The global electronic contract manufacturing and design services market size
is expected to reach USD 788.9 billion by 2027, registering a CAGR of 8.5% over
the forecast period, according to a new study by Grand View Research, Inc. The
electronics industry is highly competitive in nature owing to the increasing
complexity of electronic products and rising pressure on OEMs for reducing
costs. Moreover, decreased product lifecycles have upped the demand for better
contract manufacturing capabilities and related services. To achieve the same,
OEMs are seeking support from contract manufacturers, which in turn, is driving
the market over the forecast period.
OEMs subcontract with Electronics
Manufacturing Service (EMS) companies and benefit from their expertise in
design, manufacturing, and supply chain management. Furthermore, reduced
initial investments and increased operational efficiencies allow OEMs to focus
on their core competencies. This has led to surging demand for electronic
contract manufacturing and design services by OEMs. Moreover, the establishment
of in-house manufacturing units is a key challenge faced by majority of OEMs.
Thus outsourcing is a preferred option to keep pace with increasing
competition.
The market is projected to witness significant
growth due to rising demand from end-use industries, including healthcare,
aerospace and defense, IT and Telecom, and automotive. The healthcare industry
is expected to witness substantial growth owing to the increasing demand for
medical devices. Surging need for optimizing resources and technological
developments in manufacturing facilities have led to increased adoption of EMS
among end-use industries.
Asia Pacific dominated the market in 2019 and
is anticipated to account for largest market share over the forecast period.
This is attributed to availability of low-cost labor and raw materials in the
region. China accounted for more than 33% share in 2019 in the region. In North
America, the growth of the market is attributed to increasing number of medical
institutes and R&D centers working on advanced diagnostic products.
For full research report on Electronic
Contract Manufacturing And Design Services Market visit here: https://www.grandviewresearch.com/industry-analysis/the-global-electronic-contract-manufacturing-services-market
Further key
findings from the report suggest:
- The market is expected to witness a healthy
growth owing to rising need for resource optimization and growing
developments in manufacturing technology
- Electronics manufacturing segment accounted
for the largest market share in 2019. However, electronics design and
engineering services segment is projected to witness highest growth rate
over the forecast period owing to surging inclination of OEMs towards
outsourcing of contract manufacturing and designing services
- On the basis of end-use, the IT and telecom
sector held the dominant revenue share in 2019. However, non-technical
sectors such as healthcare, automotive, and aerospace and defense are
expected to witness noteworthy growth over the forecast period owing to
rising outsourcing trends in these industries
- Asia Pacific accounted for over 45% share of
the overall revenue in 2019 and is expected to dominate the electronic
contract manufacturing and design services market over the forecast period
owing to high availability of raw materials and low-cost labor in the
region
- Hon Hai Precision Industry Co., Ltd.; Flextronics
International, Ltd.; Jabil Circuit, Inc.; Sanmina Corporation; and
Benchmark Electronics, Inc. are some of the key market players that
captured a significant share in 2019.
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Grand
View Research has segmented the global electronic contract manufacturing and
design services market based on services, end use, and region:
Electronic
Contract Manufacturing & Design Services Outlook (Revenue, USD Billion,
2016 - 2027)
- Electronic Design
& Engineering
- Electronics Assembly
- Electronic
Manufacturing
- Others
Electronic
Contract Manufacturing & Design Services End-Use Outlook (Revenue, USD
Billion, 2016 - 2027)
- Healthcare
- Automotive
- Industrial
- Aerospace &
Defense
- IT & Telecom
- Power & Energy
- Consumer Electronics
- Others
Electronic
Contract Manufacturing & Design Services Regional Outlook (Revenue, USD
Billion, 2016 - 2027)
- North America
- U.S.
- Canada
- Mexico
- Europe
- U.K.
- Germany
- Asia Pacific
- China
- India
- Japan
- South America
- Brazil
- Middle East &
Africa
About Grand View Research
Grand View Research, Inc. is a U.S. based market
research and consulting company, registered in the State of California and
headquartered in San Francisco. The company provides syndicated research
reports, customized research reports, and consulting services. To help clients
make informed business decisions, we offer market intelligence studies ensuring
relevant and fact-based research across a range of industries, from technology
to chemicals, materials and healthcare.
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