Global Electronic Manufacturing Services Market Size, Share & Trends Analysis Report By End-user, By Region, and Segment Forecasts, 2023 - 2032

Global Electronic Manufacturing Services Market Size, Share & Trends Analysis Report By End-user, By Region, and Segment Forecasts, 2023 - 2032

Global Electronic Manufacturing Services Market Size, Share & Trends Analysis Report By End-user, By Region, and Segment Forecasts, 2023 – 2032

Global Electronic Manufacturing Services market was valued US $550.2 Bn in 2022 and is expected to reach US $800 Bn by 2032, growing at a CAGR of 7.2% during the forecast period 2023-2032.

The term Electronic Manufacturing Services (EMS) refers to a range of products and services offered by specialised companies. Their main objective is to assist original equipment manufacturers (OEMs) and comparable clients with the design, manufacturing, testing, and production management of electronic assemblies and components. EMS suppliers offer a wide range of solutions to help customers launch their electronic products into the market effectively and affordably. These services frequently cover a product's whole lifecycle, starting with the conceptual and design stages and continuing through production, quality control, and after-sale support. Important EMS operations include:

PCB (Printed Circuit Board) assembly

System Integration

Supply chain management

Logistics

Numerous factors, such as the growing need for consumer electronics, cutting-edge technical developments, and an increase in healthcare, automotive, and industrial applications, are propelling the expansion of the EMS market. For EMS providers, the fiercely competitive industry may result in pressure on prices and smaller profit margins. To seize the opportunity the market presents, EMS providers can overcome these obstacles by concentrating on innovation, cost management, and regulatory compliance.

Moreover, the development of eco-friendly technologies is pushing electronics manufacturing companies to produce goods that reduce their environmental impact or have a positive environmental footprint. To reduce CO2 emissions, energy consumption, and trash during manufacture, these items are made with recyclable materials and eco-friendly chemicals. Consequently, designers place a higher priority on strategic planning in order to produce environmentally friendly electronic technology, which in turn drives the market for electronic manufacturing services (EMS) to rise.

The growing need for electronics manufacturing services is fuelled by the expansion of the automotive, industrial, and healthcare industries. EMS suppliers assist customers in bringing their electrical products to market profitably and efficiently by providing all-inclusive solutions. With the U.S. capturing the majority of the market, the growing use of smart home gadgets in developed economies is primarily responsible for the growth rate of the electronic manufacturing category, which currently holds the biggest market share. Printed circuit board (PCB) design, testing, manufacturing sub-assembly, component assembly, and re-engineering are among the functions that EMS suppliers specialise in offering. Over the course of the projection period, this will consequently fuel market expansion. In order to meet new international requirements, EMS suppliers are always investing in new technologies and bettering factory performance. Consumer electronics are becoming more and more in demand, and manufacturers are able to take advantage of these developments by developing creative technologies. Because of the increased acceptance of these services across industries and the existence of multiple market competitors worldwide, the industry is trending towards fragmentation.

“Electronics design and engineering segment, by service, to be largest market from 2023 to 2030.”

The segmentation analysis of the electronic manufacturing services market focuses specifically on electronics design and engineering, electronics assembly, electronics manufacturing, logistics services, etc. By dividing the EMS market into several distinct segments, consumers and EMS providers can find certain services and areas of expertise that meet their needs. Each segment's growth is influenced by industry trends, technological developments, and changing customer expectations within the electronics manufacturing landscape.

During the anticipated term, the engineering services category is growing at a more substantial rate within these segments. Electronic assembly manufacturers' increased research and development efforts are the main cause of this. Services pertaining to the design and development of electronic goods are included in this category. EMS companies work with customers to design printed circuit boards (PCBs), mechanical parts, embedded software, and product concepts.

“Consumer electronics segment, by application, to be largest market from 2023 to 2030.”

The segmentation analysis of the electronic manufacturing services market focuses specifically on consumer electronics, automotive, industrial, aerospace and defence, healthcare, I.T., and Telecom, and others. Because of government programs supporting the consumer electronics sector, the consumer electronics industry has the greatest market share in the world, accounting for roughly 22% of the market. During the anticipated term, the automotive and aerospace defence segment is notably growing at a significant rate of compound annual growth. The surge in advancements observed in the automotive, aerospace, and defence industries can be ascribed to the growing tendency of digitisation, the incorporation of Internet of Things technology into autos, and the growing uptake of electric vehicles. For example, the International Energy Agency (IEA) conducted industry research and found that sales of electric cars increased dramatically worldwide in the first quarter of 2021, rising by around 140% when compared to the same time in 2020. The combined E.V. sales in China and Europe, which topped one million vehicles, were the primary cause of this spike. In addition, despite beginning from a lower basis, sales in the US more than doubled when compared to the first quarter of 2020.

“Asia Pacific to be largest region in Electronic Manufacturing Services Market.”

With a considerable market share of over 38%, the Asia Pacific region now commands a dominating position in the market and is expected to continue to hold this influence during the projected period. Because of a number of considerations, including material availability, cost-effective maintenance, and faster production than other countries like the US, China is a major provider in this region. China's Shenzhen and Penang in particular have become well-known centres for electronic manufacturing services (EMS), attracting the attention of many consumer electronics firms, including market titans like Apple Inc. Leading automakers in Europe, like Mercedes, BMW, Ferrari, Audi, and others, work with EMS providers to support PCB production, engineering, prototyping, and design, among other tasks, to speed up the effective development of connected car technologies. The rapid expansion of EMS in the region is mostly due to European Union attempts to speed up the manufacture of electric vehicles, electronic lighting systems, and safety electronic equipment.

Electronic Manufacturing Services Competitive Landscape

The competitive landscape of the Electronic Manufacturing Services Market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Electronic Manufacturing Services technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Electronic Manufacturing Services Market is highly competitive, with numerous companies vying for market share. Prominent companies in the Electronic Manufacturing Services Market include:

Major Players:

Hon Hai Precision Industry Co. Ltd (Foxconn)

Jabil Inc.

Sanmina Corporation

Flex Ltd

Benchmark Electronics, Inc.

Recent Developments:

Flex announced plans to increase its activities in the automobile industry in Jalisco, Mexico, in June 2022. Presently, the organisation is building a state-of-the-art facility spanning 145,000 square feet. This plant is ideally situated to develop into the region's primary hub for automotive manufacturing, with an emphasis on producing cutting-edge electronic components that will be essential to the advancement of the electric and autonomous car age.

In March 2022, Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), the largest private sector company in India, and Sanmina Corporation, a provider of comprehensive manufacturing solutions, jointly announced their agreement to establish a collaborative venture. This project is being created by investing in Sanmina's current Indian company, Sanmina SCI India Private Ltd., or ""SIPL.""

In April 2021, Jabil Inc. announced the launch of Jabil PA 0600, a creative new additive material that is still patent-pending. This material is designed to provide the extraordinary strength and stiffness required for demanding production applications in the industrial, automotive, and aerospace industries.

October 2021: Singapore-based PCI Private Limited, a supplier of electronics manufacturing services (EMS), was fully acquired by Celestica Inc. Celestica made this calculated move to strengthen its position in embedded systems, telematics, the Internet of Things (IoT), and human-machine interface development.