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electronic contract manufacturing services market

Electronic Contract Manufacturing and Design Services Market Share, Size, Trends, Industry Analysis Report, By Service (Electronic Design & Engineering, Electronics Assembly, Electronic Manufacturing, and others); By End-Use; By Region; Segment Forecast, 2022 - 2030

  • Published Date: Nov 2022
  • Pages: 115
  • Format: PDF
  • Report ID: PM1457
  • Base Year: 2021
  • Historical Data: 2018-2020

Report Summary

The global electronic contract manufacturing and design services market was valued at USD 478.3 million in 2021 and is expected to grow at a CAGR of 9.42% during the forecast period.

The rising demand for functionalities, including sub-assembly manufacturing, functional testing, and component assembly from several manufacturers, is projected to be the major driving factor for the expansion of the global market during the forecast period.  In addition, an extensive rise in the purchasing power of consumers and their rising demand for consumer electronics are further anticipated to spice up the market growth within the coming years.

Electronic Contract Manufacturing and Design Services Market Size
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Moreover, high spending on research & development activities and increasing implementation of advanced technologies by various service providers for the development of their manufacturing capacity and strengthening their market position across the globe is likely to create a paved way for the global electronic contract manufacturing and design services over the forecast period.

For instance, in 2021, Plexus, a leading player in the global market, launched its new manufacturing facility in Bangkok, Thailand. It was mainly aimed at increasing the production capacity of the company, with a 400,000 square feet production and warehouse area.

Additionally, the rise in the demand from several end-use industries like aerospace, healthcare, information technology, telecom, defense, and automotive, coupled with the increasing number of global outsourcing activities and rapid growth in technology, is expected to create lucrative growth opportunities for the growth of the global market over the coming years at a healthy rate.

However, COVID-19 has affected almost every industry and region, as it is an incomparable public health emergency worldwide. So many long-term effects are anticipated to hamper the growth and demand for the global market throughout the forecast period. COVID-19 has significantly affected consumer behavior, supply chain, purchasing power and preferences, and dynamics of the current market. For instance, as per a report published by IPC in March 2020, around 40% of global electronic manufacturing companies and suppliers surveyed that the consumer electronics market was the most impacted industry owing to the COVID-19 pandemic.

Industry Dynamics

Growth Drivers
Enhanced consumer purchasing power, rising demand for consumer electronics, and highly growing internet penetration around the globe are the major factors. High adoption of smartphones and easy accessibility to fast and improved internet facilities, mainly in developed nations, including the United States, France, and Japan, have resulted in higher adoption of these services in the last few years and are projected to do so in the future.

According to a report by published by Statista, sales of smartphones in the United States were estimated to be worth nearly USD 73 billion in 2021, with a significant increase from USD 18 billion in 2010. Similarly, in 2010, in the United States, mobile phone users were only 27% of global population, and the number increased to about 78% in 2020. It is projected to reach almost 87% of mobile users in the United States by 2025.

Increasing focus on reducing manufacturing costs, enhancing consumer services, and maintaining relations with customers are a few other factors likely to drive growth. Moreover, the presence of large market players and their growing number of innovations worldwide is also contributing to the market growth and demand.

Report Segmentation

The market is primarily segmented based on service, end-use, and region.

By Service

By End-Use

By Region

  • Electronic Design & Engineering
  • Electronics Assembly
  • Electronic Manufacturing
  • Others
  • Healthcare
  • Automotive
  • Industrial
  • Aerospace & Defense
  • IT & Telecom
  • Power & Energy
  • Consumer Electronics
  • Others
  • North America (U.S., Canada)
  • Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
  • Asia Pacific (Japan, China, India, Malaysia, Indonesia, South Korea)
  • Latin America (Brazil, Mexico, Argentina)
  • Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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Electronic design & engineering segment is expected to witness fastest growth

An extensively surging inclination of various types of OEMs towards outsourcing their designing requirements coupled with the rise in the demand for electronic circuit boards because of the rising importance of these boards in various electronic devices like mobile phones, laptops, and many others are likely to influence the growth of the segment in the coming years.

In addition, various types of services provided by global contractors enable less requirement for capital and highly advanced manufacturing techniques for developing new products and devices. OEMs are rapidly outsourcing their circuit assembly requirements for electronic contract manufacturing and design services companies, which substantially help them to increase their profit margins. All these factors are likely to boost the growth of the electronic design & engineering segment over the coming years.

