Global Electronics Contract Manufacturing Market - Industry Dynamics, Market Size, And Opportunity Forecast To 2030
Report ID: MS-1944 | Electronics and Semiconductors | Last updated: Oct, 2024 | Formats*:
ECM refers to the outsourcing of electronic manufacturing services to specialised firms. ECM services are diversified, meaning they can be design-related, assembly-based, testing-capable, and logistically potent and have the capability of letting companies save costs by concentrating their strength on their core competence. Industries using ECM services include electronics, automotive, telecommunications, and medical devices. As the electronic product gets complex, so does the demand for efficient and cost-effective manufacturing solutions. The market for ECM is further expected to grow in such a scenario wherein globalisation, technological advancement, growing emphasis on outsourcing, and optimisation of the supply chain are all stimulating factors.
Electronics Contract Manufacturing Report Highlights
Report Metrics | Details |
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Forecast period | 2019-2030 |
Base Year Of Estimation | 2023 |
Growth Rate | CAGR of 9.7% |
By Product Type | Electronic Design & Engineering, Electronic Assembly, Electronic Manufacturing, Others |
Key Market Players |
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By Region |
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Electronics Contract Manufacturing Market Trends
A significant trend in the global electronics contract manufacturing market is the move towards greater automation coupled with an adoption of advanced technologies such as AI and IoT. Manufacturers are resorting to smart manufacturing practices, taking lead times down and raising the quality of products manufactured. Automation technologies allow more accurate manufacturing processes and supply chain optimisation through analytics and AI-driven predictability for maintenance needs. There is an increased focus on sustainability and environment-friendly trends within the electronics contract manufacturing market. This trend arises mainly due to the growing focus of consumers as well as regulatory bodies on the environmental responsibility issue. The manufacturers are therefore cornered into following sustainable materials and sustainable practices in their production lines to minimise waste generation, material recycling, and energy-saving manufacturing processes.Electronics Contract Manufacturing Market Leading Players
The key players profiled in the report are Benchmark Electronics Inc., Celestica Inc., Compal Electronics Inc., Creating Technologies LP, Fabrinet, Flextronics International Ltd., Hon Hai Precision Industry Co. Ltd., Jabil Circuit Inc., Plexus Corporation, Venture Corporation Limited.Growth Accelerators
The primary drivers of the global electronics contract manufacturing market are the surging demand for consumer electronics and rapid technological advancements. OEMs are trending towards contract manufacturers to meet the production requirements efficiently and address the needs of consumers. This way, OEMs can focus on product design and marketing while enjoying the specific know-how and infrastructure of contract manufacturers, who can quickly expand their production capacities and thus accelerate the launch of new products. The further alluring factor is the broader tendency toward the outsourcing trend in the electronics business. As more cost advantages and operational efficiencies emerge for companies by making use of contract manufacturers, this has turned into a standard practice in the industry over time. Outsourcing production saves both capital expenditure and gives the firm access to the latest and most advanced manufacturing technologies. Even on overhead, the firm can significantly save by outsourcing due to less overhead attached to in-house production facilities. Growing demands for flexibility in the manufacturing process to be able to respond to changing market conditions and consumer preferences enhance the thrust toward outsourcing. This makes electronics contract manufacturing an essential part of the supply chain ecosystem.Electronics Contract Manufacturing Market Segmentation analysis
The Global Electronics Contract Manufacturing is segmented by Type, Application, and Region.By Type, the market is divided into Distributed Electronic Design & Engineering, Electronic Assembly, Electronic Manufacturing, Others . The Application segment categorizes the market based on its usage such as Healthcare, Automotive, Industrial, Aerospace & Defense, IT & Telecom, Power & Energy, Consumer Electronics, Others. Geographically, the market is assessed across key Regions like North America(United States.Canada.Mexico), South America(Brazil.Argentina.Chile.Rest of South America), Europe(Germany.France.Italy.United Kingdom.Benelux.Nordics.Rest of Europe), Asia Pacific(China.Japan.India.South Korea.Australia.Southeast Asia.Rest of Asia-Pacific), MEA(Middle East.Africa) and others, each presenting distinct growth opportunities and challenges influenced by the regions.
