Electronic Manufacturing Services - Procurement Best Practices & Sourcing Strategies

Procurement Market Intelligence Report

Electronic Manufacturing Services – Procurement Best Practices & Sourcing Strategies

Electronic Manufacturing Services Market – Executive Summary, Market and Industry Analysis, Covid-19 Impact, Market Monitoring Insights, Procurement Best Practices, Negotiation Support Levers, Supplier Section, RFI/RFP Support Levers

  1. Executive Summary
    • Regional Market Outlook
    • Supply Market Outlook
    • Demand Market Outlook
    • Beroe’s Recommendations for an ideal Category Strategy
    • Category Opportunities & Risks
    • Negotiation Leverage
    • Talking Points to Business
    • Covid-19 Impact Analysis
  2. Market and Industry Analysis
    • Global EMS Market Maturity
    • Global EMS Market Overview
    • Global Market Outlook
    • Regional Market Outlook
    • Market Drivers and Constraints
    • Porter’s Five Forces Analysis
  3. Covid-19 Impact
    • Category Summary: COVID-19 Impact
    • COVID-19 Impact: Industry Watch
  4. Market Monitoring Insights
    • Cost Structure Analysis
    • Price Trend: Raw Material, Labor, Electricity
    • Price Models and Mechanism
    • Impact Analysis of Key Price Drivers
  5. Procurement Best Practices
    • Industry Best Practices
  6. Negotiation Support Levers
    • Sourcing Strategy
    • Engagement Models
    • Contract Models
    • Contract Models: Risk Analysis
  7. Supplier Section
    • Supply Market Outlook, Key Global Suppliers
    • Top Suppliers in Key Supply Locations, Profile, and SWOT Analysis
  8. RFI/RFP Support Levers
    • RFI/RFP Support Inputs

Which significant factors are propelling substantial growth of the electronic manufacturing services market?

Rising consumer demand for complex electronics, globalization’s impact on manufacturing outsourcing, and technological breakthroughs drive market growth.

 

What is the anticipated valuation for the electronic manufacturing services procurement market?

Between 2022 and 2025, the electronic manufacturing services market is expected to grow at a 7-9% growth rate and is predicted to reach a valuation of $758.9 billion.

Which regional industries are becoming essential centers for the electronic manufacturing services market?

Thanks to their access to large consumer markets, skilled labor pools, and cheaper production costs, Asia-Pacific, especially China, India, and Southeast Asia, is becoming one of the major hubs for electronic manufacturing services.

DESCRIPTION

Electronic Manufacturing Services Procurement Market Size

As per ELINT Market Research’s findings, the electronic manufacturing services market has experienced significant growth and is expected to reach a valuation of $597.99 billion by 2022. The sector’s prospects seem promising, with an anticipated growth trajectory of 7-9% from 2022 to 2025, as detailed in the electronic manufacturing services procurement market research report. By the time the projected period ends, estimates show that the market value will have reached $758.9 billion. The EMS market is expected to grow in the near future owing to technological advancements, increased demand for electronic devices across various industries, and increased reliance on outsourcing by businesses to reduce costs and streamline operations. These numerical insights highlight some of these factors.

 

The electronic manufacturing services procurement market research report projects a growing market accelerating in recognition of the industry as one of the provisions of services that global economies can’t do without, hence scaling up large businesses to tap into newer opportunities. With several smart devices, the spread of the Internet of Things applications, and digital transformation trends in workplaces, companies will see the direction of further demands for electronic manufacturing services. ELINT’s procurement market analysis for electronic manufacturing services indicates a positive atmosphere available for business players, innovation opportunities in synergy, and market growth in the future.

 

Market Definition

In the global electronics supply chain, the Electronic Manufacturing Services (EMS) sector plays a vital role by providing essential product and component design, engineering, packaging, and testing services. With 5G technology coming online, emerging markets getting closer to opening up, and more and more devices becoming connected, the EMS sector is expected to grow significantly soon.

 

Electronic Manufacturing Services Procurement Market Drivers

  1. Growing Demand for Consumer Electronics: Original equipment manufacturers now demand electronic manufacturing service providers that may offer cost-effective and low-priced manufacturing solutions.
  2. Internet of Things and Connected Devices: The Internet of Things and connected devices are gaining steam, and the growth is creating more demand for EMS. Increasing instances are observed with diversified industries using more of these respective works.

 

Electronic Manufacturing Services Procurement Market Challenges

  1. Interruptions to the Supply Chain: The following can come in the way of the EMS industry – interruptions to the supply chain caused by acts of nature and geopolitical disruptions, material shortages, etc.
  2. Scarcity of Qualified Workers: The above-discussed qualification and skilled workforce required for Emergency Medical Supply (EMS) regarding manufacturing, supply chain, and engineering, respectively.

 

Electronic Manufacturing Services Procurement Market Opportunities

  1. Vertical Integration: An additional approach likely to cement EMS providers at the top of the value chain is offering more services, such as design, aftermarket services, and engineering.
  2. Emphasis on Sustainable Practices: Introducing these sustainable modes in packages, materials, and various wrap options will place the EMS providers at a vantage of harnessing a new customer base.

 

Electronic Manufacturing Services Procurement Market Segmentation

  1. Service Type: As per service type, the electronic manufacturing services procurement market research report segments the market into Electronics Assembly Services, Engineering and Design Services, Manufacturing Services, and Quality Assurance Services,
  2. End-User Industry: Based on the end-user industry, the electronic manufacturing services market research report classifies the market into Consumer Electronics, Automotive, Healthcare, Aerospace and Defense, and Telecom and Networking.
  3. Company Size: According to company size, the electronic manufacturing services procurement intelligence market research report divides the market into Small and Medium Enterprises (SMEs) and Large Enterprises.
  4. Application: As per application, the electronic manufacturing services procurement market research report segments the market into PCB Assembly, Box Build Assembly, and System Integration.

 

Regional Outlook of the Electronic Manufacturing Services Procurement Market

Various opportunities and challenges exist for industry participants in the worldwide electronic manufacturing services market, which displays varying degrees of development across multiple domains. Technological innovations, supply chains, and infrastructure are characteristics of highly developed markets, including those in Mexico, Brazil, Taiwan, China, Japan, South Korea, and Germany. Conversely, medium-sized markets in Africa, Eastern Europe, Indonesia, the United States, Canada, India, and the United Arab Emirates have growing potential due to consumer demand and evolving infrastructure developments.

 

The dynamic nature of the electronic manufacturing services market is demonstrated by the regional projection, which is impacted by several variables such as macroeconomic conditions, regulatory frameworks, and technological developments. Today, highly developed nations rule the industrial landscape, but developing economies are gaining ground on established ones thanks to talent development initiatives, strategic infrastructure investments, and business-friendly climates. Because of the dynamic nature of the global EMS market, cooperation between governments, tech companies, and industry participants is crucial to managing opportunities and seizing new ones.

 

Cost Component in the Electronic Manufacturing Services Procurement Market

Understanding the cost components in the dynamic electronic manufacturing services sector is essential for businesses looking to maximize their operational efficiency. An important factor that could account for up to half of the total cost is the cost of raw materials and capital expenditure. Buying the structures, equipment, and technology required for industrial operations is a capital investment. Conversely, raw material costs are associated with purchasing the components and materials needed for electronic assembly.

 

Sourcing Models in the Electronic Manufacturing Services Procurement Market

Sourcing strategies significantly impact how effective and sustainable electronic manufacturing services are. Vertical integration, in which companies manufacture their components, and horizontal integration, which involves contracting out component production to specialized vendors, are common sourcing strategies. EMS providers may use hybrid sourcing models incorporating vertical and horizontal integration elements to ensure a diverse supply chain while reducing costs.

 

Contract Period in the Electronic Manufacturing Services Procurement Market

The electronic manufacturing services market has varying contract lengths based on the type of engagement and the client’s unique needs. Contracts can be one-time agreements for one-off projects or multi-year alliances for particular goals. Short-term contracts are frequently utilized for one-time projects, or trial runs because of their flexibility and capacity to let clients assess EMS providers’ performance before committing to long-term partnerships. On the other hand, long-term contracts provide stability and continuity and let EMS providers match their resources and competencies to their customers’ strategic goals.

 

Engagement Strategies in the Electronic Manufacturing Services Procurement Market

To build and preserve strong customer relationships, providers of electronic manufacturing services must employ astute engagement techniques. These tactics include programs designed to comprehend customer requirements, offer additional services, and promote cooperation throughout the engagement. Proactive communication, frequent performance reviews, and ongoing improvement projects are crucial engagement tactics.

 

Pricing Models in the Electronic Manufacturing Services Procurement Market

Pricing strategies are one of the biggest influences on the profitability and revenue streams of companies that offer services for electronic manufacturing. Due to its ability to define a specific fee for services rendered, fixed pricing offers clients financial management and cost predictability. By basing prices on variables like volume, complexity, and degree of customization needed, variable pricing, on the other hand, offers flexibility. Hybrid pricing models balance stability and flexibility by combining fixed and varying pricing aspects.

 

Negotiation Factors in the Electronic Manufacturing Services Procurement Market

Clients and suppliers of electronic manufacturing services frequently negotiate the terms and conditions of their contracts. Many factors affect discussions, including lead times, costs, quality requirements, and intellectual property rights. To guarantee benefits to both parties and enduring collaborations, EMS providers must consider market trends and customer expectations throughout contract negotiations. Important topics for discussion and debate include cost competitiveness, service excellence, supply chain resilience, and contractual flexibility.

 

Leading Players in the Electronic Manufacturing Services Procurement Market

Major participants in the electronic manufacturing services market are Jabil Circuit, Flex, Sanmina, Plexus, Benchmark Electronics, Zollner, Enics AG, Videoton, Scanfil, Neways Electronics, HonHai Precision (Foxconn), Pegatron, Wistron, New Kinpo Group, and BYD Electronics.

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