Electronic Contract Manufacturing and Design Services Market to Grow with a CAGR of 10.8% Globally through to 2028
Global Electronic Contract Manufacturing and Design Services Market is
rising due to increasing demand for customized electronic products and the need
for cost-effective manufacturing solutions in the forecast period 2024-2028.
According to TechSci Research report, “Global Electronic
Contract Manufacturing and Design Services Market - Industry Size, Share,
Trends, Competition Forecast & Opportunities, 2028”, Global
Electronic Contract Manufacturing and Design Services Market has valued at USD
514 Billion in 2022 and is anticipated to project robust growth in the forecast
period with a CAGR of 10.8% through 2028. The Global Electronic Contract
Manufacturing and Design Services Market is a dynamic and crucial sector within
the electronics industry. It encompasses a wide range of services provided by
contract manufacturers and design firms to companies looking to outsource the
production and design of electronic components, devices, and systems. These
services include printed circuit board (PCB) assembly, product testing,
prototyping, design engineering, and supply chain management. The market's
growth is driven by several factors, including the increasing complexity and
miniaturization of electronic products, the need for cost-effective
manufacturing solutions, and the rapid pace of technological advancements.
Additionally, the globalization of supply chains and the demand for customized
electronic products further contribute to the market's expansion. Companies
across various industries, such as automotive, healthcare, aerospace, and
consumer electronics, rely on electronic contract manufacturing and design
services to stay competitive, reduce time-to-market, and focus on their core
competencies. As technology continues to evolve, this market is expected to
play a pivotal role in shaping the future of electronic innovations and manufacturing
efficiency, making it a strategic and indispensable segment in the global
electronics ecosystem.
Browse over 26 market data Figures spread
through 91 Pages and an in-depth TOC on "Global Electronic Contract Manufacturing and Design Services Market”.
The global electronic contract manufacturing and
design services market has witnessed significant growth and transformation in
recent years. This market encompasses a wide range of services provided by
specialized companies that offer design, manufacturing, and assembly solutions
for electronic products. The increasing complexity and miniaturization of
electronic devices, coupled with the growing demand for customized and
innovative products, have been key drivers of the market's expansion. One of the
primary factors contributing to the growth of the electronic contract
manufacturing and design services market is the rapid pace of technological
advancements. As new technologies emerge and existing ones evolve, companies
are faced with the challenge of keeping up with the latest trends and
incorporating them into their products. This requires specialized expertise and
resources that may not be available in-house. Electronic contract manufacturers
and design service providers offer a cost-effective solution by leveraging
their knowledge and infrastructure to develop cutting-edge products. Moreover,
the globalization of supply chains has also played a crucial role in the
market's development. Companies are increasingly looking to outsource their
manufacturing and design processes to take advantage of lower labor costs and
access to a broader pool of talent. Electronic contract manufacturers and
design service providers, with their global presence and established networks,
offer a seamless and efficient way for companies to tap into these benefits.
This trend has been particularly prominent in industries such as consumer
electronics, automotive, and healthcare, where time-to-market and cost
competitiveness are critical.
Furthermore, the electronic contract manufacturing and
design services market has been driven by the growing emphasis on
sustainability and environmental responsibility. As consumers become more
conscious of the environmental impact of electronic products, companies are
under pressure to develop eco-friendly solutions. Electronic contract
manufacturers and design service providers play a vital role in this regard by
offering expertise in designing energy-efficient products, reducing waste, and
implementing sustainable manufacturing practices. This not only helps companies
meet regulatory requirements but also enhances their brand image and
competitiveness in the market. However, the market is not without its
challenges. The increasing complexity of electronic products and the need for
rapid innovation pose significant hurdles for electronic contract manufacturers
and design service providers. They must continually invest in research and
development, upgrade their manufacturing capabilities, and stay abreast of the
latest industry standards and regulations. Additionally, the market is highly
competitive, with numerous players vying for contracts from global companies.
To succeed, electronic contract manufacturers and design service providers must
differentiate themselves by offering superior quality, flexibility, and
customer service.
In conclusion, the global electronic contract
manufacturing and design services market is experiencing robust growth driven
by technological advancements, globalization, and sustainability concerns. As
companies seek to stay competitive in a rapidly evolving landscape, they are
increasingly turning to specialized service providers to meet their design and
manufacturing needs. With the right expertise, infrastructure, and commitment
to innovation, electronic contract manufacturers and design service providers
are well-positioned to capitalize on the opportunities presented by this
dynamic market.
The Global Electronic Contract Manufacturing and
Design Services Market is segmented into Service, End-use, regional distribution,
and company.
Based on its End-use, the demand for electronic
contract manufacturing services is anticipated to grow owing to rising
applications across non-technical end-user segments, such as healthcare,
automotive, industrial, and aerospace & defense. The low penetration of
electronic contract manufacturing and design services in these segments is
creating higher opportunities for contract manufacturers to establish a strong
foothold in the segments. The IT & telecom segment emerged as the largest
end-use segment and accounted for over 47% of the total market revenue in 2022.
