The global electronic contract manufacturing and design services market size was estimated at USD 522.5 billion in 2022 and is expected to hit around USD 1,398.9 billion by 2032 and is poised to grow at a compound annual growth rate (CAGR) of 10.4% during the forecast period from the year 2023 to 2032.
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Growing demand for the optimization of the resources and they increased proliferation of the mobile phones the market is expected to grow well in the coming year. Electronic manufacturing and design services add the outsourced services for the manufacturing in the engineering processes. These services are used for the manufacturing and the distribution of the products. It is also used by the companies for listing and providing repair services as well as the return services. It involves the process of component designing and assembly of the hardware as well as the circuit board. Many electronic products are manufactured on contract basis and this outsourcing service has grown well in the recent years.
Some of the technologies that make use of the electronic contract manufacturing services are consumer devices telecommunications, networking, servers and computers. The electronic contract manufacturing and designing services are supplementary to the manufacturing of the company and operations of the company. There is a growing demand for optimization as well as improvement of the products that are manufactured in an organization and this is expected to create a greater demand for these services in the forecast period. Increased outsourcing of such activities has provided for increasing the focus on the core activities for the original equipment manufacturers. The operational efficiencies of the original equipment manufacturers are enhanced to a great extent due to a reduction in the costs required for production and this is expected to drive the market growth in the coming years.
During the COVID-19 pandemic the demand for electronic manufacturing services has seen a negative impact. The revenue of the market players had reduced to a great extent. The electronics industry was affected due to the disrupted supply chain and logistics activities. Restrictions on the movement and trade had caused losses for the market players. Shortage of semiconductors was one of the reasons which affected the market to a great extent. Due to the shortage of the raw materials like the capacitors and the LCD panels there was lesser productivity in the facilities. Although after the pandemic the electronics manufacturing market has grown well. The demand for the electronics has grown well in the United States, Germany, China as well as India. Increased use of these services in communication, automotive sector, healthcare sector and other sectors will be instrumental in increasing the revenue. Due to the increase in the initiatives taken by the government for reducing the emissions as well as recycling the waste the e-waste recycling will help in the growth of the market in the coming years. Recycling of the electronic waste it's promoted by various authorities. There has been a growth in the strategies as well as the initiatives taken by the government for the same.
Report Scope of the Electronic Contract Manufacturing and Design Services Market
|Market Size in 2023||
USD 574.2 Billion
|Market Size by 2032||
USD 1,398.9 Billion
|Growth Rate from 2023 to 2032||CAGR of 10.4%|
|Forecast Period||2023 to 2032|
|Segments Covered||Service, Technology, End-Use, and Geography|
|Companies Mentioned||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|
In order to increase the productivity of the manufacturing units there is a growth in the pressure for these manufacturers and there's also a great demand for the after sales services in order to meet all these demands the market for global electronic contract manufacturing and design services is expected to grow well in the coming years. Due to an increased adoption of the electrical vehicles and investments provided by the government as well as the major manufacturing companies in order to increase the sales of electric vehicles will also provide a better market for these services.
Global electronic contract manufacturing and design services are expected to grow well in the coming years due to the advantages provided by these outsourcing services. It helps in reducing the use of assets and reduces the cost in code on the manufacturing of these devices. As these sources are outsourced the companies are able to focus on their core activities and developmental activities that shall be beneficial for its growth in the market. Judy the employment of the skilled workforce and expert people for manufacturing the market is expected to grow well in the coming years. during the forecast. There should be an increased need for the electronic contract manufacturing as the electronic products of any type most probably have a short life cycle which leads to a greater need for increasing the production of these electronic products. Also the demand for these products keep changing constantly which causes a pressure on the manufacturer for increasing the quantity of the products as well as to improve the quality of such products which are provided in the market.
Electronic products are used in a large number of industries and it is also got household applications. Due to a wide range of application of these products the market is expected to grow well in the coming years. Due to the incorporation of various telecommunication technologies in the automated cars or the cars that make use of IoT will provide growth opportunities for the market in the coming years. As these services have got application in the industries automotive as well as the healthcare segment the market is expected to grow well in the coming year this.
By the implementation of new technologies, the industrial output of the electronic manufacturing services is expected to grow well during the forecast period. There has been a change in the use of technologies or the use of transformative technologies in this market like 3D printing and virtual reality which helps in increasing the capability of production. Strategic partnerships between the market players will be beneficial for providing a variety of products for the growth in the coming years.
The introduction of the green electronics will drive the market growth in the coming years. These electronics are manufactured with the help of non-toxic chemicals and various parts that can be recycled. They also help in reducing the amount of carbon emissions in the production process. The lowered carbon footprints and lesser consumption of energy will also provide for the growth of the market in the coming years. There has been an increase in the number of innovative products introduced in the market in the recent year. Stringent policies and adoption of manufacturing devices that are free of carbon emissions or green electronics will drive the market growth in the coming years period in
On the basis of service, the electronic manufacturing segment has had the largest market share in the recent years and it is expected to grow well in the coming years period. Due to an increase in the inclination of the original equipment manufacturers for outsourcing the requirements of designing. There's an increased importance of deciding services for many electronic devices like the tablets and mobile phones which all help in the growth of the market in the coming years.
End User Insights
The IT and telecom sector is the segment that has had the largest market share in the recent years. There has been a growth in the demand for the outsourcing of these services for the automotive as well as the health care markets. Growing demand for electrical vehicles will also drive the market growth in the coming years.
Due to an increased manufacturing of medical devices and the new medical devices provided in the market will help in the growth the market in the coming years. Increased need for optimizing the resources and reducing the capital investment is beneficial for the growth of the market. There is an increased use of these services for consumer electronics and aerospace and defense applications.
Electronic Contract Manufacturing and Design Services Market Share, By Region, 2022 (%)
|Regions||Revenue Share in 2022 (%)|
The Asia Pacific region has a maximum demand for electronic goods. This region is expected to have the largest market share in the coming year. There has been an increase in the outsourcing of various activities associated with the manufacturing of these electronic devices. Most of the regions in the Asia Pacific region will grow the fastest in the coming years. Out of all the nations in the Asia Pacific region, China has had a market share of about 35% in the past in the manufacturing of the electronics and it shall maintain the position in the coming years. Due to the availability of the labor and the raw materials at a lower cost the market in this region is expected to grow well in the coming years.
The North American region is also expected to have maximum consumption of these services due to an increase in the automotive and healthcare industries. There is a maximum demand for electronics in the healthcare industry as well as the automotive industry in the North American region. High amount of revenue generated through these services. Constant research and development activities have provided innovative products. The increased use of portable as well as technologically advanced products used for the diagnosis in the research and development centers which are located across the North American region will be instrumental in the growth of the market in the coming years. The availability of advanced techniques for the manufacturing of these electronic products the demand for the services is expected to grow in the European region in the coming years.
Key market developments
Key Market Players
Segments covered in the report
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