Nolan’s Notes: Looking Deep Into the Future With X-ray
Knocking Down the Bone Pile: Basics of Component Lead Tinning
Standard of Excellence: Anticipating Customer Needs Early and Often
Global ECM and Design Services Market to Reach $658B by 2025
August 7, 2019 | PRNewswireEstimated reading time: 2 minutes
The global electronic contract manufacturing and design services market size is expected to reach $658.0 billion by 2025, according to a new study by Grand View Research, Inc., registering a CAGR of 7.9% over the forecast period. The electronics industry is highly competitive in nature owing to increasing complexity of electronic products and rising pressure on OEMs for reducing costs. Moreover, decreased product lifecycles have upped demand for better manufacturing capabilities and related services. To achieve the same, OEMs are seeking support from contract manufacturers, in turn, driving the market over 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, establishment of in-house manufacturing units is a key challenge faced by majority of OEMs.
Thus outsourcing is a preferred option to keep pace with 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 increasing demand for medical devices.
Surging need for optimizing resources and technological developments in manufacturing facilities have led to increased adoption of EMS among end-use industries.
Further key findings from the study suggest:
• The electronic contract manufacturing and design services market is expected to exhibit a CAGR of 7.9% from 2019 to 2025 owing to rising need for resource optimization and growing developments in manufacturing technology
• On the basis of service, the electronic manufacturing segment accounted for the largest market share in 2018. However, electronic design and engineering services are projected to witness high growth over the forecast period owing to surging inclination of OEMs toward outsourcing of manufacturing and designing services
• On the basis of end use, the IT and telecom sector held the dominant revenue share in 2018. However, non-technical sectors such as healthcare, automotive, and aerospace and defense are expected to witness noteworthy growth over the forecast period owing to rising outsourcing trends in these industries
• Asia Pacific accounted for over 40% share of the overall revenue in 2018 and is expected to dominate the market over the forecast period owing to high availability of raw materials and low-cost labor in the region
• Hon Hai Precision Industry Co., Ltd.; Flextronics International, Ltd.; Jabil Circuit, Inc.; Sanmina Corporation; and Benchmark Electronics, Inc. are some of the key market players that captured a significant share in 2018.
About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
Share on:
Suggested Items
Bridging the Gap Between PCB Designers and Fabricators
04/03/2025 | Stephen V. Chavez, Siemens EDAWith today’s advanced EDA tools, designing complex PCBs in the virtual world does not necessarily mean they can be built in the real world. This makes the relationship between a PCB designer and a fabricator pivotal to the success of a project. In keeping with solid design for manufacturing (DFM) practices, clear and frequent communication is needed to dial and lock in design constraints that meet expectations while addressing manufacturing concerns.
Tata Electronics Appoints KC Ang as President and Head of Tata Semiconductor Manufacturing
04/03/2025 | PRNewswireTata Electronics Private Limited, a pioneer in the Indian electronics and semiconductor manufacturing sector, announced the appointment of KC Ang as President and Head of its Foundry business - Tata Semiconductor Manufacturing Private Limited reporting to Dr. Randhir Thakur, CEO & MD of Tata Electronics.
Statement from IPC on ‘Liberation Day’ Pressing for Domestic Manufacturing Strategy
04/03/2025 | IPCIPC, a global electronics association dedicated to furthering the competitive excellence and financial success of more than 3,200 members, shared the following statement today on U.S. tariffs and their implications on the global electronics industry. It can be attributed to Richard Cappetto, IPC senior director of North American government affairs:
Connect the Dots: Stop Killing Your Yield—The Hidden Cost of Design Oversights
04/03/2025 | Matt Stevenson -- Column: Connect the DotsI’ve been in this industry long enough to recognize red flags in PCB designs. When designers send over PCBs that look great on the computer screen but have hidden flaws, it can lead to manufacturing problems. I have seen this happen too often: manufacturing delays, yield losses, and designers asking, “Why didn’t anyone tell me sooner?” Here’s the thing: Minor design improvements can greatly impact manufacturing yield, and design oversights can lead to expensive bottlenecks. Here’s how to find the hidden flaws in a design and avoid disaster.
IPC Releases March 2025 Global Sentiment of the Electronics Manufacturing Supply Chain Report
04/02/2025 | IPCThis past March, electronics industry demand strengthened to its highest level in nearly a year, indicating strong expansion in customer and manufacturing activity according to IPC’s [IPC-Current-Sentimen-Global-EMSChain0525.pdf] March Sentiment of the Global Electronics Manufacturing Supply Chain Report.