Electronics Contract Manufacturing Services Market Size, Share, And Growth Report 2032

Electronics Contract Manufacturing Services Market: Size

The global Electronics Contract Manufacturing Services Market size was worth around USD 577.16 million in 2023 and is predicted to grow to around USD 1394.67 million by 2032 with a compound annual growth rate (CAGR) of roughly 10.3% between 2024 and 2032.

The study provides historical data from 2018 to 2022 along with a forecast from 2024 to 2032 based on revenue (USD million). The report covers a forecast and an analysis of the Electronics Contract Manufacturing Services Market on a global and regional level.

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Electronics Contract Manufacturing Services Market: Overview

Electronics contract manufacturing services are referred to as the outsourcing of manufacturing facilities to the EMS providers. EMS providers are companies that manufacture electronic products or devices on a contractual basis for OEMs (Original Equipment Manufacturers). In contract manufacturing, OEMs approach EMS companies with design and specification of different electronic products that need to be manufactured and EMS providers quote the required labor cost, material, tooling, and other services for the hiring firm.

The constantly evolving electronics industry is gathering the required momentum for contract manufacturing business across the world. There are numerous factors anticipated to drive the electronics contract manufacturing services market. These include the increasing demand for various consumer electronic products including high-end gaming PCs, home appliances, and computer hardware. Contract manufacturing companies do not limit their contracts to manufacture goods for a single hirer or OEM only. They offer their services to multiple OEMs, which helps them in procuring raw materials and other resources in large quantities at lower prices, thereby increasing the scope of profit for the EMS provider.

The electronics contract manufacturing services are also paving their way in the non-technical verticals, such as healthcare, telecommunications, aerospace, and defense, which is projected to drive the global electronics contract manufacturing services market in the future. For instance, in 2017, Pegatron, a leading Taiwan-based EMS provider, was tapped by Tesla Motors to manufacture control computers for Tesla’s Model 3 electric vehicle in-dash infotainment system. However, as the lack of control over production and quality concerns related to the manufactured products may hamper the global electronics contract manufacturing services market in the future. Contract manufacturing helps OEMs in unraveling new growth opportunities for market growth.

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Electronics Contract Manufacturing Services Market: Segmentation

The study provides a decisive view of the global electronics contract manufacturing services market based on process, application, and region. All the segments have been analyzed based on present and future trends and the market is estimated from 2024 to 2032.

The process segment is divided into electronics design and engineering, electronics assembly and manufacturing, test engineering, and others (supply chain management services and rework services). The electronics design and engineering segment is anticipated to hold a significant market share in the future.

The application segment is segmented into consumer electronics, automotive, aerospace and defense, medical and healthcare, telecommunications, and others. The telecommunications industry is anticipated to hold a substantial market share over the forecast time period.

Electronics Contract Manufacturing Services Market: Report Scope

Electronics Contract Manufacturing Services Market: Regional Analysis

The regional segment includes North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

By region, Asia Pacific is likely to register a notable growth in the global electronics contract manufacturing services market in the future, owing to the high adoption of electronics contract manufacturing services model by major countries, such as China, South Korea, India, Taiwan, and Japan. Taiwan is projected to hold a significant share of this regional market.

Electronics Contract Manufacturing Services Market: Competitive Players

Some key participants operating in the global electronics contract manufacturing services market are:

• Foxconn
• Flex Ltd.
• Asteelflash
• Pegatron
• Celestica Inc.
• Kimball International
• Venture Corporation
• Benchmark Electronics
• Actia Group
• Zollner Elektronik
• Key Tronic EMS
• Sanmina Corporation
• Jabil

The Global Electronics Contract Manufacturing Services Market is segmented as follows:

Electronics Contract Manufacturing Services Market: Process Analysis

• Electronics Design and Engineering
• Electronics Assembly and Manufacturing
• Test Engineering
• Others (Supply Chain Management Services and Rework Services)

Electronics Contract Manufacturing Services Market: Application Analysis

• Consumer Electronics
• Automotive
• Aerospace and Defense
• Medical and Healthcare
• Telecommunications
• Others

Electronics Contract Manufacturing Services Market: Regional Analysis

• North America
  • The U.S.
• Europe
  • UK
  • France
  • Germany
• Asia Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
• Middle East and Africa