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, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 625.66 Billion
CAGR (2026-2031)	11.22%
Fastest Growing Segment	Electronic design & engineering
Largest Market	Asia Pacific
Market Size (2031)	USD 1184.23 Billion

Market Overview

The Global Electronic Contract Manufacturing and Design Services Market will grow from USD 625.66 Billion in 2025 to USD 1184.23 Billion by 2031 at a 11.22% CAGR. The Global Electronic Contract Manufacturing and Design Services market comprises firms providing engineering, manufacturing, and aftermarket support for electronic components on behalf of original equipment manufacturers. Growth is supported by the strategic shift of OEMs toward outsourcing production to reduce capital expenditures and concentrate on core competencies like product innovation. Additionally, the rising demand for advanced electronics necessitates the specialized production capabilities these service providers offer.

Market expansion is frequently hindered by supply chain vulnerabilities affecting production continuity. According to IPC, in September 2025, the North American EMS book-to-bill ratio stood at 1.31, highlighting that order bookings significantly exceeded billed shipments. While this metric suggests robust demand, it underscores the difficulty manufacturers face in converting orders to revenue due to component availability issues. Consequently, persistent logistical constraints and raw material shortages remain a primary challenge that could obstruct the timely delivery of products and impede overall market growth.

Key Market Drivers

The Accelerated Integration of Automotive Electronics and EV Technologies is a primary catalyst propelling the market, as original equipment manufacturers increasingly rely on contract manufacturers for complex vehicle assemblies. The transition toward electric mobility requires sophisticated electronic components, including battery management systems, advanced driver-assistance systems (ADAS), and infotainment modules, which necessitates the specialized engineering capabilities of EMS providers. This shift enables automotive OEMs to navigate rapid technological changes without bearing the full burden of capital-intensive production facilities. For instance, according to Hon Hai Technology Group (Foxconn), May 2025, in the 'First Quarter 2025 Financial Results', the company reported that revenue from its components and other products category delivered strong year-over-year growth, explicitly driven by an increase in shipments of key components and the expansion of its automotive-related business.

Simultaneously, the Widespread Deployment of 5G Infrastructure and IoT Ecosystems is expanding the addressable market for design and manufacturing services. As telecommunication networks densify to support high-speed connectivity and IoT devices proliferate across industrial and consumer sectors, there is a critical need for robust backend infrastructure, including cloud servers and networking equipment. Contract manufacturers are pivotal in scaling the production of this intelligent infrastructure to support the data-intensive demands of modern connectivity. Highlighting this trend, according to Jabil Inc., September 2025, in the 'Fourth Quarter and Fiscal Year 2025 Results', the firm’s Intelligent Infrastructure segment revenue surged by 62% year-over-year, fueled by AI-driven demand across capital equipment, data centers, and networking. Broadening the perspective to the wider industry environment, according to IPC, in 2025, the electronics Shipment Index reached its highest point in nearly a year during March, reflecting the enhanced ability of firms to fulfill rising global demand and maintain supply chain performance.

Download Free Sample Report

Key Market Challenges

Supply chain vulnerabilities and persistent raw material shortages constitute a significant barrier to the expansion of the Global Electronic Contract Manufacturing and Design Services market. These logistical bottlenecks disrupt manufacturing schedules, compelling service providers to extend lead times and delay the delivery of critical assemblies to Original Equipment Manufacturers (OEMs). When essential components are unavailable, manufacturers cannot convert their order backlogs into realized revenue, effectively stalling financial growth despite strong market demand. Furthermore, the unpredictability of the supply base forces firms to maintain elevated inventory levels, tying up working capital that could otherwise be allocated to capacity expansion or technological upgrades.

This operational strain is substantiated by recent industry data highlighting renewed tightness in component availability. According to IPC, in March 2025, the index for inventory available from suppliers declined to 103, signaling a contraction in component accessibility and tighter supply conditions. Such constraints compel manufacturers to navigate a volatile procurement environment, often resulting in production inefficiencies and compressed profit margins. As service providers struggle to secure necessary parts on time, the market’s overall ability to scale and meet the accelerating requirements of the advanced electronics sector is significantly compromised.

Key Market Trends

The Strategic Shift Toward Nearshoring and Regionalized Supply Chains represents a fundamental restructuring of production geography within the market. To mitigate geopolitical risks and logistical vulnerabilities, manufacturers are actively diversifying their footprints beyond traditional single-source hubs into emerging centers like India and Mexico. This decentralization strategy enhances supply chain resilience and brings production physically closer to end-markets, allowing for faster response times. Highlighting this rapid expansion, according to Deccan Herald, October 2024, in the 'Foxconn group firm to invest Rs 13,000 crore in Tamil Nadu component plant', a subsidiary of the Taiwanese electronics major approved a proposal to inject Rs 13,000 crore into a new facility for smartphone components, solidifying India's role as a critical alternative manufacturing hub.

