Electronic Manufacturing Services (EMS) Market

Global Electronic Manufacturing Services (EMS) Market Size (2024 to 2032):

The Global Electronic Manufacturing Services (EMS) Market was worth US$ 504.22 billion in 2023 and is anticipated to reach a valuation of US$ 911.51 billion by 2032 from US$ 538.51 billion in 2024, and it is predicted to register a CAGR of 6.8% during the forecast period 2024 to 2032.

MARKET SCENARIO

Electronics manufacturing services (EMS) is a term that is used for companies that are designing, manufacturing, testing, distributing, and providing return/repair services for electronic components and assemblies for the original equipment manufacturers (OEMs). This concept of the process is also referred to as electronics contract manufacturing (ECM).

MARKET DRIVERS AND RESTRAINTS

The significant factors that are driving the global electric manufacturing services market are rising functionalities, including engineering, component assembly, & design of printed circuit boards, functional testing offered by contract manufacturers, and sub-assembly manufacturing.

Also, the electronic contract manufacturing processes are the forms of engineering and manufacturing outsourcing services that are providing a plethora of core manufacturing capabilities. Furthermore, outsourcing of the ancillary activities is helping OEMs to focus on their core competencies, which are supporting them to improve their operational efficiencies, decreased costs of production, and reduced fixed capital investment requirements. 

The rising need for shortening the time and growing demand for consumer electronics, all around the world, are the primary driver of the global electronic manufacturing services market. And the other factors that are driving the growth of the target market over the forecast period are the shifting electric companies from traditional products to niche product manufacturing, growing penetration of smartphones & smart devices, and the growing trend of outsourcing by OEMs to enhance productivity.

However, the high risks involved with the model & lack of risk management competencies are the challenges that are hindering the electronic manufacturing services market. Also, the high costs associated with the transport of the products that are manufactured by EMS companies to OEMs is a major restraint for the growth of the target market.

Besides, increasing medical device manufacturing in North America & Europe regions, growing demand for connected technology in Europe, the shift of productions to countries in the Asia-Pacific with low labor cost, and the growing focus of companies on high volume products are creating lucrative opportunities for the expansion of the target market, globally.

REPORT COVERAGE

REGIONAL ANALYSIS

In the regional analysis of the Global Electronic Manufacturing Services (EMS) Market, the Asia Pacific local market is expected to exhibit the highest growth, followed by North America, which is anticipated to increase the outsourcing activities in these regions. Also, the market in the Asia Pacific region held the largest market revenue share and is also estimated to remain the fastest-growing segment over the forecast period. Further, the market in China has accounted for more than 33% share in this region and is expected to continue its dominance in electronics manufacturing. The primary driver for the expansion of the target market in the Asia Pacific region is the mass availability of raw materials and low-cost labor, which are favoring in the growth of the market for electronic contract manufacturing and design services. Moreover, the target market in the North America region is also growing in a considerable way owing to the growing medical and automotive industries.

KEY PLAYERS IN THE GLOBAL ELECTRONIC MANUFACTURING SERVICES (EMS) MARKET

Companies playing a prominent role in the global electronic manufacturing services (EMS) market include Advanced Semiconductor Engineering Inc., Altadox, Inc., Benchmark Electronics, Inc., Celestica, Inc., Compal Electronics, Inc., Delta Group Electronics, Inc., Fabrinet, Flextronics International, LTD., Foxconn, Integrated Microelectronics, Jabil, KeyTronicEMS, Kimball Electronics, Inc., Plexus Corporation, Sanmina, SIIX Corporation, Sparton Corporation, TPV Technology Limited, TT Electronics plc., and Others.

RECENT HAPPENINGS IN THE GLOBAL ELECTRONIC MANUFACTURING SERVICES (EMS) MARKET

• ASE Technology has entered the supply chain of ZTE, providing advanced backend technology to volume process 5G base station chips developed in house by the Chinese vendor, according to industry sources.
• Foxconn, a Taiwanese multinational electronics contract manufacturer, has stepped up semiconductor plans with a deal to build a new base in Qingdao for development initiatives and this testing plant will focus on chips used on 5G and AI-based hardware products.

DETAILED SEGMENTATION OF THE GLOBAL ELECTRONIC MANUFACTURING SERVICES (EMS) MARKET INCLUDED IN THIS REPORT

This research report on the global electronic manufacturing services (EMS) market has been segmented and sub-segmented based on services, end-user, and region.

By Services

• Electronic Design & Engineering
• Electronics Assembly
• Electronic Manufacturing

By End-user              

• Healthcare
• Automotive
• Industrial
• Aerospace & Defense
• IT & Telecom
• Power & Energy
• Consumer Electronics

By Region

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