
Global Electronic Contract Manufacturing and Design Service Market Insights, Size, and Forecast By Product Type (Consumer Electronics, Industrial Electronics, Telecommunications Equipment, Automotive Electronics), By Contract Type (Engineering Design, Turnkey Manufacturing, Low-Volume High-Mix, High-Volume Production), By End Use Industry (Consumer Electronics, Healthcare, Automotive, Aerospace), By Service Type (Design Services, Manufacturing Services, Testing Services, Assembly Services), By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Key Companies, Competitive Analysis, Trends, and Projections for 2026-2035
Key Market Insights
Global Electronic Contract Manufacturing and Design Service Market is projected to grow from USD 785.4 Billion in 2025 to USD 1450.2 Billion by 2035, reflecting a compound annual growth rate of 7.8% from 2026 through 2035. This robust growth is driven by the increasing complexity of electronic products, the rapid pace of technological innovation, and the growing trend of original equipment manufacturers OEMs outsourcing non-core activities to focus on research and development and brand building. The market encompasses a wide range of services including product design, prototyping, manufacturing, assembly, testing, and after-market services for various electronic components and finished goods. Key market drivers include the accelerating adoption of IoT devices, artificial intelligence, and 5G technology across diverse industries. The imperative for faster time to market, cost optimization, and access to specialized expertise also propels OEMs towards ECM and design service providers. However, potential market restraints include geopolitical tensions impacting global supply chains, increasing raw material costs, and the ongoing challenge of talent shortages in specialized engineering fields. Furthermore, concerns regarding intellectual property protection and the need for robust cybersecurity measures pose significant considerations for market participants. The leading service segment is Assembly Services, underscoring the critical role these providers play in bringing complex electronic designs to fruition efficiently and at scale.
Global Electronic Contract Manufacturing and Design Service Market Value (USD Billion) Analysis, 2025-2035
2025 - 2035
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Several important trends are shaping the future of the ECM and design service market. The increasing demand for advanced manufacturing techniques such as additive manufacturing and smart factory automation is transforming production processes, leading to greater efficiency and customization capabilities. Furthermore, there's a growing emphasis on sustainability and circular economy principles, prompting ECM providers to adopt eco-friendly materials and energy-efficient manufacturing processes. The shift towards localized manufacturing due to supply chain disruptions and geopolitical factors presents both challenges and opportunities for regional players. Opportunities abound in emerging technologies such as autonomous vehicles, wearable electronics, and advanced medical devices, which require specialized manufacturing capabilities and design expertise. The market is also witnessing consolidation among key players, as larger firms acquire smaller, specialized companies to expand their service offerings and geographic reach. Strategic partnerships between ECM providers and technology developers are becoming more common to co-innovate and bring next-generation products to market faster.
Asia Pacific is the dominant region in the global electronic contract manufacturing and design service market, primarily due to the presence of a vast manufacturing ecosystem, lower labor costs, and a strong government focus on promoting electronics production. The region also benefits from a large pool of skilled labor and robust infrastructure supporting the electronics industry. Similarly, Asia Pacific is projected to be the fastest-growing region, fueled by rapid industrialization, increasing consumer disposable income, and the burgeoning electronics market within countries like China, India, and Southeast Asian nations. Key players like Flex, Celestica, Pegatron, Wistron, and Benchmark Electronics are strategically expanding their operations and service portfolios globally, focusing on advanced manufacturing capabilities, supply chain resilience, and digital transformation initiatives. Companies such as DB Schenker and Harman International are leveraging their logistics and technology expertise to offer integrated solutions, encompassing everything from design to distribution. The competitive landscape is characterized by continuous innovation and a strong emphasis on customer-centric solutions to meet the evolving demands of the global electronics industry.
Quick Stats
Market Size (2025):
USD 785.4 BillionProjected Market Size (2035):
USD 1450.2 BillionLeading Segment:
Assembly Services (42.5% Share)Dominant Region (2025):
Asia Pacific (54.2% Share)CAGR (2026-2035):
7.8%
What is Electronic Contract Manufacturing and Design Service?
Electronic Contract Manufacturing and Design Service is the outsourced provision of specialized expertise for developing and producing electronic products. This encompasses everything from initial concept and detailed circuit design to printed circuit board layout, prototyping, testing, mass production, assembly, and final product delivery. Companies leverage these services to gain access to advanced facilities, skilled engineers, and efficient production lines without significant capital investment. It enables rapid product development, reduces time to market, and allows businesses to focus on core competencies like research and marketing, leveraging external manufacturing and design prowess for diverse applications across industries.
