San Francisco, 29 January 2030: The Report Electronic Contract Manufacturing And Design Services Market Size, Share & Trends Analysis Report By Service (Electronic Design Engineering, Electronic Assembly), By End-Use (Healthcare, Consumer Electronics), By Region, And Segment Forecast, 2023 - 2030

The global electronic contract manufacturing and design services market size is expected to reach USD 1,062.7 billion by 2030, expanding at 9.7% CAGR from 2023 to 2030, according to a new study by Grand View Research, Inc. The electronics industry remains extremely competitive, due to the rising complexity of electronic goods and soaring pressure on Original Equipment Manufacturers (OEMs) to decrease costs. Moreover, diminished product lifecycles have upped the demand for better manufacturing abilities and related services. OEMs are seeking collaboration with contract manufacturers to support quality manufacturing, which will drive market growth during the forecast period.

OEMs work under a subcontract with Electronic Manufacturing Services (EMS) firms and profit from their knowledge of design, production, and supply chain management. This enables OEMs to concentrate on their core strengths owing to lower initial investments and higher operational savings. The need for electronic contract manufacturing and design services by OEMs has expanded in recent times. In addition, establishing in-house manufacturing facilities is a significant challenge for the majority of OEMs. As a result, outsourcing remains a popular option for OEMs to gain an edge amidst the increasing competition.

Due to increased demand from end-use industries like healthcare, aerospace, defense, IT, telecom, and automotive; the market is expected to undergo considerable expansion. For instance, due to the rising need for medical gadgets, the healthcare sector is anticipated to expand significantly. The Indian medical device industry grew at a CAGR of 15% from 2020 to 2023. The rising technological advancements and the need for optimizing resources in manufacturing facilities have led to increased adoption of EMS among end-use industries.

The growing functionalities, such as sub-assembly manufacturing, engineering & design of printed circuit boards, component assembly, and functional testing offered by contract manufacturers, are subsequently expected to drive the growth.

Request sample report of Electronic Contract Manufacturing And Design Services Market@

Electronic contract manufacturing is a form of outsourcing services such as manufacturing and engineering that offers a wide range of core manufacturing capabilities. Moreover, outsourcing ancillary activities helps OEMs focus on their core competencies, reducing production costs, capital investment, and improving operational efficiencies.

Electronic Contract Manufacturing And Design Services Market Report Highlights

• The electronic contract manufacturing and design services industry 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 2022. However, the electronic design & engineering services segment is projected to witness robust 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 2022. 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 46.1% share of the overall revenue in 2022 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
• The adoption of inorganic growth strategies such as company acquisition and increased focus on research and development activities are strategies implemented for the market growth

In the initial phase of the pandemic, electronic manufacturing factories were significantly affected due to travel restrictions and lockdowns imposed by numerous governments worldwide. Since the risk of contagion was high, workers were reluctant to come to work which led to delays in production. For Instance, operations of U.S.-based Benchmark Electronics, Inc. were negatively affected worldwide as its facilities were shut down in 2020, resulting in a loss of productivity. The supply chain environment and delays in shipments also hampered the company’s growth during the period.

The electronic contract manufacturing and design services model is navigated by a contract manufacturer’s ability to specialize in economies of scale in terms of services, raw materials procurement, industrial design expertise, and pooling resources along with offering value-added services such as warranties and repairs. These requirements necessitate OEMs to undertake tedious or complex large-scale industrial operations.

Electronic Contract Manufacturing And Design Services Market Report Scope

Moreover, OEMs usually outsource their niche requirement such as circuit assembly requirements. This seeks to reduce time-to-volume and time-to-market production through design and engineering services. Furthermore, it is often undertaken with the utilization of advanced technology solutions, and manufacturing services. On account of these factors, the electronic contract manufacturing services industry is expected to gain traction during the forecast period.

The proliferation of electronic gadgets, such as tablets and smartphones, has been the key propeller of the market over the last few years. The medical industry is anticipated to witness significant growth owing to the increasing demand for medical devices.  Strict regulatory compliance and advanced technology solutions are required for the manufacturing of medical devices. Thus, outsourcing such activities enables OEMs to accelerate their R&D activities and reduce the cost of devices to gain a competitive advantage, which is expected to spur market growth.