Original Design Manufacturers (ODM) Market

The global original design manufacturers (ODM) market size was USD XX Bn in 2022 and is likely to reach USD XX Bn by 2031, expanding at a CAGR of XX% during 2023–2031. The market is driven by the ­increasing demand for consumer electronic products and the continuous advancements happening in the field of electronics.

Increasing use of consumer electronics and the development of electric vehicles have fueled the requirement for original design manufacturers (ODMs), now more than ever. The ODMs demand has grown in the sectors of networking, servers & storage, and consumer electronics. In fact, innovative electronics development and purchases have sharply risen in recent years, with the advent of digital technology in various sectors. Furthermore, the rapid expansion of the semiconductor industry has created significant growth prospects in the original design manufacturers market.

• As per the recent survey, the total revenue generated in consumer electronics in the year 2023 is USD 133.80 billion (with respect to total population figures). In the year 2024, the consumer electronics market is anticipated to have a growth of 1.3%.

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Original Design Manufacturers (ODMs) are the type of companies that manufacture original design products on the basis of the specifications and requirements provided by a different company, often referred to as Original Equipment Manufacturers (OEM). The setup is such that ODMs are contracted by OEMs to produce goods on their behalf.

There are instances where the OEM and the ODM have a licensing agreement and the name of ODM also appears on the product. For instance, if the consumer buys a computer hard drive from a major company such as Samsung, the hardware inside can be manufactured by some other company such as Seagate.

The ODMs play a crucial role in the manufacturing ecosystem by offering design and manufacturing expertise. The ODMs enable OEMs to focus extensively on building their brand and handling sales and distribution. Companies striving to bring new and original products into the market often seek the aid of ODMs.

The market report finds that the COVID-19 pandemic had an adverse effect on the Original Design Manufacturers (ODMs) market. The lockdowns imposed by several governments all over the world to restrict and regulate human contact constrained the supply chain & logistical activities, which in turn severely affected the market growth. The relaxation in the regulation after the normalization of the COVID pandemic situation has created momentum in the market and is expected to have a positive effect in the coming years.

Original Design Manufacturers (ODM) Market Dynamics

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Major Drivers

Increasing demand for consumer electronic products is anticipated to propel the Original Design Manufacturers (ODMs) market. The rising dependence and usage of smartphones, tablets, high-performance laptops, wearable devices in sports, smart home appliances, and others have led to increased competition among manufacturers that are driven by functional design and enhanced performance. The customized designs and manufacturing services provided by the ODMs is expected to fuel the market in the years to come.

Rapid growth of the semiconductor industry is expected to boost the Original Design Manufacturers (ODMs) market. The advancements in the field of semiconductor technology are leading to the development of high-performance devices that are small and compact but highly efficient. The ODMs heavily depend on such advancements to design and develop innovative consumer electronics products. As a result, the growth of the semiconductor industry has a direct impact on the growth of the ODM market.

• As per the data released by the Semiconductor Industry Association in May 2023, the worldwide sales of semiconductors reached $119.5 billion in the first quarter of 2023. The sales of March 2023 exceeded the sales of February 2023 by 0.3%.

Existing Restraints

Maintenance and high cost of EMS (Electronic Manufacturing Services) equipment is expected to significantly restrain the ODM market. The maintenance of such equipment is expensive as well as time-consuming, which further adds to the overall production cost. This makes it hard to provide services at lower prices and can potentially hinder the market. In addition, any communication gap can lead to various problems such as internal miscommunication, lack of a proper transition plan, as well as unmanageable timelines, which can negatively impact the provider’s profit margins in certain business lines.

Emerging Opportunities

Innovation and research in the field of design and manufacture are anticipated to provide new growth opportunities for the ODM market. The innovative approach toward design techniques and further advancements in the field of manufacturing technology help the original design manufacturers offer tailored designs and manufacturing services. Furthermore, the implementation of designing techniques such as advanced prototyping and 3D printing helps the ODM function efficiently and develop innovative designs.

Scope of Original Design Manufacturers (ODM) Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Original Design Manufacturers (ODM) Market Segment Insights

Industry Segment Analysis

Based on the industry, the original design manufacturers (ODM) market is divided into computers & smartphones, industrial & household electronics, servers & storage, networking, and others. The computers & smartphones segment is expected to expand at a robust growth rate during the projection period owing to the increasing demand for innovation and technological advancements in this sector.

The original design manufacturers work closely with technology companies to design and develop advanced processors and components. This supports meeting the specific requirements of the consumers, allowing the brands to focus on marketing and distribution.

• As per a recent survey, smartphone users around the world reached around 6.5 billion subscriptions. This count is expected to increase to approximately 8 billion by the year 2028.

The industrial & household electronics segment is projected to register a considerable CAGR during the forecast period. Several Original Design Manufacturers specialize in designing and manufacturing electronic components including automation equipment, control systems, sensors, and other electronic devices.

The ODMs develop a wide range of consumer electronics as well, home appliances, televisions, audio systems, smart home devices, and other electronic products. They collaborate with several brands to create innovative and cost-effective electronic products. Factors such as technological advancements and increasing demand for these products among the consumer base are expected to drive the segment in the coming years.

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Regional Analysis

In terms of region, the global original design manufacturers market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the global market during the projection period due to the factors such as increasing population, rising per capita income, and the emergence of several developing economies.

This has led to an ever-increasing demand for consumer electronic products in this region. As a result, manufacturers are coming up with innovative electronic products and designs to fulfill the rising demand.

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Segments

The original design manufacturers market has been segmented on the basis of

Industry

• Computers & Smartphone
• Consumer Devices
• Servers and Storage
• Networking
• Others

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Wistron
• Hon Hai Precision Industry Co., Ltd.
• PEGATRON Corporation
• QUANTA SERVICES
• COMPAL Inc.
• Jabil Inc.
• FLEX LTD.
• Inventec
• New Kinpo Group
• Sanmina Corporation
• Qisda Corporation
• Celestica Inc.
• Plexus Worldwide, LLC
• Shenzhen Kaifa Technology Co., Ltd.

Competitive Landscape

Key players competing in the global original design manufacturers market are Wistron; Hon Hai Precision Industry Co., Ltd.; PEGATRON Corporation; QUANTA SERVICES; COMPAL Inc.; Jabil Inc.; FLEX LTD.; Inventec; New Kinpo Group; Sanmina Corporation; Qisda Corporation; Celestica Inc.; Plexus Worldwide, LLC; and Shenzhen Kaifa Technology Co., Ltd.

These ODMs adopt development strategies that include acquisitions, production expansion, mergers, product launches, collaboration, and partnerships to get an edge over competitors. The ability to overcome constant obstacles such as expensive prices of the designing process and search for innovative approaches is of vital importance. For instance,

• In July 2023, the prominent market player Flex collaborated with Enphase Energy, Inc., an energy technology company on a global scale, for the shipment of microinverters from South Carolina. This is intended to support the growth of microinverter-based battery and solar systems.

• On 22 August 2022, Wistron Corporation announced its plan for cutting-edge technology research in collaboration with Purdue University. This is aimed at developing applications related to open-edge computing and smart manufacturing while working on decentralized processing systems for extensive use in smart factory management.