Electronic Contract Manufacturing and Design Services Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Electronic Contract Manufacturing and Design Services Market is projected to grow from USD 625.66 Billion in 2025 to USD 1.18 trillion by 2031, achieving a compound annual growth rate of 11.22%. This industry consists of companies that provide engineering, manufacturing, and aftermarket support for electronic components to original equipment manufacturers (OEMs). Market growth is driven by OEMs strategically outsourcing production to lower capital costs and focus on core competencies like product innovation, alongside increasing requirements for specialized capabilities to manufacture advanced electronics.

However, market expansion is often challenged by supply chain vulnerabilities that disrupt production continuity. IPC data from September 2025 shows a North American EMS book-to-bill ratio of 1.31, indicating that orders significantly surpassed billed shipments. While this reflects strong demand, it also highlights the difficulty manufacturers face in converting bookings into revenue due to component availability issues. Consequently, ongoing logistical constraints and raw material shortages remain critical hurdles that could delay product delivery and impede overall market growth.

Market Drivers

The rapid integration of automotive electronics and electric vehicle technologies acts as a major market catalyst, with OEMs increasingly relying on contract manufacturers for complex vehicle assemblies. The shift toward electric mobility requires sophisticated components such as battery management systems, advanced driver-assistance systems (ADAS), and infotainment modules, necessitating the specialized engineering skills of EMS providers. This arrangement allows automotive OEMs to adapt to technological changes without incurring the full costs of capital-intensive production facilities. For example, Hon Hai Technology Group (Foxconn) reported in May 2025 that its components category achieved strong year-over-year revenue growth, driven by higher component shipments and the expansion of its automotive business.

Simultaneously, the widespread rollout of 5G infrastructure and IoT ecosystems is broadening the market for design and manufacturing services. As telecommunication networks expand to ensure high-speed connectivity and IoT devices proliferate across sectors, there is a critical need for robust backend infrastructure like cloud servers and networking equipment. Contract manufacturers are essential in scaling the production of this intelligent infrastructure to meet data-intensive demands. Illustrating this trend, Jabil Inc. reported in September 2025 that its Intelligent Infrastructure revenue jumped 62% year-over-year due to AI-driven demand. Furthermore, the IPC electronics Shipment Index reached a near-year high in March 2025, reflecting the industry's improved capacity to meet rising global demand.

Market Challenges

Persistent raw material shortages and supply chain vulnerabilities present significant obstacles to the growth of the Global Electronic Contract Manufacturing and Design Services market. These logistical bottlenecks disrupt manufacturing schedules, forcing service providers to extend lead times and delay the delivery of critical assemblies to OEMs. When essential components are unavailable, manufacturers are unable to convert order backlogs into revenue, stalling financial growth despite robust demand. Additionally, the unpredictability of the supply base compels firms to hold higher inventory levels, locking up working capital that could otherwise be used for capacity expansion or technological upgrades.

Recent industry data confirms this operational strain, pointing to renewed tightness in component availability. IPC reported that in March 2025, the supplier inventory availability index fell to 103, indicating reduced component accessibility and tighter supply conditions. Such constraints force manufacturers to operate in a volatile procurement environment, often leading to production inefficiencies and lower profit margins. As service providers struggle to secure necessary parts on time, the market’s overall ability to scale and satisfy the accelerating requirements of the advanced electronics sector is significantly compromised.

Market Trends

The strategic shift toward nearshoring and regionalized supply chains is fundamentally reshaping production geography within the market. Manufacturers are diversifying their operations beyond traditional single-source hubs to emerging centers like India and Mexico to reduce geopolitical risks and logistical vulnerabilities. This decentralization strategy strengthens supply chain resilience and places production closer to end markets, enabling faster response times. For instance, the Deccan Herald reported in October 2024 that a Foxconn subsidiary approved a Rs 13,000 crore investment for a new smartphone component facility in Tamil Nadu, reinforcing India's growing role as a key alternative manufacturing hub.

At the same time, the adoption of circular economy principles and sustainable manufacturing practices is becoming a vital competitive differentiator. EMS providers are actively implementing closed-loop systems and renewable energy solutions to meet the strict decarbonization goals of global OEMs. This shift elevates resource efficiency and waste reduction to the level of standard production metrics, turning sustainability from a compliance task into a value-added service. Flex Ltd. highlighted this progress in its September 2024 Sustainability Report, announcing a 33 percent reduction in absolute scope 1 and 2 greenhouse gas emissions compared to its 2019 baseline, demonstrating the sector's success in lowering its environmental footprint.

Key Players Profiled in the Electronic Contract Manufacturing and Design Services Market

• Benchmark Electronics Inc.
• Celestica Inc.
• Compal Electronics Inc.
• Creating Technologies LP
• Flextronics International Ltd.
• Hon Hai Precision Industry Co. Ltd.
• Jabil Circuit Inc.
• Plexus Corporation
• Fabrinet
• Venture Corporation Limited

Report Scope

In this report, the Global Electronic Contract Manufacturing and Design Services Market has been segmented into the following categories:

Electronic Contract Manufacturing and Design Services Market, by Service:

• Electronic design & engineering
• Electronics assembly
• Electronic manufacturing

Electronic Contract Manufacturing and Design Services Market, by End-Use:

• Healthcare
• Automotive
• Industrial
• Aerospace & Defense
• IT & telecom
• Power & energy
• Consumer electronics

Electronic Contract Manufacturing and Design Services Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Electronic Contract Manufacturing and Design Services Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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