The electronic contract manufacturing and design services market encompasses all services related to design, manufacturing, assembly, testing, quality control, distribution, and after sales support of electronics products. These services help original equipment manufacturers (OEMs) and electronics manufacturing services (EMS) companies focus on their core competencies by outsourcing the manufacturing requirements. The growing need for lower costs and faster time-to-market has boosted the popularity of contract manufacturing in the electronics industry.
The global electronic contract manufacturing and design services market is estimated to be valued at US$ 712.03 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Electronic Contract Manufacturing And Design Services Companies are Asteelflash, Benchmark Electronics, Inc., Celestica Inc., Compal Electronics, Inc., Delta Group, Fabrinet, Flex Ltd., Foxconn Technology Group, Inventec Corporation, Jabil Inc., Kimball Electronics, Inc., LACROIX - Electronics, New Kinpo Group, Plexus Corp., and Sanmina Corporation. These players are focusing on expanding their production facilities and service offerings globally to cater to the increasing demand.
The key opportunities in the market include growing demand for consumer electronics with varied specifications, emergence of Industry 4.0 with technologies like IoT, robotics, AI, and data analytics creating need for smart connected devices, and rising demand for Electronics Manufacturing Services (EMS) from automotive, industrial, aerospace & defense, energy & utilities and healthcare industries for manufacturing components, modules, and complete electronic equipment.
The global players are expanding their presence across different regions through acquisitions, partnerships, and by building new manufacturing facilities to cater to the growing Regional demand. For instance, Foxconn plans to invest $1 billion to expand its facility in India. Jabil expanded its manufacturing capacity in Mexico, Brazil, China and Vietnam.
Market drivers
The key drivers for the Electronic Contract Manufacturing And Design Services Market Demand include growing transition towards Industry 4.0 and focus on digitization across industries. Industry 4.0 technologies are driving the need for connected smart devices and Internet of Things (IoT) based solutions in sectors like automotive, manufacturing, and healthcare. This is expected to increase the demand for contract manufacturing and design services from EMS companies.
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