Global Electronics Contract Manufacturing Services Market Status: Revenue Shows $543.12 Billion in 2024

Global Electronics Contract Manufacturing Services Market Overview

According to Global Market Monitor, the global electronics contract manufacturing services market size will be $543.12 billion in 2024 with a CAGR of 4.89% from 2024 to 2029.

An electronic contract is an agreement between two or more parties to establish, change, or terminate property-based civil rights and obligations in an electronic form through an electronic information network. A contract manufacturer is a manufacturer that contracts with a firm for components or products. It is a form of outsourcing and allows enterprises to focus on their core competencies, reducing production costs, and capital investment, and improving operational efficiency.

In a contract manufacturing business model, the hiring firm approaches the contract manufacturer with a design or formula. The contract manufacturer will quote the parts based on processes, labor, tooling, and material costs. Typically, a hiring firm will request quotes from multiple CMs. After the bidding process is complete, the hiring firm will select a source, and then, for the agreed-upon price, the CM acts as the hiring firm's factory, producing and shipping units of the design on behalf of the hiring firm.

Market Drivers

With the development of the economy, demanding for more consumer electronics, automobiles, and medical equipment, to save costs from manufacturers because of fierce competition, meanwhile, improving the efficiency of the industry chain, many manufacturers chose to cooperate with EMS, which promotes this industry to develop. What is more, EMS keeps on updating its technology and keeps on product innovation, which increases the penetration of more productive cost-effective, and high-performance products and services. What is more, Outsourcing the design & manufacturing of smartphone models has become a growing trend in the global mobile phone industry. The benefits of outsourcing the design & manufacturing of smartphones to EMS companies are evident, especially in a lower-tier market where time-to-delivery and cost are sometimes more important than innovation. Cooperating with EMS partners is widely adopted and favored by smartphones.

The proliferation of electronic products such as tablets and smartphones has been a major driver of the market over the past few years. Due to the growing demand for medical devices, the medical industry is expected to see significant growth. The manufacturing of medical devices requires strict regulatory compliance and advanced technical solutions. Therefore, outsourcing such activities enables OEMs to accelerate their R&D activities and reduce equipment costs to gain a competitive advantage, which is expected to stimulate market growth.

North America	The large market-developed economy
Europe	Huge market, developed economy
China	Huge demand with a growing economy
Japan	Developed economy
Middle East & Africa	Potential market
India	A large market with a growing economy
South America	Potential market