The opportunities for market growth in electronics manufacturing services have shown great promise around the world with tremendous growth potential in terms of revenue generation. The global demand for electronics manufacturing services is projected to hit USD 900 billion by 2028, with a CAGR of 10%. The flourishing electronics industry along with the growing demand for manufacturing services is primarily driving the market for electronics manufacturing services. The increasing demand for smart electronic devices is anticipated to create new market opportunities for the market players involved in the global electronics manufacturing services market.
The electronics industry is constantly evolving and offering great opportunities for market players by introducing a new advancement in the existing technology. Rising customers’ buying capabilities and shift in the customers' interest toward the adoption of new electronic equipment has further built a strong demand for manufacturing services. In addition, blooming automotive, consumer electronics and telecom & IT industries are setting the strong demand in the global electronics manufacturing services market. Shift the people interest toward digital learning and adoption of smart devices such as smartphones, tablets, personal computers have largely pushed the electronics manufacturing services market growth. This factor has increased the overall demand for manufacturing services such as production, designing, testing and others.
The global electronics manufacturing services market is primarily classified as design, testing, manufacturing & production and others. This classification is made by the type of electronics manufacturing services. The overall market for electronics manufacturing services has been led by manufacturing & production segments in 2020. The segment is further expected to witness significant growth over the forecast period. This growth is mainly credited to the increased demand for electronic devices owing to the rising adoption of digital learning and work-from-home culture. The design and testing segments are further expected to witness significant growth in the coming future. This is mainly attributed to the growing requirement for designing and testing electronics equipment from commercial and industrial sectors.
The global demand for electronics manufacturing services is split geographically into North America, Asia Pacific, Europe, South America, and the Middle East & Africa. The electronics manufacturing services industry in 2020 was dominated by the Asia Pacific region. Asia Pacific dominated the market and is anticipated to maintain its dominance over the forecast period. The highly populated countries such as China and India are majorly driving the demand for electronic devices in various end industries such as telecommunication, consumer electronics, healthcare, IT, aerospace, defense and automotive. Additionally, the companies such as Foxconn, Wistron, Flex and Jabil are expanding their presence in developing countries including India, Indonesia, Thailand and Vietnam. For Instance, In February 2019, Foxconn and Wistron planned to invest INR 7500 Cr in India over the next five years.
Leading players of the global electronic manufacturing services market include Creation Technologies, Flextronics International, Integrated Microelectronics, Inc., Jabil Circuit, Inc., Key Tronic EMS, Celestica, Kimball Electronics, Inc., Plexus Corp, ESCATEC, Sanmina Corporation, Sparton Corporation, Foxconn, Venture Corporation Limited. Additionally, well-established companies such as Foxconn, Wistron, Flex, and Benchmark Electronics are expanding their production facilities and investing in new countries to meet the growing supply-demand gap.
Segment Overview of Global Electronics manufacturing services Market
Services Overview, 2019-2028 (USD Million)
- Manufacturing & Production
End-User Industry Type Overview, 2019-2028 (USD Million)
- Telecom & IT
- Consumer electronics
- Aerospace & Defence
Regional Overview, 2019-2028 (USD Million)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America