by The global electronic manufacturing services market size is expected to increase USD 1,064.06 billion by 2033 from USD 539.40 billion in 2023 with a CAGR of 7.03% between 2024 and 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 companies that provide a range of services related to electronic product design, manufacturing, testing, distribution, and after-sales support. EMS companies cater to various industries such as consumer electronics, automotive, aerospace, healthcare, and telecommunications. These services enable original equipment manufacturers (OEMs) to outsource their manufacturing processes and focus on core competencies like product innovation and marketing.
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Growth Factors
The EMS market has witnessed substantial growth due to increasing demand for complex electronic products, rapid technological advancements, and the trend towards outsourcing non-core manufacturing activities by OEMs. Other growth factors include the globalization of supply chains, cost advantages in labor-intensive regions, and the need for flexible manufacturing solutions to accommodate changing consumer preferences.
Region Insights
The EMS market is geographically diverse, with key regions including North America, Europe, Asia-Pacific, and Latin America. Asia-Pacific, particularly China, India, and Southeast Asia, dominates the market due to lower labor costs, favorable government policies, and a robust manufacturing ecosystem. North America and Europe also have significant market shares, driven by technological innovation and demand for high-quality manufacturing services.
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 propel the growth of the EMS market, including increasing adoption of IoT (Internet of Things) devices, rising demand for smart consumer electronics, and the emergence of electric vehicles requiring electronic components. Additionally, the shift towards cloud computing, artificial intelligence, and 5G technology fuels demand for EMS providers who can deliver sophisticated electronics solutions efficiently.
Opportunities
The EMS market presents various opportunities for expansion, such as diversifying service portfolios to include value-added services like product design, engineering, and supply chain management. Partnerships with OEMs to co-develop innovative products and leveraging emerging technologies like robotics and automation can also unlock new opportunities for growth and differentiation.
Challenges
Despite the promising outlook, the EMS industry faces challenges such as margin pressure due to intense competition, geopolitical uncertainties affecting trade dynamics, and supply chain disruptions, especially highlighted by events like the COVID-19 pandemic. Additionally, meeting stringent regulatory requirements, ensuring data security, and managing environmental sustainability concerns pose ongoing challenges for EMS providers.
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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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