Competitive Landscape
Global Electronics Contract Manufacturing varies in its competition between established and new firms offering their services in design, engineering, assembly, and testing electronic components and systems. Major companies, though, like Foxconn, Flex Ltd., and Jabil command the most part of this industry due to their very broad expertise in manufacturing, technology integration, and their relationships with original equipment manufacturers (OEMs). Utilizing the benefits of economies of scale, global supply chains, and robust quality control processes has helped companies remain competitive as they work with different clients to service their needs in various industries, including consumer electronics, automotive, and telecommunications. Apart from the giants, there are massive competitions through smaller-sized specialized contract manufacturers focused on niche markets or regions. The companies differentiate themselves with agility, customization, and personalized services adapted to the demands of clients. Industry 4.0 and smart manufacturing technologies also lead to innovation, with opportunities for companies that can drive automation and data analytics within the processes of their manufacturing.Challenges In Electronics Contract Manufacturing Market
Supply chain disruptions and fluctuating material costs are a combination of the biggest challenges facing the global electronics contract manufacturing market. The global initiatives, especially the COVID-19 pandemic and geopolitical tensions, have made supply chains vulnerable, contributing to production delays and increased lead times for components. Raw material prices, including semiconductors and metals, are another rising factor that could have an important impact on a contract manufacturer's profit. For them, managing very complex schemes of pricing with low-cost expressions while competing in the marketplace is challenging. The second relevant issue is the constant need for innovations and technological advancements. The changes in consumer preferences are very dynamic, and new technologies are emerging fast, thereby placing a constant burden on electronics contract manufacturers to develop research and innovation to keep up with the changing requirements of their clients. This can cause a strain, especially on smaller firms that might not have sufficient capital for some hefty R&D.Risks & Prospects in Electronics Contract Manufacturing Market
The overall market for electronics contract manufacturing is highly promising because of the use of consumer electronics, telecommunications, and automotive electronics. Currently, many companies outsource their production processes to contract manufacturers specialising in that area. Meanwhile, OEMs focus on in-house strengths like design and marketing and allow contract manufacturers to do a tremendous volume of high-quality electronic components. There is still ample scope for growth in emerging markets and a shift towards sustainable manufacturing practices. Asia-Pacific regions, especially India and Vietnam, have become exciting locations for electronics contract manufacturing due to reduced labour costs and improving infrastructure. That geo combination and a focus on sustainability puts the electronics contract manufacturing market in a great position for outstanding growth in the next couple of years.Key Target Audience
The major target market for the global electronics contract manufacturing market consists of original equipment manufacturers (OEMs) and brands concerned with consumer electronics, automotive, telecommunications, and healthcare. Most of these firms rely on contract manufacturing for their production procedures to reduce the cost of production, enhance their operational efficiency, and, above all, reduce time-to-market for their products. By leveraging the skills and capabilities of contract manufacturers, OEMs may focus in-house expertise on specific core competencies such as design and innovation while being assured that other critical production tasks for electronic components and assemblies are reliably executed to high quality.,, Another very significant category relates to contract manufacturing service providers who are addressing the needs of all kinds of clients, whether it's a start-up company or a mature one. These providers have suitably tailored manufacturing services such as assembly, testing, and logistics specifically suited to the requirements of the client. As the complexities in the manufacture of electronics continue to grow due to technological advances, this market plays a crucial role in helping OEMs handle issues related to the supply chain, compliance, scalability, and much more.Merger and acquisition
