Electrical equipment, electronic products, and component manufacturing market to grow from US$ 1613.61 Bn in 2023 to US$ 2418.72 Bn by 2032, at CAGR of 4.6%.

The global electrical equipment, electronic products, and component manufacturing market was valued at $4.5 trillion in 2025 and is projected to grow to $7.5 trillion by 2033, exhibiting a CAGR of 5.2% during the forecast period. This growth is primarily driven by the increasing demand for electronic devices such as smartphones, laptops, and tablets, as well as the rising adoption of automation and digitalization across various industries. Additionally, the growing focus on renewable energy and electric vehicles is expected to further boost the demand for electrical equipment and components. Key trends in the market include the increasing popularity of miniaturization and portability of electronic devices, the growing adoption of wireless technologies such as Wi-Fi and Bluetooth, and the emergence of artificial intelligence (AI) and machine learning (ML) technologies. These trends are expected to create significant opportunities for growth in the electrical equipment, electronic products, and component manufacturing sector. Regionally, Asia Pacific is expected to remain the largest market for electrical equipment, electronic products, and components, followed by North America and Europe. The rapid growth of the electronics industry in Asia Pacific, particularly in China and India, is driving the demand for these products.

The global Electrical Equipment, Electronic Products, and Component Manufacturing market is experiencing robust growth, driven by increasing demand for electronics across various sectors, including consumer electronics, automotive, industrial automation, and healthcare. The market, estimated at $2 trillion in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) of 5% from 2025 to 2033, reaching approximately $2.8 trillion by 2033. Key drivers include technological advancements such as miniaturization, the Internet of Things (IoT), and the proliferation of smart devices. Furthermore, the rising adoption of renewable energy technologies and the increasing demand for electric vehicles are significantly boosting the demand for specialized electronic components and equipment. While supply chain disruptions and geopolitical uncertainties pose challenges, the long-term outlook remains positive, fueled by ongoing innovation and digital transformation across industries. The market is segmented by various product types, including semiconductors, electronic components, electrical equipment, and related manufacturing services. Key players like Samsung Electronics, Intel, Taiwan Semiconductor Manufacturing Company (TSMC), Micron Technology, and Qualcomm are actively investing in research and development to enhance product capabilities and expand their market share. Regional growth is expected to vary, with North America and Asia-Pacific regions anticipated to dominate the market due to the presence of major manufacturers and a high concentration of technology-intensive industries. However, developing economies in regions like Latin America and Africa are also presenting promising growth opportunities, albeit at a slower pace compared to the more mature markets. The competitive landscape is marked by both intense rivalry among established players and emerging innovative startups, which is fostering technological advancements and creating a dynamic market environment.

Electrical Equipment, Electronic Products, and Component Manufacturing Market Outlook 2032

The global electrical equipment, electronic products, and component manufacturing market size was USD 1172.8 Billion in 2023 and is projected to reach USD 2937.4 Billion by 2032, expanding at a CAGR of 10.70% during 2024–2032. The market growth is attributed to the increasing demand for energy-efficient electrical equipment across the globe.



Growing demand for energy-efficient electrical equipment is expected to boost the market during the assessment years. The escalating global concern for energy conservation has spurred the demand for energy-efficient electrical equipment. Manufacturers are compelled to develop products that consume less energy, thereby reducing carbon emissions and contributing to environmental sustainability.

Impact of Artificial Intelligence (AI) in Electrical Equipment, Electronic Products and Component Manufacturing Market

Artificial Intelligence (AI) has significantly influenced the electrical equipment, electronic products, and component manufacturing market. It has transformed the way these industries operate by introducing automation, precision, and efficiency.



AI has facilitated the development of smart electrical equipment and electronic components that are capable of self-diagnosis and predictive maintenance, thereby reducing operational costs and enhancing product lifespan.



AI-powered robotics has revolutionized the manufacturing process by ensuring accuracy, speed, and safety, leading to increased productivity and reduced human error. AI plays a pivotal role in supply chain management by providing real-time tracking, demand forecasting, and inventory management, optimizing the supply chain and reducing wastage.



AI-driven data analytics provide

Global Electrical Equipment Electronic Product And Component Manufacturing market size 2025 was XX Million. Electrical Equipment Electronic Product And Component Manufacturing Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

Graph and download economic data for Gross Domestic Product: Electrical Equipment, Appliance, and Component Manufacturing (335) in the Southeast BEA Region (SESTELCEQAPMANNGSP) from 1997 to 2023 about Southeast BEA Region, electronic components, appliances, electronics, GSP, equipment, durable goods, private industries, goods, private, manufacturing, industry, GDP, and USA.

Electrical Equipment Manufacturing Market Outlook

The global electrical equipment manufacturing market size is projected to grow significantly, with an estimated market size of USD 1.5 trillion in 2023, reaching USD 2.3 trillion by 2032, at a CAGR of 4.8%. This growth can be attributed to the increasing demand for energy-efficient and sustainable solutions, advancements in technology, and rising investments in infrastructure development across various regions.

Several factors are driving the growth of the electrical equipment manufacturing market. One significant factor is the ongoing urbanization and industrialization in emerging economies. As more regions develop, the demand for electrical infrastructure and products increases to support industrial activities and urban living. Governments around the world are investing heavily in improving their power generation, transmission, and distribution infrastructure, which is further propelling the market forward. Additionally, the growing focus on renewable energy sources like wind and solar power is boosting the demand for specialized electrical equipment to harness and distribute this energy efficiently.

Another critical growth factor for the market is the rapid technological advancements in the field of electrical equipment. Innovations such as smart grids, Internet of Things (IoT) integration, and automation are revolutionizing the way electrical systems are managed and operated. These advancements not only increase efficiency but also reduce operational costs, making them attractive to both commercial and residential users. Furthermore, the increasing adoption of electric vehicles (EVs) is creating a substantial demand for EV charging infrastructure, which is expected to be a major driver for the electrical equipment market in the coming years.

The emphasis on energy efficiency and sustainability is also playing a crucial role in market growth. With the growing awareness of the environmental impact of traditional energy sources, there is a significant push towards adopting energy-efficient appliances and systems. Governments and regulatory bodies are implementing stringent energy efficiency standards and offering incentives for using green technologies. This trend is encouraging manufacturers to develop innovative solutions that comply with these standards, thereby driving the market's growth.

From a regional perspective, the Asia Pacific region is expected to dominate the electrical equipment manufacturing market during the forecast period. The rapid urbanization and industrial growth in countries like China and India are major contributors to this dominance. North America and Europe are also expected to witness steady growth, driven by technological advancements and the emphasis on renewable energy sources. Additionally, regions like Latin America and the Middle East & Africa are anticipated to experience growth due to increasing investments in infrastructure and energy projects.

Product Type Analysis

The electrical equipment manufacturing market can be segmented by product type into power generation equipment, transmission & distribution equipment, electrical components, and others. Power generation equipment plays a crucial role as it encompasses machinery and components used to produce electricity. This segment includes generators, turbines, and other equipment essential for converting various energy sources into electrical power. The growing focus on renewable energy sources like wind and solar power is expected to drive demand for power generation equipment, as these technologies require specialized machinery for efficient energy conversion.

Transmission & distribution (T&D) equipment is another vital segment in the electrical equipment manufacturing market. This segment includes transformers, switchgear, and other equipment used to transmit and distribute electrical power from generation sites to end-users. The increasing investments in upgrading and expanding T&D infrastructure, particularly in developing regions, are significant drivers for this segment's growth. Moreover, the implementation of smart grid technologies is expected to bolster the demand for advanced T&D equipment, facilitating more efficient and reliable power distribution.

The electrical components segment includes a wide range of products such as circuit breakers, switches, relays, and other essential components used in electrical systems. The demand for electrical components is driven by various factors, including the expansion of residential, commercial, and in

Electronic Contract Manufacturing Market Outlook

The global market size for Electronic Contract Manufacturing (ECM) was valued at approximately $500 billion in 2023 and is poised to reach around $800 billion by 2032, growing at a compound annual growth rate (CAGR) of about 6%. This remarkable growth trajectory is driven by the increasing demand for electronics across various sectors, including consumer electronics, automotive, and healthcare. The ECM industry has become an integral part of the global electronics supply chain, primarily because it offers cost-effective solutions for companies looking to outsource parts of their manufacturing process. As companies continue to focus on their core competencies and reduce production costs, the role of ECM providers is expected to become even more significant.

One of the primary growth factors of the electronic contract manufacturing market is the rapid advancement in technology, which has increased the complexity and functionality of electronic products. With innovations occurring at a breakneck pace, companies often find it beneficial to leverage the expertise of ECM providers to stay competitive. These providers not only offer manufacturing capabilities but also bring value-added services like design and engineering, which are crucial in the product development cycle. Furthermore, the trend of miniaturization in electronics, coupled with the rising demand for smart devices, is compelling OEMs to rely more heavily on ECMs to manage the intricacies involved in modern electronic manufacturing. This trend is increasingly observed in sectors such as consumer electronics and healthcare, where the push for smaller, more efficient, and multifunctional devices is strongest.

Another significant factor contributing to market growth is the globalization of supply chains, which has encouraged many companies to outsource manufacturing to ECMs situated in regions with cost advantages, such as Asia Pacific. This outsourcing helps businesses to not only reduce their production costs but also gain access to the latest manufacturing technologies without significant capital investment. Additionally, ECMs provide flexibility and scalability, which is particularly important for companies that need to rapidly respond to changes in market demand. This flexibility allows companies to easily ramp up or down their production volumes without the burden of maintaining large, fixed manufacturing infrastructures.

The shift towards more environmentally sustainable manufacturing practices is also playing a crucial role in the ECM market's evolution. As environmental regulations become stricter globally, many companies are turning to ECM providers who are equipped with the latest eco-friendly technologies and processes. These providers invest in green manufacturing techniques and materials that help their clients meet regulatory requirements while also appealing to environmentally conscious consumers. Moreover, ECMs often have more resources and expertise to implement sustainability measures than individual companies, making them appealing partners for businesses aiming to reduce their environmental footprint.

In the realm of Electrical Equipment, Electronic Products And Component Manufacturing, the role of ECMs is increasingly pivotal. This sector encompasses a wide array of products, from basic electronic components to sophisticated electronic systems, all of which require precise and efficient manufacturing processes. ECMs are instrumental in this space, providing the necessary infrastructure and expertise to produce high-quality components that meet stringent industry standards. As the demand for electronic products continues to surge, driven by technological advancements and consumer expectations, ECMs are positioned to play a crucial role in supporting manufacturers by offering scalable and flexible production solutions. This collaboration not only enhances the efficiency of the manufacturing process but also ensures that companies can innovate and adapt to the rapidly changing technological landscape.

Regionally, the Asia Pacific dominates the electronic contract manufacturing market, accounting for the largest share due to the presence of numerous ECM companies in countries like China, Taiwan, and South Korea. These countries not only provide cost-effective labor but also have established electronics industries with advanced manufacturing capabilities. North America and Europe also hold significant market shares, driven by technological advancements

Graph and download economic data for Real Gross Domestic Product: Electrical Equipment, Appliance, and Component Manufacturing (335) in the United States (USELCEQAPMANRGSP) from 1997 to 2023 about electronic components, appliances, electronics, GSP, equipment, durable goods, private industries, goods, private, manufacturing, real, industry, GDP, and USA.

Summary
Original Equipment Manufacturers (OEMs) are increasingly moving product design and development processes to EMS partners. Product design is being outsourced to reduce overall costs and shift from fixed costs to variable costs. EMS companies are offering more design services for sub-assemblies and finished products. OEMS are collaborating with EMS partners and moving into new models such as joint design manufacturing (JDM) and outsourced design manufacturing (ODM). JDM model is further divided into high touch JDM and low touch JDM. High touch JDM is limited to DFx and valor analysis, whereas low touch JDM include board design and development. ODM model focuses on qualification and system integration testing, thus indicating a shift in electronic equipment manufacturing process.
The electrical and electronics manufacturing market is segmented into Electrical Equipment, Electronic Products, and Navigational, Measuring, Electro Medical And Control Instruments Manufacturing. Electrical Equipment Manufacturing segment includes electric switchboards, electrical motors, lighting fixtures, air conditioning systems, house hold appliances, transformers, wiring devices manufacturing. Electronic Products Manufacturing segment includes audio and video equipment, semiconductors, instruments used in electricity and signal testing, measuring devices and analytical laboratory instruments manufacturing.Navigational, Measuring, Electro Medical And Control Instruments Manufacturing segment includes carbon and graphite product, general electrical equipment and component, search, detection, and navigation instruments, automatic environmental control, Market

According to Cognitive Market Research, the global Electrical And Electronics market size will be USD 3862415.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 8.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 1544966.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 1158724.56 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 888355.50 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 193120.76 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 77248.30 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031.
The B2B segment is the dominant end-use category in the electrical and electronics market. This is driven by the high demand for electronic components, systems, and equipment used in industrial, commercial, and governmental applications

Market Dynamics of Electrical And Electronics Market

Key Drivers for Electrical And Electronics Market

Rising Demand for Smart Devices and Consumer Electronics to Boost Market Growth

The increasing adoption of smart devices, including smartphones, wearables, and home automation products, is a key driver for the electrical and electronics market. Consumers are increasingly investing in advanced technology for enhanced connectivity, convenience, and energy efficiency. With the proliferation of internet-enabled devices, companies in the market are continually innovating to meet the demand for faster, more efficient, and smarter consumer electronics. This growing demand stimulates the production and development of new electrical components, thereby driving market growth. For instance, In May 2022, BASF SE launched Ultradur B4335G3 HR HSP to their existing polybutylene terephthalate (PBT) portfolio. The company manufacturers PBT for industries such as electrical & electronics and automotive

Advancements in Electric Vehicles (EVs) and Renewable Energy to Drive Market Growth

The global push for sustainability and environmental consciousness is driving the adoption of electric vehicles (EVs) and renewable energy sources, both of which require advanced electrical and electronic components. As more consumers and industries transition to electric vehicles, the demand for high-performance batteries, power electronics, and charging infrastructure is surging. Furthermore, renewable energy systems like solar and wind rely heavily on electronics for efficient power generation and distribution. This shift to green technologies presents substantial opportunities for manufacturers in the electrical and electronics market.

Restraint Factor for the Electrical And Electronics Market

High Production Costs and Semiconductor Shortages, will Limit Market Growth

One of the primary challenges faced by the electrical and electronics market is the rising cost of production, particularly due to semiconductor shortages. Semiconductor chips are critical to the functioning of many electronic devices, and supply chain disruptions—exacerbated by global events such as the COVID-19 pandemic—have resulted in an imbalance between supply and demand. This shortage has led to increased production costs and delays in manufacturing, affecting the overall market performance. Manufacturers must address these challenges by optimizing production and supply chain management to maintain competitiveness.

Impact of Covid-19 on the Electrical And Electronics Market

Covid-19 pandemic significantly impacted the Electrical and Electronics Market, leading to disruptions in manufacturing, supply chains, and demand patterns. Lockdowns and restrictions on movement caused delays in production and shipments, while semiconductor shortages became more pronounced due to factory closures and reduced production capacity. Additionally, the global economic slowdown led to a temporary decline in consumer spending, affecting th...

Graph and download economic data for Real Gross Domestic Product: Electrical Equipment, Appliance, and Component Manufacturing (335) in Montana (MTELCEQAPMANRGSP) from 1997 to 2023 about electronic components, appliances, MT, electronics, GSP, equipment, durable goods, private industries, goods, private, manufacturing, real, industry, GDP, and USA.

The Electronic Part and Equipment Wholesaling industry primarily deals with new and used electronic components, navigational and communication equipment and related supplies. Industry revenue is expected to rise at a CAGR of 0.2% to $17.9 billion through the end of 2024. This includes 1.3% growth during the current year as downstream demand normalizes. Growth has been predominantly driven by the rise in consumer spending and corporate profit, stimulating demand for electronic parts and equipment from consumers and businesses. Despite the global economy being disrupted by the pandemic, electronic part and equipment wholesalers have benefited as manufacturers and dealers replenished diminished inventories and stockpiled new goods to hedge against future supply chain shortages. The recent AI hype cycle has also helped support demand for semiconductors supplied by some industry wholesalers. The declining price of electronic components has played a significant role in generating industry demand. Component costs have steadily decreased as technology advanced, creating more powerful computer chips. This trend has made consumer electronics more affordable and allowed electronic components to be integrated into many products. Although this development has expanded the industry's customer base and boosted demand, it also forced operators to pass lower costs on to customers, leading to reduced profit growth over the past five years. Industry revenue is anticipated to increase at a CAGR of 2.0% to $19.8 billion through the end of 2029 as the global economy expands and investment in Canadian manufacturing capacity grows. As new technologies emerge, consumers and businesses will likely invest more in industry products. However, the industry will continue to face challenges from declining electronic parts and communications equipment prices, which could simultaneously boost demand and undermine the average profit margin. Ongoing disintermediation will require industry firms to adapt to changing market conditions.

Graph and download economic data for Real Gross Domestic Product: Electrical Equipment, Appliance, and Component Manufacturing (335) in the District of Columbia (DCELCEQAPMANRGSP) from 1997 to 2023 about electronic components, DC, appliances, electronics, GSP, equipment, durable goods, private industries, goods, private, manufacturing, real, industry, GDP, and USA.

According to Cognitive Market Research, the global Electrical Equipment market size is USD 1600152.5 million in 2024 and will expand at a compound annual growth rate (CAGR) of 7.00% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 640061.00 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 480045.75 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 368035.08 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.0% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 80007.63 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.
Middle East and Africa held the market ofaround 2% of the global revenue with a market size of USD 32003.05 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031.
The distribution boards held the highest Electrical Equipment market revenue share in 2024.

Key Drivers of Electrical Equipment Market

Technological Advancements to Increase the Demand Globally:

In the electrical equipment market, technological advancements serve as a primary driver of market dynamics. Innovations in electrical engineering, materials science, and automation continually revolutionize the design, functionality, and efficiency of electrical equipment. For instance, advancements in semiconductor technology enable the development of more efficient and compact electronic components, leading to the miniaturization of devices and improved energy efficiency. Additionally, the integration of smart technologies and IoT (Internet of Things) capabilities into electrical equipment enhances connectivity, automation, and data analytics, driving increased adoption across various industries These technological advancements not only improve the performance and reliability of electrical equipment but also enable new functionalities and applications, such as remote monitoring, predictive maintenance, and energy management systems, thereby shaping the market landscape and driving growth.

Sustainability Initiatives to Propel Market Growth:

Another key driver influencing the electrical equipment market is the growing emphasis on sustainability and environmental responsibility. As concerns about climate change and resource depletion escalate, there is a heightened demand for eco-friendly and energy-efficient electrical equipment. Manufacturers are increasingly focused on developing products with lower carbon footprints, reduced energy consumption, and recyclable materials to meet regulatory requirements and consumer preferences. Additionally, initiatives promoting renewable energy sources, such as solar and wind power, drive demand for electrical equipment used in clean energy generation and distribution systems. Moreover, sustainability certifications and green building standards incentivize the adoption of energy-efficient electrical equipment in commercial and residential construction projects. As a result, sustainability initiatives play a significant role in shaping market trends, driving innovation, and influencing purchasing decisions within the electrical equipment industry.

Restraint Factors of Electrical Equipment Market

Regulatory Compliance to Limit the Sales:

One of the significant restraints in the electrical equipment market is the challenge of regulatory compliance. Manufacturers must adhere to stringent regulations and standards set by government agencies and industry bodies to ensure the safety, quality, and performance of electrical equipment. Compliance with standards such as UL (Underwriters Laboratories), IEC (International Electro technical Commission), and NEC (National Electrical Code) requires extensive testing, certification, and documentation, which can significantly increase production costs and time-to-market. Moreover, evolving regulations and frequent updates to safety standards necessitate ongoing investments in research and development to keep pace with changing requirements. Non-compliance with regulatory mandates can result in fines, product recalls, and damage to brand reputation, and legal liabilities, posing significant challenges for manu...

Electronics Materials Market Outlook

The global electronics materials market size was valued at approximately USD 85 billion in 2023 and is projected to reach around USD 135 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.1% during the forecast period. This robust growth is primarily driven by the surging demand for advanced electronics in various industries, including consumer electronics, automotive, and healthcare, among others. The increasing use of semiconductors, innovations in material science, and the advent of next-generation electronic devices are key contributors to the expansion of this market.

One of the primary growth factors for the electronics materials market is the rapid advancement in semiconductor technology. As the foundation of modern electronic devices, semiconductors are in high demand for a range of applications, from smartphones to electric vehicles. The continuous scaling down of semiconductor nodes and the emergence of new materials, such as gallium nitride (GaN) and silicon carbide (SiC), are driving the need for specialized electronic materials. Moreover, the burgeoning demand for high-performance computing and data centers is further propelling the growth of semiconductor materials.

Another significant factor bolstering the electronics materials market is the proliferation of the Internet of Things (IoT). IoT devices, which are expected to exceed 75 billion units by 2025, require a diverse array of specialized materials that offer superior electrical properties, durability, and cost-effectiveness. These materials are essential for the development of sensors, actuators, and communication modules that enable smart connectivity in homes, industries, and cities. The increasing adoption of IoT across various sectors, including healthcare, manufacturing, and transportation, is creating substantial opportunities for electronics materials manufacturers.

Furthermore, the growing emphasis on sustainable and energy-efficient technologies is driving the demand for advanced electronic materials. With global initiatives aimed at reducing carbon footprints and enhancing energy efficiency, materials that facilitate the development of renewable energy solutions and low-power electronics are gaining traction. For instance, the development of organic photovoltaic materials and advanced battery technologies is pivotal in addressing the energy requirements of modern electronic devices while minimizing environmental impact. This trend is expected to positively influence the electronics materials market over the coming years.

The role of Electronic Chemicals and Materials is becoming increasingly significant in the electronics materials market. These chemicals and materials are essential for the fabrication and processing of electronic components, including semiconductors, printed circuit boards, and displays. As the demand for high-performance and miniaturized electronic devices grows, the need for advanced electronic chemicals and materials is also rising. These materials enable the development of components with superior electrical properties, thermal stability, and environmental resistance. The continuous innovation in electronic chemicals and materials is crucial for supporting the advancements in semiconductor technology and the proliferation of next-generation electronic devices.

The regional outlook for the electronics materials market indicates that Asia Pacific holds the largest share, driven by the presence of major electronics manufacturing hubs in countries like China, Japan, South Korea, and Taiwan. North America and Europe are also significant markets due to their strong technological infrastructure and high investment in research and development. Emerging economies in Latin America and the Middle East & Africa are witnessing growing demand for electronic materials, supported by increasing industrialization and digitalization efforts. The regional dynamics are expected to evolve, with Asia Pacific retaining its dominance due to continuous advancements in technology and manufacturing capacities.

Material Type Analysis

Semiconductor materials constitute a major segment of the electronics materials market, reflecting their critical role in the electronics industry. Silicon, the most widely used semiconductor material, is essential for the production of integrated circuits and various electronic components. The continuous push towards miniaturization and enhanced performance of ele

Electronic components are used in a wide range of applications, from computers and mobile phones to TVs and cars, while electronic boards are the fundamental inputs for nearly all electronic products. Manufacturers in this industry have contended with numerous economic headwinds in recent years. Most notably, the COVID-19 outbreak and subsequent supply chain disruptions drastically ramped up cost pressures. Fierce overseas competition is also a bone of contention, with low-cost production countries like China and Taiwan eroding demand. Electronic component and board manufacturing revenue is expected to fall at a compound annual rate of 5.5% to €92.2 billion over the five years through 2024, including an estimated decline of 3.7% in 2024. Electronic component and board manufacturers were clobbered by the COVID-19 outbreak, which drastically reduced global economic activity, hitting export sales and resulting in revenue plummeting in 2020. Despite a solid recovery in 2021 due to the gradual reopening of the economy and growing digitisation, subdued economic growth and a tightening cost of living weighed on demand in the two years through 2023. This resulted in many people reining in their spending on electronic devices, hurting revenue growth. Manufacturers also contended with severe supply chain disruptions. Given many players carry out fabless manufacturing, they rely on manufacturers like Taiwan and China, which struggled with worker shortages. This lifted costs for UK manufacturers and hit profitability. However, manufacturers are learning to adapt, onshoring much of their operations, alleviating cost pressures somewhat. Electronic component and board manufacturing revenue is expected to grow at a compound annual rate of 2.2% to €103.1 billion over the five years through 2029. Overseas competition will continue to intensify as components from China and Taiwan become more advanced, hurting revenue growth. However, regulatory changes like the European Chips Act are set to make European manufacturers more competitive in the coming years. The excitement around AI will also support demand, with money being poured into research and development focusing on integrating AI with devices.

Sheet Metal for Electronics Market Outlook

The global sheet metal for electronics market size was valued at USD 5.2 billion in 2023 and is projected to reach USD 8.7 billion by 2032, growing at a compound annual growth rate (CAGR) of 5.7% during the forecast period. The growth of the market can be attributed to the increasing demand for electronic devices and the rising adoption of advanced technologies in various end-user industries such as consumer electronics, telecommunications, and automotive.

The primary growth factor driving the sheet metal for electronics market is the rapid expansion of the consumer electronics industry. With the advent of new technologies and the increasing popularity of smartphones, tablets, and wearable devices, there is a significant demand for high-quality sheet metal components to ensure the durability and reliability of these devices. Additionally, the trend towards miniaturization in electronic devices necessitates the use of precisely fabricated sheet metal parts, further propelling market growth. Another contributing factor is the growing adoption of IoT devices, which require robust and intricately designed enclosures and chassis.

Moreover, the automotive industry is increasingly integrating advanced electronic systems in vehicles, such as infotainment systems, advanced driver-assistance systems (ADAS), and electric vehicle components. This integration demands high-quality sheet metal parts to protect sensitive electronic components from external factors such as vibration, heat, and moisture. The industrial sector also plays a crucial role in driving market growth, as industrial automation and the deployment of smart manufacturing systems heavily rely on electronic control units that require sturdy and reliable sheet metal enclosures.

The telecommunications industry is another significant driver of the sheet metal for electronics market. With the global rollout of 5G networks and the subsequent demand for new infrastructure, including base stations, antennas, and other communication equipment, there is a growing need for durable and high-performance sheet metal components. Additionally, the increasing penetration of the internet in rural and remote areas is further boosting the demand for telecommunications equipment, thereby positively impacting the market.

Regionally, Asia Pacific is expected to dominate the sheet metal for electronics market during the forecast period. The region's dominance can be attributed to the presence of major electronics manufacturing hubs such as China, Japan, and South Korea. The rapid industrialization and urbanization in these countries, coupled with the increasing demand for electronic devices and components, are driving market growth. Furthermore, supportive government initiatives and investments in the electronics industry are contributing to the market's expansion in the region.

Material Type Analysis

The sheet metal for electronics market is segmented by material type into aluminum, steel, copper, and others. Aluminum is one of the most widely used materials due to its excellent properties, such as high strength-to-weight ratio, corrosion resistance, and ease of fabrication. These characteristics make aluminum an ideal choice for various applications in the electronics industry, including enclosures, chassis, and brackets. Moreover, aluminum's lightweight nature contributes to the overall reduction in the weight of electronic devices, which is a key consideration in modern consumer electronics and automotive applications.

Steel is another essential material in the sheet metal for electronics market. Its high tensile strength and durability make it suitable for applications requiring robust and long-lasting components. Steel sheet metal is often used in the manufacturing of enclosures and chassis for industrial and telecommunications equipment, where durability and resistance to harsh environmental conditions are crucial. The availability of different types of steel, such as stainless steel and galvanized steel, provides manufacturers with a range of options to meet specific application requirements.

Copper is highly valued in the electronics industry for its excellent electrical conductivity and thermal properties. This makes copper sheet metal an ideal choice for applications that require efficient heat dissipation and electrical conductivity, such as heat sinks, power distribution units, and grounding components. Copper's ability to be easily formed into intricate shapes also makes it suitable for use in complex electronic assem

Graph and download economic data for Real Gross Domestic Product: Electrical Equipment, Appliance, and Component Manufacturing (335) in Ohio (OHELCEQAPMANRGSP) from 1997 to 2023 about electronic components, appliances, electronics, OH, GSP, equipment, durable goods, private industries, goods, private, manufacturing, real, industry, GDP, and USA.

PCB Assembly Services Market size was valued at USD 90 Billion in 2024 and is projected to reach USD 177.7 Billion by 2031, growing at a CAGR of 5% during the forecast period 2024-2031.

Global PCB Assembly Services Market Drivers

The market drivers for the PCB Assembly Services Market can be influenced by various factors. These may include:

The market for PCB (Printed Circuit Board) Assembly Services is influenced by a variety of drivers that fuel its growth and expansion. Some of the key market drivers include:

Rising Demand for Consumer Electronics: The increasing popularity and consumption of smartphones, tablets, wearables, smart home devices, and other consumer electronics require sophisticated PCBs, driving the demand for PCB assembly services.

Automotive Industry Growth: The automotive sector's shift towards electric vehicles (EVs) and advanced driver-assistance systems (ADAS) necessitates intricate PCB assemblies for onboard electronics, sensors, control units, and infotainment systems.

Advancements in Industrial Automation: The adoption of Industry 4.0 and the Internet of Things (IoT) in manufacturing industries leads to the increased use of connected devices and machinery, which in turn boosts the need for complex PCBs.

Telecommunications Boom: The proliferation of 5G technology and networking equipment requires higher-performance PCBs to handle the increased data speeds and connectivity demands. Telecom infrastructure upgrades also drive PCB assembly services.

Medical Device Innovation: The growing healthcare sector and the development of advanced medical devices such as diagnostic equipment, patient monitoring systems, and wearable health tech demand precise and reliable PCB assemblies.

Renewable Energy and Power Distribution: The increasing focus on renewable energy sources and smart grid technology relies on sophisticated PCBs for power management systems, inverters, and other related equipment.

Miniaturization and Component Complexity: The trend towards smaller, lighter, and more functional electronic devices requires innovative PCB designs and assembly techniques, which drive the demand for specialized assembly services. Outsourcing and Specialization: Many companies prefer to outsource PCB assembly to specialized firms to reduce costs, focus on core competencies, and benefit from the expertise and advanced equipment of contract manufacturers.

Technological Advancements: Innovations in PCB materials, design software, assembly techniques, and testing methods improve the efficiency and capabilities of PCB assembly services, thereby driving market growth.

Global Electronic Manufacturing Services (EMS): The expansion of the EMS industry, which provides comprehensive design, manufacturing, testing, and after-market services, correlates directly with the demand for PCB assembly.

Regulations and Standards: Stringent quality and safety standards for electronic products, particularly in sectors like automotive, medical, and aerospace, necessitate high-quality PCB assembly services.

Economic Growth and Urbanization: Growing economies and increasing urbanization contribute to the expansion of various industries, leading to higher consumption of electronic products and, consequently, greater demand for PCB assemblies.

Rising Innovation and R&D Activities: Continuous research and development in electronics and related fields foster the development of new products and technologies, driving the need for advanced PCB assembly services. The interaction of these drivers creates a dynamic and expanding market for PCB assembly services, catering to a wide range of industries and applications.