What are the Trends in Global Electronic Contract Manufacturing and Design Service Market
AI Driven Smart Manufacturing Adoption
Sustainable Circular Economy Integration
Supply Chain Resilience and Regionalization
IoT Edge Computing Device Proliferation
AI Driven Smart Manufacturing Adoption
AI driven smart manufacturing adoption transforms global electronic contract manufacturing. This trend integrates artificial intelligence with production processes, enhancing automation, predictive maintenance, and quality control. Factories leverage AI for optimizing supply chains, real time data analysis, and robotics, significantly improving efficiency and reducing waste. This boosts production agility and product innovation, driving competitive advantage for design service providers.
Sustainable Circular Economy Integration
Global electronics contract manufacturers are integrating sustainable circular economy principles. This involves designing products for longevity, recyclability, and reduced resource consumption. Companies are adopting closed loop systems for materials, minimizing waste, and extending product lifecycles through repair and refurbishment. This trend drives innovation in ecofriendly materials and energy efficient production, enhancing environmental responsibility and resource efficiency across the supply chain.
Supply Chain Resilience and Regionalization
Companies are strengthening supply chains by diversifying beyond single sources. This involves bringing manufacturing closer to home markets and creating regional production hubs. The goal is to reduce vulnerability to geopolitical events and natural disasters, ensuring more stable and reliable component flow for electronics production.
IoT Edge Computing Device Proliferation
The increasing demand for faster data processing and reduced latency drives IoT edge device growth. More intelligent, connected devices are performing computations locally, minimizing cloud dependency. This proliferation of smart, distributed systems fosters a significant trend in electronic contract manufacturing, as companies require specialized design and production for robust, miniaturized edge hardware solutions across various industries.
What are the Key Drivers Shaping the Global Electronic Contract Manufacturing and Design Service Market
Rising Demand for Outsourced Manufacturing Across End-Use Industries
Accelerated Digital Transformation and IoT Device Proliferation
Increased Focus on Supply Chain Resilience and Regionalization
Technological Advancements in Miniaturization and Complex Design
Rising Demand for Outsourced Manufacturing Across End-Use Industries
Businesses are increasingly outsourcing manufacturing and design services for electronics. This trend spans diverse industries like consumer electronics, automotive, and medical devices. Companies seek specialized expertise, cost efficiencies, and faster time to market. This rising demand fuels growth in the electronic contract manufacturing and design service market as companies prioritize core competencies and leverage external partners for production.
Accelerated Digital Transformation and IoT Device Proliferation
Companies are rapidly adopting digital technologies and expanding internet connected devices. This surge in digital transformation and the widespread use of IoT devices necessitate external expertise for complex electronic design and manufacturing. OEMs are increasingly outsourcing these specialized services to EMS providers to accelerate product development and meet market demands efficiently.
Increased Focus on Supply Chain Resilience and Regionalization
Geopolitical events and disruptions highlight vulnerabilities in extended global supply chains. Companies are now prioritizing diversified supplier networks and localized manufacturing to mitigate risks. This strategic shift enhances responsiveness, reduces reliance on single regions, and ensures a more robust and adaptable supply chain, driving demand for contract manufacturing near end markets.
Technological Advancements in Miniaturization and Complex Design
Miniaturization and complex design advancements are propelling electronics manufacturing. Smaller components and intricate layouts demand specialized expertise and sophisticated equipment from contract manufacturers. This drive fosters innovation in device design across sectors, increasing outsourcing to firms capable of handling these advanced production challenges.
Global Electronic Contract Manufacturing and Design Service Market Restraints
Geopolitical Tensions and Supply Chain Vulnerabilities
Geopolitical tensions disrupt the global electronic contract manufacturing and design service market by creating trade barriers and uncertainty. This leads to supply chain vulnerabilities, as companies struggle with material shortages, increased logistics costs, and production delays. Reliance on specific regions for critical components or manufacturing hubs amplifies these risks, forcing companies to re-evaluate sourcing strategies and diversify operations. Ultimately, it impacts profitability and market stability.
Escalating Labor Costs and Skill Shortages in Key Regions
Rising labor expenses and a scarcity of skilled workers in vital manufacturing hubs create significant operational hurdles. These factors inflate production costs, reduce profit margins, and impede the ability to expand capacity or innovate. Companies face increased pressure to automate or relocate production, adding further complexity and cost to their global strategies. This dynamic constrains growth and competitiveness within the market.
Global Electronic Contract Manufacturing and Design Service Market Opportunities
Leveraging Regionalization & Supply Chain Resiliency Demands
Companies increasingly demand regionalized manufacturing and resilient supply chains. This creates a significant opportunity for Electronic Contract Manufacturing and Design Service providers. By offering geographically diversified production capabilities, particularly in strategic regions, EMS and ODM firms can help clients mitigate risks, shorten lead times, and ensure supply stability. Providers able to support multi region strategies and localized manufacturing will attract new business, fulfilling critical customer needs for supply chain robustness and flexibility.
High-Complexity Design & Manufacturing for Emerging Technology Verticals
Electronic Contract Manufacturers can seize opportunities by excelling in highly complex design and manufacturing for pioneering technology verticals. This involves providing specialized expertise for cutting edge hardware in artificial intelligence, quantum computing, advanced medical devices, robotics, and aerospace. By supporting innovators from concept to production with precision engineering and advanced manufacturing processes, ECMs secure high value projects. This strategic focus ensures significant growth potential as these emerging technologies evolve, establishing ECMs as essential partners for future critical industries requiring intricate, specialized solutions.
Global Electronic Contract Manufacturing and Design Service Market Segmentation Analysis
Key Market Segments
By Service Type
- •Design Services
- •Manufacturing Services
- •Testing Services
- •Assembly Services
By Product Type
- •Consumer Electronics
- •Industrial Electronics
- •Telecommunications Equipment
- •Automotive Electronics
By End Use Industry
- •Consumer Electronics
- •Healthcare
- •Automotive
- •Aerospace
By Contract Type
- •Engineering Design
- •Turnkey Manufacturing
- •Low-Volume High-Mix
- •High-Volume Production
Segment Share By Service Type
Share, By Service Type, 2025 (%)
- Design Services
- Manufacturing Services
- Testing Services
- Assembly Services
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Why is Assembly Services dominating the Global Electronic Contract Manufacturing and Design Service Market?
Assembly Services hold the largest share primarily due to its pivotal role in the final production phase of electronic devices. It involves the complex integration of components into a functional product, demanding specialized equipment, skilled labor, and stringent quality control. Original Equipment Manufacturers increasingly outsource this intensive process to achieve cost efficiencies, accelerate time to market, and leverage the advanced capabilities of contract manufacturers across a broad spectrum of products, from consumer gadgets to sophisticated industrial electronics.
Which product type segment experiences significant demand within this market?
Consumer Electronics represents a major product type segment driving substantial demand. The rapid innovation cycle, increasing adoption of smart devices, and high volume production requirements for products like smartphones, laptops, and wearables necessitate extensive contract manufacturing and design services. Companies in this sector frequently rely on external partners for everything from initial design support to high volume production, allowing them to focus on branding and core intellectual property while scaling operations effectively.
How does the Contract Type segmentation reflect evolving industry needs?
The Contract Type segmentation highlights diverse client requirements, with Turnkey Manufacturing and High Volume Production being prominent. Turnkey solutions appeal to companies seeking a comprehensive partner managing the entire product lifecycle from design to delivery, simplifying supply chains. High Volume Production caters to industries with established products needing large scale, cost efficient manufacturing. This variety underscores the market's adaptability in offering tailored solutions that meet specific project scopes and production quantities, optimizing resource allocation for clients.
What Regulatory and Policy Factors Shape the Global Electronic Contract Manufacturing and Design Service Market
The global electronic contract manufacturing and design service market faces a multifaceted regulatory environment. Adherence to environmental compliance standards like RoHS, WEEE, and REACH is critical for product materials and recycling. Strict intellectual property protection laws are vital across diverse jurisdictions to safeguard client designs and proprietary technologies. International trade policies, tariffs, and export controls heavily influence supply chain strategies and material sourcing. Geopolitical dynamics and national security concerns increasingly impact manufacturing locations and technology transfer. Furthermore, product safety certifications (e.g., CE, FCC, UL) and sector specific regulations (e.g., medical device ISO 13485, automotive IATF 16949) are mandatory for market access and product integrity.
What New Technologies are Shaping Global Electronic Contract Manufacturing and Design Service Market?
The electronic contract manufacturing and design service market is experiencing significant expansion. Innovations in Industry 4.0, including AI, IoT, and advanced robotics, are driving smart factory transformation for unparalleled efficiency and speed. Additive manufacturing is revolutionizing rapid prototyping and complex component creation. Digitalized supply chains leveraging blockchain and AI optimize transparency and forecasting. Emerging technologies like 5G integration, edge computing, and sustainable manufacturing practices are critical. These advancements enable manufacturers to offer highly specialized design services, greater production flexibility, and enhanced quality control, fueling market momentum and meeting diverse client demands across various high growth sectors globally.
