NEVADA CITY, CA – The worldwide contract manufacturing services market was an estimated $436 billion in 2014, a flat year after two decades of mostly stellar growth. Assembly revenue alone was up $5.4 billion, however.

The market has seen a compound annual growth rate of 15.4% over the past 20 years, says New Venture Research.

The worldwide electronics assembly market, which includes OEM assembly, accounted for approximately $1.4 trillion in total revenue in 2014, and is expected to reach $1.9 trillion in annual assembly value by 2019.

Last year's assembly market was sustained by strong demand for smartphones. Orders for tablets were strong, while those for notebooks were weak yet positive, says NVR, and desktop computer orders were negative. Nearly all high-mix/high-complexity products experienced growth, yet defense and military declined as a result of budget constraints, says the firm.

Consumer electronics had the worst year of any end-market, falling $7.4 billion, mainly resulting from lower digital TV assembly demand.

Communications and computer products will continue to lead growth in the electronics industry, says NVR. Between 2014 and 2019, EMS firms and ODMs will experience the strongest growth from these market segments. EMS firms will find the strongest growth in tablets, e-readers, cellular handsets, monitors, video game consoles and set-top boxes. ODMs are projected to experience strong growth in tablets, e-readers, cellular handsets, monitors, and class-carrier equipment.

For 2014, Foxconn dominated the contract manufacturing industry, with 31.9% market share and revenue of $139 billion. Pegatron came in second, with 7% market share and $30.5 million in revenue. Number three was Flextronics, with 5.7% market share and nearly $25 million in revenue, and Wistron took the fourth spot, with 4.5% market share and $19.6 million in revenue. Jabil rounded out the top 5, with 3.7% of the market and roughly $16 million in revenue.

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