Global electronics contract manufacturing market: 6% CAGR between 2012 and 2016

Press Release   •   Feb 25, 2013 12:23 GMT

The Global Electronics Contract Manufacturing market is to grow at a CAGR of 5.74 percent over the period 2012-2016. One of the key factors contributing to this market growth is the need to optimize resources. The Global Electronics Contract Manufacturing market has also been witnessing the increasing number of mergers and acquisitions. However, the increasing threat of in-house manufacturing could pose a challenge to the growth of this market.

The increasing number of mergers and acquisitions is one of the emerging trends in the Global Electronics Contract Manufacturing market. In order to access the untapped market, a number of mergers and acquisitions and strategic alliances are expected to take place in the market during the forecast period. Many major vendors and emerging contenders in the Global Electronics Contract Manufacturing market are looking for mergers and acquisitions to enhance their market presence. Original equipment manufacturers (OEMs) are also expected to create alliances with regional, smaller and large electronics contract manufacturers. Mergers and acquisitions help vendors to survive in this competitive market, and market consolidation among vendors in the market is expected to play a major role in the coming years.

The need to optimize resources is one of the major drivers in the Global Electronics Contract Manufacturing market. Electronics contract manufacturing providers enable OEMs to have various services such as engineering design, assembling of manufactured components, sub-assembly manufacturing, fabrication of printed circuit boards, and functional testing carried out by contract manufacturers. The electronic contract manufacturers have expertise in these outsourced services. Thus, OEMs outsource manufacturing services so that they are able to focus on improving their core production and business processes, such as product development and RandD.

The key vendors dominating this market space are Celestica Inc., Flextronics International Ltd., Hon Hai Precision Industry Co. Ltd., and Jabil Circuit Inc. The other vendors mentioned in the report are Sanmina Corp., Benchmark Electronics Inc., Elcoteq SE, Onyx EMS LLC., and Plexus Corp.

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