The global electronic contract manufacturing and design services market size is expected to reach USD 788.7 billion by 2027, registering a CAGR of 8.4% over the forecast period 2020 to 2027.
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.
The growing functionalities, such as component assembly, engineering and design of printed circuit boards, sub-assembly manufacturing, and functional testing offered by contract manufacturers, are subsequently expected to drive the market over the forecast period. Electronic contract manufacturing is a form of engineering and manufacturing outsourcing services that provides a wide range of core manufacturing capabilities. Moreover, outsourcing of ancillary activities helps OEMs to focus on their core competencies, which helps them to improve their operational efficiencies, reduced production costs, and reduced fixed capital investment requirements.
The electronic contract manufacturing and design services model is driven by a contract manufacturer’s ability to specialize in economies of scale in services, industrial design expertise, raw materials procurement, and pooling resources along with offering value-added services such as warranty and repairs. It allow OEMs to avoid having tedious or complex large-scale industrial operations. Moreover, OEMs outsource their circuit assembly requests to reduce time-to-volume and time-to-market production through utilization of technology solutions, design and engineering services, and manufacturing services by electronic contract manufacturing and design services providers. On account of these factors, the market is expected to gain traction 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.
The proliferation of mobile devices, such as tablets and smartphones, has been the key propeller of the market over the last few years. The medical industry is anticipated to witness a significant growth owing to increasing demand for medical devices. The manufacturing of medical devices requires advanced technology and strict regulatory compliance. Thus, outsourcing such activities enables OEMs to accelerate its R&D activities, and to reduce the cost of devices in order to gain competitive advantage, which is expected to spur market growth.
Furthermore, automotive, and aerospace and defense are projected to witness higher growth as compared to technical segments such as Information Technology and Telecom and consumer services. In spite of electronic contract manufacturing and design services providers having numerous advantages in the manufacturing processes, contract manufacturing cannot always be the best option for the OEMs. Many a times, the executives of the OEMs fail to understand that outsourcing the assembly processes can be more time-consuming and complicated than in-house services. Moreover, maintaining quality, cost control and, production volumes is expected to hamper the manufacturing services provided by electronic contract manufacturing and design services contract providers. In the process of passing on the responsibility of manufacturing to the experts, the OEMs end up making the relationship with the contract manufacturers less profitable
The competitive rivalry in the market is high owing to the presence of several dominant players. Key players operating in the market for electronic contract manufacturing and design services include Hon Hai Precision Industry Co., Ltd.; Flextronics International, Ltd.; Jabil Circuit, Inc.; Sanmina Corporation; Venture Corporation; and Benchmark Electronics, Inc. The presence of well-established players has intensified the industry rivalry, due to which the degree of competition is considerably higher. These market players particularly focus on entering into mergers and acquisitions and joint ventures/collaborations in order to enhance their market presence.
Market players in the developing economies are offering low-cost, outsourced services to the production and designing sectors. Thus, owing to economical subcontracted services for manufacturing has resulted in increased competition between the market players. Moreover, the major operating players are investing in research and development in order to offer better outsourcing services. Additionally, major market players are focusing on improving their operational efficiency and supply chain to gain a competitive edge in the market.
The Electronic Contract Manufacturing And Design Services market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Electronic Contract Manufacturing And Design Services market for the base year 2019 and the forecast between 2020 and 2027. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Electronic Contract Manufacturing And Design Services market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Electronic Contract Manufacturing And Design Services market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Electronic Contract Manufacturing And Design Services market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Electronic Contract Manufacturing And Design Services capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Electronic Contract Manufacturing And Design Services by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Electronic Contract Manufacturing And Design Services market. These figures have been provided in terms of both revenue and volume for the period 2016 to 2027. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Electronic Contract Manufacturing And Design Services market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Electronic Contract Manufacturing And Design Services market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Electronic Contract Manufacturing And Design Services industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
Electronic Contract Manufacturing And Design Services market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Electronic Contract Manufacturing And Design Services market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Electronic Contract Manufacturing And Design Services market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Electronic Contract Manufacturing And Design Services market. These factors have benefited the growth of the global market for Electronic Contract Manufacturing And Design Services. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Electronic Contract Manufacturing And Design Services. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
Electronic design & engineering
Aerospace & Defense
IT & Telecom
Power & Energy
Middle East & Africa
In this study, the years considered to estimate the market size of Electronic Contract Manufacturing And Design Services are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are: