Global Electronic Manufacturing Services Market Size By Service (Electronics Manufacturing, Engineering, Test & Development Implementation, Logistics), By Application (Consumer Electronics, Automotive, Heavy Industrial Manufacturing, Aerospace & Defense, Healthcare, IT And Telecom), By Geography And

Electronic Manufacturing Services Market Size And Forecast

Electronic Manufacturing Services Market size was valued at USD 22.48 Billion in the year 2023 and it is expected to reach USD 29.68 Billion in 2031, at a CAGR of 3.90% over the forecast period of 2024 to 2031.

• Electronic production Services (EMS) refer to the outsourcing of the design, production, testing, and distribution of electronic components and assemblies to specialized third-party vendors.
• EMS suppliers serve a variety of industries, including telecommunications, automotive, aerospace, and consumer electronics. Their applications range from PCB assembly to full product integration, providing scalability, cost-efficiency, and access to cutting-edge manufacturing technology.
• The future of EMS is in increasingly sophisticated and miniaturized electronic products, spurred by advances in IoT, AI, and 5G technologies, which will grow their position in global supply chains and enable faster time-to-market for new electronic gadgets.

Global Electronic Manufacturing Services Market Dynamics

The key market dynamics shaping the global Electronic Manufacturing Services Market include

Key Market Drivers

• Increasing Demand for Consumer ElectronicsThe growing demand for smartphones, tablets, wearables, and smart home devices is a major driver for the EMS market. As consumer electronics become more advanced and affordable, OEMs are increasingly relying on EMS providers to meet the growing demand for these products.
• Technological AdvancementsRapid advancements in electronics technology, such as 5G, AI, and IoT, are driving the demand for more complex and sophisticated electronic products. EMS providers with advanced manufacturing capabilities are well-positioned to meet this demand and help OEMs bring innovative products to market quickly.
• Increasing Adoption of Industry 4.0The adoption of Industry 4.0 technologies, such as automation, robotics, and IoT, is transforming the electronics manufacturing landscape. EMS providers that invest in these technologies can offer more efficient, flexible, and scalable manufacturing solutions to OEMs.
• Growing Demand for CustomizationThe increasing demand for customized and specialized electronic products is driving the growth of the EMS market. EMS providers with advanced design and engineering capabilities can help OEMs develop and manufacture custom products tailored to specific market needs.

Key Challenges

• Supply Chain DisruptionsThe global electronics supply chain is highly complex and vulnerable to disruptions, such as natural disasters, geopolitical tensions, and trade disputes. EMS providers need to have robust supply chain management strategies andcontingency plans to mitigate the impact of supply chain disruptions.
• Skilled Labor ShortageThe electronics manufacturing industry requires a highly skilled workforce, particularly in areas such as design, engineering, and quality control. The shortage of skilled labor in some regions can pose challenges for EMS providers in terms of recruiting and retaining talent.
• Intellectual Property ProtectionEMS providers often have access to sensitive intellectual property (IP) belonging to their OEM clients. Ensuring the protection of IP and maintaining the confidentiality of customer data is a critical challenge for EMS providers.
• Rapid Technological ChangesThe electronics industry is characterized by rapid technological changes and short product lifecycles. EMS providers need to constantly invest in new technologies and upgrade their manufacturing capabilities to staycompetitive and meet the evolving needs of their customers.

Key Trends

• Increasing Adoption of Automation and RoboticsEMS providers are increasingly adopting automation and robotics technologies to improve manufacturing efficiency, quality, and flexibility. These technologies enable EMS providers to handle high-mix, low-volume production and quickly adapt to changing customer requirements.
• Growing Focus on SustainabilityThere is a growing emphasis on sustainability in the electronics industry, with OEMs and EMS providers alike focusing on reducing their environmental impact. This trend is driving the adoption of eco-friendly manufacturingpractices, such as the use of renewable energy, waste reduction, and the development of recyclable and biodegradable electronics.
• Expansion of ServicesEMS providers are expanding their service offerings beyond traditional manufacturing to include value-added services such as product design, engineering, testing, and after-sales support. This trend is driven by the increasing demand for end-to-end solutions and the need for EMS providers to differentiate themselves in a competitive market.
• Shift towards Regional ManufacturingThe COVID-19 pandemic has highlighted the risks associated with global supply chains and has accelerated the trend towards regional manufacturing. EMS providers are increasingly setting up manufacturing facilities closer to their customers to reduce supply chain risks, improve responsiveness, and minimize transportation costs.

Global Electronic Manufacturing Services Market Regional Analysis

Here is a more detailed regional analysis of the global Electronic Manufacturing Services Market

Asia Pacific

• The Asia Pacific region is the largest market for electronic manufacturing services, driven by the presence of major electronics manufacturing hubs in countries such as China, Taiwan, South Korea, and Vietnam.
• China is the dominant player in the region, with a strong ecosystem of EMS providers, component suppliers, and logistics providers. The country’s large and low-cost labor force, coupled with government support for the electronics industry, has made it an attractive destination for electronics manufacturing.
• Other countries in the region, such as Taiwan and South Korea, are known for their advanced manufacturing capabilities and are home to some of the world’s leading EMS providers, such as Foxconn, Pegatron, and Samsung Electronics.
• The growing middle class and increasing disposable incomes in the region is driving the demand for consumer electronics, which is a major end-use industry for EMS providers.

North America

• North America is a significant market for electronic manufacturing services, with the United States being the largest contributor to the region’s market share.
• The presence of major technology companies and a strong ecosystem of EMS providers, component suppliers, and research institutions has made the United States a hub for electronics manufacturing.
• The increasing adoption of advanced manufacturing technologies, such as automation and robotics, is driving the growth of the EMS market in the region.
• The aerospace and defense industry are a major end-use industry for EMS providers in North America, with the United States being the world’s largest aerospace and defense market.

Global Electronic Manufacturing Services Market Segmentation Analysis

The Global Electronic Manufacturing Services Market is segmented on the basis of Service, Application, and Geography.

Electronic Manufacturing Services Market, By Service

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

Based on Service, the Global Electronic Manufacturing Services Market is segmented into Electronics Manufacturing, Engineering, Test & Development Implementation, and Logistics. Electronics Manufacturing is the leading segment, owing to the high demand for electronic component and device production and assembly across a wide range of industries. Test and Development Implementation follows closely, guaranteeing that electronic products are of high quality and reliable before they are released to the market. Engineering is the fastest expanding segment, driven by the increasing complexity of electronic devices and the demand for advanced design and development solutions.

Electronic Manufacturing Services Market, By Application

• Consumer Electronics
• Automotive
• Heavy Industrial Manufacturing
• Aerospace & Defense
• Healthcare
• IT and Telecom

Based on Application, the Global Electronic Manufacturing Services Market is segmented into Consumer Electronics, Automotive, Heavy Industrial Manufacturing, Aerospace & Defense, Healthcare, and IT and Telecom. The IT and Telecom sector is dominant due to the ongoing need for electronic components and devices for communication networks and infrastructure. Consumer Electronics follows closely, owing to the proliferation of smartphones, tablets, and other personal electronics. Healthcare is the fastest-growing segment, driven by increased digitalization, medical device innovation, and the incorporation of IoT and AI technology into healthcare applications.

Key Players

The “Global Electronic Manufacturing Services Market” study report will provide valuable insight with an emphasis on the global market including some of the major players such as Hon Hai Precision Industry Co., Ltd. (Foxconn), Pegatron Corporation, Flex Ltd., Jabil Inc., Celestica Inc., Sanmina Corporation, Plexus Corp., Benchmark Electronics, Inc., Venture Corporation Limited, SIIX Corporation, Zollner Elektronik AG, Universal Scientific Industrial (Shanghai) Co., Ltd., Shenzhen Kaifa Technology Co., Ltd., New Kinpo Group, and others.

Our market analysis offers detailed information on major players wherein our analysts provide insight into the financial statements of all the major players, product portfolio, product benchmarking, and SWOT analysis. The competitive landscape section also includes market share analysis, key development strategies, recent developments, and market ranking analysis of the above-mentioned players globally.

Global Electronic Manufacturing Services Market Recent Developments

• In September 2023, Jabil Inc. announced the expansion of its manufacturing facility in Penang, Malaysia, to cater to the growing demand for electronics manufacturing services in the region. The expanded facility will focus on the production of 5G, IoT, and automotive electronics.
• In August 2023, Flex Ltd. acquired Anord Mardix, a leading provider of critical power solutions, to expand its offerings in the data center and energy storage markets. The acquisition will enable Flex to provide end-to-end solutions for the design, manufacturing, and deployment of power infrastructure for data centers.
• In July 2023, Celestica Inc. launched a new facility in Oradea, Romania, to support the growing demand for electronics manufacturing services in the European market. The facility will focus on the production of high-reliability electronics for the aerospace anddefense, industrial, and medical markets.
• In June 2023, Foxconn announced plans to invest $1 billion in India to expand its electronics manufacturing capabilities in the country. The investment will be used to set up new production facilities and create jobs in the electronics manufacturing sector.
• In May 2023, Sanmina Corporation acquired Kaga Electronics’ EMS business to expand its presence in the Japanese market. The acquisition will enable Sanmina to provide a wider range of electronics manufacturing services to customers in Japan and theAsia Pacific region.
• In April 2023, Benchmark Electronics, Inc. launched a new facility in Phoenix, Arizona, to support the growing demand for high-reliability electronics in the aerospace and defense, medical, and industrial markets. The facility will focus on the production of complex electronics, including printed circuit board assemblies and electromechanical assemblies.
• In March 2023, Plexus Corp. expanded its manufacturing facility in Bangkok, Thailand, to support the growing demand for electronics manufacturing services in the Asia Pacific region. The expanded facility will focus on the production of high-complexity, low-volume electronics for the healthcare and life sciences markets.

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Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factorsProvision of market value (USD Billion) data for each segment and sub-segmentIndicates the region and segment that is expected to witness the fastest growth as well as to dominate the marketAnalysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each regionCompetitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiledExtensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market playersThe current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regionsIncludes in-depth analysis of the market from various perspectives through Porter’s five forces analysisProvides insight into the market through Value ChainMarket dynamics scenario, along with growth opportunities of the market in the years to come6-month post-sales analyst support

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