31 March 2021
Visiongain has published a new report on Electronic Contract Manufacturing and Design Services Market Report to 2031: Forecasts By Service (Electronic System Design & Engineering, Electronic System Assembly, Electronic System Manufacturing, Others), By Industry Vertical (Automotive, Healthcare, IT & Telecom, Industrial, Consumer Electronics, Aerospace & Defense, Others). PLUS, Profiles of Electronic Contract Manufacturing and Design Services Companies, and Regional and Leading National Market Analysis. PLUS COVID-19 Recovery Scenarios
The global electronic contract manufacturing and design services market was valued at US$ XX billion in 2019 and is projected to reach a market value of US$ XX billion by 2031.
High focus towards reducing manufacturing costs and boosting customer services, high focus towards resource optimization, and rising penetration of smartphones and other consumer electronic devices are the factors driving the growth of the electronic contract manufacturing and design services market. The market seeks growth opportunities from the high focus on outsourcing design and manufacturing services and the increase in consumer disposable income. However, the low-quality products manufactured and fluctuation in consumer preferences are some of the factors hampering the market growth during the forecast period.
COVID-19 Impact on Electronic Contract Manufacturing and Design Services Market
The COVID-19 outbreak has affected the businesses and livelihood of the people at an unprecedented rate. The coronavirus outbreak is expected to have a significant impact on the electronic contract manufacturing and design services market; the market is witnessing a substantial dip. The economic downturn which followed the pandemic had a negative effect on the businesses. The enterprises reduced on their IT spends to incur the losses due to which the demand for electronic contract manufacturing and design services reduced. Moreover, the nationwide lockdown imposed by the governments led to shutting down of on-premise businesses and manufacturing facilities and disrupted the entire supply chain, which is further expected to harm the manufacturing services market. The market is expected to gain traction by the fourth quarter of 2020 owing to the resuming of manufacturing activities and increase in sales.
High Focus Towards Reducing Manufacturing Costs and Boosting Customer Services
Increasing competitive pressure in the market has led the enterprises to focus more on customer service. Outsourcing the manufacturing capabilities allows the enterprises to streamline the processes, reduce manufacturing costs, and increase profitability. The outsourcing of manufacturing & design services has allowed the enterprises to minimize the cost, time, and labour associated with product design, raw materials, manufacturing equipment, workforce, and quality check. This allows the enterprises to divert all the surplus capital, time, and labour to focus on the core business operations and the services offered to boost the customer service which is expected to drive the growth of electronic contract manufacturing and design services market.
Rising Penetration of Smartphones and Other Consumer Electronic Devices
With increasing consumer disposable across developed and developing countries, the consumers spend on electronic goods has witnessed a rise. Moreover, the advancements in smartphone technology and Internet-based services has increased the penetration of smartphones. Thus, the rising smartphone penetration and other consumer electronic devices have increased the demand for electronic contract manufacturing and design services to fulfil the rapid demand of advanced consumer electronics and other technology devices.
High Focus on Outsourcing Design and Manufacturing Services
The electronic contract manufacturing and design services are driven by economies of scale provided by the third-party contract manufacturers. These contract manufacturers have the required expertise, raw materials, and resources to offer value-added services to their clients. Moreover, it allows the OEMs to avoid large-scale manufacturing and operational processes. Also, outsourcing the design and manufacturing services to the third party contract manufacturers help in reducing the time to market and support the enterprise to concentrate on the core business. Thus, owing to the presence and utilization of highly skilled labour technology solutions, design and engineering services, and manufacturing services, thereby offering growth opportunities to the market.
Increase in Consumer Disposable Income
The growth in the developing economies has increased the consumer disposable income of the people across the globe. The increase in disposable income has led to a boost in consumption capacities of the economies. An increase in consumption increases the sales, thereby demanding high production capability, which is expected to create growth prospects for the electronic contract manufacturing and design services market.
The electronic contract manufacturing and design services market is highly competitive. The key players in the market are emphasizing on inorganic growth strategies such as mergers and acquisition to strengthen their position in the market. Some of the companies profiled in the report include Flextronics International, Ltd, Celestica, Inc., Benchmark Electronics, Inc., Compal Electronics, Inc., Creating Technologies LP, Fabrinet, Hon Hai Precision Industry Co., Ltd, Jabil Circuit, Inc., Plexus Corporation, and Sanmina Corporation.
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High focus towards reducing manufacturing costs and boosting customer services, high focus towards resource optimization, and rising penetration of smartphones and other consumer electronic devices are the factors driving the growth of the electronic contract manufacturing and design services market.