IT & telecom accounted for the second-largest market share in 2021

The low penetration of these devices and services into the IT & telecom industry, coupled with the rising investment by various market players in the research & development sector worldwide, is creating high growth opportunities for the segment during the forecast period. Additionally, increased consumer disposable income, rising spending capacity on innovative products, and growing prevalence of smartphones and tablets with the developing internet speed and connectivity around the world is fueling the growth of the market at a significant growth rate in the coming years.

Furthermore, a tremendous rise in the demand for electric vehicles has resulted in an upsurge need to outsource their electronic manufacturing. Hence, the demand for electronic contract manufacturing and design services is likely to boom in the next coming years in the automotive industry. Moreover, low capital requirements, enhanced product development, and a rise in optimizing resources are a few other factors expected to contribute significantly to the growth of the segment throughout the forecast period.

The demand in Asia Pacific is expected to witness significant growth

The mass availability of various raw materials, low labor cost, and rapid growth in outsourcing activities are the major factors.  In addition, high growth in industrialization, rapid urbanization, and growing several end-use industries, including healthcare, automotive, and power & energy, mainly in developing nations such as India, China, and Indonesia, are also anticipated to have a positive impact on the market in these countries in the near future.

Furthermore, North America is expected to witness the fastest CAGR during the forecast period. The healthcare and automotive industry are the major areas influencing the growth of the market in the region owing to the rising focus on research & development activities, a large presence of key market players, and early adoption of advanced technology with the ease of accessibility to high-speed internet connectivity.

Competitive Insight

The global market is fairly fragmented, with the presence of several international and local market players operating all around the world. The major key players in the global market are implementing several business strategies, including acquisition, mergers, partnerships, collaboration, and new product launches for the expansion of their geographical presence and product portfolio.

Major players in the global market are Benchmark Electronics Inc., Celestica Inc., Compal Electronics Inc., Jabil Circuit Inc., Venture Corporation Limited, Plexus Corporation, Creating Technologies LP, Flextronics International Ltd., Altadox Inc., Sanmina-SCI Corporation, Foxconn, FLEX Ltd., Key Tronic Corporation, Zollner Elektronik AG, ACTIA Group, and A&D Precision Inc.

Recent Developments

In March 2020, Samina-SCI Corporation launched its new manufacturing and supplying facility in Thailand. The new facility has complied with some new features and techniques for the convenient manufacturing process of advanced optical, radio frequency, and high-speed microelectronic products.

In November 2020, Syrma Technology, a leading provider of electronic design and manufacturing services for domestic OEMs, announced its merger with SGS Tekniks with a cash and stock deal. The main aim behind this merger was to create advanced RFID tech, power electronics, and custom magnetics for various automotive, computing, medical, power, and telecom companies.

In August 2020, Creation Technologies announced the expansion of its manufacturing facility and production capacity in Hermosillo, Mexico. The new capacity will increase the total area from 205,000 square feet to 330,000 square feet and complement the company’s existing capacity in the country.

Electronic Contract Manufacturing and Design Services Market Report Scope

Report Attributes

Details

Market size value in 2022

USD 515.89 million

Revenue forecast in 2030

USD 1,060.2 million

CAGR

9.42% from 2022 – 2030

Base year

2021

Historical data

2018 – 2020

Forecast period

2022 – 2030

Quantitative units

Revenue in USD million and CAGR from 2022 to 2030

Segments covered

By Service, By End-Use, By Region

Regional scope

North America, Europe, Asia Pacific, Latin America; Middle East & Africa

Key companies

Benchmark Electronics Inc., Celestica Inc., Compal Electronics Inc., Jabil Circuit Inc., Venture Corporation Limited, Plexus Corporation, Creating Technologies LP, Flextronics International Ltd., Altadox Inc., Sanmina-SCI Corporation, Foxconn, FLEX Ltd., Key Tronic Corporation, Zollner Elektronik AG, ACTIA Group, and A&D Precision Inc.

Key Take-Away
Polaris Market Research
Global Electronic Contract Manufacturing and Design Services Market Size, Share Analysis Report, 2022-2030