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

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

Electronic Manufacturing Services provide design and engineering, assembly, manufacturing and testing services for electronic components and printed circuit board (PCB) components. For OEM, EMS simplifies the investment in automatic assembly equipment.

Market Overview:

The latest research study on the global EMS market finds that the global EMS market reached a value of USD 251464.48 million in 2022. It’s expected that the market will achieve USD 381239.82 million by 2028, exhibiting a CAGR of 7.18% during the forecast period.

Affected by COVID-19, the industrial chain is at risk of material shortage. Various places made different degrees of control on the entry and exit, some countries even blocked the border, except for anti-epidemic supplies and other essential goods are not allowed to import and export, a large number of factories shut down, the resumption of work time delayed. In the context of globalization of production, the electronics industry chain is long and scattered, upstream raw materials concentrated in Japan and South Korea, equipment is mainly in Europe, America and Japan, processing and manufacturing mainly in mainland China and Southeast Asia, in recent years part of the module factory near the downstream to Southeast Asia. after the epidemic in mainland China at the end of January, material transportation has been restricted, now mainland manufacturers basically resume production, many factories rely on inventory to maintain production Some manufacturers, inventory has been below the safety level, but the logistics of transport around the world is not smooth, the entire electronics industry chain is facing a severe test, the new crown of the epidemic caused by the transport blockade of the longer the duration, the more serious the crisis of the industry chain lack of material will be.

The production cost of the leading foundry is lower and its profitability is stronger. While the customer structure of the leading OEMs is relatively complete, the connection with big customers is also very close. As brand manufacturers are gradually showing a head-focused trend, the growth rate of downstream leading brand manufacturers tends to be higher than the industry growth rate, and OEMs with close ties to major customers will also benefit from their growth to maintain a higher growth rate. The vertical integration of the industry chain can better meet customer needs and improve profitability, as well as enjoy the dividends of rule makers. The vertical integration of the industrial chain can maintain the stability of the supply chain, take the epidemic as an example, for mobile phone manufacturing, delayed recovery will lead to upstream shell, packaging materials and even logistics supply constraints, with the case manufacturing capacity of OEMs can achieve rapid supply. But for some do not have the raw material cost and supply advantages of service providers, this will be a huge blow.

Rising trend of OEM outsourcing to increase productivity and reduce costs
Growing popularity of latest and greatest medical devices is expected to significantly boost the market growth owing to stringent regulatory environment for device manufacturing and demand for highly advanced manufacturing technologies. This has further led to widespread adoption of contract services by OEMs in order to focus more on their core competencies and invest more in research and development to reduce costs and gain competitive advantage over other competitors.
Increasing focus on cost reduction and profit maximization by key industry players across industries is one of the key factors that will facilitate the adoption of contract services and thereby expand market growth throughout the forecast period. In addition, increased competition in the industry has further led to profit dilution, resulting in the widespread adoption of these services to reduce costs and expand profits.

Management ability is an important obstacle to enter the industry

The basic management of EMS manufacturing enterprises covers a wide range of aspects and is relatively complex, covering supply chain management, production management, human resource management, design and development management, marketing network management, market strategy management, after-sales service management and other links. Standardized and standardized internal management helps companies improve operational efficiency and enhance market competitiveness, which is crucial to the survival and development of companies. EMS industry backbone enterprises have strong comprehensive management capabilities, and already have a more standardized and standard management system, which can help them more effectively control costs, increase production capacity, increase sales, and increase product added value.

Region Overview:

Geographically, Asia Pacific held the largest market share – 73.26% in 2022.

Company Overview

Hon Hai Precision Industry Co., Ltd is one of the major players operating in the EMS market, holding a share of 28.17% in 2022.

Hon Hai Precision Industry Co., Ltd

Hon Hai Precision Industry Co., Ltd. engages in the design, development and manufacturing of nanotechnology, heat transfer, wireless connectivity and material sciences products. Its products include cables, connectors, and personal computer components.

Pegatron Corporation

Pegatron Corp is a design, manufacturing and service company. The Company produces motherboards, desktop PCs, notebooks, broadband, wireless systems, game consoles, networking, multimedia, LCD TV, and more.

Segmentation Overview:

Among different product types, Systems Assembly Services segment is anticipated to contribute the largest market share in 2027.

PCB Assembly Services

Printed circuit board assembly is one of the most important steps in PCB fabrication that involves all the components that are required to produce the complete PCB. There are 2 methods to construct a printed circuit board assembly; namely, Surface Mount Technique (SMT) and Through-Hole Technique (THT).

Systems Assembly Services

Systems Assembly Services includes Cable assembly and Electromechanical assembly. System assembly services also include the electronic system assembly services required by service providers to provide various electronic products, etc.

Design and Build Service

Design and Build Service means that service providers provide customers with product design and build services; from initial concept to product design to the complete presentation of new products with customers.

Application Overview:

The market's largest segment by application is the segment Communications, with a market share of 30.89% in 2022.

Computer

Computer manufacturing services include the manufacturing and assembly of notebook computers, desktop computer systems, servers, and storage devices.

Consumer Electronics

Consumer electronic products refer to electronic products used in daily consumer life. It belongs to specific household appliances or portable appliances with electronic components, and is usually used for entertainment, communication, and clerical purposes, such as televisions, telephones, stereos, high-fidelity, DVD players, etc.

Aerospace & Defense

EMS is also used in the production and manufacturing of some electronic equipment of Aerospace & Defense. Aerospace and defense products are extremely complex, must operate in extreme environments and meet stringent safety and reliability standards, and often have extremely long-life cycles. Therefore, the requirements for EMS will be higher.

Medical & Healthcare

Medical electronic products, unlike other consumer electronics, require a production environment and the quality standards that the products must meet are very strict, even harsh, because it is related to human life. In all aspects of product production, there can be no thinking or doubt at all, it must be 100% sure. Therefore, the qualification and product quality requirements for EMS manufacturers are very high.

Automotive

The EMS manufacturing expertise in the automotive industry includes PCB assembly services, box build assembly, and module assembly to deliver high-volume manufacturing facilities to OEMs. Some of the major EMS providers for automotive customers include Jabil, Foxconn, and Flextronics. Industry players are establishing long-term partnership and collaboration agreement with major automakers and tier-1 suppliers, influencing the market size expansion.

Communications

The communication technology industry covers the following areas: personal communication, home communication and communication networks. Products include mobile phones and components, set-top boxes and flat-screen TVs, base stations, tower-mounted amplifiers, and microwave systems.

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

Kaifa
Zollner Elektronik
SIIX
Wistron
Venture
Celestica
Kinpo
Hon Hai Precision Industry Co., Ltd
Universal Scientific Industrial
Benchmark Electronics
Flextronics International, Ltd
Jabil Circuit, Inc
Pegatron Corporation
Plexus
Sanmina

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

PCB Assembly Manufacturers
Systems Assembly Manufacturers
Design and Build Manufacturers
Others

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

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

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)