The global market for electronics contract manufacturing has experienced many large mergers and acquisitions over the past few years. In this regard, companies are undertaking such services solely with the aim of enhancing their service offerings and establishing a stronger geographical presence. For instance, in June 2023, Jabil announced its acquisition of a leading competitor that was intended to enhance further its strength in advanced manufacturing solutions developed for sectors such as automotive and healthcare. This is part of a larger trend where companies are looking to pool resources and expertise so that they can deliver greater value to their OEM customers. In addition to this acquisition by Jabil, Sanmina Corporation has also been quite aggressive in terms of inorganic growth. In this context, they have also strengthened their Thai manufacturing facility, which is very strategic for supporting emerging technologies such as 5G and data centres. This is therefore an investment that testifies to an increasing need for customised electronics manufacturing services that aim at sophisticated applications of technology. Such mergers and expansions are strategic, which shows that the industry is competitive, is innovating, and is responding to changing market needs.- 1.1 Report description
- 1.2 Key market segments
- 1.3 Key benefits to the stakeholders
2: Executive Summary
- 2.1 Electronics Contract Manufacturing- Snapshot
- 2.2 Electronics Contract Manufacturing- Segment Snapshot
- 2.3 Electronics Contract Manufacturing- Competitive Landscape Snapshot
3: Market Overview
- 3.1 Market definition and scope
- 3.2 Key findings
- 3.2.1 Top impacting factors
- 3.2.2 Top investment pockets
- 3.3 Porter’s five forces analysis
- 3.3.1 Low bargaining power of suppliers
- 3.3.2 Low threat of new entrants
- 3.3.3 Low threat of substitutes
- 3.3.4 Low intensity of rivalry
- 3.3.5 Low bargaining power of buyers
- 3.4 Market dynamics
- 3.4.1 Drivers
- 3.4.2 Restraints
- 3.4.3 Opportunities
4: Electronics Contract Manufacturing Market by Type
- 4.1 Overview
- 4.1.1 Market size and forecast
- 4.2 Electronic Design & Engineering
- 4.2.1 Key market trends, factors driving growth, and opportunities
- 4.2.2 Market size and forecast, by region
- 4.2.3 Market share analysis by country
- 4.3 Electronic Assembly
- 4.3.1 Key market trends, factors driving growth, and opportunities
- 4.3.2 Market size and forecast, by region
- 4.3.3 Market share analysis by country
- 4.4 Electronic Manufacturing
- 4.4.1 Key market trends, factors driving growth, and opportunities
- 4.4.2 Market size and forecast, by region
- 4.4.3 Market share analysis by country
- 4.5 Others
- 4.5.1 Key market trends, factors driving growth, and opportunities
- 4.5.2 Market size and forecast, by region
- 4.5.3 Market share analysis by country
5: Electronics Contract Manufacturing Market by Application / by End Use
- 5.1 Overview
- 5.1.1 Market size and forecast
- 5.2 Healthcare
- 5.2.1 Key market trends, factors driving growth, and opportunities
- 5.2.2 Market size and forecast, by region
- 5.2.3 Market share analysis by country
- 5.3 Automotive
- 5.3.1 Key market trends, factors driving growth, and opportunities
- 5.3.2 Market size and forecast, by region
- 5.3.3 Market share analysis by country
- 5.4 Industrial
- 5.4.1 Key market trends, factors driving growth, and opportunities
- 5.4.2 Market size and forecast, by region
- 5.4.3 Market share analysis by country
- 5.5 Aerospace & Defense
- 5.5.1 Key market trends, factors driving growth, and opportunities
- 5.5.2 Market size and forecast, by region
- 5.5.3 Market share analysis by country
- 5.6 IT & Telecom
- 5.6.1 Key market trends, factors driving growth, and opportunities
- 5.6.2 Market size and forecast, by region
- 5.6.3 Market share analysis by country
- 5.7 Power & Energy
- 5.7.1 Key market trends, factors driving growth, and opportunities
- 5.7.2 Market size and forecast, by region
- 5.7.3 Market share analysis by country
- 5.8 Consumer Electronics
- 5.8.1 Key market trends, factors driving growth, and opportunities
- 5.8.2 Market size and forecast, by region
- 5.8.3 Market share analysis by country
- 5.9 Others
- 5.9.1 Key market trends, factors driving growth, and opportunities
- 5.9.2 Market size and forecast, by region
- 5.9.3 Market share analysis by country
6: Electronics Contract Manufacturing Market by Region
- 6.1 Overview
- 6.1.1 Market size and forecast By Region
- 6.2 North America
- 6.2.1 Key trends and opportunities
- 6.2.2 Market size and forecast, by Type
- 6.2.3 Market size and forecast, by Application
- 6.2.4 Market size and forecast, by country
- 6.2.4.1 United States
- 6.2.4.1.1 Key market trends, factors driving growth, and opportunities
- 6.2.4.1.2 Market size and forecast, by Type
- 6.2.4.1.3 Market size and forecast, by Application
- 6.2.4.2 Canada
- 6.2.4.2.1 Key market trends, factors driving growth, and opportunities
- 6.2.4.2.2 Market size and forecast, by Type
- 6.2.4.2.3 Market size and forecast, by Application
- 6.2.4.3 Mexico
- 6.2.4.3.1 Key market trends, factors driving growth, and opportunities
- 6.2.4.3.2 Market size and forecast, by Type
