1. The global market is expected to reach US$980 billion in 2021
Electronic manufacturing outsourcing is covering more and more industries. With the development of the outsourcing business model of electronic manufacturing and the continuous improvement of the service capabilities of OEM service manufacturers, the global electronic manufacturing OEM industry has more and more service areas, and the total amount of outsourcing is increasing every year. At present, electronic manufacturing foundry services have covered many fields such as household appliances, network communications, consumer electronics, automotive electronics, medical equipment, and aerospace.
Major global electronic brands have begun to outsource their products. With the increasingly fierce competition in the electronics industry, brand owners have to sustainable development by outsourcing their electronics manufacturing business to further focus on their superior industries and enhance their competitiveness. The world’s large electronic brands have become the service targets of electronic contract manufacturing services companies.
In 2020, the total global electronics manufacturing outsourcing totaled US$647 billion. The industry is expected to maintain a relatively high expansion rate. By 2021, the industry’s operating income will reach US$872.3 billion.
2.The growth rate of domestic electronics manufacturing foundry service business leads the world.
Major global electronics manufacturing foundry service companies have all entered China. In recent years, mainland China’s electronics manufacturing industry has developed rapidly, especially for medical PCB assembly. With its significant advantages such as an investment opportunity, high-quality management, technical personnel, and cheap labor, it has become a key area for the migration of the global electronics manufacturing outsourcing business. For example, Foxconn, Flextronics, Jabil, and other leading electronic manufacturing foundry service companies have invested and set up factories in Mainland China.
China is becoming the main production base of global electronics manufacturing. With the entry of international companies and the rise of local companies, mainland China has become the most important area for the global electronics manufacturing outsourcing business. China’s electronics industry has a vast domestic market and a major global manufacturing country for electronic products. China is becoming one of the leading production bases for global electronics manufacturing, and this has promoted the rapid growth of China’s electronics manufacturing industry.
According to statistics from the Ministry of Industry and Information Technology, in 2020, the country’s electronic information industry sales revenue is 18.5 trillion CNY, a year-on-year increase of 13.5%.
The growth rate of the domestic electronics manufacturing foundry industry is higher than the global average. It is predicted that China’s share of the world’s electronic information industry market will increase from 18.83% in 2020 to 20.31% in 2021. China’s overall electronics manufacturing operating income will continue to grow, reaching 414 billion U.S. dollars by 2020, with a compound annual growth rate of 8.2%, higher than the world average.
The growth rate of the domestic electronics manufacturing foundry industry is higher than the global average. It is predicted that China’s share in the world’s electronic information industry market will increase from 18.83% in 2020 to 20.31% in 2021. China’s overall electronics manufacturing operating income will continue to grow, reaching 414 billion U.S. dollars by 2020, with a compound annual growth rate of 8.2%, higher than the world average.
3.The industry competition pattern is conducive to domestic secondand third-tier manufacturers
The domestic electronic manufacturing services industry has made significant progress in recent years, and this growth is mainly due to the transfer of global electronics manufacturing capacity to China. Although local enterprises are still in a weak position in the competition with foreign-funded enterprises, the vast domestic consumer market, growing technical and management personnel, and abundant low-cost labor will provide a suitable environment for the sustainable development of local enterprises.
In network communication terminal equipment and portable consumer electronic products, local companies are expected to achieve more remarkable development. According to the survey, the total revenue of the second and third-tier manufacturers in the global electronics manufacturing foundry service industry in 2020 has increased from US$19.1 billion in 2015 to approximately US$45 billion. A certain proportion of the market share is occupied by some local Chinese companies with scale advantages and comprehensive service capabilities. These local companies are expected to achieve rapid growth in the next few years and become major manufacturers in the domestic electronic manufacturing services industry.