Electronic Manufacturing Services (EMS) Market Forecasts to 2028 - Global Analysis By Service (Logistics services, Electronic manufacturing and Other Services), Application (Aerospace & Defense, Computer and Other Applications) and Geography

Electronic Manufacturing Services (EMS) Market Forecasts to 2028 - Global Analysis By Service (Logistics services, Electronic manufacturing and Other Services), Application (Aerospace & Defense, Computer and Other Applications) and Geography

According to Stratistics MRC, the Electronic Manufacturing Services (EMS) Market is accounted for $518.85 billion in 2022 and is expected to reach $860.62 billion by 2028 growing at a CAGR of 8.8% during the forecast period. Electronic manufacturing services (EMS) are used by enterprises that contribute to design, testing, manufacture, and distribution. For OEMs, these services also provide return and repair alternatives for electronic assemblies and components. The expansion of electronic device service centres has been recognised as a potential factor in the growth of the global electronic manufacturing service industry.

According to the Global E-waste Monitor 2020, a report published in collaboration with the UN Environment Program (UNEP), in 2019, around 53.6 million metric tons of e-waste were produced. Raw materials contained in that e-waste were valued at USD 57 billion.

Market Dynamics:

Driver:

The rising adoption of bring-your-own-device (BYOD) and work-from-home policies

The rise in Bring-Your-Own-Device (BYOD) and work-from-home policies by IT firms around the world during the pandemic is associated with the industry's expansion. The trend has increased consumer demand for a variety of computing devices, including laptops, desktops, and workstations, which has resulted in the expansion of lucrative market opportunities for providers of electronic manufacturing services. Additionally, market players are focusing on teamwork strategies to enhance their mass production of computer products, including desktops, laptops, and portable PCs.

Restraint:

Violation and lack of funds

Intellectual property (IP) rights are essential for providing secure legal protection to the innovative development of electronics products. Such rights shouldn't be violated, as it not only violates the privacy policies of investors and innovators but also hinders market-wide economic growth. The allocation of funds for strengthening intellectual property systems is challenging for developing economies. It implies that both the violation of such IP rights and their lack are anticipated to hamper market expansion.

Opportunity:

Improvement of greener electronic devices

Green Electronic devices are produced using recyclable materials, non-toxic chemicals, and low carbon emissions. It improves process control, reduces energy usage, and reduces carbon footprints. Electronic manufacturing service providers adopt sustainable plans to reduce emissions in response to rising carbon emissions, which are mostly caused during the production of electronic products. Key industry companies are now concentrating on strategic planning to manufacture greener electronics products, which is fueling the growth of the worldwide electronic manufacturing services market.

Threat:

Short Product Lifecycles

EMS companies and contract manufacturers must have efficient New Product Introduction (NPI) processes in place due to the rapidly shifting tastes and preferences of consumers. Furthermore, to guarantee that product launches achieve schedule, volume, and quality objectives, closed-loop communication between sales, manufacturing, and engineering is essential.

Covid-19 Impact

In the first half of 2020, the COVID-19 pandemic had a substantial negative impact on the market for electronic manufacturing services (EMS). To prevent coronavirus disease, a majority of regulatory and governmental organisations implemented strict lockdowns at the beginning of 2020. As a result of supply-chain disruptions and a drop in demand from end-user industries such as consumer electronics and automotive, a number of suppliers of electronic manufacturing services reduced the number of products they offer.

The IT and Telecom segment is expected to be the largest during the forecast period

Due to the increase in spending on the development of 5G infrastructures, the shift in customer satisfaction toward next-generation technologies and smartphone devices is possible because of the IT and telecom segment. Furthermore, the market could also be fueled by rising demand for value-added managed services, high-speed data connectivity, and an increase in the number of mobile users.

The engineering services segment is expected to have the highest CAGR during the forecast period

During the projection period, the complexity of modern engineering, design, and construction projects has significantly increased, requiring the use of cutting-edge technologies like artificial intelligence, the internet of things, and IT solutions like engineering analytics, as well as crucial input from engineers with vivid backgrounds. These technologies are effective in resolving complex design challenges and addressing the suitable solutions sufficiently to offer improved productivity and promote decision-making. In order to operate the highly integrated infrastructure, it is anticipated that demand for engineering services will massively improve.

Region with largest share:

During the forecast period North America is expected to register largest share in the market due to R&D investments made by key players in this region. Furthermore, the usage of consumer electronics is a result of the region's stable population growth and urbanisation. Low-income people are using electronics more frequently as a result of the availability of low-cost products from a variety of regional manufacturers, including smartphones, televisions, and smart home products. The youth's comfort level with advanced technology increases demand in this region.

Region with highest CAGR:

Government policies that support medical device production across Asia Pacific economies, including India, China, and South Korea, are attributed in advancing the industry. For instance, the Indian government proposed a production-linked incentive (PLI) scheme in April 2021. The incentive scheme's aim is to increase India's domestic production of healthcare and medical equipment. Additionally, the government would provide tax credits through this funding if foreign manufacturers of medical electronics establish plants in the region.

Key players in the market

Some of the key players in Electronic Manufacturing Services (EMS) market include Hon Hai Precision Inc. Co., Ltd., Compal Inc, Sanmina Corporation, Delta Group Electronics, Inc., Flex Ltd, Fabrinet, Advanced Semiconductor Engineering Inc., Wistron Corporation, Integrated Microelectronics, Jabil Inc., East West Manufacturing (Compass Electronics Group, LLC.), Celestica Inc., Benchmark Electronics, Inc., All Shore Industries, Inc, Plexus Corp, Inventec Corporation, Quanta Computer, Venture Corporation Limited, TPV Technology Limited, Kimball Electronics, Inc., TT Electronics Plc, TJM Electronics and Lordstown Motors Corp.

Key Developments:

In November 2021, Hon Hai Precision Industry Co., Ltd. and Lordstown Motors Corp. entered into an asset purchase agreement with a strategic partnership. The Lordstown Motors Corp. sold the Lordstown facility to the company for USD 230.0 million.

In March 2021, Plexus Corp. declared the construction of 400,000 feet square manufacturing facility with production and warehouse space of 2-levels and office space of 4-levels in Bangkok, Thailand. With this, the company targets future growth projections in Asia Pacific.

Services Covered:
• Logistics services
• Electronic manufacturing
• Test & development implementation
• Electronics Design
• Engineering services
• Electronics Assembly

Applications Covered:
• Aerospace & Defense
• Computer
• Medical & Healthcare
• Consumer Electronics
• Semiconductor Manufacturing
• Automotive
• Robotics
• IT and Telecom
• Industrial
• Communications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements