Electronic contract manufacturing refers to outsourcing the manufacturing of electronic components and outsourcing to original equipment manufacturers (OEMs). Contract design services include product design and development services for electronics and related industries. Rising complexity of electronics hardware and short product life cycles have compelled OEMs to focus on their core competencies and outsource manufacturing and design aspects. This has boosted demand for capable electronic contract manufacturers and design service providers globally. Advancements in communication technologies have widened the scope for electronics integration across various industry verticals.
Market Dynamics:
Global electronic contract manufacturing and design services market growth is driven by factors like growing need to reduce manufacturing costs and focus on core business competencies among OEMs. Short product life cycles and rapid changes in consumer preferences necessitate outsourcing of non-core manufacturing and design activities. Significant focus on research and development of advanced electronics boosts outsourcing of product design aspects. Meanwhile, price wars among contract manufacturers to cater large outsourcing orders can offer growth opportunity. However, logistical challenges in managing global operations and supply chains can hamper the market growth. Intellectual property risks associated with outsourcing design activities can also hamper the market growth.
Key features of the study:
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