GVR Report cover Electronic Contract Manufacturing And Design Services Market Size, Share & Trends Report

Electronic Contract Manufacturing And Design Services Market Size, Share & Trends Analysis Report By Service, By End-Use, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-1-68038-840-4
  • Number of Pages: 120
  • Format: Electronic (PDF)

Report Overview

The global electronic contract manufacturing and design services market size was valued at USD 478.3 billion in 2021 and is expected to expand at a CAGR of 9.5% from 2022 to 2030. 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.

China electronic contract manufacturing and design services market, by service, 2020 – 2030 (USD billion)

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.

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.

The proliferation of mobile devices, such as tablets and smartphones, has been the key propeller of the electronic contract manufacturing and design services market over the last few years. The medical industry is anticipated to witness significant growth owing to the increasing demand for medical devices.  Strict regulatory compliance and advanced technology are required for the manufacturing of medical devices. Thus, outsourcing such activities enables OEMs to accelerate their R&D activities and reduce the cost of devices to gain a competitive advantage, which is expected to spur market growth.

Service Insights

Electronic manufacturing emerged as the leading service category in 2021 and accounted for 44.3% of the overall revenue share. However, the electronic design & engineering segment is projected to witness high growth during the forecast period, owing to the surging inclination of OEMs towards outsourcing their designing requirements. The electronic contract manufacturing and design services market is witnessing an upsurge in the demand for electronic circuit boards due to their growing importance in several electronic devices, such as mobile phones and tablets, among others.

Furthermore, OEMs can design and test prototypes for the new product development. Additionally, the services provided by contractors enable less capital investment and advanced manufacturing techniques for OEMs for new product development. As OEMs are increasingly outsourcing their circuit assembly requirements to electronic contract manufacturing and design services service providers, which substantially increases their profit margins. These factors are likely to drive the demand for electronic contract manufacturing and design services during the forecast period.

Furthermore, OEMs are increasingly considering outsourcing their design and engineering to reduce costs and increase flexibility. They are increasingly investing in R&D activities and other strategic initiatives to streamline their production processes to sustain themselves in the highly competitive environment. However, the implementation of advanced technologies such as 3D printing and Artificial Intelligence (AI) for automation by electronic contract manufacturers and design service providers results in high initial investment for OEMs. Also, the establishment of in-house production is a key challenge faced by a majority of the manufacturers. Thus, outsourcing is a preferable option for OEMs to keep pace with the growing competitive environment.

End-use Insights

The demand for electronic contract manufacturing services is anticipated to grow owing to rising applications across non-technical end-user segments, such as healthcare, automotive, industrial, and aerospace & defense. The low penetration of electronic contract manufacturing and design services in these segments is creating higher opportunities for contract manufacturers to establish a strong foothold in the segments. The IT & telecom segment emerged as the largest end-use segment and accounted for over 47% of the total market revenue in 2021. However, growing outsourcing trends in the healthcare, automotive, and other non-technical segments are projected to spur their market shares during the forecast period.

Global electronic contract manufacturing and design services market share by end-use, 2021 (%)

Furthermore, the upsurge in demand for electrical vehicles has elevated the need to outsource their electronic component manufacturing, thereby spurring the electronic contract manufacturing and design services market demand in the automotive sector. The healthcare industry is anticipated to witness significant growth, owing to the rise in demand for medical devices. These include computed tomography scanner assemblies, blood analyzers, ultrasound imaging systems, and blood glucose meters, among others. The escalating need to optimize resources, low fixed capital investment, and improved product development emerged as key factors contributing toward the electronic contract manufacturing and design services market growth across several end-use industries such as medical, automotive, aerospace & defense, and consumer electronics, and IT & telecommunication.

Regional Insights

Asia-Pacific is expected to exhibit the highest growth followed by North America, owing to the rise of outsourcing activities in these regions. Additionally, Asia-Pacific held the largest market share in 2021 and is estimated to remain the fastest-growing region during the forecast period. Moreover, China accounted for more than 35% share in the region and holds a dominant position in electronics manufacturing. The mass availability of raw materials and low-cost labor are the major drivers expected to favor the regional electronic contract manufacturing services market growth.

Furthermore, the North America market is majorly driven by the healthcare and automotive industries. The healthcare industry is a high mix–low volume sector, which offers higher profit margins to electronic contract manufacturing and design services players in this region. Various R&D centers and medical institutes are located in North America that works on advanced and portable diagnostic products, which they plan to source through contract manufacturers. All these factors are cumulatively expected to spur the North American contract manufacturing market growth during the forecast period. Key players such as FLEX, Sanmina Corp, and Jabil Circuit, Inc. are planning to expand their manufacturing facilities in Europe, thereby increasing the production capacity. In addition, a shift to advanced manufacturing techniques in America and Europe is estimated to spur the electronic contract manufacturing and design services demand in these regions during the forecast period.

Key Companies & Market Share Insights

The competitive rivalry in the market is high, owing to the presence of several dominant players. The presence of well-established players has intensified the industry rivalry, due to which the degree of competition is considerably higher. These market players particularly focus on entering into mergers & acquisitions and joint ventures/collaborations to enhance their market presence. For instance, in February 2022, Taiwan-based Compal Electronics, Inc., approved to acquire of 65% shares of Poindus System Corporation, a hardware manufacturer of Point-of-Sale (POS) systems. Compal Electronics aims to increase its product portfolio and expand its market exposure with this acquisition.

Market players in the developing economies are offering low-cost, outsourced services to the production and designing sectors. Thus, owing to economical subcontracted services for manufacturing have resulted in increased competition between the market players. Moreover, the major operating players are investing in research & development to offer better outsourcing services. Additionally, major market players are focusing on improving their operational efficiency and supply chain to gain a competitive edge in the market. Some of the prominent players in the global electronic contract manufacturing and design services market include:

  • Benchmark Electronics Inc.

  • Celestica Inc.

  • Compal Electronics Inc.

  • Creating Technologies LP

  • Flextronics International Ltd.

  • Hon Hai Precision Industry Co. Ltd.

  • Jabil Circuit Inc.

  • Plexus Corporation

  • Fabrinet

  • Venture Corporation Limited.

Electronics Contract Manufacturing And Design Services Report Scope

Report Attribute


Market size value in 2022

USD 515.1 billion

Revenue forecast in 2030

USD 1,062.7 billion

Growth Rate

CAGR of 9.5% from 2022 to 2030

Base year for estimation


Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Service, end-use, region.

Regional scope

North America; Europe; Asia Pacific; South America; Middle East & Africa.

Country scope

U.S.; Canada; Mexico; U.K.; Germany; China; India; Japan; Brazil.

Key companies profiled

Hon Hai Precision Industry Co., Ltd.; Flextronics International, Ltd.; Jabil Circuit, Inc.; Sanmina Corporation; Venture Corporation; Benchmark Electronics, Inc.

Customization scope

Free report customization (equivalent to up to 8 analysts' working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail of customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global electronic contract manufacturing services market report based on service, end-use, and region:

  • Service Outlook (Revenue, USD Billion, 2018 - 2030)

    • Electronic design & engineering

    • Electronics assembly

    • Electronic manufacturing 

    • Others

  • End-Use Outlook (Revenue, USD Billion, 2018 - 2030)

    • Healthcare

    • Automotive

    • Industrial

    • Aerospace & Defense

    • IT & Telecom

    • Power & Energy

    • Consumer Electronics

    • Others

  • Regional Outlook (Revenue, USD Billion, 2018 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • South America

      • Brazil

    • Middle East & Africa

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