A Better Approach To Electronic Contract Manufacturing And Design Services IndustryPosted by Mrudula Anil Karmarkar on October 12th, 2022 The global electronic contract manufacturing and design services market size is expected to reach USD 1,062.7 billion by 2030, according to a new study by Grand View Research, Inc., registering a CAGR of 9.5% during the forecast period. The electronics industry is highly competitive, owing to the increasing complexity of electronic products and rising pressure on Original Equipment Manufacturers (OEMs) to reduce costs. Moreover, decreased product lifecycles have upped the demand for better manufacturing capabilities and related services. OEMs are seeking contract manufacturers' support to achieve the same, which will drive the market during the forecast period. OEMs subcontract with electronics manufacturing service (EMS) companies and benefit from their expertise in design, manufacturing, and supply chain management. Furthermore, reduced initial investments and increased operational efficiencies allow OEMs to focus on their core competencies. This has led to surging demand for electronic contract manufacturing and design services by OEMs. Moreover, the establishment of in-house manufacturing units is a key challenge faced by a majority of OEMs. Hence, outsourcing is a preferred option to keep pace with the increasing competition. The market is projected to witness significant growth due to rising demand from end-use industries, including healthcare, aerospace and defense, IT and Telecom, and automotive. The healthcare industry is expected to witness substantial growth, owing to the increasing demand for medical devices. For instance, the Indian medical device industry has been expanding at a CAGR of 15% in the last three years. The surging need for optimizing resources and technological developments in manufacturing facilities have led to increased adoption of EMS among end-use industries. The growing functionalities, such as component assembly, engineering & design of printed circuit boards, sub-assembly manufacturing, and functional testing offered by contract manufacturers, are subsequently expected to drive the contract manufacturing services market growth over the forecast period. Electronic contract manufacturing is a form of engineering and manufacturing outsourcing services that provides a wide range of core manufacturing capabilities. Moreover, outsourcing ancillary activities helps OEMs focus on their core competencies, improving operational efficiencies, reducing production costs, and reducing capital investment requirements. To Request Sample Copy of this report, click the link: In the initial phase of the pandemic, the electronic manufacturing factories were significantly affected due to travel restrictions and imposed lockdown by the various governments worldwide. Since the risk of infection was high, workers were reluctant to come to work which led to delays in production. For Instance, operations of U.S.-based Benchmark Electronics, Inc. were negatively affected worldwide as its facilities were shut down in 2020, resulting in a loss of productivity. The supply chain environment and delays in shipments also hampered the company’s growth during the period. Electronic Contract Manufacturing And Design Services Market Report Highlights
The electronic contract manufacturing and design services model is driven by a contract manufacturer’s ability to specialize in economies of scale in services, industrial design expertise, raw materials procurement, and pooling resources along with offering value-added services such as warranties and repairs. These allow OEMs to avoid having to run tedious or complex large-scale industrial operations. Moreover, OEMs outsource their circuit assembly requests to reduce time-to-volume and time-to-market production through the utilization of technology solutions, design and engineering services, and manufacturing services by electronic contract manufacturing and design services providers. On account of these factors, the electronic contract manufacturing services market is expected to gain traction during the forecast period. In the initial phase of the pandemic, the electronic manufacturing factories were significantly affected due to travel restrictions and imposed lockdown by the various governments worldwide. Since the risk of infection was high, workers were reluctant to come to work which led to delays in production. For Instance, operations of U.S.-based Benchmark Electronics, Inc. were negatively affected worldwide as its facilities were shut down in 2020, resulting in a loss of productivity. The supply chain environment and delays in shipments also hampered the company’s growth during the period. Some of the prominent players in the global electronic contract manufacturing and design services market include:
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