Global Electronic Contract Manufacturing Market Size, Trends & Growth Opportunity, By Service Type (Electronic Design & Engineering and Others), By End User Type (Healthcare, IT & Telecom, Automotive, Aerospace & Defense, and Others), By Region and Forecast till 2027
Report ID : QR1001304 | Industries : Semiconductors and Electronics | Published On :December 2022 | Page Count : 253Global Electronic Contract Manufacturing Market
Electronic Contract Manufacturing (ECM) refers to a variety of services that may include engineering design, PCB fabrication, subassembly manufacturing, turnkey or box builds, functional testing, distribution and order fulfilment on behalf of OEMs (Original Electronic Manufacturers). Electronic contract manufacturing may be utilized as either a supplement to or as a replacement of company-owned manufacturing operations.
Drivers: Growing need for resource optimization and the increasing proliferation of mobile devices.
The demand for the electronic contract manufacturing is expected to grow at a massive scale in the upcoming period mainly backed by shorter lifecycle of the electronic products. Changing demand cycle of the electronic products and constant pressure on the electronic product manufacturer to improve the quality of the products to stay updated is further in-favour the outsourcing manufacturing services.
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Restraints: Increasing labour costs raise end-product prices
More expensive labour and engineers will have implications not only for the tablet keyboard industry but also for the entire electronics industry. Increasing labour costs raise end-product prices, and affect the sales revenues and profits of the corporations. Consumer prices grow in the same direction as labour costs, but the size of the growth is much lower. Moreover, increasing labour and engineers ‘cost is a leading reason that has triggered the prices of keyboard, thus hampering the growth of the global electronic contract manufacturing & design services market.
Impact of COVID-19
Many workers in these factories originate from regions far away, and returning to them is a problem for many workers because of the quarantines and restrictions in place due to the outbreak. All the factories were shut down. The outbreak threatens to make the situation worse since all the processes are delayed and manufacturing is paused.
Segmentation by Service type:
Based on Service, the market is segmented into Electronic Design & Engineering, Electronics Assembly, Electronic Manufacturing, and Others. By service, the electronic manufacturing segment dominates the market share. The electronic design and engineering segment are expected to witness a significant growth going forward owing to the inclination of unique system producers towards outsourcing their designing requirements. There is an upsurge in call for electronic circuit boards due to their growing presence in various electronic devices, such as mobile phones and tablets.
Segmentation by End Use Type:
Based on End-User, the market is segmented into Healthcare, IT & Telecom, Automotive, Aerospace & Defense, Consumer Electronics, and Others. By End-Use, the IT & Telecom accounted for the largest market proportion of 41.38% in 2021, and is projected to develop at a long term CAGR of 9.98% during the forecast period. However, there may be low penetration of electronic contract manufacturing and design services in segments that include healthcare, automotive, aerospace, and defense. Thus, there is scope for further boom possibilities in these sectors going forward.
Segmentation by Region
By Region the market is segmented into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa. Asia Pacific accounted for the largest market share of 40.38% in 2020, with a market value of USD 285 Billion and is projected to grow at a long term CAGR of 8.89% during the forecast period. Rapid growth in the electronics sector in emerging economies such as India and China boosting the growth of the electronic contract manufacturing and design services market in the Asia Pacific region.
Competitive Landscape:
The major players in the market are 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, and Venture Corporation Limited.
Industrial Development:
Communications and computer products are expected to be the leading segments driving the most significant growth in the electronics industry. Outsourcing processes has become a critical element in keeping the electronics industry expanding and handling costs to the margin each year, a leading factor in stimulating consumer demand. The leading OEMs, such as Apple, also employ electronic contract manufacturing from Foxconn, which employs approximately 350,000 people and produces about half of the world's iPhones. Before the fall release of a new iPhone in the busy summer months, the factory produces around 500,000 phones a day.
Advanced Circuits inaugurated its newest facility at Chandler. The company has invested USD 7 million in this new 50,000-square-foot location, which opened in September 2019. This State-of-the-art facility is a welcome addition to the company's manufacturing facilities in Aurora, Colorado, and Maple Grove, Minnesota. It is twice the size of the old facility in Tempe, Arizona.
Market taxonomy
By Service type
- Electronic Design & Engineering
- Electronics Assembly
- Electronic Manufacturing
- Others
By End use type
- Healthcare
- IT & Telecom
- Automotive
- Aerospace & Defense
- Consumer Electronics
- Others
By Region:
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Global Electronic Contract Manufacturing Market TOC
1 Introduction
1.1 Objective of the Study
1.2 Market definition
1.3 Market Scope
2 Research Methodology
2.1 Data Mining
2.2 Validation
2.3 Primary Interviews
2.4 List of Data Sources
3 Executive Summary
4 Electronic Contract Manufacturing Market Outlook
4.1 Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Porters Five Force Model
