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New York, Dec. 27, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Electronic Contract Manufacturing and Design Market By Services Type, By Industry Vertical, By Regional Outlook, Industry Analysis Report and Forecast, 2021 - 2027" - https://www.reportlinker.com/p06193305/?utm_source=GNW
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 would be helpful in the design and pre-production process that results in decreased new product launch time.
The IT & Telecom market dominated the Global Electronic Contract Manufacturing And Design Services Market by Industry Vertical 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $323,295.3 million by 2027. The Consumer Electronics market would experience a CAGR of 8.2% during (2021 - 2027). Additionally, The Healthcare market is poised to grow a CAGR of 10.6% during (2021 - 2027).
The Electronic Manufacturing market dominated the Global Electronic Contract Manufacturing And Design Services Market by Services Type 2020, and would continue to be a dominant market till 2027; thereby, achieving a market value of $366,071.9 million by 2027. The Electronics Assembly market is experiencing a CAGR of 9.1% during (2021 - 2027). Additionally, The Electronic Design & Engineering market would exhibit a CAGR of 9.7% during (2021 - 2027).
Based on Services Type, the market is segmented into Electronic Manufacturing, Electronics Assembly, Electronic Design & Engineering, Others. Based on Industry Vertical, the market is segmented into IT & Telecom, Consumer Electronics, Healthcare, Industrial, Automotive, Aerospace & Defense, Power & Energy and Others. Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa.
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. As a result, the majority of the workers are not willing to return to the work, causing delays in production as well as the manufacturing process.
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.
Market Restraining Factors
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.
Service Outlook
In 2020, the Electronic manufacturing segment acquired the maximum revenue share in the market. The electronic design and engineering segment would display a promising growth rate during the forecasting period. This is attributed to the rising preferences of OEMs to outsource the requirements regarding designing. The demand for electronic circuit boards has been increased with the rising significance of these boards in a wide range of electronic devices like tablets and mobile phones. This factor is likely to act as a key driver for the overall market during the forecast period.
End-User Outlook
The demand for electronic contract manufacturing services would grow due to increasing applications across non-technical end-user segments like healthcare, industrial, automotive, and aerospace and defense. Moreover, the growing demand for electrical vehicles has increased the requirement to outsource their electronic component manufacturing, hence fueling the growth of the electronic contract manufacturing and design services market in the automotive industry.
Regional Outlook
The region is likely to showcase the fastest growth rate during the forecasting period. In addition, China has been a leading country in the regional market. Moreover, China is the hub for electronics manufacturing and dominates the APAC region in this respect. Factors such as a wide-scale availability of raw materials and low-cost labor are anticipated to fuel the growth & demand for electronic contract manufacturing and design in the regional market. Hence, the APAC region would continue to flourish due to these factors over the forecast period.
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Hon Hai Precision Industry Co., Ltd. is the major forerunners in the Electronic Contract Manufacturing and Design Market. Companies such as Benchmark Electronics, Inc., Plexus Corporation, Flextronics International, Ltd. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Benchmark Electronics, Inc., Plexus Corporation, Flextronics International, Ltd., Hon Hai Precision Industry Co., Ltd., Celestica, Inc. (Onex Corporation), Sanmina Corporation, Fabrinet, Jabil, Inc., Venture Corporation Limited, and Compal Electronics, Inc.
Recent Strategies Deployed in Electronic Contract Manufacturing and Design Market
Partnerships, Collaborations, and Agreements:
Oct-2021: Celestica came into a partnership with ECM, a software and technology firm that is changing the global electric motor and generator industries. The partnership aimed to introduce patented Printed Circuit Board (PCB) stator solution of ECM to the Aerospace and Defense (A&D) market.
Sep-2021: Plexus partnered with BioSig Technologies, a company that develops medical devices. The partnership aimed to help BioSig to introduce the Pure EP System to market. Following the partnership, the two companies would strengthen their vision of developing products that create a better world.
Sep-2021: Plexus formed a partnership with Hanwha Phasor, a provider of antennas for satellite communications in flight, on land, and at sea. Through this partnership, Plexus would offer Hanwha Phasor product development support and design for test development, manufacture, and supply chain optimization services in the run-up to product launch.
Sep-2021: Hon Hai Precision teamed up with Taiwan Semiconductor Manufacturing Co’s, one of the world’s largest semiconductor companies. Through this collaboration, Hon Hai aimed to accelerate its electronic control units (ECUs). Following the collaboration, Hon Hai would use the technology of TSMC in its ECU production platform to create lithium battery management chips and body control modules.
Sep-2021: Flextronics teamed up with Advanced Manufacturing Industry Action Group of World Economic Forum. The collaboration aimed to strengthen Flex’s strategic commitment to put investments in advanced technologies, practices, and groups that accelerate the evolution of advanced manufacturing.
Aug-2021: Benchmark Electronics formed a partnership with AEye, the worldwide leader in adaptive, high-performance LiDAR solutions. Under this partnership, Benchmark Electronics would work with AEye from design stages to the last manufacturing of the complicated scan block, a component crucial to the secure function of autonomous vehicles which supports its vision of addressing complicated challenges with its customers to assist in developing advanced and high-quality products.
Jul-2021: Viking Enterprise Solutions, a subsidiary of Sanmina Corporation, formed a partnership with Kalray, a leading provider of a new generation of processors specialized in Intelligent Data Processing from Cloud to Edge. Through this partnership, the two companies would co-develop FLASHBOX, a new generation of storage arrays. The partnership aimed to offer the latest generation of storage array solutions for Cloud and Edge with Kalray’s K200-LP best-of-breed smart storage acceleration card.
Jul-2021: Sanmina Corporation signed an agreement with FARO Technologies, a global leader of 3D measurement, imaging, and realization solutions for 3D Metrology, AEC (Architecture, Engineering & Construction), and Public Safety Analytics markets. The agreement aimed to outsource its manufacturing capabilities to Sanmina Corporation. Following the agreement, the two companies would fulfill the customer demand during the transition process.
May-2021: Fabrinet formed a partnership with Luminar Technologies and Celestica. The partnership aimed to offer Iris in series production and support in-house advanced manufacturing facility of Luminar based in Orlando, Florida, that makes process and manufacturing technology and techniques to install into production with its manufacturing alliances.
May-2021: Flextronics joined hands with EMist, a company that develops intelligent electrostatic disinfectant sprayers. The collaboration aimed to rapidly and profoundly scale up production of its EX-7000 Backpack Disinfectant Sprayer. Through this collaboration, Flextronics would support EMist to make design changes that ramp up production on the unit floor and offer a critical product to market rapidly.
Acquisitions and Mergers:
Nov-2021: Celestica took over PCI, an electronics manufacturing services (EMS) provider in Asia. The acquisition aimed to support Celestica’s focus on engineering-focused engagements, including full product development in the domains of human-machine interface, telematics, IoT, and embedded systems.
Oct-2021: Hon Hai Precision took over Lordstown Motors, an American electric vehicle automaker. Through this acquisition, Hon Hai Precision aimed to accelerate its entry into North America where it formed a contract manufacturing agreement with Fisker Motors and is in talks with other potential EV partners including Apple.
Aug-2021: Hon Hai Precision along with its subsidiaries FIH Mobile and Stellantis formed a joint venture named Mobile Drive. Mobile Drive aimed to offer a smart cockpit solution for vehicles.
Aug-2021: Compal plans to acquire Cal-Comp USA, a company that develops and manufactures electronic assemblies. Through this acquisition Compal would strengthen the competitiveness of its car and electronics business.
Jun-2021: Hon Hai Precision took over around 5 percent stakes in Dagang NeXchange Berhad, a Malaysia-based investment holding company. The acquisition aimed to extend its position in electric vehicle and semiconductor development in the Association of Southeast Asian Nations (ASEAN) market in the future as part of its "3 plus 3" initiative.
May-2021: Hon Hai announced a joint venture with Yageo Group named XSemi Corporation. This joint venture aimed to expand the businesses into the semiconductor industry which also includes product development and sales.
Feb-2021: Jabil acquired Ecologic Brands, a leading vendor of sustainable packaging specializing in the paper bottle and paper-based packaging solutions. The acquisition aimed to integrate the unique paper bottle technology of Ecologic with advanced manufacturing solutions and the global scale of Jabil, thereby assisting all consumer brands to significantly decrease plastics in packaging across the world.
Geographical Expansions:
Aug-2021: Celestica expanded its geographical reach by establishing its AbelConn Electronics facility in Maple Grove, Minn, a wholly-owned subsidiary of Celestica. Through this new facility, the company would offer rapid volume manufacturing, prototyping, and engineering support to the defense and aerospace industries.
Mar-2021: Plexus expanded its geographical footprint by establishing a new manufacturing plant in Bangkok, Thailand. Through this launch, the company aimed to become receptive for potential growth opportunities within the APAC region, specifically because of the extremely proficient workforce and established supply chain of Thailand.
Feb-2021: Jabil expanded its geographical reach by opening its new healthcare manufacturing unit in the Dominican Republic capital city of Santo Domingo. Through this expansion, the company aimed to recruit local talent and be part of the biggest global healthcare manufacturing solutions vendor.
Jun-2020: Benchmark Electronics expanded its geographical footprints by virtually opening its latest advanced electronics manufacturing facility in Phoenix. The new facility would manufacture solutions for high-reliability RF, photonics, and high-speed electronic systems in various market verticals such as aerospace & defense, computing, medical, complex industrial, and advanced telecommunications.
Mar-2020: Sanmina expanded its geographical reach by expanding its manufacturing plant in Thailand. Through this expansion, the company would bring innovations for the latest technological products across the networking, automotive/LIDAR, data center, 5G, and aerospace & defense markets.
Scope of the Study
Market Segments covered in the Report:
By Services Type
• Electronic Manufacturing
• Electronics Assembly
• Electronic Design & Engineering
• Others
By Industry Vertical
• IT & Telecom
• Consumer Electronics
• Healthcare
• Industrial
• Automotive
• Aerospace & Defense
• Power & Energy
• Others
By Geography
• North America
o US
o Canada
o Mexico
o Rest of North America
• Europe
o Germany
o UK
o France
o Russia
o Spain
o Italy
o Rest of Europe
• Asia Pacific
o China
o Japan
o Taiwan
o India
o South Korea
o Singapore
o Rest of Asia Pacific
• LAMEA
o Brazil
o Argentina
o UAE
o Saudi Arabia
o South Africa
o Nigeria
o Rest of LAMEA
Companies Profiled
• Benchmark Electronics, Inc.
• Plexus Corporation
• Flextronics International, Ltd.
• Hon Hai Precision Industry Co., Ltd.
• Celestica, Inc. (Onex Corporation)
• Sanmina Corporation
• Fabrinet
• Jabil, Inc.
• Venture Corporation Limited
• Compal Electronics, Inc.
Unique Offerings
• Exhaustive coverage
• Highest number of market tables and figures
• Subscription based model available
• Guaranteed best price
• Assured post sales research support with 10% customization free
Read the full report: https://www.reportlinker.com/p06193305/?utm_source=GNW
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