comparative Advantage (RSCA) of 0.73 and an RCA of 6.38, indicating a very strong specialisation in telephone parts production. Estonia (RSCA 0.68), Romania (RSCA 0.45), and the Netherlands (RSCA 0.41) also show meaningful specialisation. At the other extreme, Ireland (RSCA −0.87), Belgium (RSCA −0.77), and Portugal (RSCA −0.60) have pronounced comparative disadvantages in this product category, reflecting their economic structures oriented toward pharmaceuticals (Ireland), chemicals and logistics (Belgium), and other sectors.

EU production has declined in line with trade volumes

EU domestic production of CN 851779 parts fell from an estimated €3.20 billion in 2022 to €2.86 billion in 2025 (−10.6%), as shown on the production volumes page. The decline in production was less severe than the decline in imports, consistent with the observed reduction in net import reliance. This may indicate that some component manufacturing has been re-shored or that EU producers have managed to maintain output better than their import competitors.

Trade intensity remains high, reflecting the EU's embeddedness in global telecom supply chains

The EU's trade intensity for CN 851779 stood at 75.5% in 2025, down slightly from 77.2% in 2022 (−2.3%). Export propensity edged up from 50.2% to 51.2% (+2.1%). These figures, visible on the trade intensity and export propensity dashboards, confirm that CN 851779 remains a highly trade-exposed product category. The salience score for trade intensity (27.8) far exceeds that of export propensity (3.3), indicating that the EU's role as a consumer of imported parts is more structurally significant than its role as an exporter.

Conclusion

The EU's trade in telephone parts (CN 851779) has undergone a significant contraction between 2022 and 2025, with import values falling by nearly a third and the trade deficit shrinking by almost half. While China remains the dominant supplier, its share has eroded, and emerging sources—particularly India and, to a lesser extent, Vietnam—are beginning to diversify the EU's supply base. On the export side, the most notable development is the extraordinary growth of EU shipments to Mexico, likely tied to nearshoring dynamics in North America, and Czechia's rise as a major EU exporter. Internally, the EU displays wide variation in specialisation, with Central European economies (Hungary, Czechia, Romania) showing strong comparative advantages while Western European economies like Belgium and Ireland are largely absent from this product space. Despite the recent contraction, trade intensity remains very high, underscoring the EU's continued deep integration into global telecom component supply chains. The period's dynamics—falling volumes, rising export unit values, and gradual geographic diversification—point to a market in structural transition rather than simple decline.