Global electronic contract manufacturing services market is estimated to reach $554.2 billion by 2026, according to the latest research available at Market Study Report LLC, report provides extensively data on market share, growth, trends and forecasts for the period 2018-2026.
As per the report, due to the burgeoning competition in the electronics industry, rising cost reduction pressure on OEMs, the intricacy of electronic products, and reduced product lifecycles, have boosted the demand for electronic contract manufacturing services globally. In a bid to achieve this, OEMs are taking support from companies dealing with electronic contract manufacturing. These OEMs (hirer) employ electronic manufacturing contract companies to benefit from their supply chain management, design expertise, and manufacturing abilities. This helps the OEMs in leveraging resources, reducing costs, accessing prominent manufacturing technologies, and reduction in fixed capital investments, thus augmenting the electronic contract manufacturing services market size.
Additionally, electronic contract manufacturing also assists in retaining control responsibilities and in-house activities including, product cost management, quality assurance, customer service, network solutions integration, order management, the introduction of new products, and customer interactions. These features are responsible for driving growth in the electronic contract manufacturing services market share for electronic contract manufacturing services over the estimated time period.
In terms of segmental growth, the report anticipates the design & engineering segment to observe high growth throughout the projected period owing to the growing preference of OEMs in an effort to subcontract their design requirements.
Also, the global market is witnessing a rise in growth, due to the increasing demand for electronic circuit boards attributed to its rising significance in numerous electronic devices including mobile phones and tablets. Numerous OEMs are also subcontracting their circuit assembly jobs to contract manufacturers, leading to a substantial increase in their profit margins.
According to the report, the market operates a highly competitive terrain particularly, the industry players in Taiwan and China are offering very cost-effective subcontracted services for manufacturing purposes.
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Currently, the major focus area for these vendors is to support and encourage green technologies within their manufacturing methods. Another trend impacting the present market outlook is an upsurge in growth strategies like acquisitions, partnerships, and mergers. In addition, the electronic contract manufacturing services industry growth in North America is impelled by the automotive and healthcare industries.
Numerous R&D centers and healthcare institutes located in North America are engaged in developing innovative diagnostic products that they intend to outsource from contract manufacturers. Such trends are projected to further boost market growth in the region.
The competitive landscape of the global electronic contract manufacturing services market comprises of major players such as Flextronics International Ltd, Universal Scientific Industrial Co Ltd, Hon Hai Precision Industry (Foxconn), Shenzhen Kaifa Technology, New Kinpo Group, Beyonics Technology, Sanmina-SCI, Benchmark Electronics, Celestica, Jabil, Inc., Zollner Elektronik, and Elcoteq SE among others. Company profiles of these firms have been documented in the report under business overview, product benchmarking, financials, and recent developments.