4.4 Value Chain Analysis
5 Electronic Contract Manufacturing Market, By Service type
5.1 Y-o-Y Growth Comparison, By Service Type
5.2 Electronic Contract Manufacturing Market Share Analysis, By service Type
5.3 Electronic contract Manufacturing Market Size and Forecast, By Service Type
5.3.1 Electronic Design and Engineering
5.3.2 Electronics assembly
5.3.3 Electronic Manufacturing
5.3.4 Others
6 Electronic Contract Manufacturing Market, By End Use
6.1 Y-o-Y Growth Comparison, By End Use
6.2 Electronic Contract Manufacturing Market Share Analysis, By End Use
6.3 Electronic Contract Manufacturing Market Size and Forecast, By End Use
6.3.1 Healthcare
6.3.2 IT & Telecom
6.3.3 Automotive
6.3.4 Aerospace & Defense
7 Electronic Contract Manufacturing Market, By Region
7.1 Electronic Contract Manufacturing Market Share Analysis, By Region
7.2 Electronic Contract Manufacturing Market Share Analysis, By Region
7.3 Electronic Contract Manufacturing Market Size and Forecast, By Region
8 North America Electronic Contract Manufacturing Market Analysis and Forecast (2021-2027)
8.1 Introduction
8.2 North America Electronic Contract Manufacturing Market Share Analysis, By Service Type
8.3 North America Electronic Contract Manufacturing Market Size and Forecast, End-Use.
8.5 North America Electronic Contract Manufacturing Market Size and Forecast, By Country
8.5.1 U.S.
8.5.2 Canada
8.5.3 Mexico
9 Europe Electronic Contract Manufacturing Market Analysis and Forecast (2021-2027)
9.1 Introduction
9.2 Europe Electronic Contract Manufacturing Market Share Analysis, By service Type
9.3 Europe Electronic Contract Manufacturing Market Size and Forecast, By End-Use
9.5 Europe Electronic Contract Manufacturing Market Size and Forecast, By Country
9.5.1 Germany
9.5.2 France
9.5.3 UK
9.54. Rest of Europe
10 Asia Pacific Electronic Contract Manufacturing Market Analysis and Forecast (2021-2027)
10.1 Introduction
10.2 Asia Pacific Electronic Contract Manufacturing Market Share Analysis, By Service Type
10.3 Asia Pacific Electronic Contract Manufacturing Market Size and Forecast, By End-Use
10.5 Asia Pacific Electronic Contract Manufacturing Market Size and Forecast, By Country
10.5.1 China
10.5.2 Japan
10.5.3 India
10.5.4. Rest of Asia Pacific
11 Latin America Electronic Contract Manufacturing Market Analysis and Forecast (2021-2027)
11.1 Introduction
11.2 Latin America Electronic Contract Manufacturing Market Share Analysis, By Service Type
11.3 Latin America Electronic Contract Manufacturing Market Size and Forecast, By End-Use.
11.5 Latin America Electronic Contract Manufacturing Market Size and Forecast, Country
11.5.1. Brazil
11.5.2. Rest of Latin America
12 Middle East Electronic Contract Manufacturing Market Analysis and Forecast (2021-2027)
12.1 Introduction
12.2 Middle East Electronic Contract Manufacturing Market Share Analysis, By Service Type
12.3 Middle East Electronic Contract Manufacturing Market Size and Forecast, By End Use
12.5 Middle East Electronic Contract Manufacturing Market Size and Forecast, By Country
12.65.1. Saudi Arabia
12.5.2. UAE
12.5.3. Egypt
15.5.4. Kuwait
12.5.5. South Africa
13 Competitive Analysis
13.1 Competition Dashboard
13.2 Market share Analysis of Top Vendors
13.3 Key Development Strategies
14Company Profiles
14.1 Benchmark Electronics Inc.
14.1.1 Overview
14.1.2 Offerings
14.1.3 Key Financials
14.1.4 Business Segment & Geographic Overview
14.1.5 Key Market Developments
14.1.6 Key Strategies
14.2. Celestica Inc.
14.2.1 Overview
14.2.2 Offerings
14.2.3 Key Financials
14.2.4 Business Segment & Geographic Overview
14.2.5 Key Market Developments
14.2.6 Key Strategies
14.3. Compal Electronics Inc.
14.3.1 Overview
14.3.2 Offerings
14.3.3 Key Financials
14.3.4 Business Segment & Geographic Overview
14.3.5 Key Market Developments
14.3.6 Key Strategies
14.4 Creating Technologies LP
14.4.1 Overview
14.4.2 Offerings
14.4.3 Key Financials
14.4.4 Business Segment & Geographic Overview
14.4.5 Key Market Developments
14.4.6 Key Strategies
14.5 Flextronics International Ltd.
14.5.1 Overview
14.5.2 Offerings
14.5.3 Key Financials
14.5.4 Business Segment & Geographic Overview
14.5.5 Key Market Developments
14.5.6 Key Strategies
14.6 Hon Hai Precision Industry Co. Ltd.
14.6.1 Overview
14.6.2 Offerings
14.6.3 Key Financials
14.6.4 Business Segment & Geographic Overview
14.6.5 Key Market Developments
14.6.6 Key Strategies
14.7 Jabil Circuit Inc.
14.7.1 Overview
14.7.2 Offerings
14.7.3 Key Financials
14.7.4 Business Segment & Geographic Overview
14.7.5 Key Market Developments
14.7.6 Key Strategies
14.8 Plexus Corporation
14.8.1 Overview
14.8.2 Offerings
14.8.3 Key Financials
14.8.4 Business Segment & Geographic Overview
14.8.5 Key Market Developments
14.8.6 Key Strategies
14.9 Fabrinet
14.9.1 Overview
14.9.2 Offerings
14.9.3 Key Financials
14.9.4 Business Segment & Geographic Overview
14.9.5 Key Market Developments
14.9.6 Key Strategies
14.10 Venture Corporation Limited.
14.10.1 Overview
14.10.2 Offerings
14.10.3 Key Financials
14.10.4 Business Segment & Geographic Overview
14.10.5 Key Market Developments
14.10.6 Key Strategies