DUBLIN, December 03, 2021– (BUSINESS WIRE) – The Europe Electronic Contract Manufacturing and Design Services Market Size, Share & Trends Analysis Report by Enduse (IT & Telecommunications, Industrial, Healthcare, Consumer Electronics), by Country and Segment, Forecasts, 2021 – 2028 “Report was added to ResearchAndMarkets.com to offer.
The European electronic contract manufacturing and design services market is projected to reach $ 68.61 billion by 2028, an annual growth rate of over 7.1%.
The growth of the market is due to the increasing trend among OEMs to opt for contact manufacturing services due to the increasing price pressure for in-house production of electronic components.
While the outbreak of the COVID-19 pandemic sparked demand for health devices, the heavy emphasis companies place on adopting the home work model increased demand for computing devices, fueling the growth of the market.
The market slumped in 2020 as a result of the pandemic, which disrupted the supply chain and resulted in a shortage of semiconductor components. However, order backlogs and the increased demand for contract manufacturing services from Eastern and Central European countries helped to compensate for the slump.
Electronic contract manufacturing (ECM) and design services typically include electronic design and engineering services, electronic assembly services, electronic manufacturing services, and all of the supply chain management and other aftermarket support services offered by contract manufacturers .
As the electronics industry becomes more competitive and electronic products become more complex, OEMs are coming under increasing pressure to cut costs and shorten product life cycles. At this point, contract manufacturers can potentially offer electronic product design services for manufacturing at a reduced cost.
Brexit is expected to present bureaucratic hurdles for EMS companies and thus delay the dispatch of orders to OEMs. Since several OEMs have relocated their pan-EU distribution centers to mainland Europe, Brexit would also have a particular impact on long-term contracts with OEM partners on mainland Europe.
However, the effects of Brexit are expected to be short-term and the UK-EU trade deals designed to streamline trade between the UK and the EU are intended to offset this. Brexit is also expected to offer lucrative opportunities for UK-based EMS companies to trade across European borders.
Europe Electronic Contract Manufacturing and Design Services market report highlights
The industrial segment dominated the market in 2020 with a market share of 25% due to increasing demand for industrial robots and automation products in the discrete manufacturing and process industries
The continued expansion of wireless telecommunications infrastructure and the introduction of high-speed 5G networks, as well as aggressive investments in data centers, are expected to increase the demand for electronics manufacturing and design services among network equipment OEMs
The market is inherently fragmented and characterized by the presence of a few leading players and several smaller regional companies focused on upgrading their manufacturing capabilities to improve their manufacturing services for OEMs
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