• 出版社/出版日：Mordor Intelligence / 2021年1月
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The Electronic Contract Assembly Market was valued at USD 105.41 billion in 2020 and is expected to reach USD 178.74 billion by 2026, at a CAGR of 9.2% over the forecast period 2021 – 2026. Outsourcing on a contract basis is considered as a way to ease up the business model for manufacturing engineers. Third-party companies like Connect Systems and Foxconn, assemble most printed circuit boards and other electronic devices so that the OEMs can focus more on product innovation.
– Volatile economic conditions have forced the manufacturers to reassess their traditional business models and concentrate on the bottom line. A majority of the executives view the contract assembling as an opportunity, primarily to reduce costs, improve flexibility, and streamline their production processes.
– Outsourcing tasks to an electronics manufacturing services provider, primarily allows the original equipment manufacturers (OEMs) to significantly cut their fixed costs, while freeing up cash to invest in strategic initiatives, such as new product development or marketing. It also lets a company reduce labor costs by shrinking its direct workforce.
– The establishment of in-house production is a crucial challenge faced by the majority of the players, owing to which outsourcing is considered a preferable option for them to save costs. As such, the demand for this service is expected to rise at a healthy rate in the near future. PCB assembly services are widely considered by most OEMs, as they lack the technical knowledge and are considered crucial components in any electronic device.
– For one, the automotive industry is rapidly increasing its use of electronics to enhance the comfort, safety, performance, and overall driving experience. As a result of more extended vehicle warranty periods, automobile manufacturers are demanding higher reliability, improved manufacturing efficiency, and vastly reduced warranty failures from their Tier 1 suppliers.
– Healthcare electronics is another primary sector where contract assembly is seen to reduce costs while improving efficiency. Due to the continued growth in the medical and biomedical markets, companies like Saline Lectronics have previously invested in certifications that are necessary for circuit board assembly manufacturing.
– Adding to the electronics industry’s existing challenges is the ongoing impact of the COVID-19 outbreak on the global supply chain. With still months away from the containment of the virus, manufacturers are currently focusing on rethinking their strategies and looking beyond China to find alternative supply chain sources.
Key Market Trends
Consumer Electronics to Drive the Market Growth
– The communications and computer products are expected to be the leading segments driving the most significant growth in the electronics industry. The outsourcing of processes has become a critical element in keeping the electronics industry expanding and handling costs to the margin each year, a leading factor in stimulating consumer demand.
– With the emergence of the internet of things (IoT), there have been lots of new opportunities for the manufacturers of consumer electronics. Wearable devices, such as smartwatches, incorporate chips, and flexible sensors. Breakthrough in designing these devices and manufacturing technology may have a significant impact on the PCB market. The amount of systems connected over the internet is also expanding in multiple regions over the past decade.
– The leading OEMs, such as Apple, also employ electronic contract manufacturing from Foxconn, which employs approximately 350,000 people and produces about half of the world’s iPhones. In the busy summer months, before the fall release of a new iPhone, the factory produces around 500,000 phones a day, or up to 350 minutes.
– Furthermore, demand for high-performance, ultra-thin, and light displays with interactive, quick reacting interfaces are pushing material requirements to the edge. These prerequisites drive new advances in display materials technology for a variety of applications, from ITO replacements for touch screens to display innovations for flexible devices.
– In the healthcare prospect, the concept of wearables (wrist and body-worn) calls for flexible printed electronics, while remote monitoring (home healthcare) calls for more connected devices. These trends again impact the design controls and provide an opportunity for the contract assembly companies.
Asia-Pacific to Witness Highest Growth
– Housing a significant number of OEMs, the region is estimated to be a substantial market for contract assembly during the forecast period. The regions, including China, India, and Japan, are likely to drive the demand, considering the technology development driven by the governments, especially in the smart devices and smart healthcare in Japan.
– The domestic demand for consumer electronics, especially in the home automation space, increases at a fast pace. In China, the consumer electronics market’s market is estimated to witness growth by three times its current size, with the critical smart products, according to a well-known home appliance maker TCL.
– China is one of the significant markets globally, owing to its strong position in the semiconductor, consumer electronics, and other telecommunications devices and equipment manufacturing industries.
– The country currently has about 60-70% of the world’s electronics production and assembly capacity. According to the Semiconductor Industry Association, the country’s semiconductor sales revenue grew from USD 82.4 billion (2015) to USD 143.7 billion (2019). The country is also leading the world in 5G technology, with full network coverage planned in 50 cities by late-2020.
– The companies in the region are also making significant achievements in the development of technologies, such as Flex PCB and Flex rigid PCB. In the continuous upgrades of PCB manufacturing technology, China experiences a stable and optimized product structure. Furthermore, a series of newly established strategic industries in the field of AI, Big Data, and cloud computing belong to advanced manufacturing, leading to the dependence on assembly players.
– However, the pandemic outbreak has made players in the region to comply with the nationwide lockdown. As of late March 2020, Foxconn and Wistron suspended production at their plants in India, to reduce the spread of COVID-19. These companies are also manufacturing partners to major electronics companies.
The electronics contract assembly market is fragmented and is quite competitive. Market players in developing economies offer low-cost, outsourced services to the production and designing sectors to increase their competitiveness. Furthermore, key players are striving to gain a competitive advantage by engaging in mergers and acquisitions. Some of the key developments in the market are:
– In March 2020 – Sanmina Corporation announced the expansion of its facility in Thailand. The facility is expected to have advanced custom packaging and assembly capabilities to manufacture advanced optical, high speed, and radiofrequency microelectronic assemblies and products. This expansion further supports rapid growth for new technology products across the networking, 5G, data center, automotive/LIDAR, and aerospace and defense markets.
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1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness – Porter’s Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET DYNAMICS
5.1 Market Drivers
5.2 Market Restraints
6 MARKET SEGMENTATION
6.1 By Type of Activity
6.1.1 PCB Assembly Services
6.1.2 Cable/Harness Assembly Services
6.1.3 Membrane/Keypad Switch Assembly Services
6.2 By Application
6.2.4 IT and Telecom
6.2.5 Other Applications
6.3.1 North America
18.104.22.168 United States
22.214.171.124 United Kingdom
126.96.36.199 Rest of Europe
188.8.131.52 Rest of Asia-Pacific
6.3.4 Latin America
6.3.5 Middle East and Africa
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Amphenol Interconnect Products Corp. (AIPC)
7.1.2 ATL Technology
7.1.3 Compulink Cable Assemblies Inc.
7.1.4 Connect Group NV
7.1.5 Leoni Special Cables Ltd
7.1.6 Season Group International Co. Ltd
7.1.7 Volex Group PLC
7.1.8 Mack Technologies Inc.
7.1.9 TTM Technologies Inc.
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET