PUBLISHER: Grand View Research | PRODUCT CODE: 1233071
PUBLISHER: Grand View Research | PRODUCT CODE: 1233071
The global electronic contract manufacturing and design services market size is expected to reach USD 1,062.7 billion by 2030, expanding at 9.7% CAGR from 2023 to 2030, according to a new study by Grand View Research, Inc. The electronics industry remains extremely competitive, due to the rising complexity of electronic goods and soaring pressure on Original Equipment Manufacturers (OEMs) to decrease costs. Moreover, diminished product lifecycles have upped the demand for better manufacturing abilities and related services. OEMs are seeking collaboration with contract manufacturers to support quality manufacturing, which will drive market growth during the forecast period.
OEMs work under a subcontract with Electronic Manufacturing Services (EMS) firms and profit from their knowledge of design, production, and supply chain management. This enables OEMs to concentrate on their core strengths owing to lower initial investments and higher operational savings. The need for electronic contract manufacturing and design services by OEMs has expanded in recent times. In addition, establishing in-house manufacturing facilities is a significant challenge for the majority of OEMs. As a result, outsourcing remains a popular option for OEMs to gain an edge amidst the increasing competition.
Due to increased demand from end-use industries like healthcare, aerospace, defense, IT, telecom, and automotive; the market is expected to undergo considerable expansion. For instance, due to the rising need for medical gadgets, the healthcare sector is anticipated to expand significantly. The Indian medical device industry grew at a CAGR of 15% from 2020 to 2023. The rising technological advancements and the need for optimizing resources in manufacturing facilities have led to increased adoption of EMS among end-use industries.