DUBLIN–(BUSINESS WIRE)–The “Global Electronic Contract Manufacturing and Design Market By Services Type, By Industry Vertical, By Regional Outlook, Industry Analysis Report and Forecast, 2021 – 2027” report has been added to ResearchAndMarkets.com’s offering.
The Global Electronic Contract Manufacturing and Design Market size is expected to reach $730.5 billion by 2027, rising at a market growth of 9.4% CAGR during the forecast period.
Electronic manufacturing and design services fall within engineering and manufacturing outsourcing services. Many organizations utilize these services to test, make and distribute products and offer return & repair services. Electronic contract manufacturing utilizes different sorts of manufacturing abilities and productive features regarding product engineering, assembly of the circuit board & hardware, component design, and process engineering among others. The vendors of outsourcing services, mainly in the electronics industry, make particular products on a contract basis and have increased substantially in the last couple of years. In addition, electronic contract manufacturing services majorly cover technologies and sub-technologies such as servers, computers, consumer devices, networking, and telecommunications.
The electronics industry has witnessed a major transition wherein companies working in this industry outsource their manufacturing aspect to maintain a low cost. Additionally, OEMs also utilize contract manufacturing with an aim to plunge into an untapped market in a cost-effective manner. The majority of the electronic manufacturing and design service vendors try and maintain good relation with the customers, which is expected to be helpful in the design and pre-production process that results in decreased new product launch time.
COVID-19 Impact Analysis
As COVID-19 became a global health emergency, it harshly affected the lives of millions and the economies of almost every country around the world. As the onset of the global pandemic was in China, the country has been severely affected by the virus.
The majority of the workers in the Chinese factories travel from the far-flung areas and reaching the factories had become a major problem for them due to the social distancing and other quarantine restrictions. As electronic manufacturing in China is more to be a manual process, and products like tablets or mobile phones and notebook computers need many people to physically touch every product during the manufacturing and assembly process, the possibility of transmission of the virus is quite high.
Market Growth Factors:
Fulfilling the demands of various customers
Some of the key growth catalysts for the electronics contract manufacturing and design market are the integration of modern skills, economies of varying levels, and focus on competencies. Contract companies obtain a large number of contracts from various clients. By fulfilling the demands of a huge customer base helps the manufacturers to garner a large amount of crude materials at reduced costs. Also, companies can reap the benefit of the fact that capabilities of the contract manufacturers to develop the electronic products, unlike the hirer organization.
Contract manufacturing brings down labor and fixed costs
Companies working in the electronics space must manage fixed as well as labor costs in order to make all the components of the electronics. The main manufacturing units of electronic manufacturing services (EMS) are dedicated to developing and assembling fragile electronic components. Considering a secondary location with completely varied needs contributes to the fixed location costs and the requirement to recruit new employees, hence remarkably increasing the expenses of the companies.
Marketing Restraining Factor:
Less control over manufacturing
Companies moving to CMs have to give up control over the entire manufacturing process. While giving this control to CMs, companies often face the risk of losing crucial knowledge and skills around the production techniques. Without consistent monitoring, companies lose the right and insight to identify any issues in the manufacturing process. As companies do not have control over manufacturing operations, they cannot manage the supply chain process, which may result in massive revenue loss during the time of fluctuation.
Key Market Players
- Benchmark Electronics, Inc.
- Plexus Corporation
- Flextronics International, Ltd.
- Hon Hai Precision Industry Co., Ltd.
- Celestica, Inc. (Onex Corporation)
- Sanmina Corporation
- Jabil, Inc.
- Venture Corporation Limited
- Compal Electronics, Inc.
Key Topics Covered:
Chapter 1. Market Scope & Methodology
Chapter 2. Market Overview
18.104.22.168 Market Composition and Scenario
2.2 Key Factors Impacting the Market
2.2.1 Market Drivers
2.2.2 Market Restraints
Chapter 3. Competition Analysis – Global
3.1 Cardinal Matrix
3.2 Recent Industry Wide Strategic Developments
3.2.1 Partnerships, Collaborations and Agreements
3.2.2 Acquisition and Mergers
3.2.3 Geographical Expansions
3.3 Top Winning Strategies
3.3.1 Key Leading Strategies: Percentage Distribution (2017-2021)
3.3.2 Key Strategic Move: (Partnerships, Collaborations, and Agreements : 2018, May – 2021, Oct) Leading Players
Chapter 4. Global Electronic Contract Manufacturing And Design Services Market by Industry Vertical
Chapter 5. Global Electronic Contract Manufacturing And Design Services Market by Services Type
Chapter 6. Global Electronic Contract Manufacturing And Design Services Market by Region
Chapter 7. Company Profiles
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