Market Trends of North America Electronic Manufacturing Services Industry
Consumer Electronics to Hold a Significant Market Share
- North America is among the major consumer electronic goods markets. The proliferation of devices such as personal computers, smartphones, and other electronic home appliances is significantly higher in countries such as the United States and Canada than in developing countries, which creates a favorable ecosystem for the growth of electronic manufacturing services in the country. OEMs take support from third-party contract manufacturers to ensure the availability of products as per market demand.
- According to the Consumer Technology Association, revenue from consumer electronics and technology sales in the United States is estimated to reach USD 512 billion in 2024, compared to USD 413 billion in 2018. The growing acceptance of digital technologies further supports this trend, driving the region's demand for consumer electronic products.
- Another major factor supporting the growth of the consumer electronics industry in the region is the growing availability of supporting infrastructure. For instance, the United States and Canada have witnessed a notable increase in the expansion of 5G and other connectivity networks such as IoT and LoRa, creating a favorable ecosystem for the market's growth.
- Considering a higher demand and future growth prospects, the number of vendors offering electronic manufacturing services in the region is also increasing. For instance, August Electronics and Avalon Technologies Ltd are some vendors providing electronic manufacturing services in Canada. Similarly, several vendors operating in the same domain are present in the United States, which supports the market's growth in the region.
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The United States To Witness Significant Growth
- The United States is expected to continue to be one of the leading markets for electronic manufacturing services in the North American region. The primary factor behind this is the presence of many OEMs engaged in the research and design of electronic devices and components.
- Also, a higher demand for electronic products in the country is another major factor influencing the demand for electronic manufacturing services. For instance, the United States is one of the major markets for industrial automation solutions. According to the International Federation of Robotics, the United States is among the primary adopters of industrial robots; each year, a significant number of industrial robots are installed in the country, which drives the demand for electronic devices/components.
- The United States is also among the major automotive markets. Millions of automobiles are produced annually in the country to fulfill local demand and export. The automotive manufacturing facilities of various car manufacturers in the country are highly automated to maintain accuracy and efficiency. This supports the demand for electronic products, creating a favorable ecosystem for the market's growth in the country.
- The adoption of advanced electronic devices is also increasing in the consumer segment. According to the Consumer Technology Association estimates, sales revenue from smart home devices in the United States was expected to reach USD 23.5 billion in 2023, up from USD 19.7 billion in 2018. Such trends will also promote the electronic manufacturing services industry in the country.
- Moreover, in the aftermath of the pandemic, the United States government has taken several initiatives to support the growth of the electronics and chip manufacturing industry, which was highly dependent on outsourcing. The launch of initiatives such as the Chips and Science Law and Bipartisan Infrastructure Law has several provisions to restore semiconductor chip production. Hence, such trends are also anticipated to support the country's market growth during the forecast period.
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