Dublin, Dec. 03, 2021 (GLOBE NEWSWIRE) -- The "Europe Electronic Contract Manufacturing And Design Services Market Drivers, Restraints and Opportunities, Forecasts, 2021 - 2028" report has been added to ResearchAndMarkets.com's offering.
The European electronic contract manufacturing and design services market size is projected to reach USD 68.61 billion by 2028, expanding at a CAGR exceeding 7.1%.
The growth of the market can be attributed to the growing trend among OEMs to opt for contact manufacturing services owing to the growing pricing pressure associated with manufacturing electronic components in-house.
While the outbreak of the COVID-19 pandemic triggered the demand for healthcare devices, the strong emphasis organizations are putting on rolling out the work-from-home model increased the demand for computing devices, thereby driving the growth of the market.
The market witnessed a slump in 2020 as a result of the pandemic, which triggered supply chain disruptions and resulted in a shortage of semiconductor components. However, order backlogs and the increase in demand for contract manufacturing services from Eastern and Central European countries helped in offsetting the slump.
Electronic contract manufacturing (ECM) and design services typically include electronic design and engineering services, electronics assembly services, electronic manufacturing services, and all the supply chain management and other aftermarket support services offered by contract manufacturers.
As the electronics industry continues to get competitive and electronics products continue to get complex, OEMs are increasingly getting under pressure to reduce costs and shorten the product lifecycles. At this juncture, contract manufacturers can potentially provide services in electronic product design for manufacturing at reduced costs.
Brexit is expected to pose bureaucratic obstacles for EMS companies, thereby delaying the dispatch of orders to OEMs. Moreover, given that several OEMs have moved their pan-EU distribution hubs to mainland Europe, Brexit would particularly impact the long-term contracts with OEM partners in mainland Europe.
However, the Brexit impact is expected to be a short-term impact, and the U.K-EU trade agreements drafted to streamline the U.K.-EU trade are expected to offset it. Brexit is also expected to create lucrative opportunities for EMS companies based in the U.K. to trade beyond 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% owing to an upsurge in the demand for industrial robots and automation products in discrete manufacturing and processing industries
The continued expansion of wireless telecommunications infrastructure and rollout of high-speed 5G networks and aggressive investments in data centers are expected to drive the demand for electronic manufacturing and design services among network equipment OEMs
The market is fragmented in nature and characterized by the presence of a few leading market players and several smaller regional players focusing on modernizing their production capabilities to enhance the manufacturing services they provide to OEMs
Cicor Management AG
Hon Hai Precision Industry Co., Ltd (Foxconn Technology Group)
VIDEOTON HOLDING ZRt
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