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Electronics manufacturing segment is further segmented into PCB assembly, cable assembly, electromechanical assembly/box build, testing, and prototyping. The PCB assembly segment generated more than USD 300 billion in revenue in 2022 and is expected to depict appreciable growth through 2032 as demand for smart electronic devices rises. A wide range of consumer electronic devices rely heavily on well-designed and manufactured PCBs with a large number of connections. Furthermore, the introduction of 3D printing has helped lower the cost, time required, and resources contributing to PCB development.
Based on products, the electronic manufacturing services market from electronic manufacturing segment is expected to generate more than USD 600 billion in revenue by 2032, attributed to the rapid expansion of several end-use verticals, including automotive electronics, semiconductors, healthcare, etc. The growing propensity of the European industrial sector to modernize production facilities and the emergence of IIoT have created competitive and collaborative dynamics. These focus on the supply of digital infrastructures, services, and platforms for industrial users in Germany, the United Kingdom, and other major European countries, which are expected to stimulate segment growth through 2032.
In terms of application, the medical & healthcare segment of the electronic manufacturing services market accounted for more than 5% market share in 2022 and is foreseen to grow exponentially due to the proliferation of compact electrical components and wearables devices in the medical sector. Furthermore, the rising popularity of digitized medical records, leveraging data analytics, automating manual processes, and implementing ML/AI/IOMT to improve personalized patient care may increase the need for electronic contract manufacturing services. Moreover, government programs promoting the digitization and electrification of medical and surgical equipment, such as the Ayushman Bharat Digital Mission in India, are expected to support segment growth.
Asia Pacific electronic manufacturing services market held more than 40% share in 2022 and is poised to grow significantly from 2023 to 2032. Low labor costs, government subsidies, low taxes & customs duties, a favorable approach to regulatory compliances, and a steadily advancing business ecosystem are some key factors contributing to the booming electronics sector, which is expected to support regional market growth. For instance, in September 2022, China government decided to eliminate institutional barriers to develop high-quality electrical and electronics sectors, enhance the effectiveness of regulatory control of the government, release the vitality of market entities, and encourage technological innovations and industrial upgrading.