Electronic Contract Manufacturing and Design Services Market

Electronic Contract Manufacturing and Design Services Market Overview

The global electronic contract manufacturing and design services market size was estimated at USD 524.5 billion in 2023 and is expected to hit around USD 1,400.9 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 2024 to 2032.

Electronic Contract Manufacturing and Design Services Market Trends

A significant development in the Electronic Contract Manufacturing and Design Services industry is the movement of manufacturing operations back to domestic markets. Businesses are now more inclined to relocate production closer to their home countries due to issues like supply chain interruptions, escalating labor expenses in foreign countries, and the desire for enhanced adaptability and oversight over manufacturing procedures. Consequently, there is a growing emphasis on collaborating with local manufacturing partners that offer rapid delivery, versatility, and proximity to target markets.

Electronic Contract Manufacturing and Design Services Market

Size, by Product, - (USD Billion)

Designing

Assembly

Manufacturing

Others

Other Products

The Market will Grow

At the CAGR of:

10.4%

The Forecast Market

Size for in USD:

$1400.9 Billion

Electronic Contract Manufacturing and Design Services Market Dynamics

Drivers

Enhanced consumer purchasing power, rising demand for consumer electronics, and growing internet penetration globally are major drivers of market growth. The high adoption of smartphones and easy access to fast, improved internet facilities, especially in developed nations like the United States, France, and Japan, have significantly boosted the adoption of these services in recent years and are expected to continue doing so. According to a report by Statista, smartphone sales in the United States reached nearly USD 73 billion in 2021, up from USD 18 billion in 2010. Additionally, the percentage of mobile phone users in the United States rose from 27% of the global population in 2010 to about 78% in 2020, with projections indicating it will reach almost 87% by 2025. Increasing focus on reducing manufacturing costs, enhancing consumer services, and maintaining customer relations are also driving growth. Moreover, the presence of large market players and their continuous innovations contribute significantly to market demand and expansion.

Restraints

Although experiencing a favorable growth path, the Electronic Contract Manufacturing and Design Services market encounters obstacles like supply chain interruptions, geopolitical instabilities, and regulatory intricacies. Moreover, rising competition, pricing constraints, and margin decline present challenges for industry participants. Furthermore, the necessity to consistently invest in technology, skilled workforce, and infrastructure to address changing customer needs and industry regulations contributes to the intricacies of operating in this ever-changing market environment.

Opportunities

The Electronic Contract Manufacturing and Design Services (ECM and DS) market is poised for substantial growth due to several key opportunities. One significant opportunity is the increasing demand for consumer electronics, driven by rising disposable incomes and rapid technological advancements. The growing trend of smart homes and the Internet of Things (IoT) requires sophisticated electronic devices, thereby increasing the need for specialized manufacturing and design services. Additionally, the proliferation of electric vehicles (EVs) and renewable energy systems presents a significant growth avenue, as these industries require complex electronic components and systems. Furthermore, outsourcing manufacturing and design services allow companies to reduce costs, focus on core competencies, and accelerate time-to-market, thus driving demand for ECM and DS providers.

Challenges

Despite the promising opportunities, the ECM and DS market faces several challenges. One major challenge is the intense competition, which can lead to price wars and thin profit margins, pressuring smaller players in the market. Additionally, maintaining high-quality standards and managing supply chain complexities are critical issues, especially with the increasing emphasis on rapid innovation and shorter product life cycles. Geopolitical factors and trade restrictions can also disrupt supply chains and affect the availability of essential components. Furthermore, the need to continuously invest in advanced technologies and skilled workforce to keep up with evolving industry standards and customer demands can be financially taxing for companies operating in this sector.

