The global electronic manufacturing services market size accounted for USD 539.40 billion in 2023 and is expected to touch around USD 1,064.06 billion by 2033, growing at a CAGR of 7.03% from 2024 to 2033.
The Electronic Manufacturing Services (EMS) market plays a crucial role in the electronics industry by offering a range of services such as design, assembly, testing, and distribution of electronic components and products. EMS providers cater to various sectors including consumer electronics, automotive, aerospace, healthcare, and industrial equipment. This market has witnessed substantial growth due to the increasing complexity and miniaturization of electronic devices, coupled with the demand for cost-effective manufacturing solutions.
Growth Factors
The EMS market is experiencing robust growth driven by several key factors. One significant factor is the trend toward outsourcing manufacturing activities by original equipment manufacturers (OEMs) to focus on core competencies and reduce operational costs. Additionally, the rapid pace of technological advancements in electronics, including IoT devices, wearables, and autonomous vehicles, is fueling demand for EMS providers with specialized expertise and capabilities.
Regional Insights
The EMS market exhibits a diverse regional landscape. Asia Pacific dominates the market, particularly China, Taiwan, and South Korea, owing to their strong manufacturing infrastructure and skilled workforce. North America and Europe also contribute significantly, driven by innovation and demand for high-quality electronics. Emerging regions like Latin America and the Middle East are witnessing growth due to increasing investments in manufacturing capabilities.
Drivers
Several drivers propel the growth of the EMS market. These include the continuous demand for customized and technologically advanced electronic products, the need for efficient supply chain management, and the rising adoption of EMS for product lifecycle management. Moreover, stringent regulatory standards and environmental concerns are pushing OEMs towards EMS providers with sustainable practices.
Opportunities
The EMS market presents promising opportunities fueled by emerging technologies such as 5G, artificial intelligence, and electric vehicles. As these technologies become mainstream, EMS providers can capitalize on offering specialized services for their design, manufacturing, and assembly. Moreover, expanding into new geographical markets and strategic partnerships with OEMs offer avenues for growth.
Challenges
Despite the growth prospects, the EMS market faces several challenges. These include intense competition among EMS providers, pressure to maintain cost competitiveness, and managing complex global supply chains. Additionally, geopolitical uncertainties and fluctuations in raw material prices can impact profit margins and operational efficiency for EMS companies.
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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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