However, growing outsourcing trends in the healthcare, automotive, and other
non-technical segments are projected to spur their market shares during the
forecast period. The healthcare segment held the highest CAGR of the overall
market in 2022. Healthcare facilities have different types of information
systems, including practice management support systems, e-prescription systems,
EHR systems, radiology information systems, and clinical decision support
systems, which hold many sensitive patient and hospital datasets. Further, many
IoT-enabled systems include smart HVAC systems, remote patient monitoring
devices, infusion pumps, smart elevators, and more, which are critical in maintaining
daily patient-related activities. Hence, healthcare facilities are expected to
adopt cybersecurity solutions to safeguard electronic assets and information
from unauthorized use, access, and disclosure, thereby driving market growth.
The upsurge in demand for electrical vehicles has
elevated the need to outsource their electronic component manufacturing,
thereby spurring the electronic contract manufacturing and design services
demand in the automotive sector. The healthcare industry is expected to witness
significant growth, owing to the rise in demand for medical equipment. This
includes blood analyzers, ultrasound imaging systems, computed tomography
scanner assemblies, and blood glucose meters, among others. The low fixed
capital investment, escalating need to optimize resources, and improved product
development emerged as key factors contributing toward the electronic contract
manufacturing and design services industry growth across several end-use
industries. The demand remains robust in sectors including medical, automotive,
aerospace & defense, and consumer electronics, and IT &
telecommunication.
Based on region, Asia-Pacific is expected to exhibit
the highest growth followed by North America during the forecast period. This
is due to the rise of outsourcing activities in these regions. Asia Pacific
held the largest revenue share in 2022 and is estimated to remain the
fastest-growing region during the forecast period. Moreover, China accounted
for more than 35% share in the region and holds a dominant position in
electronics manufacturing. The mass availability of raw materials and low-cost
labor are the major drivers expected to favor regional industry growth.
Furthermore, growth in the North America region is
majorly driven by the healthcare and automotive industries. The healthcare
industry is a high-mix-low-volume sector, that offers higher gross profit
margins to electronic contract manufacturing and design services players in
this region. Several R&D centers and medical institutes in North America
work on advanced and portable diagnostic products, which they plan to source
through contract manufacturers. All these factors are cumulatively expected to
spur the North American contract manufacturing market growth during the
forecast period. Key players such as FLEX; Sanmina Corp; and Jabil Circuit,
Inc. are planning to expand their manufacturing facilities in Europe, thereby
increasing their production capacity. In addition, a shift to advanced
manufacturing techniques in America and Europe is estimated to spur the
electronic contract manufacturing and design services demand in these regions
during the forecast period.
Major companies operating in Global Electronic
Contract Manufacturing and Design Services Market are:
- Benchmark
Electronics Inc.
- Celestica
Inc.
- Compal
Electronics Inc.
- Creating
Technologies LP
- Flextronics
International Ltd.
- Hon
Hai Precision Industry Co. Ltd.
- Jabil
Circuit Inc.
- Plexus
Corporation
- Fabrinet
- Venture
Corporation Limited.
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“The global electronic contract manufacturing and
design services market has seen significant growth due to technological
advancements, globalization, and sustainability concerns. This market offers
specialized services for designing, manufacturing, and assembling electronic
products. The increasing complexity and miniaturization of devices, along with
the demand for customized and innovative products, have driven market
expansion. Companies outsource their manufacturing and design processes to
electronic contract manufacturers and design service providers to keep up with
technological trends and benefit from lower costs and access to talent. These
providers also contribute to sustainability efforts by designing
energy-efficient products and implementing sustainable manufacturing practices.
However, challenges include the need for continuous investment in research and
development, upgrading manufacturing capabilities, and fierce competition.
Overall, the electronic contract manufacturing and design services market
presents opportunities for providers who offer superior quality, flexibility,
and customer service to meet the evolving needs of companies in this dynamic
industry,” said Mr. Karan Chechi, Research Director with TechSci Research, a
research-based management consulting firm.
“Electronic
Contract Manufacturing and Design Services Market – Global Industry Size,
Share, Trends, Opportunity, and Forecast, Segmented By Service (Electronic
design & engineering, Electronics assembly, Electronic manufacturing), By
End-Use (Healthcare, Automotive, Industrial, Aerospace & Defense, IT &
telecom, Power & energy, Consumer electronics), By Region, By Competition”,
has evaluated the future growth potential of Global Electronic Contract
Manufacturing and Design Services Market and provides statistics &
information on market size, structure and future market growth. The report
intends to provide cutting-edge market intelligence and help decision makers
take sound investment decisions. Besides, the report also identifies and
analyzes the emerging trends along with essential drivers, challenges, and
opportunities in Global Electronic Contract Manufacturing and Design Services
Market.
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