The global electronic manufacturing services for mobile phone market is expected to grow at a CAGR of 9.2% during the forecast period. Electronics Manufacturing Services (EMS) are the organizations that design, manufacture, test, distribute, and offer return or repair services for electronic components and assemblies for original equipment manufacturers (OEMs). With rising customer demands over recent years and the need to control costs, manufacturers are focusing on partnerships with solution providers that offer industry expertise and experience. The electronics manufacturing services have broad application in sectors such as government (aerospace & defense), industrial products (robotics and automation, consumer (smartphones, PC, etc.) and), health care (medical devices), electronic components (connectors, semiconductors, etc.).
Top Driver: Rapid Adoption of Smart Home Devices and Advancement in Technology
The growth of the electronic manufacturing services market for mobile phone market is majorly driven by the rapid adoption of smart home devices in developed and developing economies. Services offered by the major and local companies in electronic manufacturing services such as optoelectronics services, manufacturing of radiofrequency & wireless devices, and microelectronics devices for ongoing smart home trends are also major factors driving the market. Other factors proliferating the market are advancements in technology by including cloud computing, AI, and 3D printing in smart devices, continuing the expansion of manufacturing location by major players to fulfill the demand for smart home services in the industry.
Electronic design & engineering to Make Crucial Contribution to Growth of the Market
The global electronic manufacturing services for mobile phone market cane be segmented on the basis of services, which includes Electronic design & engineering, Electronics assembly, Electronic manufacturing, Supply chain management, Others. the electronic design and engineering segment accounted for a larger market share. The electronic management segment ix expected to witness huge growth in the market followed by the supply chain management segment.
Rising Trend for Outsourcing Product Design to Benefit Asia Pacific Market
Asia Pacific is anticipated to be the leading revenue contributor in the global arena in the forecast period. The region is expected to retain its position, progressing at the highest CAGR in the coming years. There is a growing trend among OEMs of outsourcing product design process, which allows them to focus on core competencies. The trend is gaining lucrative momentum in the region, which is estimated to supplement the market’s growth. Furthermore, Asia Pacific has been an irreplaceable electronic production hub for almost a decade due to low labor cost. This factor has played a key role in the dominance of the region in the coming years.
Players to Focus on Electronic Manufacturing Services for Mobile Phone Market
The global market is expected to stay fragmented with the increase in the number of new entrants in the coming years. Altadox, Inc., Benchmark Electronics, Inc., Celestica, Inc., Compal Electronics, Inc., Creation Technologies LP, Fabrinet, FLEX Ltd., Hon Hai Precision Industry Co., Ltd., Plexus Corporation, and Jabil Circuit, Inc. among others could be at the forefront of the competition in the global market.
Benchmark Electronics, Inc.: In October 2013, Benchmark Electronics, Inc., a leading integrated product design and manufacturing services provider, announced that the Company had completed an acquisition of the full-service Electronics Manufacturing Solutions (EMS) segment of CTS Corporation (NYSE: CTS). The acquired business is strategically focused on complex, high-mix and low-volume manufacturing in the Industrial, Aerospace & Defense, Medical, and Communications markets.
Celestica, Inc.: In October 2018, Celestica, Inc., a leader in design, manufacturing and supply chain solutions for the world’s most innovative companies, announced that it had entered into a definitive agreement to acquire Impakt Holdings, LLC.
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