Global Electronic Contract Manufacturing and Design Service Market Regional Analysis
Global Electronic Contract Manufacturing and Design Service Market
Trends, by Region

Asia-Pacific Market
Revenue Share, 2025
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North America dominates the electronic contract manufacturing and design services market, driven by robust demand from the aerospace & defense, medical devices, and industrial electronics sectors. The region benefits from a strong innovation ecosystem, particularly in the U.S., fostering advanced design capabilities and high-value manufacturing. Stringent regulatory environments in sectors like healthcare further bolster demand for specialized services. While some production has shifted to lower-cost regions, high-mix, low-volume manufacturing and R&D-intensive services remain strongholds. The focus on reshoring and supply chain resilience is also contributing to sustained growth and investment in regional capabilities.
Europe holds a significant share in the Electronic Contract Manufacturing and Design Service (ECMS) market, driven by its robust automotive, industrial, medical, and aerospace sectors. Germany, France, and the UK are key contributors, benefiting from strong R&D capabilities and a focus on high-reliability, low-volume, high-mix production. The region is witnessing increased demand for advanced manufacturing, automation, and design services for complex systems. Challenges include labor costs and competition from Asia, but Europe's expertise in specialized applications and proximity to end-markets ensures sustained growth, particularly in areas like IoT, AI, and sustainable electronics.
Asia Pacific dominates the Electronic Contract Manufacturing and Design Service market, holding a substantial 54.2% share. This leadership is fueled by its robust manufacturing infrastructure, vast labor pool, and supportive government policies. The region is also the fastest-growing, projected to expand at a remarkable CAGR of 9.2%. This rapid growth is driven by increasing demand for consumer electronics, advancements in automotive and industrial electronics, and the expanding presence of major EMS providers. Continuous technological innovation and supply chain resilience further solidify Asia Pacific's pivotal role in the global market.
Latin America presents a dynamic, though regionally varied, landscape in the EMS/ODM market. Mexico stands as a powerhouse, driven by proximity to the US and skilled labor, attracting significant automotive, aerospace, and medical device manufacturing. Brazil follows with robust domestic demand and growing industrial base, particularly in telecom and consumer electronics, despite economic fluctuations. Other regions, such as Costa Rica and Colombia, show emerging potential, leveraging their strong talent pools and strategic locations for niche markets like medical devices and IoT. However, challenges include infrastructure development, import duties, and political stability, influencing investment and growth across the diverse sub-regions.
The Middle East & Africa (MEA) Electronic Contract Manufacturing and Design Service market is emerging, driven by increasing industrialization and technological adoption. While smaller than other regions, it's experiencing steady growth, particularly in sectors like telecommunications, consumer electronics, and defense. Local original equipment manufacturers (OEMs) are increasingly outsourcing to leverage cost efficiencies and access specialized expertise. Challenges include supply chain complexities and competition from established players. However, government initiatives promoting domestic manufacturing and digital transformation across the region present significant opportunities for market expansion and the development of localized design and production capabilities.
Top Countries Overview
The US plays a significant role in high value, low volume electronic contract manufacturing and design services globally. It excels in advanced technology sectors like aerospace, defense, and medical devices, driving innovation and specialized production within the global electronic supply chain.
China dominates global electronic contract manufacturing and design services. Its vast factories and skilled workforce drive production for major brands. Government support and a developed supply chain further solidify its pivotal role in the industry.
India is emerging in global electronics contract manufacturing and design. Government incentives and a skilled workforce attract investment. The market sees growth in EMS for consumer electronics, telecom, and automotive. Design services are also expanding, leveraging Indian engineering talent.
Impact of Geopolitical and Macroeconomic Factors
Geopolitical shifts, particularly US China trade tensions and supply chain regionalization, significantly impact the EMS ODM market. Reshoring initiatives driven by national security concerns and geopolitical stability directly influence manufacturing footprint decisions. Semiconductor supply chain disruptions from political maneuvering and natural disasters create volatility, prompting diversification and greater resilience in component sourcing strategies for EMS providers.
Macroeconomic conditions, including inflation, interest rate hikes, and consumer spending power, dictate end product demand. Increased labor costs and energy prices globally squeeze profit margins for contract manufacturers, necessitating automation and efficiency investments. Currency fluctuations affect raw material costs and international competitiveness, while government subsidies for domestic production can alter market dynamics.
