OEM Electronics Assembly Market Size, Share, and Industry Analysis, By Type (Hardware and Software); By Application (Automotive, Communications, Computers and Peripherals, Consumer, Industrial, Medical, and Aerospace); and Regional Forecast, 2024-2032

OEM (Original Equipment Manufacturer) electronics assembling refers to the process of manufacturing electronic products by an original equipment manufacturer or a subcontractor for another company, which then markets the product under its own brand name. In this process, the OEM supplies components or sub-assemblies to be integrated into the final product, which is assembled, tested, and packaged according to the specifications provided by the customer. It encompasses the integration of diverse electronic elements, including printed circuit boards (PCBs), microprocessors, resistors, capacitors, and sensors, culminating in a finalized product. OEM assembly is widely used in the production of consumer electronic products, manufacturing of industrial equipment, medical diagnostic equipment, electronic components and systems used in vehicles, electronic components and systems used in aircraft, satellites, and others.

The market is driven by globalization, rising levels of disposable income among consumers, and the growing preference for technologically sophisticated devices. Additionally, the COVID-19 pandemic has acted as a catalyst, intensifying the demand for electronic products. The surge can be attributed to the widespread adoption of remote work, online learning, and e-commerce practices. Moreover, the market growth is fuelled by the increased consumer demand for electronics, automotive technology, and smart devices, alongside ongoing technological innovations in the electronics sector. The surge in automation and Industry 4.0 is contributing to a rise in the demand for OEM electronics assembly services.

Generative AI Impact on the OEM Electronics Assembly Market

Generative AI, a subset of artificial intelligence, has a significant impact on the OEM electronics assembly market, primarily by enhancing design, manufacturing, and quality control processes. According to industry experts, generative AI has the potential to generate USD 2.6 trillion to USD 4.4 trillion in value across various industries. Generative AI algorithms can generate multiple design options based on specified parameters and constraints. This capability enables OEMs to optimize product designs for performance, cost, and manufacturability. Generative AI expedites the product development process by automating design iterations and optimizations. This reduces the time required to bring new electronic products to market.

For instance, Siemens' AI-powered design software accelerates the development of printed circuit boards (PCBs) by automating layout optimization and routing, shortening the product development cycle for OEMs. Similarly, Autodesk's generative design software allows engineers to input design goals and constraints.

• In October 2023, L&T Technology Services (LTTS) declared its utilization of Amazon Web Services (AWS) to facilitate global automotive manufacturers in expediting the shift toward Software Defined Vehicles (SDVs) through the application of generative artificial intelligence (AI).

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by Key Players


• Impact of Generative AI on OEM Electronics Assembly Market


• Consolidated SWOT Analysis of Key Players

Segmentation

Analysis by Application

Based on application, the market is subdivided into automotive, communications, computers and peripherals, consumer goods, industrial, medical devices, and aerospace.

The consumer electronics segment holds a dominant share in the global OEM electronics assembly market. Consumer electronics include smartphones, televisions, and gaming consoles. The market is witnessing substantial expansion driven by the rapid growth of the electronics sector and the widespread adoption of electronic devices across diverse industries. The growing demand for streamlined and dependable assembly procedures to fulfil the increasing need for cutting-edge electronic products is fueling market expansion.

However, the automotive industry is projected to experience the highest CAGR over the forecast period. In the automotive industry, OEM electronics assembly is utilized for engine control units, infotainment systems, and safety features.

• In January 2024, at CES 2024, Garmin introduced pioneering features to its Automotive OEM Unified Cabin solutions. Unified Cabin represents a scalable array of Garmin Automotive OEM technologies and design advancements seamlessly incorporated into Garmin's Domain Controller, featuring a System on Chip (SoC) and a lone instance of the Android Automotive OS.

Regional Analysis

The OEM electronics assembly market has been studied across five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

Asia Pacific holds the largest share of the market owing to many factors. APAC countries, particularly China, Japan, South Korea, and Taiwan, have established themselves as global manufacturing hubs for electronics. These countries benefit from well-developed infrastructure, skilled labour force, and favourable government policies, making them attractive locations for OEM electronics assembly.

The Europe market is estimated to grow at the highest CAGR over the forecast period. Europe has a robust industrial base with a significant presence in sectors such as automotive, aerospace, and medical devices. The demand for OEM electronics assembly in these industries is high, which is a key factor driving regional growth.

Distribution of the OEM Electronics Assembly Market, By Region

• North America – 28%


• Europe – 19%


• Asia Pacific – 34%


• Middle East and Africa – 8%


• South America – 11%

Key Players Covered

The report provides the profiles of key players such as Abbott, ABB, Apple, BMW, Canon, Eaton, Fujitsu, Emerson, GE, Hitachi, Honeywell, IBM, Johnson & Johnson, Microsoft, Mitsubishi Electric, Medtronic, Oracle, Panasonic, Philips Electronics, Samsung, Schneider Electric, Siemens, Yamaha, and 3M.

Key Industry Developments

• February 2023: Gizmore collaborated with Optiemus Electronics to produce approximately one million smartwatches. Optiemus Electronics Limited (OEL) serves as an OEM brand, specializing in customized solutions for telecom, IT, hearables, wearables, and retail technologies, catering to numerous leading brands.


• September 2022: Cybord entered into an Original Equipment Manufacturer (OEM) collaboration with Siemens Digital Industries Software, through which the Cybord AI visual analytics solution was made available to clients of Siemens.