Global Electronics Contract Manufacturing (ECM) Market Research and Forecast 2018-2023

Electronics manufacturing service provider design, manufacture, test, distribute, and provide return/repair services for original equipment manufacturers (OEMs). In addition, the electronic contract manufacturer offers electronic components and assemblies services. Further, Mass-production of key-components attract different OEM from across the globe. Many consumer electronics component and accessories are built in China due to low maintenance cost and materials availability as compared to other countries such as the US. Increasing trends of outsourcing of design and engineering services owing to rising number of skilled labor is the major factor driving the growth of the electronic contract manufacturing market across the globe. Moreover, the increasing demand in consumer electronic sector and proliferation of mobile devices, such as tablets and smartphones are some of the factors propelling the growth of the global electronic contract manufacturing market. Risk associated to outsourcing such as increasing risk of quality and loss of intellectual property are some factors limiting the growth of the global electronic contract manufacturing Market. However, increasing capacity of electronic contract manufacturer and rising demand for low cost services is likely to fuel the market growth in the near future.

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The electronic contract manufacturing market can be segmented on the basis of services, tier, and end user. Based on services, the market can be diversified into electronic design & engineering, electronics assembly, electronic manufacturing and others. Design & engineering segment holds the largest market share owing to increasing number of innovative manufacturing services offered by contract manufacturer due to the rapid increase in the capabilities of contract manufacturer. Further, the most common electronic assembly service includes surface mount assembly (BGA) and cable & harness assembly. Based on tier, the market is bifurcated into Tier 1, Tier 2, Tier 3, And Tier 4. Tier 1 industry includes companies that generates revenue more than $5 billion. Tier 2 industry include companies that generates revenue in between $500 million to $5 billion. Tier 3 industry include companies that generates revenue in between $100 to $500 million. Whereas, Tier 4 industry includes small manufacturer that generates revenue less than $100 million. On the basis of end user, the market is segmented into consumer electronics, automotive, industrial, aerospace & defense, IT & telecommunications, power & energy and others. Among end users, the consumer electronic segment holds the largest market share in the electronic contract manufacturing market. This can be attributed to growing proliferation of mobile devices, such as tablets and smartphones.

The global electronic contract manufacturing market is further analyzed on the basis of the geographical regions that are contributing significantly towards the growth of the market. APAC holds a dominant position in the global electronic contract manufacturing market and is expected to dominate the market in forecast period also. This is mainly owing to presence of dominating players such as china and Taiwan and cheap labor in the region. Further, North America and Europe has significant market share in the global electronic contract manufacturing market.

Some of the key vendors of the electronic contract manufacturing market are Hon Hai Precision Industry (Foxconn), Flextronics International Ltd., Jabil Circuit Inc., Celestica, Sumitronics Corporation, and Zollner Elektronik AG. In order to sustain in the competitive market, these players adopt various strategies such as acquisitions, mergers, geographical expansions, joint ventures and product development and so on. For instance, on March 2018, Foxconn acquired Belkin, phone and PC accessories manufacturer. The acquisition has expanded the company’s product portfolio, which in turn, strengthens its existence in electronic contract manufacturing industry.

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