The global electronic manufacturing services market size surpassed USD 539.40 billion in 2023 and is projected to cross around USD 1,064.06 billion by 2033, growing at a CAGR of 7.03% from 2024 to 2033.
Key Points
- Asia Pacific has held the largest market share of 36% in 2023.
- Europe is expected to show significant growth over the forecast period.
- By service type, the engineering services segment dominated the market in 2023.
- By service type, the electronics manufacturing services segment is projected to be the fastest-growing segment over the forecast period.
- By industry type, the IT and telecom segment dominated the market in 2023.
- By industry type, the automotive segment is experiencing notable growth in the market.
The Electronic Manufacturing Services (EMS) market is a crucial sector within the electronics industry, providing outsourced design, manufacturing, testing, and other value-added services to original equipment manufacturers (OEMs). EMS companies play a vital role in helping OEMs bring their electronic products to market efficiently and cost-effectively. These services encompass a wide range of activities, from PCB assembly to full product assembly, logistics, and after-sales support.
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Growth Factors
The EMS market is experiencing significant growth due to several key factors. One primary driver is the increasing complexity of electronic products and the rapid pace of technological advancements. OEMs are increasingly relying on EMS providers to access specialized skills and resources, allowing them to focus on core competencies such as product innovation and marketing. Additionally, the globalization of supply chains has led to a greater demand for EMS services, especially from industries like consumer electronics, automotive, healthcare, and aerospace.
Region Insights
The EMS market exhibits a global presence, with notable concentrations in regions like Asia Pacific, North America, and Europe. Asia Pacific, particularly China, India, and Southeast Asia, dominates the market due to lower labor costs, a robust manufacturing ecosystem, and a large pool of skilled workers. North America and Europe also play significant roles, driven by strong demand for EMS services in advanced industries like automotive, aerospace, and telecommunications.
Electronic Manufacturing Services Market Scope
| Report Coverage | Details |
| Growth Rate from 2024 to 2033 | CAGR of 7.03% |
| Electronic Manufacturing Services Market Size in 2023 | USD 539.40 Billion |
| Electronic Manufacturing Services Market Size in 2024 | USD 577.32 Billion |
| Electronic Manufacturing Services Market Size by 2033 | USD 1,064.06 Billion |
| Largest Market | Asia Pacific |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | By Service Type and By Industry Type |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Electronic Manufacturing Services Market Dynamics
Drivers:
Several drivers fuel the growth of the EMS market. One key driver is the trend toward outsourcing non-core activities by OEMs to reduce costs and improve operational efficiency. EMS providers offer economies of scale, flexibility, and expertise that enable OEMs to optimize their supply chain and reduce time-to-market for new products. Moreover, the increasing adoption of IoT (Internet of Things) devices, smart electronics, and wearable technology is boosting demand for EMS services globally.
Opportunities:
The EMS market is ripe with opportunities, especially in emerging technologies such as 5G, electric vehicles (EVs), and renewable energy systems. These industries require specialized manufacturing capabilities and supply chain expertise, presenting EMS providers with opportunities to expand their service offerings and collaborate closely with OEMs to capitalize on growing markets. Furthermore, the rise of smart manufacturing and Industry 4.0 initiatives opens doors for EMS companies to integrate advanced technologies like AI and robotics into their operations.
Challenges:
Despite the promising growth outlook, the EMS market faces several challenges. One challenge is the volatility of component prices and supply chain disruptions, which can impact production schedules and profitability. Additionally, maintaining stringent quality standards and regulatory compliance across different regions can be complex and resource-intensive for EMS providers. Moreover, intensifying competition among EMS companies, coupled with pricing pressures from OEMs, poses challenges for maintaining profitability and sustainable growth in the long term.
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Electronic Manufacturing Services Market Recent Developments
- In July 2023, Analog Devices, Inc., one of the global semiconductor leaders, and Hon Hai Technology Group (Foxconn), one of the largest global electronics manufacturing services providers, announced the completion of a Memorandum of Understanding (MoU) to develop the next-generation digital car cockpit and a high-performance battery management system (BMS).
- In May 2023, Infineon Technologies AG, one of the global leaders in automotive semiconductors, and Hon Hai Technology Group (Foxconn), one of the largest global electronics manufacturing services providers, aim to establish a partnership in the electric vehicles (EV) field to develop advanced electromobility with efficient and intelligent features jointly. The Memorandum of Understanding (MoU) aims to develop silicon carbide (SiC) and leverage Infineon’s automotive SiC innovations in automotive systems.
- In June 2022, Flex announced the development of its operations in the Mexican state of Jalisco’s automotive sector. The business is building a brand-new, cutting-edge 145,000-square-foot facility that will act as a strategic in-region automotive manufacturing hub to produce advanced electronic components that will hasten the transition to the era of electric and autonomous vehicles.
- In March 2022, Sanmina Corporation (Sanmina), a leading integrated manufacturing solutions company, and Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), India’s largest private sector company, announced that they have agreed to create a joint venture through investment in Sanmina’s existing Indian entity (Sanmina SCI India Private Ltd, “SIPL”).
Electronic Manufacturing Services Market Companies
- Sanmina Corporation
- Vinatronic Inc.
- Inventec
- Hon Hai Precision Industry Co. Ltd
- Bharat FIH – A Foxconn Technology Group
- SIIX Corporation
- Benchmark Electronics Inc.
- Flex Ltd
- Quanta Computers Inc.
- Osram Opto Semiconductors GmbH
- Kimball Electronics Inc.
- Jabil Inc.
- Celestica Inc.
- Wistron Corporation
- General Electric Company
- Argus Systems
- Plexus Corporation
- Sparton Corporation
- Koninklijke Philips N.V.
- Integrated Microelectronics Inc
Segments Covered in the Report
By Service Type
- Electronics Manufacturing
- Engineering Services
- Test & Development Implementation
- Logistics Services
- Others
By Industry Type
- Computer
- Consumer Electronics
- Aerospace & Defense
- Medical & Healthcare
- IT & Telecom
- Automotive
- Semiconductor Manufacturing
- Robotics
- Heavy Industrial Manufacturing
- Others
By Geography
- North America
- Asia Pacific
- Europe
- Latin America
- Middle East & Africa
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