Electronic Manufacturing Services (EMS) Market Size, By Service (Electronics Manufacturing, Engineering Services, Test & Development Implementation, Logistics Services), By Application (Computer, Consumer Electronics, Aerospace & Defense, Medical & Healthcare, Automotive, Semiconductor Manufacturing, Robotics), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2028
The electronic manufacturing services (EMS) market is expected to register substantial growth by 2028 on account of increasing electrification of vehicles and burgeoning demand for electric vehicles across key regions. In addition, prevalent adoption of smart home devices in developed countries is likely to propel market development over the forecast period.
Electronic manufacturing services (EMS) include the assembling, designing, producing, and testing of electronic components for original equipment manufacturers' printed circuit board (PCB) assemblies. Depending on the organization and project, electronic manufacturing includes various levels of automation. Rising trend of industrial automation has fueled product uptake over the past few years. Moreover, the rapid expansion of medical device manufacturing in leading regions has augmented the growth of the electronic manufacturing services (EMS) market.
Notably, industry players have been actively engaging in gainful strategies to capitalize on emerging trends in the market, which has positively impacted the overall business landscape. For instance, in February 2022, Compal Electronics, Inc., a leading computer manufacturing company, announced the acquisition of 65% outstanding shares of Poindus Systems Corp., a prominent manufacturer of industrial PC technology, POS systems, and touchscreen technology. The deal enabled Compal to expand its IPC product portfolio and strengthen its market exposure.
The electronic manufacturing services (EMS) market has been segregated on the basis of application, service, and region. In terms of service, the market has further been divided into logistics services, electronic manufacturing, test & development implementation, engineering services, and others.
The logistics services sub-segment is slated to reach a significant valuation by 2028, developing at a growth rate of approximately 3.5% over the assessment period. This growth is attributed to the surging demand for effective supply chain management, repair, and maintenance services from OEMs.
From the application point of view, the electronic manufacturing services (EMS) market has been categorized into robotics, computer, semiconductor manufacturing, consumer electronics, automotive, aerospace & defense, medical & healthcare, and others.
In 2021, the automotive sub-segment held a market share of nearly 15% and is anticipated to exhibit a solid growth trajectory through the study time period. Escalating demand for advanced safety systems from automotive OEMs is likely to bolster segmental expansion over the forthcoming years.
From the regional spectrum, the Latin America electronic manufacturing services (EMS) market is set to witness notable growth of more than 4.0% over the projected timeline due to the widespread penetration of data centers that incorporate high-performance computing devices and server equipment.
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