Electronic Contract Manufacturing and Design Services Market

Share, by end user, (USD Billion)

524.5 Billion%

Healthcare

Automotive

Aerospace

Telecom

Other End-Users

1400.9 Billion

Total Market Size

USD (Billion),

10.4%

CAGR

-

Electronic Contract Manufacturing and Design Services Market Segments

• by type

1. Designing
2. Assembly
3. Manufacturing
4. Others

• by application

1. Healthcare
2. Automotive
3. Aerospace
4. Telecom
5. Others

• By End-Use

1. Healthcare
2. Automotive
3. Industrial
4. Aerospace & Defense
5. IT & Telecom
6. Power & Energy
7. Consumer Electronics
8. Others

• By Technology

1. Computers
2. Networking
3. Consumer Devices
4. Servers and Storage
5. Telecommunications
6. Peripherals

• By Service

1. Electronic design & engineering
2. Electronics assembly
3. Electronic manufacturing 
4. Others

Electronic Contract Manufacturing and Design Services Market Key Players

• Foxconn
• Plexus Corporation
• Fabrinet
• Benchmark Electronics Inc.
• Celestica Inc.
• Compal Electronics Inc.
• Creating Technologies LP
• Flextronics International Ltd.
• Hon Hai Precision Industry Co. Ltd.
• Jabil Circuit Inc.
• Venture Corporation Limited
• A&D Precision Inc.
•  East India Technologies Pvt Ltd.
•  FLEX Ltd.
•  Neo Tech Inc.
•  Pivot International
•  Rayming
•  Sanmina Corporation.
•  Sparqtron Corporation
•  Streamline Electronics Manufacturing, Inc.

Electronic Contract Manufacturing and Design Services Market Recent Development

LORDSTOWN, Ohio, September 2021: Lordstown motors and Han Hai Company had formed strategic partnership by entering into an agreement for the purchase of the assets. The facility of Lordstown motors was sold for an amount of 230,000,000 U.S. dollar in the year 2021.

January 2023: Ark Electronics, a leading global contract manufacturer specializing in end-to-end electronic manufacturing solutions (EMS) and PCB Assembly, announced that it has earned the Medical Equipment Quality Management Certification from the Geneva, Switzerland-based International Organization for Standards (ISO).

December 2023: Increasing adoption of data analytics, machine learning, and Industrial IoT (IIoT) for real-time monitoring, predictive maintenance, and data-driven decision making. Sensor-equipped machines and connected devices generate real-time data on production processes, equipment performance, and material flow. Data analytics dashboards provide comprehensive insights into production efficiency, bottlenecks, and potential quality issues.

Electronic Contract Manufacturing and Design Services Market

Size, by Product, - (USD Billion)

The Market will Grow

At the CAGR of:

10.4%

The Forecast Market

Size for in USD:

$1400.9 Billion

Conclusion

The global electronic contract manufacturing and design services market is poised for significant growth, more than doubling in size over the next decade. This expansion is driven by increased consumer purchasing power, rising demand for consumer electronics, and growing internet penetration globally, especially in developed nations like the United States, France, and Japan. Key trends include reshoring manufacturing operations to domestic markets due to supply chain disruptions and rising foreign labor costs, emphasizing the need for local manufacturing partnerships. The market benefits from the focus on reducing manufacturing costs, enhancing consumer services, and maintaining customer relationships. Opportunities abound with the growing demand for consumer electronics, smart homes, IoT, electric vehicles, and renewable energy systems, necessitating specialized manufacturing and design services. Outsourcing these services enables companies to reduce costs, focus on core competencies, and accelerate time-to-market. However, challenges include intense competition, pricing pressures, supply chain complexities, regulatory hurdles, and the need for continuous investment in advanced technologies and skilled workforce. Major players like Foxconn, Plexus Corporation, and Jabil Circuit Inc. are leading the market, with recent developments highlighting strategic partnerships, medical equipment quality certifications, and the adoption of data analytics, machine learning, and Industrial IoT for real-time monitoring and predictive maintenance.

Electronic Contract Manufacturing and Design Services Market TO (USD BN)

CAGR OF

10.4%

Electronic Contract Manufacturing and Design Services Market

1400.9 Billion%