- 6.2.4.3.3 Market size and forecast, by Application
- 6.2.4.1 United States
- 6.3 South America
- 6.3.1 Key trends and opportunities
- 6.3.2 Market size and forecast, by Type
- 6.3.3 Market size and forecast, by Application
- 6.3.4 Market size and forecast, by country
- 6.3.4.1 Brazil
- 6.3.4.1.1 Key market trends, factors driving growth, and opportunities
- 6.3.4.1.2 Market size and forecast, by Type
- 6.3.4.1.3 Market size and forecast, by Application
- 6.3.4.2 Argentina
- 6.3.4.2.1 Key market trends, factors driving growth, and opportunities
- 6.3.4.2.2 Market size and forecast, by Type
- 6.3.4.2.3 Market size and forecast, by Application
- 6.3.4.3 Chile
- 6.3.4.3.1 Key market trends, factors driving growth, and opportunities
- 6.3.4.3.2 Market size and forecast, by Type
- 6.3.4.3.3 Market size and forecast, by Application
- 6.3.4.4 Rest of South America
- 6.3.4.4.1 Key market trends, factors driving growth, and opportunities
- 6.3.4.4.2 Market size and forecast, by Type
- 6.3.4.4.3 Market size and forecast, by Application
- 6.3.4.1 Brazil
- 6.4 Europe
- 6.4.1 Key trends and opportunities
- 6.4.2 Market size and forecast, by Type
- 6.4.3 Market size and forecast, by Application
- 6.4.4 Market size and forecast, by country
- 6.4.4.1 Germany
- 6.4.4.1.1 Key market trends, factors driving growth, and opportunities
- 6.4.4.1.2 Market size and forecast, by Type
- 6.4.4.1.3 Market size and forecast, by Application
- 6.4.4.2 France
- 6.4.4.2.1 Key market trends, factors driving growth, and opportunities
- 6.4.4.2.2 Market size and forecast, by Type
- 6.4.4.2.3 Market size and forecast, by Application
- 6.4.4.3 Italy
- 6.4.4.3.1 Key market trends, factors driving growth, and opportunities
- 6.4.4.3.2 Market size and forecast, by Type
- 6.4.4.3.3 Market size and forecast, by Application
- 6.4.4.4 United Kingdom
- 6.4.4.4.1 Key market trends, factors driving growth, and opportunities
- 6.4.4.4.2 Market size and forecast, by Type
- 6.4.4.4.3 Market size and forecast, by Application
- 6.4.4.5 Benelux
- 6.4.4.5.1 Key market trends, factors driving growth, and opportunities
- 6.4.4.5.2 Market size and forecast, by Type
- 6.4.4.5.3 Market size and forecast, by Application
- 6.4.4.6 Nordics
- 6.4.4.6.1 Key market trends, factors driving growth, and opportunities
- 6.4.4.6.2 Market size and forecast, by Type
- 6.4.4.6.3 Market size and forecast, by Application
- 6.4.4.7 Rest of Europe
- 6.4.4.7.1 Key market trends, factors driving growth, and opportunities
- 6.4.4.7.2 Market size and forecast, by Type
- 6.4.4.7.3 Market size and forecast, by Application
- 6.4.4.1 Germany
- 6.5 Asia Pacific
- 6.5.1 Key trends and opportunities
- 6.5.2 Market size and forecast, by Type
- 6.5.3 Market size and forecast, by Application
- 6.5.4 Market size and forecast, by country
- 6.5.4.1 China
- 6.5.4.1.1 Key market trends, factors driving growth, and opportunities
- 6.5.4.1.2 Market size and forecast, by Type
- 6.5.4.1.3 Market size and forecast, by Application
- 6.5.4.2 Japan
- 6.5.4.2.1 Key market trends, factors driving growth, and opportunities
- 6.5.4.2.2 Market size and forecast, by Type
- 6.5.4.2.3 Market size and forecast, by Application
- 6.5.4.3 India
- 6.5.4.3.1 Key market trends, factors driving growth, and opportunities
- 6.5.4.3.2 Market size and forecast, by Type
- 6.5.4.3.3 Market size and forecast, by Application
- 6.5.4.4 South Korea
- 6.5.4.4.1 Key market trends, factors driving growth, and opportunities
- 6.5.4.4.2 Market size and forecast, by Type
- 6.5.4.4.3 Market size and forecast, by Application
- 6.5.4.5 Australia
- 6.5.4.5.1 Key market trends, factors driving growth, and opportunities
- 6.5.4.5.2 Market size and forecast, by Type
- 6.5.4.5.3 Market size and forecast, by Application
- 6.5.4.6 Southeast Asia
- 6.5.4.6.1 Key market trends, factors driving growth, and opportunities
- 6.5.4.6.2 Market size and forecast, by Type
- 6.5.4.6.3 Market size and forecast, by Application
- 6.5.4.7 Rest of Asia-Pacific
- 6.5.4.7.1 Key market trends, factors driving growth, and opportunities
- 6.5.4.7.2 Market size and forecast, by Type
- 6.5.4.7.3 Market size and forecast, by Application
- 6.5.4.1 China
- 6.6 MEA
- 6.6.1 Key trends and opportunities
- 6.6.2 Market size and forecast, by Type
- 6.6.3 Market size and forecast, by Application
- 6.6.4 Market size and forecast, by country
- 6.6.4.1 Middle East
- 6.6.4.1.1 Key market trends, factors driving growth, and opportunities
- 6.6.4.1.2 Market size and forecast, by Type
- 6.6.4.1.3 Market size and forecast, by Application
- 6.6.4.2 Africa
- 6.6.4.2.1 Key market trends, factors driving growth, and opportunities
- 6.6.4.2.2 Market size and forecast, by Type
- 6.6.4.2.3 Market size and forecast, by Application
- 6.6.4.1 Middle East
- 7.1 Overview
- 7.2 Key Winning Strategies
- 7.3 Top 10 Players: Product Mapping
- 7.4 Competitive Analysis Dashboard
- 7.5 Market Competition Heatmap
- 7.6 Leading Player Positions, 2022
8: Company Profiles
- 8.1 Benchmark Electronics Inc.
