Global EMS and ODM Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global EMS and ODM Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

The Electronics manufacturing services (EMS) are rendered by companies that provide services like designing, manufacturing, assembling, and distributing the electronic test components and printed circuit boards (PCB) assemblies. The companies further offer to repair and return the services like components and assemblies of OEMs. OEM stands for original equipment manufacturers. The overall concept is known as ECM - electronics contract manufacturing. ODM stands for original design manufacturer and is referred to as a company that deals in designing and manufacturing any product-based design that works on existing specifications. These companies require original specifications from the end-users based on the product designs. These companies lend a helping hand to the other companies and suppliers with the capacity to get their hands on the product built that can design the hardware. Also, they should help in investing in the production lane and facilities fully.

Market Overview:

The latest research study on the global EMS and ODM market finds that the global EMS and ODM market reached a value of USD 710328.14 million in 2022. It’s expected that the market will achieve USD 1020803.39 million by 2028, exhibiting a CAGR of 6.23% during the forecast period.

Affect the normal operation of the industry
COVID-19 has had a major impact on the world economy in addition to that on the public health. This particular pandemic had caused severe economic destruction and not a single country has been left unaffected. The virus has forced businesses around the globe to change the way they operate.

At the beginning of 2020, COVID-19 disease began to spread around the world, millions of people worldwide were infected with COVID-19 disease, and major countries around the world have implemented foot prohibitions and work stoppage orders. Except for the medical supplies and life support products industries, most industries have been greatly impacted, and EMS and ODM industries have also been greatly affected.

The impact of COVID-19 on the EMS and ODM industry will involve all major links and all entities in the industry chain. The company's management efficiency has been reduced, commuting has been severely frustrated, production scheduling has been severely hindered, network expansion has been delayed, marketing has been delayed, brand adjustments have been forced, market sales have declined, and corporate and employee revenues have been damaged. The impact on the EMS and ODM industry depends on the prevention and control effects of COVID-19.

COVID-19 has a huge impact on the operation of the industry, of which the impact on SMEs is more obvious. The phenomenon of shutdown may not only aggravate the shortage of funds for SMEs, but also reduce the solvency of enterprises, and may affect production and sales. Some enterprises have fallen into business difficulties and even went bankrupt.

Rise in Demand for Consumer Electronics

Increased adoption of smart home devices in advanced economies around the world is one reason for the growth. Manufacturing of radio frequency & wireless devices, optoelectronics services, and microelectronics devices for ongoing smart home trends are among the electronic manufacturing services supplied by corporations in industrialized countries.

As a result of the increased adoption of innovative technologies in the consumer electronics sectors, demand for EMS and ODM goods is likely to rise.

To build linked gadgets for smart homes, key leaders are inclined to integrate Artificial Intelligence (AI), cloud computing, 3D printing, and big data analysis to improve their engineering and factories. Players in the EMS and ODM market are extending their manufacturing locations in order to integrate new technologies and meet the industry's strong demand for smart home services. Rapid technical advancements have resulted from this rising need. As a result, to meet the increased demand, OEM constantly proposes innovative items in the consumer electronics sector.

High barriers to funding

EMS and ODM manufacturers need large-scale capital investment to purchase production equipment and build production lines to form the production service capabilities of EMS and ODM. The huge investment has discouraged some small and medium-sized enterprises.

In addition, a viable product needs to go through a long period of market validation, which requires the EMS and ODM enterprise to have sufficient funds to support the operation.

At the same time, in order to become a leading enterprise in the EMS and ODM industry and obtain stable sales profits, it is necessary to invest a lot of money in the research and development of new technologies and new products to reduce manufacturing costs and improve production efficiency.

Region Overview:

In global comparison, a significant portion of the revenue was generated in Asia-Pacific (68.2% in 2021).

Company Overview:

HONHAI is one of the major players operating in the EMS and ODM market, holding a share of 29.77% in 2021.

HONHAI

Established in 1974 in Taiwan, Hon Hai Technology Group (“Foxconn”) is the world’s largest electronics manufacturer. Foxconn is also the leading technological solution provider and it continuously leverages its expertise in software and hardware to integrate its unique manufacturing systems with emerging technologies.

Pegatron

Pegatron Corporation, together with its subsidiaries, engages in designing, manufacturing, and selling computer, communication, and consumer electronic products worldwide. It offers computing products, such as notebook and desktop PCs, motherboards, VGA cards, mobile Internet devices, rugged computers, and servers; consumer electronics, including tablets, game consoles, and LCD TVs; and communication products, which include cable modems, set-top boxes, smartphones, network switches, and routers.

Segmentation Overview:

By type, EMS segment accounted for the largest share of market in 2021.

EMS

Electronics manufacturing services (EMS) is a term used for companies that test, manufacture, distribute, and provide return/repair services for electronic components and assemblies for original equipment manufacturers (OEMs). The concept is also referred to as electronics contract manufacturing (ECM).

ODM

An original design manufacturer (ODM) is a company that designs and manufactures a product as specified and eventually rebranded by another firm for sale. Such companies allow the firm that owns or licenses the brand to produce products (either as a supplement or solely) without having to engage in the organization or running of a factory.

Application Overview:

The market's largest segment by application is the segment Communications, with a market share of 36.6% in 2021.

Key Companies in the global EMS and ODM market covered in Chapter 3:

BYD Electronics
Wistron
Kaifa
Huaqin
Jabil
USI
Sanmina
Longcheer
Venture
UMC Electronics Co., Ltd.
Fabrinet
Wingtech
Zollner
PLEXUS
HONHAI
Quanta
Benchmark
Flextronics
MiTAC
Celestica
Pegatron
Inventec
Qisda Corporation
Luxshare
SIIX
Compal
New KINPO

In Chapter 4 and Chapter 14.2, on the basis of types, the EMS and ODM market from 2018 to 2029 is primarily split into:

EMS
ODM

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the EMS and ODM market from 2018 to 2029 covers:

Computers
Consumer Devices
Industrial
Communications
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)