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EMS and Design Services Market to Reach $639.9 Billion by 2025
June 20, 2017 | PRNewswireEstimated reading time: 2 minutes
The global electronic contract manufacturing and design services market is expected to reach $639.9 billion by 2025, according to a new report by Grand View Research Inc. The competitive nature of the electronics industry, increasing complexity of electronic products, increased pressure on original equipment manufacturers for reducing costs, and decreased product lifecycles have increased the demand for better manufacturing capabilities and their related services. To achieve the same, OEMs are seeking support from contract manufacturers.
OEMs subcontract EMS companies and benefit from their expertise in design, manufacturing, and supply chain management. Outsourced manufacturing model enables OEMs to leverage resources, reduce costs, access the leading manufacturing technologies, reduce investments in fixed capital, and adapt to the market demand. Additionally, it also aids in retaining the overall control responsibilities and in-house activities such as customer service, integration of network solutions, product cost management, customer interactions, quality assurance, order management, and new product introduction. All the above mentioned factors are expected to drive the electronic contract manufacturing services market over the forecast period.
Electronic contract manufacturing services market is projected to witness high growth across non-technical segments, such as medical, aerospace & defense, and automotive, over the forecast period, owing to low penetration rates and high growth opportunities (over the next few years) in these sectors. The surging need for optimizing resources is the primary reason that is expected to drive the growth of the electronic contract manufacturing services market over the next nine years.
Further key findings from the report suggest:
- The global electronic contract manufacturing services and design market is expected to witness a CAGR exceeding 7% from 2017 to 2025, owing to the rising need for resource optimization
- Electronics manufacturing services accounted for the highest market share in 2016; however, electronics design and engineering services are projected to witness high growth over the forecast period
- Electronic contract manufacturing services in the IT & telecom segment held the highest revenue in 2016. However, non-technical segments, such as healthcare, automotive, and aerospace & defense, are expected to witness noteworthy growth over the forecast period, owing to the rising outsourcing trends in these industries
- The Asia Pacific region accounted over 40% of the overall revenue share in 2016 and is expected to dominate the market over the forecast period
- Foxconn, FLEX, Jabil Circuit., Sanmina-SCI, Venture Corporation, Benchmark, among others were a few key players that captured a significant market share in 2016
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