The global electronic contract manufacturing market is growing at a considerable CAGR of around 9.2% during the forecast period. The major factors that drive the growth of the market include, Increasing use of electronics in various industries such as automotive, consumer electronics, healthcare and other industries for the performance of the overall driving experience. Additionally, in the healthcare sector due to the increasing demand for medical devices. The increasing demand in the consumer electronics sector and the proliferation of mobile devices, such as tablets, and smartphones are some of the factors that fuel the market growth. Additionally, The automotive industry is rapidly increasing its use of electronics to enhance the overall driving capability. In May 2020 – NEOTech Inc announced that it started providing product engineering services and electronic manufacturing solutions to help customers meet the demand for UV light sanitation systems.

However, the lack of semiconductor microchips is causing devastation. Delays in automobile production are affecting the electronic contract manufacturing market globally. General Motors and Ford Motor are provisionally ranging shutdowns at several plants in North America due to a constant semiconductor chip shortage impacting the automotive industry across the globe. The Semiconductors are major modules used in infotainment, braking system, and power steering.

Impact of COVID-19 on the Electronic Contract Manufacturing Market

The global electronic contract manufacturing market is hardly hit by the COVID-19 pandemic since December 2019. The COVID-19 affecting the production, and demand of electronic products. The effects of the COVID-19 shutdown saw the market for subcontracting fall in the second quarter of 2020, but this market is showing signs of recovery in the third quarter of 2020. The market will witness “W” shape recovery in near future owing to the restart of key industries in major economies. A major portion of the recovery in the electronic contract manufacturing industry is attributed to the Chinese automobile. Additionally, Celestica Inc and AirBoss defense group enlists made Air Purifying Respirator Components to support frontline workers treating COVID-19. 

Segmental Outlook 

The market is segmented based on service, and end-user. Based on service, the market is segmented into electronic design & engineering, electronics assembly, electronics manufacturing, others. by end-user, the market is segmented into consumer electronics, automotive, industrial, aerospace & defence, it & telecommunications, power & energy, and others.

Global Electronic Contract Manufacturing Market Share by End-User, 2020 (%)

IT & Telecommunication segment is projected to grow significantly in Global Electronics Contract Manufacturing Market

Among the end-user industry, the IT and telecommunication segment emerged as the fastest end-user segment. The opportunities for electronics contract manufacturers in the IT, and telecom segment have been increasing due to the rising demand for incorporate chips, flexible sensors, and smartwatches. Moreover, the devices have a considerable impact on the PCB market. The total systems connected over the internet are also expanding in multiple regions over the earlier period.

Regional Outlooks

The global electronics contract manufacturing market is analyzed based on the geographical regions that are contributing significantly towards the growth of the market. Based on the geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific held a considerable share in 2020 in the global electronics contract manufacturing market. Some factors that boost the market growth in Asia-Pacific include rising demand for electronic vehicles in the region, and the increasing presence of end-user user industries of electronics contract manufacturing in the emerging economies of the region are likely to drive the growth of the regional market. For Instance, Hon Hai Precision Industry Co., Ltd. (Foxconn), One of the leading electronics contract manufacturing firms. makes smartphones in India through its subsidiaries. The company plans to spend up to $1 billion over three years to expand a factory in southern India where it assembles Apple iPhones. According to the report, Apple's iPhone models, made by Foxconn in China.

Global Electronics Contract Manufacturing Market, by Region 2021-2027

Market Player Outlook

Key players of the global electronic contract manufacturing market are Honhai Precision Industry, Foxconn., Flextronics International Ltd., Jabil Inc, Celestica Inc., Sanmina Corp., New Kinpo Group., Shenzhen Kaifa Technology Co., Ltd., Benchmark Electronics., Plexus, and others. To sustain a significant position in the market, these players adopt different marketing strategies such as product launches. For Instance, In November 2019, Arch Systems partners with Flex for manufacturing data transformation for real-time supply access. In March 2020, Sanmina Corp., one of the leading integrated manufacturing solutions companies. The company provides some of the innovative, and complex electronic devices across the globe is expanded its facility in Thailand for Increasing its current mission-critical products. This enlargement provisions prompt growth for new technology products through the networking, 5G, data center, automotive/LIDAR, and aerospace and defense markets.

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global electronic contract manufacturing market Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where in the market.