- 8.1.1 Company Overview
- 8.1.2 Key Executives
- 8.1.3 Company snapshot
- 8.1.4 Active Business Divisions
- 8.1.5 Product portfolio
- 8.1.6 Business performance
- 8.1.7 Major Strategic Initiatives and Developments
- 8.2 Celestica Inc.
- 8.2.1 Company Overview
- 8.2.2 Key Executives
- 8.2.3 Company snapshot
- 8.2.4 Active Business Divisions
- 8.2.5 Product portfolio
- 8.2.6 Business performance
- 8.2.7 Major Strategic Initiatives and Developments
- 8.3 Compal Electronics Inc.
- 8.3.1 Company Overview
- 8.3.2 Key Executives
- 8.3.3 Company snapshot
- 8.3.4 Active Business Divisions
- 8.3.5 Product portfolio
- 8.3.6 Business performance
- 8.3.7 Major Strategic Initiatives and Developments
- 8.4 Creating Technologies LP
- 8.4.1 Company Overview
- 8.4.2 Key Executives
- 8.4.3 Company snapshot
- 8.4.4 Active Business Divisions
- 8.4.5 Product portfolio
- 8.4.6 Business performance
- 8.4.7 Major Strategic Initiatives and Developments
- 8.5 Fabrinet
- 8.5.1 Company Overview
- 8.5.2 Key Executives
- 8.5.3 Company snapshot
- 8.5.4 Active Business Divisions
- 8.5.5 Product portfolio
- 8.5.6 Business performance
- 8.5.7 Major Strategic Initiatives and Developments
- 8.6 Flextronics International Ltd.
- 8.6.1 Company Overview
- 8.6.2 Key Executives
- 8.6.3 Company snapshot
- 8.6.4 Active Business Divisions
- 8.6.5 Product portfolio
- 8.6.6 Business performance
- 8.6.7 Major Strategic Initiatives and Developments
- 8.7 Hon Hai Precision Industry Co. Ltd.
- 8.7.1 Company Overview
- 8.7.2 Key Executives
- 8.7.3 Company snapshot
- 8.7.4 Active Business Divisions
- 8.7.5 Product portfolio
- 8.7.6 Business performance
- 8.7.7 Major Strategic Initiatives and Developments
- 8.8 Jabil Circuit Inc.
- 8.8.1 Company Overview
- 8.8.2 Key Executives
- 8.8.3 Company snapshot
- 8.8.4 Active Business Divisions
- 8.8.5 Product portfolio
- 8.8.6 Business performance
- 8.8.7 Major Strategic Initiatives and Developments
- 8.9 Plexus Corporation
- 8.9.1 Company Overview
- 8.9.2 Key Executives
- 8.9.3 Company snapshot
- 8.9.4 Active Business Divisions
- 8.9.5 Product portfolio
- 8.9.6 Business performance
- 8.9.7 Major Strategic Initiatives and Developments
- 8.10 Venture Corporation Limited.
- 8.10.1 Company Overview
- 8.10.2 Key Executives
- 8.10.3 Company snapshot
- 8.10.4 Active Business Divisions
- 8.10.5 Product portfolio
- 8.10.6 Business performance
- 8.10.7 Major Strategic Initiatives and Developments
9: Analyst Perspective and Conclusion
- 9.1 Concluding Recommendations and Analysis
- 9.2 Strategies for Market Potential
Scope of Report
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Frequently Asked Questions (FAQ):
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