The global Electronic Contract Manufacturing Services market is anticipated to increase at a 10.83% CAGR to reach value USD 4,050.14 million in 2027
The global electronic contract manufacturing services market was valued at USD 473.8 billion in 2020 and is expected to grow at a CAGR of 9.1% over the forecast period. The ability of a contract manufacturer to specialise in economies of scale in industrial design expertise, services, offering value-added services like warranty and repairs, & raw materials procurement are anticipated to drive the global electronic contract manufacturing services market. It allows OEMs to avoid having to deal with time-consuming or complicated large-scale industrial processes. Furthermore, OEMs use technological solutions, design and engineering services, and manufacturing services provided by electronic contract manufacturing and design services providers to decrease time-to-volume and time-to-market production.
The global electronic contract manufacturing services market is categorized based on services, and end-use. Region wise, Asia Pacific was the largest market in 2020; and is expected to be the fastest growing region by 2028, with a CAGR of over 9.5%.
Key players serving the global electronic contract manufacturing services market include Hon Flextronics International Ltd, Hai Precision Industry (Foxconn), Jabil Circuit, Sanmina-SCI, Celestica, New Kinpo Group, Shenzhen Kaifa Technology, Plexus, Venture, Elcoteq among other prominent players.
Electronic Contract Manufacturing Services Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2027||USD 4,050.14 million|
|Growth Rate||CAGR of 10.83% during 2021-2027|
|Segment Covered||Business Strategy, Product Satisfaction, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||A&D Precision Inc., ACTIA Group, Benchmark Electronics, Inc., Celestica, Inc., Compal Inc., Creation Technologies LP, FABRINET Ltd., Flex LTD., Hon Hai Precision Industry Co., Ltd., Jabil, Inc., Key Tronic Corporation, NEOTech Inc., Plexus Corporation, QUANTRONIC CORPORATION, RAYMING TECHNOLOGY, Sanmina Corporation, SGS Tekniks Manufacturing Pvt. Ltd., Sparqtron Corporation, Venture Corporation Limited, and Zollner Elektronik AG.|
Key segments of the global electronic contract manufacturing services market
Services Overview, 2018-2028 (USD Billion)
- Electronic Design & Engineering
- Electronics Assembly
- Electronic Manufacturing
End-Use Overview, 2018-2028 (USD Billion)
- Aerospace & Defense
- IT & Telecom
- Power & Energy
- Consumer Electronics
Regional Overview, 2018-2028 (USD Billion)
- North America
- United Kingdom
- Rest of Europe
- Asia Pacific
- South-East Asia
- Rest of Asia Pacific
- Central and South America
- Rest of Central and South America
- Middle East & Africa
- South Africa
- Rest of Middle East and Africa
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global Electronic Contract Manufacturing Services industry
- The overall segmentation of electronic contract manufacturing services market, especially key segments are thoroughly studied.
- Presence of major players and their wide product portfolio across developed countries is anticipated to further boost the growth of electronic contract manufacturing services market
What does the report include?
- The study on the global electronic contract manufacturing services market includes analysis of qualitative market indicators such as drivers, restraints, challenges and opportunities
- Additionally, the market competition has been evaluated using the Porter’s five forces analysis
- The study covers qualitative and quantitative analysis of the market segmented on the basis of applications, product, technology and end user. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the considered segments
- The study includes the profiles of key players in the market with a significant global and/or regional presence
Who should buy this report?
- The report on the global electronic contract manufacturing services market is suitable for all the players across the value chain including raw material suppliers, Electronic Contract Manufacturing Services providers, manufacturers, distributors, suppliers and retailers
- Venture capitalists and investors looking for more information on the future outlook of the global electronic contract manufacturing services market
- Consultants, analysts, researchers, and academicians looking for insights shaping the global electronic contract manufacturing services market
Frequently Asked Questions (FAQ) :
Over the past several years, the growth of mobile devices has been the primary driver of the electronic contract manufacturing services industry. Due to the growing need for medical equipment, the medical sector is expected to expand significantly. Medical device production requires sophisticated technology and rigorous regulatory compliance. As a result, outsourcing such operations allows OEMs to speed up R&D and lower device costs in order to obtain a competitive edge, which is anticipated to drive market development. Furthermore, automotive, aerospace, and military are expected to expand faster than technical sectors like information technology and telecommunications, as well as consumer services. Despite the many benefits that electronic contract manufacturing and design services providers have in the production processes, contract manufacturing is not always the ideal choice for OEMs. Many times, OEM executives fail to see that outsourcing assembly processes may be more time-consuming and complex than using in-house resources.
The global electronic contract manufacturing services market has been segmented based on services, and end-use. Electronic manufacturing was the most popular service category in 2020, accounting for more than 42% of total revenue. Electronic circuit boards are becoming more important in numerous electronic products, which is driving increased demand for electronic contract manufacturing services. Prototypes for new product development may be designed and tested by OEMs. Additionally, the services offered by contractors allow OEMs to create innovative products with minimal capital expenditure and sophisticated production methods.
Based on regions, the global electronic contract manufacturing services market is segmented into North America, Europe, Asia Pacific, Central and South America and Middle East & Africa. The Asia Pacific area is projected to expand the fastest, followed by North America, due to an increase in outsourcing operations in these regions. In 2019, Asia Pacific had the highest market share, and it is expected to continue to expand at the fastest rate during the projected period. Furthermore, China has a dominating position in electronics production, accounting for more than 33% of the region's market. The widespread availability of raw materials coupled with low-cost labour are anticipated to fuel electronic contract manufacturing services further over the forecast period.