Global Electronic Manufacturing Services [EMS] Market Insights Forecasts to 2030

• The Electronic Manufacturing Services [EMS] Market size was valued at USD 500 billion in 2021
• The market is growing at a CAGR of 6% from 2022 to 2030
• The Global Electronic Manufacturing Services [EMS] Market is expected to reach USD 790 billion by 2030
• Europe is expected to grow the fastest during the forecast period

The Global Electronic Manufacturing Services [EMS] Market is expected to reach USD 790 billion by 2030, at a CAGR of 6% during the forecast period 2022 to 2030. The COVID-19 pandemic outbreak has adversely affected economies and industries in several nations owing to lockdowns, travel bans, and business shutdowns, which in turn have affected the lighting control market size. According to data from the IPC March 2020 survey, 60% of global electronics manufacturers and suppliers surveyed believed that the COVID-19 outbreak would have the greatest impact on the consumer electronics industry. Another 32% predicted that industrial electronics would be the hardest hit, while 25% predicted that automotive electronics would be the hardest hit. In addition, the lockdown in Asia Pacific, which is the fastest-growing region, led to the undersupply of various parts used in electronics, as most of the raw materials and spare parts are procured from this region's local market.

Market Overview

Electronics manufacturing services [EMS] or electronics contract manufacturing [ECM] is a term used for companies that design, manufacture, test, distribute, and provide return/repair services for electronic components, printed circuit board (PCB) assemblies, and assemblies for original equipment manufacturers (OEMs). The electronics manufacturing services [EMS] market majorly specializes in a wide range of economies in manufacturing, raw materials procurement and consolidating resources, industrial design expertise as well as creating added value services such as warranty and repairs. EMS has also begun to offer design services for conceptual product development advice, as well as mechanical, electrical, and software design assistance. Electronics manufacturing services [EMS] are available all over the world and offer numerous advantages.

Report Coverage

This research report categorizes the market for global electronic manufacturing services [EMS] market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the electronic manufacturing services [EMS] market. Recent market developments and competitive strategies such as expansion, product launch and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the electronic manufacturing services [EMS] market.

Driving Factors

The increasing demands for consumer electronics and modernizing technological advancements allow manufacturers to capitalize on current market trends. The increasing competition from medium-tier companies in EMS has led key manufacturers to improve their production capacity by adapting several technological changes such as augmented reality, the Internet of Things (IoT), and 3D printing. As of increased client demands and the need to cut costs, manufacturers may need to collaborate with solution providers who have experience and industry knowledge.

In addition, the development of green technology is driving electronics manufacturing services to make positive environmental impacts or reduce negative environmental impacts. These implements are manufactured with recyclable parts and non-toxic chemicals to reduce CO2 emissions, lower energy consumption, and minimize waste in your practices. Subsequently, designers are focusing on strategic planning to manufacture greener electronic technology, henceforth driving the electronic manufacturing services [EMS] market growth.

Restraining Factors

As technology changes so do consumer preferences. To keep up, electronics manufacturers need to have effective new product introduction processes in place.  The increasing competition in the electronic manufacturing services [EMS] market around the world is decreasing the operating margins which is causing economic losses in the industry. In addition, economic volatility and cyclical demand also cause fluctuations in the electronic manufacturing services [EMS] market. In addition, the lack of confidentiality and security is raising concerns and risks for information leaks and intellectual property theft.

Market Segmentation

• In 2021, the engineering services segment is witnessing a higher growth rate over the forecast period.

Based on service type, the global electronic manufacturing services [EMS] market is segmented into electronics manufacturing, engineering services, test & development implementation, logistics services, and others. Among these, the engineering services segment is witnessing a higher growth rate over the forecast period, owing to rising research and development by Electronic Assembly Manufacturers. 

• In 2021, the automotive and aerospace & defense segment is witnessing significant CAGR growth over the forecast period.

On the basis of application type, the global electronic manufacturing services [EMS] market is segmented into computer, consumer electronics, aerospace & defense, medical & healthcare, automotive, semiconductor manufacturing, robotics, and others. Among these, the automotive and aerospace & defense segment is witnessing significant CAGR growth over the forecast period. The automotive and aerospace & defense segment is rapidly advancing owing to rising digitization, IoT enables cars and increases sales of electric vehicles. To illustrate, the industry analysis from International Energy Agency (IEA)stated that global electric car sales increased by around 140% in the first quarter of 2021 in comparison to the same period in 2020, driven by combined sales of around 1 million vehicles in Europe and China. Sales in the United States more than doubled compared to the first quarter of 2020, albeit from a much lower base.

Regional Segment Analysis of the Electronic Manufacturing Services [EMS] Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific region is dominating the market with the largest market share of 41%.

Asia Pacific region is dominating the market with a market share of 41% and is expected to continue its influence over the forecast period. China is a major provider in its region, due to maintenance cost, availability of materials, and speed as opposed to other countries such as the United States. Shenzhen and Penang cities in China have become major production centres for the electronic manufacturing services [EMS] market, attracting many consumer electronics companies such as Apple Inc.

European key automotive companies such as Mercedes, BMW, Ferrari, Audi, and many others are collaborating with electronic manufacturing services [EMS] suppliers on PCB production, engineering, prototyping, and designing for the efficient development of connected car technologies. Several initiatives by the European Union to accelerate the production of electric vehicles, electronic lighting, and safety electronic equipment are driving the rise of electronic manufacturing services EMS in the area.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global electronic manufacturing services [EMS] market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Market Players

• 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.
• Venture Corporation Limited
• Elin Electronics Ltd
• Rohm Semiconductor
• Asteelflash
• Creation Technologies LP
• Key Tronics EMS
• Fabrinet
• COMPAL Inc.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In April 2021, Jabil Inc. introduced the availability of a patent-pending, innovative new additive material, Jabil PA 0600, that delivers the high strength and stiffness required for demanding aerospace, automotive, and industrial manufacturing applications.
• In October 2021, Celestica Inc. acquired PCI Private Limited, a Singapore-based electronics manufacturing services (EMS) provider, to develop its telematics, IoT, embedded systems, and human-machine interface.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2021 to 2030. Spherical Insights has segmented the global electronic manufacturing services [EMS] market based on the below-mentioned segments:

Electronic Manufacturing Services [EMS] Market, By Service Type

• Electronics Manufacturing
• Engineering Services
• Test & Development Implementation
• Logistics Services
• Others

Electronic Manufacturing Services [EMS] Market, By Application Type

• Computer
• Consumer Electronics
• Aerospace & Defense
• Medical & Healthcare
• IT & Telecom
• Automotive
• Semiconductor Manufacturing
• Robotics
• Heavy Industrial Manufacturing
• Others

Electronic Manufacturing Services [EMS] Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa