Electronic Contract Manufacturing and Design Services Market Report 2025

The electronic contract manufacturing and design services market size has grown rapidly in recent years. It will grow from $528.93 billion in 2024 to $582.5 billion in 2025 at a compound annual growth rate (CAGR) of 10.1%. The growth in the historic period can be attributed to globalization, complexity of electronic products, time-to-market pressure, cost reduction.

The electronic contract manufacturing and design services market size is expected to see rapid growth in the next few years. It will grow to $855.22 billion in 2029 at a compound annual growth rate (CAGR) of 10.1%. The growth in the forecast period can be attributed to the growing importance of cybersecurity, supply chain resilience, and increased product lifecycle. Major trends in the forecast period include customization needs, rising R&D costs, IoT and industry 4.0, miniaturization and microelectronics, emergence of 5g technology, increased collaboration and partnerships, rise of smart manufacturing, increasing demand for niche expertise, rapid prototyping and agile manufacturing.

The increase in demand for consumer electronics is significantly contributing to the growth of the electronic contract manufacturing and design services market. Consumer electronics are the instruments, machines, and apparatus that are used by end-users or consumers on a daily basis that provide one or more functionalities in a home or for a particular individual for professional or personal use. Consumer electronics include televisions, computers, laptops, smartphones, watches, and tablets. The rising demand for consumer electronics increases the need for outsourcing of electronics components from electronic contract manufacturing companies, which reduces the cost of manufacturing, assembling of products, and design services and increases operational efficiency in manufacturing. For instance, according to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the Indian appliances and consumer electronics market size is expected to grow more than two-folds in the next five to six years and reach up to $26. 81 billion. Also, according to ClearSale, the revenue in the consumer electronics segment is anticipated to increase by more than USD360 billion in 2020 and more than USD450 billion by 2024. Therefore, the increase in demand for consumer electronics is driving the growth of electronic contract manufacturing and design services.

The growing adoption of Internet of Things (IoT) devices is expected to propel the growth of the electronic contract manufacturing and design services market in the coming years. IoT devices, or Internet of Things devices, are unconventional computing devices that may connect to a network wirelessly and transfer data. Electronic contract manufacturing and design services play an important role in the successful development, manufacture, and market introduction of IoT devices, guaranteeing they are efficient, cost-effective, and satisfy the particular demands of numerous sectors and applications. For instance, in May 2023, according to IoT Analytics GmbH, a Germany-based complete data analytics structure for the Internet of Things, AI, edge computing, cloud-based computing, and Industry 4. 0, the overall number of connected IoT devices is expected to have risen by 16% to 16. 7 billion globally in 2023. Therefore, the growing adoption of Internet of Things (IoT) devices is driving the electronic contract manufacturing and design services market.

Strategic partnerships and collaborations are the key trends being followed by the companies operating in the electronic contract manufacturing and design services market. This is due to the presence of a large number of electronics manufacturing companies operating in the market and their desire to extend their growth in new areas to be a leader in the market. In August 2023, Nokia Corporation, a Finland-based manufacturer of fiber broadband optical modules, announced a partnership with Fabrinet, an electronic manufacturing services company. This collaboration aims to enhance their capabilities in Electronic Contract Manufacturing and Design Services (ECMDS). This partnership between Nokia and Fabrinet exemplifies the strategic moves companies are making to adapt to the evolving demands of the electronic manufacturing landscape.

Major companies operating in the electronic contract manufacturing and design services market are focusing on developing innovative products, such as electric cargo vans, to better meet the needs of their existing consumers. An electric cargo van is a form of commercial vehicle that uses a battery and electric motor pack instead of a standard gasoline or diesel engine, is meant to move products and commodities, and is often used for shipment and transport by businesses and organizations. For instance, in October 2023, Hon Hai Technology Group, a Taiwan-based electronic contract manufacturing and design services company, presented a revolutionary electric cargo van. The unveiling of an electric cargo van is part of a revolutionary lineup of technologies demonstrating contract design and manufacturing service (CDMS). Additionally, Foxconn announced mass production plans for the MODEL B, a sporty and clever crossover; a status update on the commercial manufacturing of its first family SUV, the MODEL C; and the future launch of its first self-developed experimental low-Earth-orbit satellite.

In March 2022, Compal Electronics, Inc., a Taiwan-based manufacturer in charge of laptop computers, displays, tablets, and TVs, acquired Poindus Systems Corp. for an undisclosed amount. Through the acquisition, Compal Electronics, Inc. 's goal is to enter the industrial computing (IPC) industry by providing innovative technology, production capacity, and procurement expertise while using Poindus' well-established sales channels. Poindus' inclusion in the Compal Group is going to enhance the group's capabilities, resulting in administrative and financial benefits for the group and its clients. Poindus Systems Corp. is a Taiwan-based maker of one-stop POS terminal hardware.

Major companies operating in the electronic contract manufacturing and design services market include Flex Ltd., Hon Hai Precision Industry Co. Ltd., Benchmark Electronics Inc., Celestica Inc., Venture Corporation Limited, Fabrinet, Plexus Corp., Sanmina Corporation, Compal Electronics Inc., Universal Scientific Industrial Co Ltd, New Kinpo Group, Creating Technologies LP, Shenzhen Kaifa Technology, LCS Company, Bassett Industries Inc., Asteelflash Group, Beyonics Technology Ltd., Cal-Comp Electronics Public Company Limited, Cofidur EMS, Delta Group Co. Ltd., Enics AG, ESCATEC Mechatronics Sdn Bhd, Fideltronik Polska Sp. z o. o., GPV International A/S, Integrated Micro-Electronics Inc., Inventec Corporation, Jabil Circuit Inc., Kimball Electronics Inc., Kitron ASA, Kortek Corporation, LaBarge Inc., MC Assembly LLC, Nam Tai Electronics Inc., OSI Electronics Inc., Pemtron Corporation, Scanfil Oyj, SMTC Corporation, Sparton Corporation, TT Electronics plc, Zollner Elektronik AG.

Electronic contract manufacturing and design services are defined as a form of engineering and manufacturing outsourcing services that companies use to test, manufacture and distribute products, and provide return and repair services. The complexity and wide variety of electronic devices make OEMs choose electronic contract manufacturers to outsource their products for the efficient manufacturing process and to focus on internal operations such as new product development with greater complexity and higher margins.

The main types of electronic contract manufacturing and design services are designing, assembly, manufacturing, and others. Designing refers to a method of human expression that follows a system of highly developed procedures in order to imbue objects, performances, and experiences with significance. These are used in various applications such as consumer electronics, electronic components, computers & peripherals, industrial electronics, others by various end-user industries including healthcare, automotive, industrial, aerospace and defense, IT and telecom, power and energy, consumer electronics, others.

The electronic contract manufacturing and design services research report is one of a series of new reports that provides electronic contract manufacturing and design services statistics, including electronic contract manufacturing and design services industry global market size, regional shares, competitors with electronic contract manufacturing and design services share, detailed electronic contract manufacturing and design services segments, market trends and opportunities, and any further data you may need to thrive in the electronic contract manufacturing and design services industry. This electronic contract manufacturing and design services research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.

Asia-Pacific was the largest region in the electronics contract manufacturing and design services market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the electronic contract manufacturing and design services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the electronic contract manufacturing and design services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The electronic contract manufacturing and design services market includes revenues earned by entities by providing services such as electronic design and engineering, electronics assembly, electronic manufacturing. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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