The global Electronic Contract Manufacturing Services (ECMS) market is anticipated to reach $554.2 billion by 2026 according to a study published by Polaris Market.
With the rising competition in the electronics industry, increasing cost reduction pressure on OEMs, complexity of electronic products, and decreased product life cycles, the demand for Electronic Contract Manufacturing Services market has boosted globally.
OEMs are seeking support from electronic contract manufacturing companies to subcontract electronic manufacturing contract companies to take advantage of their design expertise, supply chain management and manufacturing capabilities. This helps the OEMs to leverage resources, reduce costs, access prominent manufacturing technologies, as well as reduce fixed capital investments and fulfil the Electronic Contract Manufacturing Services market demand.
In addition to this, electronic contract manufacturing also helps in retaining in-house activities and control responsibilities including, quality assurance, product cost management, network solutions integration, customer service, order management, customer interactions, and introduction of new products. These factors are highly responsible for propelling the Electronic Contract Manufacturing Services market growth for electronic contract manufacturing services during the forecast period.
The design & engineering segment is expected to notice a high growth during the projected period attributed to increasing preference of OEMs for subcontracting their design requirements. Also, the global market is observing an increase in growth, with the surging demand for electronic circuit boards attributed to its rising significance in several electronic devices including, smartphones and tablets. Several OEMs are subcontracting their circuit assembly requirements to contract manufacturers, resulting in significant increase in their profit margins.
The players located in Taiwan and China are providing very economical subcontracted services for manufacturing. The current major focus of these vendors is to support and promote green technologies in their manufacturing processes.
The major players operating in the electronic contract manufacturing services market include Flextronics International, Hon Hai Precision Industry (Foxconn), Universal Scientific Industrial, Shenzhen Kaifa Technology, Beyonics Technology, New Kinpo Group, Benchmark Electronics, Sanmina-SCI, Zollner Elektronik, Celestica, Jabil and Elcoteq SE among others.