Europe Electronic Contract Manufacturing And Design Services Market To Reach $170.0 Billion By 2030

Europe Electronic Contract Manufacturing And Design Services Market Growth & Trends

The Europe electronic contract manufacturing and design services market size is expected to reach USD 170.0 billion by 2030, registering a CAGR of 9.3% from 2023 to 2030, according to the recent reports of Grand View Research, Inc.The market growth can be attributed to the growing trend among Original Equipment Manufacturers (OEMs) to opt for contact manufacturing services owing to the growing pricing pressure associated with manufacturing electronic components in-house. While the outbreak of the COVID-19 pandemic triggered the demand for healthcare devices, the strong emphasis organizations are putting on rolling out the work-from-home model increased the demand for computing devices, thereby driving the growth of the market.

The EMS market witnessed a fall in 2020 because of the pandemic, which gave rise to supply chain disruptions and resulted in a shortage of semiconductor components. However, order backlogs and the increase in demand for contract manufacturing services from Eastern and Central European countries helped in offsetting the slump.Electronic Contract Manufacturing (ECM) and design services typically include electronic design and engineering services, electronics assembly services, electronic manufacturing services, and all the supply chain management and other aftermarket support services offered by contract manufacturers. As the electronics industry continues to get competitive and electronics products continue to get complex, OEMs across the region are increasingly getting under pressure to reduce costs and shorten product lifecycles.

At this juncture, contract manufacturers can potentially provide services in electronic product design for manufacturing at reduced costs. This is further anticipated to boost the market growth. Brexit is expected to pose bureaucratic obstacles for EMS companies, thereby delaying the dispatch of orders to OEMs. Moreover, given that several OEMs have moved their pan-EU distribution hubs to mainland Europe, Brexit would particularly impact the long-term contracts with OEM partners in mainland Europe. However, the Brexit impact is expected to be short-term; the UK-EU trade agreements were drafted to streamline the operations. Brexit is also expected to create lucrative opportunities for EMS companies based in the UK to trade beyond European borders.

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Europe Electronic Contract Manufacturing And Design Services Market Report Highlights

• The electronic design & engineering segment is anticipated to observe a CAGR of 11.1% during the forecast period. The growing complexity of electronic products and the increasing industry-specific electronic component requirements have boosted the market growth

• The healthcare segment is anticipated to observe a CAGR of 11.2% during the forecast period. EMS services provide cost-effective manufacturing solutions by enhancing efficient supply chain management and economies and optimizing the production process in the healthcare sector. This has enhanced the need for the region’s electronic contract and manufacturing design services across the sector

• Germany is expected to grow at the fastest CAGR of 9.5% from 2023 to 2030. The continued expansion of wireless telecommunications infrastructure and rollout of high-speed 5G networks and investments in data centers are expected to drive the demand for electronic manufacturing and design services among network equipment OEMs

• Key market players have an extended operating history, a large customer base, and significant competitive strengths. In addition to the inorganic growth strategies, vendors emphasize improving after-sale service offerings to ensure periodic maintenance of installed products

Europe Electronic Contract Manufacturing And Design Services Market Segmentation

Grand View Research has segmented the Europe electronic contract manufacturing and designservices market based on service, end-use, and region:

Europe Electronic Contract Manufacturing & Design Service Outlook (Revenue, USD Billion, 2018 - 2030)

• Electronic Design & Engineering

• Electronics Assembly

• Electronic Manufacturing

• Others

Europe Electronic Contract Manufacturing & Design Services End-use Outlook (Revenue, USD Billion, 2018 - 2030)

• Healthcare

• Automotive

• Industrial

• Aerospace & Defense

• IT & Telecom

• Power & Energy

• Consumer Electronics

• Others

Europe Electronic Contract Manufacturing & Design Services Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• U.K.

• Germany

• France

• Italy

• Spain

List of Key Players in Europe Electronic Contract Manufacturing And Design Services Market

• Benchmark Electronics

• Cicor Management AG

• Enis

• Flex Ltd

• Hon Hai Precision Industry Co., Ltd (Foxconn Technology Group)

• Jabil Inc.

• Kitron ASA

• Neways

• NORBIT ASA

• NOTE AB

• Sanmina Corporation

• Scanfil

• USI

• VIDEOTON HOLDING ZRt

• Zollner Elektronik