Recent Developments
- March 2025
Flex announced a strategic initiative to expand its advanced manufacturing capabilities in North America, investing significantly in AI-driven automation and sustainable production technologies. This move aims to enhance efficiency, reduce lead times for key clients, and meet increasing demand for complex electronic assemblies in the region.
- February 2025
Pegatron formed a new partnership with a leading European automotive OEM to co-develop next-generation in-vehicle infotainment systems. This collaboration leverages Pegatron's expertise in high-volume electronics manufacturing and the OEM's deep understanding of automotive integration requirements.
- January 2025
Celestica completed the acquisition of a specialized design firm focusing on high-performance computing (HPC) solutions for data centers. This acquisition strengthens Celestica's engineering services portfolio and expands its market reach into the rapidly growing cloud infrastructure sector.
- November 2024
Universal Scientific Industrial (USI) launched a new line of miniaturized IoT modules with integrated AI capabilities, targeting smart home and industrial automation applications. These modules offer enhanced processing power and reduced power consumption, addressing the growing demand for edge computing in IoT devices.
- October 2024
Harman International announced a strategic partnership with a major augmented reality (AR) headset manufacturer to design and produce advanced display and audio components. This collaboration aims to accelerate the development and market penetration of next-generation AR devices by leveraging Harman's acoustic and display engineering prowess.
Key Players Analysis
Flex and Celestica are prominent full service providers offering comprehensive EMS and ODM solutions leveraging advanced SMT and supply chain technologies. Pegatron and Quanta Computer dominate the high volume ODM sector particularly in consumer electronics and computing, driven by their efficient manufacturing processes. Universal Scientific Industrial focuses on specialized modules and miniaturization crucial for IoT. Benchmark Electronics excels in high mix low volume production for industrial and medical markets. Wistron and Harman International are key players in specialized segments like servers and automotive infotainment respectively, employing bespoke design and integration expertise. Venture Corporation and DB Schenker contribute to component manufacturing and logistics, vital for market expansion and global reach. These companies are innovating with automation, advanced materials, and sustainable practices, driving market growth through technological evolution and expanding end use applications.
List of Key Companies:
- DB Schenker
- Quanta Computer
- Universal Scientific Industrial
- Harman International
- Flex
- Celestica
- Venture Corporation
- Pegatron
- Wistron
- Benchmark Electronics
- Foxconn
- Sanmina
- Creation Technologies
- Zollner Elektronik
- Jabil
- Inventec
Report Scope and Segmentation
| Report Component | Description |
|---|---|
| Market Size (2025) | USD 785.4 Billion |
| Forecast Value (2035) | USD 1450.2 Billion |
| CAGR (2026-2035) | 7.8% |
| Base Year | 2025 |
| Historical Period | 2020-2025 |
| Forecast Period | 2026-2035 |
| Segments Covered |
|
| Regional Analysis |
|
Table of Contents:
List of Figures
List of Tables
Table 1: Global Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Service Type, 2020-2035
Table 2: Global Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Product Type, 2020-2035
Table 3: Global Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by End Use Industry, 2020-2035
Table 4: Global Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Contract Type, 2020-2035
Table 5: Global Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Region, 2020-2035
Table 6: North America Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Service Type, 2020-2035
Table 7: North America Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Product Type, 2020-2035
Table 8: North America Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by End Use Industry, 2020-2035
Table 9: North America Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Contract Type, 2020-2035
Table 10: North America Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Country, 2020-2035
Table 11: Europe Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Service Type, 2020-2035
Table 12: Europe Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Product Type, 2020-2035
Table 13: Europe Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by End Use Industry, 2020-2035
Table 14: Europe Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Contract Type, 2020-2035
Table 15: Europe Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 16: Asia Pacific Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Service Type, 2020-2035
Table 17: Asia Pacific Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Product Type, 2020-2035
Table 18: Asia Pacific Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by End Use Industry, 2020-2035
Table 19: Asia Pacific Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Contract Type, 2020-2035
Table 20: Asia Pacific Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 21: Latin America Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Service Type, 2020-2035
Table 22: Latin America Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Product Type, 2020-2035
Table 23: Latin America Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by End Use Industry, 2020-2035
Table 24: Latin America Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Contract Type, 2020-2035
Table 25: Latin America Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035
Table 26: Middle East & Africa Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Service Type, 2020-2035
Table 27: Middle East & Africa Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Product Type, 2020-2035
Table 28: Middle East & Africa Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by End Use Industry, 2020-2035
Table 29: Middle East & Africa Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Contract Type, 2020-2035
Table 30: Middle East & Africa Electronic Contract Manufacturing and Design Service Market Revenue (USD billion) Forecast, by Country/ Sub-region, 2020-2035