Electronic contract manufacturing services market to hit $671.7 billion by 2018

The global electronic contract manufacturing services market is forecast to hit US $671.7 billion by the year 2018. Major factors driving growth in the market include recovering demand in end-use sectors, globalisation of production, increasing penchant to outsource manufacturing functions from original equipment manufacturers (OEMs), increasing prominence of original design manufacturers (ODMs) in the industry and diversifying experience of electronic contract manufacturing services and ODMs into new sectors.

Electronic contract manufacturing services is a term used for companies that design, test, manufacture, distribute, and provide return/repair services for electronic components and assemblies for original equipment manufacturers (OEMs).

Asia-Pacific represents the largest regional market for electronic contract manufacturing services worldwide. The region is also projected to remain the fastest growing regional market with a projected compounded annual growth rate of around 7% during the analysis period to 2018. Going forwards, China is expected to play a major role in the global electronic contract manufacturing services market.

In part, this growth is expected to depend upon rising domestic consumption of final goods, as the country's economy continues to surge at a rate faster than the developed markets in the West. Electronics manufacturing services (EMS) industry in the US continues to thrive, despite several Tier-I companies shifting manufacturing units to offshore locations.

Medium and small sized domestic contract manufacturers are the most successful firms in the region offering superior quality and customer service.

Today the electronic contract manufacturing services market is dominated by a handful of companies such as Hon Hai Precision Industries (Foxconn), Flextronics, Celestica, Sanmina-SCI, Jabil, Elcoteq, Onyx EMS, Benchmark Electronics, Vanguard EMS, Inc., Plexus, Mara Technologies, Kimball Electronics Group, ESCATEC, Electronic Systems Inc. in Sioux Falls SD, and a few dozen others, several thousand smaller companies continue to occupy electronic manufacturing service niches.

For more information on the electronic contract manufacturing services market, see the latest research: Electronic Contract Manufacturing Services Market Report

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