North America Electronics Manufacturing Services Market Size, Share, Trends, And Growth Forecasts, 2026-2031 Reshoring, AI Servers, Evs, And Turnkey Models Fuel 6.42% CAGR
Dublin, Oct. 19, 2026 (GLOBE NEWSWIRE) -- "North America Electronics Manufacturing Services - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The North America electronics manufacturing services market was valued at USD 197.22 billion in 2025 and is projected to increase from USD 207.98 billion in 2026 to USD 283.91 billion by 2031. The market is expected to record a CAGR of 6.42% during the 2026-2031 forecast period, supported by semiconductor reshoring, automotive electronics demand, AI-server production and increased outsourcing of complex manufacturing operations.
CHIPS and Science Act Incentives Accelerate Regional Manufacturing
Government incentives are strengthening the North American electronics supply chain and encouraging investment in domestic production. Awards totaling USD 36.4 billion across 40 fabrication and packaging projects by late 2025 generated additional demand for nearby electronics assembly capacity. Contract manufacturers are colocating surface-mount production lines near semiconductor fabrication facilities, enabling integrated wafer-to-board supply chains that reduce lead times and logistics exposure.
Jabil's USD 500 million North Carolina project, announced in mid-2025, reflects the growing alignment between advanced packaging, box-build capacity, AI infrastructure and high-performance computing demand. Reshoring Initiative data also showed that 287,299 U.S. manufacturing jobs were announced in 2023, with electrical equipment and electronics leading repatriation activity. Section 48D tax credits are expected to support continued capital investment through 2028, helping sustain above-trend growth in the North America electronics manufacturing services market.
EV and ADAS Adoption Drives Automotive Electronics Demand
Automotive electronics are forecast to deliver strong growth as electric vehicles and advanced driver-assistance systems require more sophisticated circuit boards, sensors and power-management components. Electric-vehicle powertrains use three to five times more circuit-board real estate than internal-combustion platforms. ADAS sensor-fusion modules also require rapid design iterations and flexible production volumes, increasing the value of manufacturing facilities located close to North American automotive customers.
Foxconn's EV.OS platform, introduced in June 2025, demonstrates the importance of regional engineering and co-development capabilities. Proposed U.S. requirements for automatic emergency braking on all new light vehicles by model year 2029 are expected to expand radar and vision hardware installations across mass-market vehicles. Collaboration between DENSO and ROHM on silicon-carbide inverter technology further highlights the increasing complexity of automotive electronics. Revenue from this end-user segment is projected to grow at a 7.54% CAGR through 2031.
Labor Constraints Could Limit Capacity Expansion
Skilled labor availability remains a significant challenge, particularly for Tier-2 and Tier-3 electronics manufacturing services providers. The average age of U.S. manufacturing workers reached 56.5 years in 2025, while retirements continue to outpace the arrival of trained employees. Soldering, inspection and process-engineering positions are especially difficult to fill.
Large manufacturers can operate IPC certification academies and offer competitive compensation, but smaller companies often struggle to recruit against automotive plants and other major employers. Apprenticeship programs in North Carolina, Texas and Arizona currently produce fewer than 500 graduates per state annually, creating potential delays for capacity expansions associated with CHIPS Act projects through 2028.
Key Market Growth Factors
- Rising demand for rapid NPI turn-around in regulated medical devices Expansion of AI-server and high-speed computing hardware production Increased outsourcing of system integration, testing and regulatory documentation Greater demand for resilient North American electronics supply chains Ongoing margin pressure from Asian high-volume contract manufacturers
Box-Build and Hybrid Manufacturing Models Gain Momentum
Electromechanical assembly and box build represent the fastest-growing service category, with revenue projected to rise at a 6.72% CAGR. Defense contractors and medical-device manufacturers increasingly outsource final integration, system-level testing, regulatory documentation and thermal-solution co-design. Printed-circuit-board assembly accounted for 42.76% of market value in 2025, although demand is shifting from commodity placement toward high-reliability Class 3 production.
AI-server growth is also increasing demand for enclosure, cold-plate and cable-assembly expertise. The North America electronics manufacturing services market for box-build work is forecast to approach USD 40 billion by 2031, representing approximately one-quarter of regional market value as turnkey programs replace board-level contracts.
