IDC Forecasts $231 Billion in Worldwide Contract Manufacturing Services Revenues in 2005

FRAMINGHAM, MA – JULY 9, 2001 – Contract manufacturing services will continue to grow for the foreseeable future. According to IDC, the worldwide market will more than double from $103 billion in 2000 to $231 billion in 2005. The increase in scope of these services is a major driver of the market’s growth. They debuted in the mid-1970s to handle the overflow of board assembly in the technology sector, but today have grown to include industrial design and enclosure services, global distribution and logistics services, and warranty and repair services, to name just a few.


"The contract manufacturing services industry has significantly evolved in the last decade. The industry has moved from being one-stop shops to providing services for almost every aspect of the manufacturing supply chain," said Kevin Kane, manager of IDC’s Contract Manufacturing Services research program. "Today, the ultimate goal of a contract manufacturing vendor is to become a critical partner of a branded system vendor, and providing additional services helps to further integrate the contract manufacturing vendor into a branded vendor’s business."

The most successful vendors in the market based on revenues are Solectron and Flextronics with 2000 market shares of 13.7% and 11.8%, respectively. No other vendor’s market share was over 10%.

The computer and telecommunications sectors of the IT industry represented the largest opportunity for contract manufacturing services in 2000. Together, they accounted for 46% of industry revenue. The IT marketplace has changed dramatically since, however, and IDC expects industry revenue will become more evenly distributed among all IT sectors by 2005.

North and South America together represent the largest geographical opportunity for contract manufacturing services. Through 2005, they will account for more than 55% of the market’s revenue. Europe and Asia represent the fastest-growing regions.

IDC recently published Worldwide Contract Manufacturing Services Industry Forecast and Analysis, 2000-2005 (IDC #B24869). This report forecasts revenue in the market through 2005 by seven IT segments and four geographic regions. It shows market shares of the top 10 vendors in the worldwide market and in each regional and IT segment. Major trends influencing the industry are analyzed. To purchase this report, contact Patrick Steeves at 1-800-343-4952, extension 6787 or at

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


# # #

All product and company names may be trademarks or registered trademarks of their respective holders.