Electronic contract assembly plays a crucial role in the manufacturing and assembly of electronic components and systems. The companies specialized in electronic contract assembly provide a range of services, including surface mount technology (SMT) assembly, through-hole assembly, cable and wire harness assembly, electromechanical assembly, system integration, testing and inspection, and final product packaging. The market caters to various sectors such as healthcare, automotive, aerospace, consumer electronics, and telecommunications. The increasing complexity and miniaturization of electronic devices drive the electronic contract assembly market growth. As electronic devices become more advanced, they require detailed and precise assembly processes that may be challenging for small and medium sized companies to handle in-house. Outsourcing to electronic contract assembly providers allows companies such as Samsung, Intel, Microsoft and more to access specialized expertise, advanced equipment, and economies of scale.
Benchmark Electronics Inc, Jabil Inc, Celestica Inc, Filtronic Plc, and Creation Technologies LP Prominent Market Participants in Electronic Contract Assembly Market.
The increasing demand for functionalities such as sub-assembly manufacturing, functional testing, and component assembly from various manufacturers is likely to boost the electronic contract assembly market growth during the forecast period. Implementing advanced technologies by service providers and expanding their manufacturing capacity are also expected to contribute to market growth in the coming years. Rising purchasing power of consumers and growing demand for electronics will also fuel market growth in the future. There is an emerging trend among service providers to invest heavily in research and development activities and adopt advanced technologies to improve their manufacturing capacity and strengthen their market position. According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), the appliances & consumer electronics industry which includes wearable, TVs, laptops, scanners and more in India is anticipated to report significant growth in the next five to six years, with expectations of the market size increasing by more than two-fold to reach a value of up to US$26.81 billion. This industry valuation is expected to create new business opportunities, attract investments, and stimulate economic growth in the country. Growth in consumer electronics industry may create opportunities form its end users such as Apple, IBM, and more to manufacture their components.
The global electronic contract assembly market involves companies specializing in producing, testing, distributing, and repairing electronic components and assemblies for original equipment manufacturers (OEMs). These services encompass a range of functions such as circuit board and hardware assembly, component design and procurement, product engineering, fulfillment, distribution, and after-sales support.
The global electronic contract assembly market is expected to grow in the coming years owing to the rising demand for electronic contract assembly services from several end-use industries such as aerospace, healthcare, information technology, telecom, defense, and automotive. The growing demand for electronic contract assembly services encourages companies to expand their manufacturing capacity and strengthen their market position. By enhancing their manufacturing capacity, they can efficiently handle larger volumes of electronic assembly projects and meet the evolving needs of their customers. Also, the increasing number of global outsourcing activities and rapid growth in technology will create lucrative opportunities for the market in the future. India’s space industry has taken a significant step forward with the inauguration of the country’s first private spacecraft manufacturing facility in Bengaluru. The facility will manufacture and test spacecraft locally, boosting the domestic industry.
The COVID-19 outbreak considerably impacted the global economy during its peak in Q1 and Q2 of 2020, and the crisis has hampered business activities in various industries. Governments of different countries imposed stringent regulations on human mobilization and trade bans. The global economy witnessed a paradigm shift toward work-from-home culture and a change in consumer buying behavior. As a result, in Q3 and Q4 of 2020, the demand for electronic products increased considerably.
Benchmark Electronics Inc, Jabil Inc, Celestica Inc, Filtronic Plc, and Creation Technologies LP are some of the key players operating in the electronic contract assembly market. The global electronic contract assembly market is highly consolidated in nature due to presence of large, small, and medium players, at regional and local level for addressing the local demand. Since, the market is in emerging phase, number of more startups and players is expected to make entry. Hence, we have derived this listing of “Key Five Players” in the global electronic contract assembly by giving weightage to following key parameters: overall revenue, segmental revenue, brand image & industry experience, current electronic contract assembly portfolio, innovative and advanced technology integration, customer base, geographical reach, new product launches, partnerships, and other market related activities. A few of the important market initiatives and product developments from the industry are mentioned below:
| Year | News | Region |
| Mar 2023 | Benchmark Electronics’ new Precision Technologies facility in Mesa, Arizona, is a strategic move to support the semiconductor industry’s growth in the United States. With a focus on providing engineering and manufacturing solutions for semiconductor capital equipment building blocks and solutions, the company is investing USD 20 million. It plans to hire up to 100 people to support the facility. This move will allow Benchmark to expand its capabilities and better serve its customers in the region while contributing to the growth of the domestic semiconductor industry. | North America |
| May 2020 | A contract has been given to Celestica, a company specializing in design, manufacturing, and supply chain solutions, to produce 7,500 ventilators for Canadian medical device manufacturer StarFish Medical. The production will occur in Celestica’s Newmarket, Ontario facility, with manufacturing scheduled to begin in May and final delivery to Health Canada expected in the fourth quarter of 2020. StarFish Medical selected Celestica for its extensive experience in design, supply chain management, and ability to adhere to the highest quality and regulatory requirements. | North America |
| May 2022 | Fabrinet advanced precision optical and electronic manufacturing services, the company announced that it would partner with Quanergy Systems Inc to produce Quanergy’s LiDAR sensors. | APAC |
