Electronic Contract Manufacturing and Design Services Market Size, Share and Trends 2025 to 2034

Electronic Contract Manufacturing and Design Services Market Size and Forecast 2025 to 2034

The global electronic contract manufacturing and design services market size was accounted for USD 611.03 billion in 2024 and is expected to exceed around USD 1,544.97 billion by 2034, growing at a CAGR of 9.72% from 2025 to 2034. The increasing usage of different electronic gadgets by almost everyone across the world will continue pushing the electronic contract manufacturing and design services market ahead in the forecast period.

Electronic Contract Manufacturing and Design Services Market Key Takeaways

• Asia Pacific dominated the global market with the largest market share of 46.37% in 2024.
• North America is projected to expand at the fastest CAGR during the forecast period.
• By service, the electronic manufacturing segment contributed the highest market share in 2024.
• By end user, the IT and telecom segment captured the biggest market share in 2024.

Role of Artificial Intelligence (AI) in Electronic Contract Manufacturing and Design Services

Artificial Intelligence (AI) can help in various ways to improve electronic contract manufacturing and design services. AI based automation design tools have become advanced and are able to create PCB layouts at a quick speed. It has the ability to analyze numerous possibilities of design in minutes that normally take engineers many days. This leads to optimal designs that improve the performance and helps in minimizing costs of production. With AI technology, accelerated prototyping has become a reality. AI driven tools can run through multiple alternatives of design, simulate performance as well as identify any problems that might occur before the making of physical prototypes. It is a big help for production processes as it offers predictive maintenance, quality control and improved efficiency. AI is poised to further help growth of electronic contract manufacturing and design services market during the forecast period.

Asia Pacific Electronic Contract Manufacturing and Design Services Market Size and Growth 2025 to 2034

The Asia Pacific electronic contract manufacturing and design services market size was exhibited at USD 283.33 billion in 2024 and is projected to be worth around USD 717.02 billion by 2034, growing at a CAGR of 9.73.% from 2025 to 2034.

The Asia Pacific region has a maximum demand for electronic goods. This region is expected to have the largest market share in the coming year. There has been an increase in the outsourcing of various activities associated with the manufacturing of these electronic devices. Most of the regions in the Asia Pacific region will grow the fastest in the coming years. Out of all the nations in the Asia Pacific region, China has had a market share of about 35% in the past in the manufacturing of the electronics and it shall maintain the position in the coming years. Due to the availability of the labor and the raw materials at a lower cost the market in this region is expected to grow well in the coming years.

The North American region is also expected to have maximum consumption of these services due to an increase in the automotive and healthcare industries. There is a maximum demand for electronics in the healthcare industry as well as the automotive industry in the North American region. High amount of revenue generated through these services. Constant research and development activities have provided innovative products. The increased use of portable as well as technologically advanced products used for the diagnosis in the research and development centers which are located across the North American region will be instrumental in the growth of the market in the coming years. The availability of advanced techniques for the manufacturing of these electronic products the demand for the services is expected to grow in the European region in the coming years.

Market Overview

Growing demand for the optimization of the resources and they increased proliferation of the mobile phones the market is expected to grow well in the coming year. Electronic manufacturing and design services add the outsourced services for the manufacturing in the engineering processes. These services are used for the manufacturing and the distribution of the products. It is also used by the companies for listing and providing repair services as well as the return services. It involves the process of component designing and assembly of the hardware as well as the circuit board. Many electronic products are manufactured on contract basis and this outsourcing service has grown well in the recent years. 

Some of the technologies that make use of the electronic contract manufacturing services are consumer devices telecommunications, networking, servers and computers. The electronic contract manufacturing and designing services are supplementary to the manufacturing of the company and operations of the company. There is a growing demand for optimization as well as improvement of the products that are manufactured in an organization and this is expected to create a greater demand for these services in the forecast period. Increased outsourcing of such activities has provided for increasing the focus on the core activities for the original equipment manufacturers. The operational efficiencies of the original equipment manufacturers are enhanced to a great extent due to a reduction in the costs required for production and this is expected to drive the market growth in the coming years.

During the COVID-19 pandemic the demand for electronic manufacturing services has seen a negative impact. The revenue of the market players had reduced to a great extent. The electronics industry was affected due to the disrupted supply chain and logistics activities. Restrictions on the movement and trade had caused losses for the market players. Shortage of semiconductors was one of the reasons which affected the market to a great extent. Due to the shortage of the raw materials like the capacitors and the LCD panels there was lesser productivity in the facilities. Although after the pandemic the electronics manufacturing market has grown well. The demand for the electronics has grown well in the United States, Germany, China as well as India. Increased use of these services in communication, automotive sector, healthcare sector and other sectors will be instrumental in increasing the revenue. Due to the increase in the initiatives taken by the government for reducing the emissions as well as recycling the waste the e-waste recycling will help in the growth of the market in the coming years. Recycling of the electronic waste it's promoted by various authorities. There has been a growth in the strategies as well as the initiatives taken by the government for the same.

