The global electronic manufacturing services market size is estimated to rake 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 encompasses a broad spectrum of services provided by companies specializing in the design, manufacturing, testing, distribution, and repair of electronic components and products for original equipment manufacturers (OEMs). EMS companies play a crucial role in the electronics industry by offering cost-effective solutions for outsourcing various stages of the manufacturing process, allowing OEMs to focus on their core competencies such as product innovation and marketing.
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Growth Factors
The EMS market has witnessed significant growth due to several key factors. One of the primary drivers is the increasing demand for consumer electronics, automotive electronics, and medical devices worldwide. This demand has led OEMs to seek efficient and scalable manufacturing solutions provided by EMS companies. Additionally, advancements in technology, including the rise of Internet of Things (IoT) devices and 5G technology, have spurred growth in EMS as these industries require specialized manufacturing capabilities.
Region Insights
The EMS market is geographically diverse, with major regions including North America, Europe, Asia Pacific, and Latin America. Asia Pacific, particularly countries like China, Taiwan, and South Korea, dominates the EMS market due to its established manufacturing infrastructure, skilled labor force, and cost advantages. North America and Europe also have significant market share, driven by strong demand for EMS in industries like aerospace, defense, and healthcare.
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 contribute to the growth of the EMS market. These include increasing outsourcing trends among OEMs to reduce operational costs, improve supply chain efficiency, and gain access to advanced manufacturing technologies without heavy investments. The growing complexity of electronic products and the need for specialized manufacturing expertise further fuel the demand for EMS providers.
Opportunities
The EMS market presents numerous opportunities for growth and diversification. As industries such as automotive and healthcare adopt more electronic components and systems, EMS companies can expand their services to cater to these sectors. Additionally, emerging technologies like artificial intelligence (AI) and renewable energy systems open up new avenues for EMS providers to offer innovative solutions.
Challenges
Despite its growth prospects, the EMS market faces certain challenges. One major challenge is maintaining profitability in a highly competitive environment characterized by price pressures and evolving customer demands. EMS companies also need to continually invest in research and development to keep pace with technological advancements and regulatory requirements, which can strain margins and operational efficiency.
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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