Contract manufacturing held a 64.58% market share in 2025, supported by established relationships in industrial automation, telecommunications and automotive electronics. However, hybrid and turnkey models are projected to grow at a 6.81% CAGR as customers seek consolidated responsibility for procurement, design verification, compliance and production. These agreements are gaining traction in AI infrastructure, medical devices, automotive electronics and defense applications, where supply resilience and manufacturing flexibility increasingly outweigh marginal cost considerations.
Key Topics Covered:
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.2.1 Robust Reshoring Incentives from the CHIPS and Science Act
4.2.2 Accelerating Demand for Automotive Electronics in EV and ADAS Platforms
4.2.3 Growing Need for Rapid NPI Turn-Around in Regulated Medical Devices
4.2.4 Expansion of AI-Server and High-Speed Computing Hardware Production
4.2.5 Defense Mandatory ITAR Compliance Driving On-Shore Box-Build Contracts
4.2.6 Low-Earth-Orbit Satellite Constellation Builds Requiring Quick-Turn PCB Assembly
4.3 Market Restraints
4.3.1 Skilled Labor Shortages Across Tier-2/3 EMS Providers
4.3.2 Margin Pressure from Asian High-Volume Contract Manufacturers
4.3.3 Accelerating PFAS and RoHS Regulatory Compliance Costs
4.3.4 Wave of Baby-Boomer Engineering Retirements Eroding Institutional Know-How
4.4 Impact of Macroeconomic Factors on the Market
4.5 Industry Value Chain Analysis
4.6 Regulatory Landscape
4.7 Technological Outlook
4.8 Porter's Five Forces Analysis
4.8.1 Threat of New Entrants
4.8.2 Bargaining Power of Suppliers
4.8.3 Bargaining Power of Buyers
4.8.4 Threat of Substitutes
4.8.5 Intra-Industry Rivalry
5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
5.1 By Service Type
5.1.1 Electronics Manufacturing Services
5.1.1.1 PCB Assembly
5.1.1.2 Electromechanical Assembly/Box Build
5.1.1.3 Prototyping
5.1.1.4 Other Electronics Manufacturing Services
5.1.2 Engineering Services
5.1.3 Test and Development Implementation Services
5.1.4 Logistics Services
5.1.5 Other Service Types
5.2 By Business Model
5.2.1 Contract Manufacturing (CM)
5.2.2 Original Design Manufacturing (ODM)
5.2.3 Hybrid / Turnkey / Other Business Models
5.3 By Manufacturing Process
5.3.1 Surface Mount Technology (SMT)
5.3.2 Through-Hole Technology (THT)
5.3.3 Advanced Packaging / Hybrid Processes
5.4 By End-user
5.4.1 Mobile Devices (Smartphones and Tablets)
5.4.2 Consumer Electronics
5.4.3 Computer (PCs/Desktop/Laptops)
5.4.4 Industrial
5.4.5 Automotive
5.4.6 Communication
5.4.7 Lighting
5.4.8 Medical
5.4.9 Other End-users
5.5 By Geography
5.5.1 North America
5.5.1.1 United States
5.5.1.2 Canada
5.5.1.3 Mexico
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as Available, Strategic Information, Market Rank/Share for Key Companies, Products and Services, and Recent Developments)
6.4.1 Jabil Inc.
6.4.2 Flex Ltd.
6.4.3 Celestica Inc.
6.4.4 Sanmina Corporation
6.4.5 Plexus Corp.
6.4.6 Benchmark Electronics, Inc.
6.4.7 Kimball Electronics, Inc.
6.4.8 Creation Technologies LP
6.4.9 SigmaTron International, Inc.
6.4.10 Nortech Systems Incorporated
6.4.11 Hon Hai Precision Industry Co., Ltd.
6.4.12 Pegatron Corporation
6.4.13 Compal Electronics Inc.
6.4.14 Quanta Computer Inc.
6.4.15 Wistron Corporation
6.4.16 BYD Electronic (International) Company Limited
6.4.17 Luxshare Precision Industry Co., Ltd.
6.4.18 Zollner Elektronik AG
6.4.19 Asteelflash SAS
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White-Space and Unmet-Need Assessment
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