Electronic Contract Manufacturing and Design Services Market Growth Factors

• Due to an increased adoption of the electrical vehicles and investments provided by the government as well as the major manufacturing companies in order to increase the sales of electric vehicles will also provide a better market for these services.
• Advantages provided by these outsourcing services, helps in reducing the use of assets and reduces the cost in code on the manufacturing of these devices. As these sources are outsourced, the companies are able to focus on their core activities and developmental activities that shall be beneficial for its growth in the market.
• Electronic products are used in a large number of industries and it is also got household applications. Due to a wide range of application of these products the market is expected to grow well in the coming years.
• By the implementation of new technologies, the industrial output of the electronic manufacturing services is expected to grow well during the forecast period. There has been a change in the use of technologies or the use of transformative technologies in this market like 3D printing and virtual reality which helps in increasing the capability of production.
• The introduction of the green electronics will drive the market growth in the coming years. These electronics are manufactured with the help of non-toxic chemicals and various parts that can be recycled. They also help in reducing the amount of carbon emissions in the production process.

Market Scope

Market Dynamics

Driver

Rising Outsourcing

The outsourcing manufacturing of electronics and design services is gaining traction as a viable strategy by the companies. The growing demand for electronic contract manufacturing and design services market is pushing companies for outsourcing. This provides a light approach to the manufacturing and development of cutting-edge electronic solutions on a demand basis. Considering specialization as a focal point, outsourcing helps the manufacturers to keep up with the growing demand and avoid any disruptions in supply chain.

Restraint

Competitive Environment

There are various players that are established in the electronic contract manufacturing and design services. The companies that are already established have to keep taking efforts to retain their consumer base by giving affordable options. Newer entrants in the market offer their products and services at a cheaper price than the established ones. This creates a competitive market landscape, where established

players try to maintain their customers by looking for ways to offer lower prices. This makes it a challenging and competitive environment to thrive and sustain in.

Opportunity

New emerging markets

New emerging markets like Asia Pacific are a new opportunity avenue for the electronic contract manufacturing and design services market. The growing demand in the region along with rising population and disposable incomes is fueling demand for this market. The cost of production in this region is relatively lower, which is the reason many manufacturers are shifting base to this region. The countries of the region like India, Indonesia, China and Vietnam are predicted to become electronic manufacturing hubs in the coming years. There is a lot of scope to gain global and local customers in such emerging markets.

Service Insights

On the basis of service, the electronic manufacturing segment has had the largest market share in the recent years and it is expected to grow well in the coming years period. Due to an increase in the inclination of the original equipment manufacturers for outsourcing the requirements of designing. There's an increased importance of deciding services for many electronic devices like the tablets and mobile phones which all help in the growth of the market in the coming years.

End User Insights

The IT and telecom sector is the segment that has had the largest market share in the recent years. There has been a growth in the demand for the outsourcing of these services for the automotive as well as the health care markets. Growing demand for electrical vehicles will also drive the market growth in the coming years. 

Due to an increased manufacturing of medical devices and the new medical devices provided in the market will help in the growth the market in the coming years. Increased need for optimizing the resources and reducing the capital investment is beneficial for the growth of the market. There is an increased use of these services for consumer electronics and aerospace and defense applications.

Electronic Contract Manufacturing and Design Services Market Companies

• Benchmark Electronics Inc.
• Celestica Inc.
• Compal Electronics Inc.
• Creating Technologies LP
• Flextronics International Ltd.
• Hon Hai Precision Industry Co. Ltd.
• Jabil Circuit Inc.
• Plexus Corporation
• Fabrinet
• Venture Corporation Limited

Key Market Developments

• In November 2024, PG Technoplast announced that they have signed an agreement with Spiro Mobility. This agreement is to begin to manufacture electric vehicles (EV) of Spiro Mobility in India.
• In February 2024, NEOTech launched their world class NPI as well as an electronics manufacturing center of excellence in Silicon Valley in Northen California, U.S.

Segments covered in the report

By Service

• Electronic design & engineering
• Electronics assembly
• Electronic manufacturing 
• Others

By Technology

• Computers
• Networking
• Consumer Devices
• Servers and Storage
• Telecommunications
• Peripherals

By End-Use

• Healthcare
• Automotive
• Industrial
• Aerospace & Defense
• IT & Telecom
• Power & Energy
• Consumer Electronics
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)