Report : Electronic Contract Assembly Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Service (Electronic Design & Engineering, Electronic Assembly, and Electronic Manufacturing) and End User (Aerospace, Industrial Automation, Semiconductor, IT & Telecom, and Others)
According to a new research report, titled "Electronic Contract Assembly Market Forecast to 2028 – COVID-19 Impact and Global Analysis," published by The Insight Partners, the market is expected to reach US$ 251,637.62 million by 2028, registering a CAGR of 10.3% from 2023 to 2028.
The global electronic contract assembly market has been segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2022, APAC dominated the market, followed by North America and Europe. Further, APAC is expected to register the highest CAGR in the electronic contract assembly market from 2023 to 2028.
Asia Pacific holds a substantial electronic contract assembly market share owing to the presence of a large number of electronic contract assembly market players, such as Compal Electronics Inc, Fabrinet Co Ltd, and Flex Ltd, in the region. These market players are continuously working on providing designing, assembly, and manufacturing services to their customers. In addition, the region is one of the major manufacturers of consumer electronic devices such as smartphones, laptops, and tablets. Thus, the growing consumer electronic industry in the region is fueling the electronic contract assembly market growth.
The APAC electronic contract assembly market is segmented into Australia, China, India, Japan, South Korea, and the Rest of APAC. According to a report by the Association of Southeast Asian Nations, several countries in Southeast Asia have large electronics industries that account for 20–50% of the total value of exports from Asia Pacific. A large number of consumer electronics used worldwide, such as radio devices, televisions, mobile phones, and computers, are manufactured in Asian countries. China is one of the largest semiconductor markets in the world. Owing to the ever-growing demand for semiconductors, China and Taiwan have significantly raised their semiconductor chip manufacturing investments. In August 2022, Taiwan Semiconductor Manufacturing Co. announced its plan to start a 3-nm chip production facility, which is likely to support the growth of the semiconductor industry in the country. The flourishing semiconductor industry provides enormous opportunities for electronic contract assembly market players in the region.
Although the COVID-19 pandemic adversely affected the revenues of organizations from industries such as semiconductors and IT & telecom, automation and similar industries benefited from the global crisis. This subsequently favored the electronic contract assembly market growth during and after the pandemic. Thus, the electronic production industries experienced a phase of restructuring during the COVID-19 pandemic due to new customer demands, expectations, and technological advancements.
Key Findings of Electronic Contract Assembly Market Study:
The automobile industry is projected to be one of the fastest-growing industries over the forecast period. Moreover, the growing demand for autonomous vehicles and EVs is anticipated to fuel the growth of the automobile industry in the coming years. The aggregate value of the utilization of semiconductors in EVs is more than that of an internal combustion engine; hence, the growing demand for EVs is expected to boost the use of semiconductors. Furthermore, the EV market is witnessing the ever-increasing trend of outsourcing electronic contract assembly and manufacturing to achieve cost-effectiveness. For instance, in January 2023, BYD, one of the largest EV makers in the world, started exploring contract manufacturing partnerships to expand its EV market share in India. Similarly, in August 2022, Canooan—an American automotive startup that develops and manufactures electric vehicles—announced the outsourcing of production to an unspecified contractor for the initial production of its EV vans. Thus, the shift toward EVs and autonomous vehicles is expected to have a positive impact on the electronic contract assembly market share during the forecast period.
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