Electronic Contract Manufacturing and Design Services Market Forecasts to 2028 – Global Analysis By Service (Electronic design & engineering, Electronics assembly, Electronic manufacturing and Other Services), By Technology (Telecommunications, Computers,

Electronic Contract Manufacturing and Design Services Market Forecasts to 2028 – Global Analysis By Service (Electronic design & engineering, Electronics assembly, Electronic manufacturing and Other Services), By Technology (Telecommunications, Computers, Servers and Storage, Peripherals and Networking), By End User (Industrial, Aerospace & Defense, IT & Telecom and Other End Users) and Geography

According to Stratistics MRC, the Global Electronic Contract Manufacturing and Design Services Market is accounted for $540.25 billion in 2022 and is expected to reach $1080.73 billion by 2028 growing at a CAGR of 12.25% during the forecast period. Electronic contract manufacturing is a type of engineering and manufacturing outsourcing services that offers a broad range of core manufacturing capabilities. Additionally, outsourcing ancillary tasks allows OEMs to concentrate on their core competencies while increasing operational effectiveness, lowering production costs, and requiring less capital investment.

According to ClearSale, the revenue in the consumer electronics segment is anticipated to increase by more than US$365 billion in 2020 and more than US$450 billion by 2024. Therefore, the increase in demand for consumer electronics is driving the growth of electronic contract manufacturing and design services.

Market Dynamics:

Driver:

Rising demand for Consumer Electronics

Consumer electronics are in greater demand, and cutting-edge technological developments enable manufacturers to take advantage of current opportunities. Due to rising customer demands and the need to cut costs, manufacturers may need to collaborate with solution providers who have experience and industry knowledge. Providers of electronics manufacturing services are constantly making investments to upgrade equipment and implement new technologies, which helps the industry meet higher standards on a global scale.

Restraint:

Manufacturing low quality goods

Due to the delegation of production, there may be problems with quality control, and the contract manufacturer may decide to produce more of some products than others. Additionally, there might be problems with quality control and dangers from business information leaks. Also, an unreliable partner who fails to meet deadlines, produces subpar work, or makes use of inferior materials Any of these events could have a significant negative effect on your company and ultimately cost you a lot of money by preventing market expansion.

Opportunity:

Implementation of new technologies

The industrial output of the electronic manufacturing services is anticipated to increase significantly during the course of the forecast period owing to the adoption of new technologies. A shift in the way that technologies, particularly transformative ones like 3D printing and virtual reality, are used in this market has helped to boost production capacity. Strategic alliances between market participants will help to supply a range of products for the growth in the upcoming years.

Threat:

Intellectual Property Risks

The possibility of having intellectual property stolen is a serious drawback to Electronic contract manufacturing and design services. When an outsource the manufacturing, they grant access to customer intellectual property to a large number of employees. In some circumstances, the contract manufacturer might steal crucial business data and use it to establish its own brand. Additionally, there's a chance that suppliers will abuse intellectual property for their own gain, turning them into a potential rival that serves as a serious threat to the market.

Covid-19 Impact

The COVD-19 had a brief impact on the Electronic Contract Manufacturing and Design Services market, particularly during the initial phase of the COVID due to global lockdown. According to a report released by IPC in March 2020, the consumer electronics market was the industry most negatively impacted by the COVID-19 pandemic, according to a survey of approximately 40% of global electronic manufacturing companies and suppliers. One of the factors that significantly affected the market was the shortage of semiconductors. There was less productivity in the facilities as a result of the shortage of raw materials like capacitors and LCD panels. The revenue will be increased in large part by increased use of these services in the communication, automotive, healthcare, and other sectors.

The Electronic design & engineering segment is expected to be the largest during the forecast period

Due to OEMs' growing propensity to outsource their designing needs, the electronic design & engineering segment is anticipated to be the largest during the forecast period. Because of their increasing importance in numerous electronic devices, including mobile phones and tablets, among others, the market for electronic contract manufacturing and design services is currently experiencing an increase in demand for electronic circuit boards.

The IT & Telecom segment is expected to have the highest CAGR during the forecast period

Due to the low adoption of these products and services in the IT and telecom industries as well as the rising global investment in R&D by different market players, the IT and telecom segment is expected to have the highest CAGR during the forecast period. In the upcoming years, the market will grow at a significant rate due to factors such as rising consumer disposable income, increased spending power on innovative products, and an increase in the use of smartphones and tablets due to improved internet connectivity and speed around the globe, which are propelling the segment's growth.

Region with largest share:

The Asia Pacific is expected to register the largest share during the forecast period. The main causes are the wide availability of different raw materials, the low cost of labour, and the explosive growth of outsourcing activities in the region. The market in developing countries like India, China, and Indonesia is also expected to benefit in the near future from high industrialization growth, rapid urbanisation, and expansion in a number of end-use industries, including healthcare, automotive, and power and energy.

Region with highest CAGR:

During the forecast period, North America is anticipated to experience the highest CAGR due to the increased emphasis on research and development activities, the presence of numerous important market players, and the early adoption of cutting-edge technology with the ease of accessibility to high-speed internet connectivity. Important players in this region, such as FLEX, Sanmina Corp., and Jabil Circuit, Inc., are planning to increase production capacity by expanding their manufacturing facilities in Europe.

Key players in the market

Some of the key players profiled in the Electronic Contract Manufacturing and Design Services Market include Creating Technologies LP, Flextronics International Ltd., Hon Hai Precision Industry Co. Ltd., Jabil Circuit Inc., Benchmark Electronics Inc., Celestica Inc., Compal Electronics Inc., Plexus Corporation, Fabrinet, Venture Corporation Limited, Altadox, Inc. and Sanmina-SCI Corporation.

Key Developments:

In November 2020, Syrma Technology, a leading provider of electronic design and manufacturing services for domestic OEMs, announced its merger with SGS Tekniks with a cash and stock deal. The main aim behind this merger was to create advanced RFID tech, power electronics, and custom magnetics for various automotive, computing, medical, power, and telecom companies.

In August 2020, Creation Technologies announced the expansion of its manufacturing facility and production capacity in Hermosillo, Mexico. The new capacity will increase the total area from 205,000 square feet to 330,000 square feet and complement the company’s existing capacity in the country.

In March 2020, Samina-SCI Corporation launched its new manufacturing and supplying facility in Thailand. The new facility has complied with some new features and techniques for the convenient manufacturing process of advanced optical, radio frequency, and high-speed microelectronic products.

Service Covered:
• Electronic design & engineering
• Electronics assembly
• Electronic manufacturing
• Other Services

Technologies Covered:
• Telecommunications
• Computers
• Servers and Storage
• Peripherals
• Networking
• Consumer Devices

End Users Covered:
• Industrial
• Aerospace & Defense
• IT & Telecom
• Healthcare
• Automotive
• Power & Energy
• Consumer Electronics
• Other End Users

Regions Covered:

• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements