The Global Electronic Contract Manufacturing and Design Market size is expected to reach $730.5 billion by 2027, rising at a market growth of 9.4% CAGR during the forecast period.
Electronic manufacturing and design services fall within engineering and manufacturing outsourcing services. Many organizations utilize these services to test, make and distribute products and offer return & repair services. Electronic contract manufacturing utilizes different sorts of manufacturing abilities and productive features regarding product engineering, assembly of the circuit board & hardware, component design, and process engineering among others. The vendors of outsourcing services, mainly in the electronics industry, make particular products on a contract basis and have increased substantially in the last couple of years. In addition, electronic contract manufacturing services majorly cover technologies and sub-technologies such as servers, computers, consumer devices, networking, and telecommunications.
The electronics industry has witnessed a major transition wherein companies working in this industry outsource their manufacturing aspect to maintain a low cost. Additionally, OEMs also utilize contract manufacturing with an aim to plunge into an untapped market in a cost-effective manner. The majority of the electronic manufacturing and design service vendors try and maintain good relation with the customers, which would be helpful in the design and pre-production process that results in decreased new product launch time.
The IT & Telecom market dominated the Global Electronic Contract Manufacturing And Design Services Market by Industry Vertical 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $323,295.3 million by 2027. The Consumer Electronics market would experience a CAGR of 8.2% during (2021 - 2027). Additionally, The Healthcare market is poised to grow a CAGR of 10.6% during (2021 - 2027).
The Electronic Manufacturing market dominated the Global Electronic Contract Manufacturing And Design Services Market by Services Type 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $366,071.9 million by 2027. The Electronics Assembly market is experiencing a CAGR of 9.1% during (2021 - 2027). Additionally, The Electronic Design & Engineering market would exhibit a CAGR of 9.7% during (2021 - 2027).
Based on Services Type, the market is segmented into Electronic Manufacturing, Electronics Assembly, Electronic Design & Engineering, Others. Based on Industry Vertical, the market is segmented into IT & Telecom, Consumer Electronics, Healthcare, Industrial, Automotive, Aerospace & Defense, Power & Energy and Others. Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa.
As COVID-19 became a global health emergency, it harshly affected the lives of millions and the economies of almost every country around the world. As the onset of the global pandemic was in China, the country has been severely affected by the virus.
The majority of the workers in the Chinese factories travel from the far-flung areas and reaching the factories had become a major problem for them due to the social distancing and other quarantine restrictions. As electronic manufacturing in China is more to be a manual process, and products like tablets or mobile phones and notebook computers need many people to physically touch every product during the manufacturing and assembly process, the possibility of transmission of the virus is quite high. As a result, the majority of the workers are not willing to return to the work, causing delays in production as well as the manufacturing process.
Some of the key growth catalysts for the electronics contract manufacturing and design market are the integration of modern skills, economies of varying levels, and focus on competencies. Contract companies obtain a large number of contracts from various clients. By fulfilling the demands of a huge customer base helps the manufacturers to garner a large amount of crude materials at reduced costs. Also, companies can reap the benefit of the fact that capabilities of the contract manufacturers to develop the electronic products, unlike the hirer organization.
Companies working in the electronics space must manage fixed as well as labor costs in order to make all the components of the electronics. The main manufacturing units of electronic manufacturing services (EMS) are dedicated to developing and assembling fragile electronic components. Considering a secondary location with completely varied needs contributes to the fixed location costs and the requirement to recruit new employees, hence remarkably increasing the expenses of the companies.
Companies moving to CMs have to give up control over the entire manufacturing process. While giving this control to CMs, companies often face the risk of losing crucial knowledge and skills around the production techniques. Without consistent monitoring, companies lose the right and insight to identify any issues in the manufacturing process. As companies do not have control over manufacturing operations, they cannot manage the supply chain process, which may result in massive revenue loss during the time of fluctuation.
In 2020, the Electronic manufacturing segment acquired the maximum revenue share in the market. The electronic design and engineering segment would display a promising growth rate during the forecasting period. This is attributed to the rising preferences of OEMs to outsource the requirements regarding designing. The demand for electronic circuit boards has been increased with the rising significance of these boards in a wide range of electronic devices like tablets and mobile phones. This factor is likely to act as a key driver for the overall market during the forecast period.
The demand for electronic contract manufacturing services would grow due to increasing applications across non-technical end-user segments like healthcare, industrial, automotive, and aerospace and defense. Moreover, the growing demand for electrical vehicles has increased the requirement to outsource their electronic component manufacturing, hence fueling the growth of the electronic contract manufacturing and design services market in the automotive industry.
| Report Attribute | Details |
|---|---|
| Market size value in 2020 | USD 414.1 Billion |
| Market size forecast in 2027 | USD 730.5 billion |
| Base Year | 2020 |
| Historical Period | 2017 to 2019 |
| Forecast Period | 2021 to 2027 |
| Revenue Growth Rate | CAGR of 9.4% from 2021 to 2027 |
| Number of Pages | 250 |
| Number of Tables | 323 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Industry Vertical, Services Type, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Taiwan, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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The region is likely to showcase the fastest growth rate during the forecasting period. In addition, China has been a leading country in the regional market. Moreover, China is the hub for electronics manufacturing and dominates the APAC region in this respect. Factors such as a wide-scale availability of raw materials and low-cost labor are anticipated to fuel the growth & demand for electronic contract manufacturing and design in the regional market. Hence, the APAC region would continue to flourish due to these factors over the forecast period.
Free Valuable Insights: Global Electronic Contract Manufacturing and Design Market size to reach USD 730.5 Billion by 2027
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Hon Hai Precision Industry Co., Ltd. is the major forerunners in the Electronic Contract Manufacturing and Design Market. Companies such as Benchmark Electronics, Inc., Plexus Corporation, Flextronics International, Ltd. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Benchmark Electronics, Inc., Plexus Corporation, Flextronics International, Ltd., Hon Hai Precision Industry Co., Ltd., Celestica, Inc. (Onex Corporation), Sanmina Corporation, Fabrinet, Jabil, Inc., Venture Corporation Limited, and Compal Electronics, Inc.
By Services Type
By Industry Vertical
By Geography
The global electronic contract manufacturing and design market size is expected to reach $730.5 billion by 2027.
Contract manufacturing brings down labor and fixed costs are driving the market in coming years, however, less control over manufacturing limited the growth of the market.
Benchmark Electronics, Inc., Plexus Corporation, Flextronics International, Ltd., Hon Hai Precision Industry Co., Ltd., Celestica, Inc. (Onex Corporation), Sanmina Corporation, Fabrinet, Jabil, Inc., Venture Corporation Limited, and Compal Electronics, Inc.
Electronic contract manufacturing and design market estimate to grow at a CAGR of 9.4%.
The Electronic Manufacturing market dominated the Global Electronic Contract Manufacturing And Design Services Market by Services Type 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $366,071.9 million by 2027.
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