Electronics manufacturing services to grow US$118.49bn
With the increased adoption of smart manufacturing being a key factor in the market's growth, the report identifies Asia-Pacific (APAC) as the key growth region for the industry. The region is expected to deliver significant opportunities between 2020 and 2024. However, something for industry leaders to watch out for is continuously complex supply chains and shrinking margins that may pose challenges to the growth.
Trends in the global electronics manufacturing services market
When it comes to the end user, the market experienced a maximum growth in computing and consumer appliances. It is said this is driven by the rising demand for consumer electronics devices. It is expected that this segment of the market will be significant during the forecasted period.
Looking at the geographic landscape for the industry, Technavio reports that 79% of the market growth for the global electronics manufacturing services market will originate from the APAC region between 2020 and 2024.
Growing economic activities, as well as the region’s ongoing urbanisation is said to be crucial for driving the growth of the market. Specifically, China, Taiwan, and India are expected to be key markets for the electronics manufacturing services market in APAC.
Who is Technavio?
Technavio is a leading global technology research and advisory company, founded in 2003. The company provides research and analysis on emerging market trends, providing actionable insights for businesses to identify market opportunities.
Four Factory of the Future Market Trends to Keep an Eye on
Global Smart Manufacturing Market
Attributed to the rapid growth in the adoption of automated systems in industrial processes, the is predicted to grow from US$$175bn (2020) to US$303bn by 2026 with a compound annual growth rate (CAGR) of 6.4% between 2019 and 2026.
While COVID-19 has somewhat slowed down the market’s growth, it is expected that by the second to third quarter of 2023 there will be a ‘considerable’ rise in growth for the market.
Key players in the industry: Schneider Electric, General Electric, Siemens, Honeywell International Inc., Rockwell Automation Inc., FANUC Corporation, and Emerson Electric Co.
Industrial Automation Market
Making people’s lives easier, and their work more accurate and effective, the global demand for automated technologies such as robotics - especially in science and technology - is driving its increase in global market value.
Key players in the industry: ABB, Siemens, General Electric, Schneider, Endress+Hauser, Yokogawa, Honeywell, WIKA, Azbil, Fuji Electric, 3D Systems, and HP.
Smart Factory Market
Expected to grow from US$80.1bn (2021) to US$134.9bn by 2026, the - with a CAGR of 11% between 2021 and 2026 - is experiencing growth driven by fiscal policies adopted to keep manufacturing facilities afloat during COVID-19.
Other driving factors include resource optimisation, cost reduction in production operations, increased demand for industrial robotics, rising demand for technologies, and the growing significance of energy efficiency.
Key players in the industry: Emerson Electric Co., General Electric, Rockwell Automation, Inc., Schneider Electric SE, ABB Ltd., Siemens AG, Mitsubishi Electric Corp., Honeywell International Inc., Endress+Hauser AG, and Yokogawa Electric Corp.
Artificial Intelligence (AI) in Manufacturing Market
“It is undeniable that the manufacturing industry is at the forefront of artificial intelligence implementation,” says . “Manufacturers are using AI-powered analytics to increase performance, product quality, and employee protection, from substantial reductions in unplanned downtime to better crafted goods.”