Electronic Contract Manufacturing And Design Services Market Size, Share & Trends Analysis Report By Service, By End-Use, By Region, And Segment Forecasts, 2022 - 2030

Electronic Contract Manufacturing And Design Services Market Growth & Trends

The global electronic contract manufacturing and design services market size is expected to reach USD 1,062.7 billion by 2030, according to a new study by Grand View Research, Inc., registering a CAGR of 9.5% during the forecast period. The electronics industry is highly competitive, owing to the increasing complexity of electronic products and rising pressure on Original Equipment Manufacturers (OEMs) to reduce costs. Moreover, decreased product lifecycles have upped the demand for better manufacturing capabilities and related services. OEMs are seeking contract manufacturers' support to achieve the same, which will drive the market during 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 a majority of OEMs. Hence, outsourcing is a preferred option to keep pace with the 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. For instance, the Indian medical device industry has been expanding at a CAGR of 15% in the last three years. The surging need for optimizing resources and technological developments in manufacturing facilities have led to increased adoption of EMS among end-use industries.

Electronic Contract Manufacturing And Design Services Market Report Highlights

• The electronic contract manufacturing and design services market is expected to witness healthy growth, owing to the rising need for resource optimization and growing developments in manufacturing technology
• The electronic manufacturing segment accounted for the largest market share in 2021. However, the electronic design & engineering services segment is projected to witness high growth during the forecast period, owing to the surging inclination of OEMs towards outsourcing manufacturing and designing services
• Based on end-use, the IT and telecom sectors held the dominant revenue share in 2021. However, non-technical sectors such as healthcare, automotive, and industrial are expected to witness noteworthy growth during the forecast period, owing to rising outsourcing trends in these industries
• Asia-Pacific accounted for a 45.9% share of the overall revenue in 2021 and is expected to dominate the market during the forecast period, owing to the high availability of raw materials and low-cost labor in the region