Military Electronic Contract Manufacturing Market REPORT OVERVIEW
-
Request a Free Sample to learn more about this report
The global military electronic contract manufacturing market size was USD 8304.78 million in 2021 and market to touch USD 16612.3 million by 2031, at a CAGR of 7.18% from 2021 to 2031.
The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.
The outsourcing of electronic manufacturing services by original equipment manufacturers is referred to as military electronic contract manufacturing (OEMs). OEMs hand off all or a portion of their product designs and manufacturing procedures to third-party suppliers during this process. The Department of Defense increasingly needs an electronic contract manufacturer (ECM) to take on the challenge of creating military and aerospace PCBs as technology develops. It can be difficult to locate manufacturers of military electronics.
These specific ECM partners will have to demonstrate their knowledge, skills, and capacity to satisfy the certification requirements and standards of these specific electronics. Engineering and manufacturing outsourcing services include services for electronic manufacturing and design. Many businesses use these services to test, produce, and distribute goods as well as to provide return and repair services. Electronic contract manufacturing makes use of a variety of manufacturing skills and efficient elements, including product engineering, circuit board assembly and hardware assembly, component design, and process engineering, among others.
COVID-19 Impact: Industry Shutdown Causes Market Distortion
Manufacturers of semiconductors and electronics experienced issues as a result of the COVID-19 outbreak, including unstable markets, a decline in consumer confidence, and issues with import and export trade. The global supply chain includes the sourcing of raw materials, packaging, and distribution. Moving commodities, labels, and other items has become challenging as a result of lockdowns. The markets for semiconductors were affected financially in addition to having an immediate impact on markets, supply chains, supply and demand, and all of these other things. To address this urgent situation, manufacturers of semiconductors and electronics are focusing on securing their staff, operational procedures, and supply chains. The pandemic altered the dynamics of the industry, compelling organizations to redesign every aspect of their operational frameworks in order to preserve stability amidst the disturbances. Aside from that, the companies' business operations have been affected by the outbreak, which has an effect on the overall semiconductors and electronics industry. This has partially impacted the military electronic contract manufacturing industry.
LATEST TRENDS
"Military Sector to Boost the Market Growth"
Use of the product in the military sector is the major trend driving the market. Using the forecast period, it is anticipated that the military sector will expand significantly. The market is anticipated to expand as a result of rising demand from the defense industry for miniaturization and lightweight electronics. Additionally, it is anticipated that increased demand for cutting-edge warfare technologies will further propel the expansion of this market. The global electronic contract manufacturing market has seen an increase in the use of consumer electronics. This is a result of the rapidly increasing demand for consumer electronics and OEMs' search for trustworthy, high-quality contract manufacturers to which they can outsource their production. The military sector makes extensive use of PCB Assembly Manufacturers. They are the businesses responsible for making printed circuit boards. These boards are employed to connect and hold together various electronic components. The layout of the board is made, the copper traces are etched onto it, solder masks are added, and either gold or tin plating is applied to the board's holes during fabrication. Thus, during the forecast period, the aforementioned factors are anticipated to fuel market growth. The global market will benefit from these factors. Thus, a key trend that is opening up potential for the industry to grow is the growing use of military electronic contract manufacturing in military sector. These new developments are mostly to blame for the market's overall growth.
Military Electronic Contract Manufacturing Market SEGMENTATION
-
Request a Free Sample to learn more about this report
- By Types
Based on type, the market is classified into PCB Assembly Manufacturers, Design and Build Manufacturers & Others.
- By Application
Based on the market is categorized into Air Force, Army, Navy & Others.
DRIVING FACTORS
"High Demand of Product that Give the Market Extra Boost"
The high demand for products from various customers is the main factor advancing the market. The incorporation of contemporary skills, economies with varying levels of development, and a focus on competencies are some of the major growth drivers for the electronics contract manufacturing and design market. Contract businesses get a lot of business from different clients. By satisfying a sizable customer base’s demand, manufacturers can obtain a lot of raw materials at cheap prices. During the forecast period, the industrial sector is anticipated to have a significant impact on the expansion of the market for electronic contract manufacturing. The automotive, aerospace, and military industries' rising demand for high-tech electronics products is anticipated to fuel market expansion. Companies can also profit from the contract manufacturers' ability to develop electronic products, as opposed to the hiring organization. As a result, the growth, and the increasing demand of products will boost the market. It will contribute to the expansion of the semiconductor & electronics industry and it will improve the overall military electronic contract manufacturing market growth.
"Labor & Fixed Cost to Encourage Market Expansion"
Contract manufacturing, which lowers labor costs, is another factor boosting market growth. To produce all the components of the electronics, businesses in the electronics industry must control both labor and fixed costs. Electronic Manufacturing Services' (EMS) primary production facilities specialize in designing and putting together delicate electronic components. The rise of the outsourcing of production, the rise in demand for sophisticated and miniaturized devices, and the trend toward customized products are all major contributors to the expansion of the military electronic contract manufacturing sector. The costs of maintaining a fixed location and the need to hire new workers are significantly increased by taking into account a secondary location with entirely different needs. Over the course of the forecast period, the market is anticipated to grow as a result of all these advanced features. As a result, these factors are collectively promoting market expansion, increasing company revenues. As a result, above mentioned factors will help the market to boost.
RESTRAINING FACTORS
"Less Control Over Product to Impede Market Expansion"
Less oversight of contract manufacturing is the obstacle to market expansion (CM). Businesses that switch to CMs must relinquish control over the whole manufacturing process. Companies frequently run the risk of losing critical knowledge and skills regarding production techniques when giving this control to CMs. Companies are unable to manage the supply chain process because they have no control over manufacturing operations, which could cause significant revenue loss when demand is fluctuating. This factor is impeding market expansion. This may be a significant issue limiting market expansion. If this problem is fixed, the market will start to grow right away.
Military Electronic Contract Manufacturing Market REGIONAL INSIGHTS
-
Request a Free Sample to learn more about this report
"North America Dominating the Market Across the Globe"
The market for military electronic contract manufacturing is in North America has benefited from the region's expanding industrial development, and various driving factors which has increased the potential sectors as this region is the largest user of the product. The key factor driving the growth of the military electronic contract manufacturing market share is the growing demand of product in air force, army & navy sector is one of the major reasons to drive the market. Rapid urbanization developments will further boost the overall market.
KEY INDUSTRY PLAYERS
"Leading Manufacturers to Boost Product Demand"
Study includes information on the market players and where they stand within the sector. Data is being collected and made available through proper research, mergers, technical advancement, growing production facilities, and cooperation. The study on materials offers details on manufacturers, regions, types, applications, sales channels, distributors, traders, dealers, research findings, and more.
List of Market Players Profiled
- Jabil (U.S.)
- Benchmark Electronics (U.S.)
- Plexus (U.S.)
- Sanmina (U.S.)
- Ducommun (U.S.)
REPORT COVERAGE
The study goes into great detail about market segmentation by type and application. The study examines a broad range of participants, including existing and potential market leaders. A considerable market expansion is anticipated as a result of several important factors. In order to provide market insights, the research additionally analyses elements that are probably to boost military electronic contract manufacturing market share. The report makes forecasts for market expansion during the projected time period. The objective of the regional study is to explain why one region dominates the worldwide market. There are a lot of issues that have all been carefully considered that prevent the industry from growing. The research also contains a market strategic analysis. It includes thorough market information.
REPORT COVERAGE | DETAILS |
---|---|
Market Size Value In |
US$ 8304.78 Million in 2021 |
Market Size Value By |
US$ 16612.3 Million by 2031 |
Growth Rate |
CAGR of 7.18% from 2021 to 2031 |
Forecast Period |
2024-2031 |
Base Year |
2023 |
Historical Data Available |
Yes |
Segments Covered |
Type and Application |
Regional Scope |
Global |
Frequently Asked Questions
-
What value is the military electronic contract manufacturing market expected to touch by 2031?
Based on our research, the military electronic contract manufacturing market is projected to touch USD 16612.3 million by 2031.
-
What CAGR is the military electronic contract manufacturing market expected to exhibit by 2031?
The military electronic contract manufacturing market is expected to exhibit a CAGR of 7.18% by 2031.
-
Which are the driving factors of the military electronic contract manufacturing market?
High demand of product that gives the market extra boost & labor & fixed cost to encourage military electronic contract manufacturing market expansion.
-
What is the restraining factor of the military electronic contract manufacturing market?
Less control over product to impede military electronic contract manufacturing market expansion.