by The electronic contract manufacturing and design services market provides product designing and development, prototyping services, printed circuit board (PCB) manufacturing, component sourcing, electronic assembly, test and design, and repair services to original equipment manufacturers (OEMs). The electronic manufacturing service providers assist OEMs in reducing manufacturing costs, access to global supply chains, and enhancing production time. The growing preference towards outsourcing non-core manufacturing activities has driven the demand for electronic contract manufacturing and design services from various industries including automotive, IT & telecom, healthcare, and industrial & commercial among others.
The Global electronic contract manufacturing and design services market is estimated to be valued at US$ 712.03 Bn in 2024 and is expected to exhibit a CAGR of 10. % over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Electronic Contract Manufacturing And Design Services Companies are Asteelflash, Benchmark Electronics, Inc., Celestica Inc., Compal Electronics, Inc., Delta Group, Fabrinet, Flex Ltd., Foxconn Technology Group, Inventec Corporation, Jabil Inc., Kimball Electronics, Inc., LACROIX – Electronics, New Kinpo Group, Plexus Corp., and Sanmina Corporation. The industry leaders are focusing on strategic collaborations, mergers and acquisitions to expand their global footprint.
The adoption of advancing technologies like 5G, artificial intelligence, autonomous vehicles, data center and cloud computing are creating substantial opportunities for electronic contract manufacturing and design services providers. The growing complexity of electronics devices and systems is driving the demand for full-service electronic manufacturing capabilities.
The electronics contract manufacturing companies are partnering with OEMs and expanding globally to capitalize on the growing demand from diverse industries across regions. The emerging economies in Asia Pacific and Latin America are expected to offer significant growth opportunities for electronic contract manufacturing market players over the forecast period.
Market drivers
Surging demand for miniaturized and cost-effective electronic products from consumer electronics, industrial, automotive and medical industries has emerged as a key driver for Electronic Contract Manufacturing Market Demand. The increasing complexity of electronic components, difficulty in handling wide product variety is leading OEMs to outsource their manufacturing activities. The aggressive price wars have compelled OEMs to focus on core competencies by outsourcing production to EMS providers, thereby boosting the market growth.
PEST Analysis
Political: Government regulations around regulations around manufacturing, component sourcing, labor wages and environmental standards can influence operations and costs for contract electronics manufacturers. Trade policies can also impact global supply chain partnerships.
Economic: Economic growth trends, currency fluctuations and corporate technology spending influences demand for outsourced electronics design and manufacturing services. A recession may negatively impact new product development projects and production volumes.
Social: Preferences around device features, functionality and design are shaped by evolving social and cultural trends. Consumer demand for upgraded, more specialized electronics drives new product development needs.
Technological: Rapid shifts in components, manufacturing processes, and new technologies like IoT, 5G and green electronics influence the services demanded of contract manufacturers. They must continually adapt production lines and engineering capabilities.
Geographical concentration
In terms of value, the Asia Pacific region hosts the largest share of the electronic contract manufacturing and design services market. China, Taiwan, Thailand and other Asian nations have significantly built out electronics manufacturing infrastructure and supply chain partnerships over decades. Their operational scale, workforce experience and proximity to component suppliers make them attractive production hubs.
Fastest growing region
The Americas region is anticipated to experience the fastest market growth during the forecast period. Increased nearshoring initiatives are bringing more electronic design and manufacturing capacity to Mexico and other North and South American countries. This regional expansion aims to shorten delivery times, lower transport costs and risks for US and Canadian based brand owners. Rising electronics demand across industries within the Americas also contributes to market growth.
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