The Global Market for Electronic Contract Manufacturing Services is Projected to Reach US$643 Billion by 2024

Strong Demand from Telecommunications and Consumer Electronics Sectors to Drive the Electronic Contract Manufacturing Services Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market share, size and demand forecasts on the global Electronic Contract Manufacturing Services market. The global market for Electronic Contract Manufacturing Services is projected to reach US$643 billion by 2024, driven by rapid rise in demand for consumer electronics, digital and smart TVs, smartphones, and wireless Internet enabled devices.

Electronic Contract Manufacturing Services (ECMS) market includes companies engaged in providing manufacturing services to various OEMs around the world. Over a period of time, electronic manufacturing services (EMS) companies were able to broaden the spectrum of services - from simple manufacturing of components, to more complex manufacturing services, thus leading to increased number of OEM’s outsourcing much of their manufacturing. Growing trend by OEM’s to outsource manufacturing led to the development of a new industry model altogether, called the original design manufacturers (ODMs). The overall EMS industry, including ODM firms, posted sizable growth over the years due to rapid consolidation among the bigger EMS firms, grabbing newer markets and faster adoption of changes in the market place. With computers & peripherals representing the largest manufactured products market for the industry in the recent past, the rapid decline in desktop & notebook market and the corresponding rise of smart devices such as tablets and smartphones, prompted realignment of manufacturing towards tablet and smartphones. Companies from Asia-Pacific such as Taiwan and China provide design and production outsourced services at lower costs. Given the rising environmental consciousness, vendors are focusing on green production practices and technologies.

With electronics manufacturing industry constantly evolving, the electronics manufacturing management technology of the future is expected to be significantly different in comparison to its existing counterpart. Complex manufacturing environments find themselves converting into huge autonomous machines, where the ease of operating a shop floor would be comparable with that of operating a dedicated machinery in which inputs and outputs alone matter. Going forward, electronics production management technology is expected to take the form of virtual factories, which, while located in economically viable locations, would leverage the Internet to enable management of production from virtually anywhere. Thus, companies, as well as private users, hosting or renting virtual manufacturing services would be able to manage the services remotely. In the past few years, rising penetration of mobile devices such as smartphones has been driving gains in the market. However, the market is facing pressures due to technology obsolescence, and in-house production. Increasing outsourcing trends in the other end-use segment constituting defense, automotive, medical devices and other non-technical segments are likely to augment their market positions in the forthcoming years. In the automotive sector, electric vehicles are rising in demand, which is fueling the requirement of contract manufacturing services in this industry. Similarly in the healthcare sector, electronic contract manufacturing services are registering growth, for offering medical hardware, given that developing countries are increasingly purchasing medical equipment and are focusing on improving health facilities and infrastructure. The rising focus on optimizing resources is the main factor supporting demand for EMS in various end-use sectors.

As stated by the new market research report on Electronic Contract Manufacturing Services, Asia-Pacific represents the largest regional market worldwide. Low labor costs, availability of large intellectual pool and favorable government policies have been successful in attracting major EMS and ODM firms to the region. The region also ranks as the fastest growing market with a CAGR of 7.6% over the analysis period. Owing to the significantly lower costs of manufacturing juxtaposed to developed markets such as Europe and North America, Asia has over the last few decades emerged as the focal point of all EMS manufacturing activity, with majority of it being based in Taiwan.

Major players in the market include Altadox, Inc., Benchmark Electronics, Inc., Celestica, Inc., Compal Electronics, Inc., Delta Group Electronics, Inc., Fabrinet, Flexcom Inc., Flextronics International, Hon Hai Precision Industry Co., Ltd., KeyTronicEMS, Kimball Electronics, Inc., Plexus Corp., Sparton Corp., TPV Technology Ltd., and TT Electronics plc, among others.

The research report titled “Electronic Contract Manufacturing Services: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, growth drivers, challenges, mergers, acquisitions and other key strategic corporate developments of major companies worldwide. The report provides revenue estimates and projections for major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, South Korea, Taiwan, and Rest of Asia-Pacific), Latin America (Brazil, and Rest of Latin America) and Rest of World. End-use markets analyzed include Consumer Electronics, Computers & Peripherals, Telecommunications, Industrial Electronics and Other End-Use Segments.

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