The global electronic contract manufacturing and design services market is estimated to reach USD 788.9 billion by 2027 and projected to grow at a CAGR of 8.5%, during the forecasted period, 2020 to 2027, according to a new report by Million Insights. The electronics industry is highly competitive due to rising electronic product complexity and increasing burden to reduce the cost of electronic products on OEMs along with the increasing complexity of these products. The decreasing product lifecycle has surged the demand for well contract designing and manufacturing services. Hence, OEMs are adopting these services, which are projected to drive the market growth over the forecast period, from 2020-2027.
OEMs subcontracts with companies who provide electronic manufacturing services and provide advantages from expertise in manufacturing, designing, and management of supply chain. Further, it helps to reduce the cost of initial investment and enhance operational efficiencies and allows them to focus on major competencies. This factor is projected to increase the demand for contract manufacturing by OEMs. However, the in-house establishment of manufacturing units is a major challenge tackled by OEMs. Thus, the outsourcing option is majorly proffered by OEMs to sustain in a competitive market.
The electronic contract manufacturing & design services market is anticipated to witness considerable growth owing to increasing demand from various industries such as defense, aerospace, IT& telecommunication, consumer electronics, and automotive. The healthcare industry is projected to have potential growth due to rising adoption of medical devices. The growing need for technological development and resource optimization are anticipated to increase demand for electronic manufacturing services in several industries.
In 2019, Asia Pacific accounted for the largest market share and expected to retain its position over the forecast period. This growth is attributed to the availability of raw material and low-cost labor in this region. North America is expected to have a significant growth due to the increasing demand for diagnostics products by medical institutes and R&D centers.
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Further key findings from the report suggest:
• The electronic contract manufacturing and design services is projected to witness strong growth due to increasing need for technological development and optimization of resources.
• Electronic manufacturing segment led the largest market share, in 2019. Electronic design and engineering services category is expected to grow with the fastest CAGR due to increasing shift of OEMs towards electronics design and engineering services.
• Based on end-use, It & telecom sector accounted for the largest market share, in 2019. On the other hand others sectors such as healthcare, consumer electronics, automotive, aerospace and defense are projected to have noteworthy growth rate due to increasing outsourcing trend.
• In 2019, Asia Pacific held the largest market share of more than 45.0% and projected to retain leading position over the forecast period due to easy availability of raw material as well as resource optimization.
• Key players operating in the electronic contract manufacturing and design services market are Jabil Circuit, Inc.; Benchmark Electronics, Inc.; Hon Hai Precision Industry Co., Ltd.; Sanmina Corporation; and Flextronics International, Ltd.
Million Insights has segmented the global electronic contract manufacturing & design services market on the basis of services and end-use and region:
Electronic Contract Manufacturing and Design Services Outlook (Revenue, USD Billion, 2016 - 2027)
• Electronic design & engineering
• Electronics assembly
• Electronic manufacturing
Electronic Contract Manufacturing and Design Services End-Use Outlook (Revenue, USD Billion, 2016 - 2027)
• Aerospace & Defense
• IT & Telecom
• Power & Energy
• Consumer Electronics
Electronic Contract Manufacturing and Design Services Regional Outlook (Revenue, USD Million, 2016 - 2027)
• North America
• Asia Pacific
• South America
• Middle East & Africa