Simultaneously, the Adoption of Circular Economy and Sustainable Manufacturing Practices is becoming a decisive competitive factor. EMS providers are aggressively integrating closed-loop systems and renewable energy sources to meet the rigorous decarbonization mandates of global OEMs. This operational pivot prioritizes resource efficiency and waste minimization alongside standard production metrics, transforming sustainability from a compliance requirement into a value-added service. Substantiating this progress, according to Flex Ltd., September 2024, in the '2024 Sustainability Report', the company reported a 33 percent decrease in absolute scope 1 and 2 greenhouse gas emissions from its 2019 baseline, illustrating the sector's tangible success in reducing the environmental footprint of industrial activities.

Segmental Insights

The Electronic design and engineering segment represents the fastest growing category within the Global Electronic Contract Manufacturing and Design Services Market. This expansion occurs as Original Equipment Manufacturers increasingly outsource early development phases to accelerate market entry and reduce fixed costs. By engaging external partners for conceptualization and testing, companies ensure their products meet strict industry protocols such as those from the International Organization for Standardization. This collaborative approach allows firms to leverage external technical expertise for complex product architectures while prioritizing internal efforts on sales and brand management.

Regional Insights

Based on current market research, Asia Pacific leads the Global Electronic Contract Manufacturing and Design Services Market, driven by its extensive manufacturing infrastructure and significant cost advantages. The region’s dominance stems from a strategic combination of low-cost skilled labor and the mass availability of raw materials, which substantially reduce operational expenses for global Original Equipment Manufacturers. This position is further strengthened by supportive government policies and industrial incentives in major economies like China and India, designed to attract foreign investment. Additionally, close proximity to semiconductor supply chains and rising local demand for electronic devices consolidate Asia Pacific's status as the central hub for global production.

Recent Developments

• In February 2025, Flex announced a significant expansion of its manufacturing capacity in the United States by opening a new 400,000-square-foot facility in Dallas, Texas. This strategic investment was focused on producing power infrastructure solutions, such as power pods and low-voltage switchgear, specifically designed to support the intense energy demands of artificial intelligence data centers. The new hub aimed to reduce production lead times for North American customers and enhance the grid-to-chip power distribution capabilities. This move underscored the company's commitment to addressing the critical infrastructure needs of the rapidly evolving AI and cloud computing markets.
• In November 2024, Tata Electronics entered into a definitive agreement to acquire a majority stake in Pegatron's iPhone manufacturing facility in Tamil Nadu, India. Under the terms of the deal, the company secured a 60% share in a new joint venture, while the Taiwanese contract manufacturer retained the remaining 40% along with providing technical support. This collaboration marked a significant consolidation in the local electronics manufacturing services market, effectively establishing the company as a formidable player in the Apple supply chain. The operational transition aimed to leverage combined expertise to scale up production capabilities and meet increasing global smartphone demand.
• In September 2024, Jabil Inc. signed a Memorandum of Understanding with the government of Tamil Nadu, India, to expand its manufacturing operations in the region. The agreement outlined plans for a new facility in Tiruchirappalli involving an investment of approximately $238 million. This strategic move was intended to support the company's cloud and data center business, capitalizing on the rising demand for intelligent infrastructure. The expansion complemented existing operations in Pune and demonstrated a commitment to strengthening the electronics supply chain within India, positioning the company to better serve global customers in the high-growth technology sector.
• In June 2024, Hon Hai Technology Group (Foxconn) announced a strategic collaboration with NVIDIA to establish an advanced computing center in Kaohsiung, Taiwan. This facility was designed to utilize NVIDIA's Blackwell platform at its core, aiming to drive the development of intelligent ecosystems. The partnership focused on creating supercomputing infrastructure to support three key platforms: smart manufacturing, smart electric vehicles, and smart cities. By integrating advanced AI technology into its manufacturing processes, the company aimed to enhance its operational capabilities and meet the growing global demand for AI-driven solutions in the electronic contract manufacturing sector.

Key Market Players

• 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

By Service	By End-Use	By Region
Electronic design & engineering Electronics assembly Electronic manufacturing	Healthcare Automotive Industrial Aerospace & Defense IT & telecom Power & energy Consumer electronics	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Electronic Contract Manufacturing and Design Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Electronic Contract Manufacturing and Design Services Market, By Service:

• Electronic design & engineering
• Electronics assembly
• Electronic manufacturing

• Electronic Contract Manufacturing and Design Services Market, By End-Use:

• Healthcare
• Automotive
• Industrial
• Aerospace & Defense
• IT & telecom
• Power & energy
• Consumer electronics

• Electronic Contract Manufacturing and Design Services Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE