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Europe Electronic Contract Manufacturing And Design Services Industry Overview

The Europe electronic contract manufacturing and design services market size was valued at USD 40.31 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.1% from 2021 to 2028.

The growth of the market can be attributed to the continued adoption of work-from-home and remote working practices, which has gained traction in the wake of the outbreak of the COVID-19 pandemic and has triggered the demand for high-end servers, storage devices, switches, routers, and other computing devices. The growth can also be attributed to the fact that remote working and work-from-home trends are expected to evolve as a new norm over the next few years. The strong emphasis Original Equipment Manufacturers (OEMs) are putting on outsourcing electronics manufacturing to focus more on their core competencies is also expected to emerge as a long-term factor contributing to the market growth over the forecast period.

Gather more insights about the market drivers, restrains and growth of the Europe Electronic Contract Manufacturing And Design Services Market

The outbreak of the COVID-19 pandemic prompted several governments in Europe to impose lockdowns and restrictions on the movement of people and goods as part of the efforts to arrest the spread of coronavirus. However, supply chains got disrupted severely and manufacturing activities were suspended temporarily at several production facilities as a result of these measures, thereby leading to production delays. Nevertheless, order backlogs and sales to new customers in eastern European countries, notably Sweden, Finland, the Netherlands, and Denmark, gradually aided in a market recovery. As a result, the slump in sales noted in H1/2020 as a result of the outbreak of the pandemic was partially offset in H2/2020.

The rising preference for localized supply chains and the need for a highly efficient manufacturing process bodes well for the growth of the market. Electronic Manufacturing Services (EMS) vendors can manufacture electronics products at a reduced total cost to OEMs. EMS companies can particularly manufacture customized products on a large scale while focusing on reducing the manufacturing costs leveraging higher capacity utilization. EMS vendors are also integrating the latest technologies, such as AI and 3D digital printing, into their production processes as part of the efforts to reduce their capital investment in inventory, facilities, and equipment used in manufacturing. Such strategic initiatives being pursued by EMS vendors are expected to encourage OEMs to consider outsourcing electronics manufacturing to EMS vendors and focus on their core competencies.

The continued adoption of cloud computing infrastructure and rollout of smart city projects coupled with the rising popularity of smart homes are some of the other factors that are expected to contribute to the growth of the market. Vendors are aggressively adopting big data and implementing predictive maintenance technologies in all the areas of EMS. Internet of things (IoT) can play a crucial role in predictive technology and big data by aiding in collecting, processing, and analyzing data in real time, thereby helping in increasing productivity and efficiency. Predictive maintenance envisages linking factories through the internet to monitor and control processes remotely using mobile devices or personal computers. Predictive maintenance helps EMS vendors in accelerating production, gaining greater control over the quality, and reducing costs. The proliferation of IoT networks is driving the demand for highly efficient smart applications and devices, thereby paving the way for the growth of the Europe electronic contract manufacturing (ECM) and design services market.

The strong emphasis on reducing the time to market is anticipated to drive the growth of the market over the forecast period. The time the product takes to reach the OEMs’ facilities from the EMS providers’ facilities is turning out to be a major concern for the OEMs. As a result, OEMs are particularly hesitant to deal with EMS providers located at longer distances. Hence, EMS providers are exploring the alternative of micro-logistics to meet the OEMs’ demands for accelerated delivery and are investing aggressively in improving their logistics to ensure timely delivery of products.

Browse through Grand View Research’s Semiconductors Industry Research Reports.

• Microprocessor Market: The global microprocessor market size was valued at USD 83.3 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.1% from 2020 to 2027.
• Capacitive Sensor Market: The global capacitive sensor market size was valued at USD 27.03 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% from 2020 to 2027. 

Market Share Insights

• December 2020: USI, a semiconductor manufacturing services company based in China, acquired Asteelflash Group, one of the leading providers of ECM and design services. USI envisaged leveraging the acquisition to strengthen its presence in Europe. 

Key Companies profiled:

Some of the prominent players in the Europe electronic contract manufacturing and design services market include:

• Cicor Management AG
• Enis
• Flex Ltd
• Hon Hai Precision Industry Co., Ltd (Foxconn Technology Group);
• Jabil Inc.
• Kitron ASA
• Neways
• NORBIT ASA
• NOTE AB
• Sanmina Corporation
• Scanfil
• USI
• VIDEOTON HOLDING ZRt
• Zollner Elektronik

Order a free sample PDF of the Europe Electronic Contract Manufacturing And Design Services Market Intelligence Study, published by Grand View Research.