Electronic Manufacturing Services (EMS) encompasses a variety of offerings provided by specialized firms. Their primary focus is on aiding original equipment manufacturers (OEMs) and similar clients in designing, producing, testing, and overseeing the production of electronic components and assemblies. EMS providers furnish a comprehensive array of solutions to enable clients to efficiently and economically introduce their electronic products to the market. These services often span the entire lifecycle of a product, commencing with the conceptual and design phases and extending through manufacturing, testing, and post-sales support. Key activities within EMS include:

• PCB (Printed Circuit Board) assembly
• System Integration
• Supply chain management
• Logistics

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 growth of the EMS market is driven by several factors, including rising demand for consumer electronics, innovative technological advancements, and increasing healthcare, automotive, and industrial applications. The highly competitive market could lead to pricing pressures and reduced profit margins for EMS providers. However, EMS providers can overcome these challenges by focusing on innovation, cost control, and compliance with regulations to capitalize on the opportunities presented by the market.

Furthermore, advancing environmentally friendly technology is compelling electronics manufacturing services to create products with a positive environmental footprint or mitigate negative environmental effects. These products are crafted using recyclable components and environmentally safe chemicals to diminish CO2 emissions, decrease energy usage, and curtail waste during production. As a result, designers prioritize strategic planning for developing eco-friendly electronic technology, consequently propelling the growth of the electronic manufacturing services (EMS) market.

COVID-19 Impact on Electronic Manufacturing Services Market

The COVID-19 pandemic has significantly impacted the electronic manufacturing services (EMS) market. Here are some of the key impacts:

• Disruptions to the supply chain have had the biggest impact on manufacturing. Many companies rely on fluid supply chains to obtain raw materials, replacement components, and other necessary inputs. The coronavirus outbreak has impeded the demand for electronic manufacturing services due to the pandemic's severe effect on the supply chain of the global electronics industry.
• Reduced productivity levels throughout EMS facilities in the 1st and 2nd quarters 2020. For instance, Jabil Inc. stated that its factories are running at roughly.
• The COVID-19 pandemic has adversely affected economies and industries in several nations owing to lockdowns, travel bans, and business shutdowns, which have affected the EMS market size.
• Many companies in the electronics industry find that they don't have the cash resources to support products with less obvious or immediate profits. On the other hand, many manufacturers have taken the opportunity to streamline their product lines. The support for older products or less profitable product ranges has been withdrawn.

Factors Driving the Electronic Manufacturing Services Market

Drivers

Rising demand for electronics manufacturing services due to increasing healthcare, automotive, and industrial applications

The increasing healthcare, automotive, and industrial applications drive the rising demand for electronics manufacturing services. EMS providers offer comprehensive solutions to help clients bring their electronic products to market efficiently and cost-effectively. The electronic manufacturing segment held the largest market share and is anticipated to witness a growth rate through 2027, majorly attributed to the rising adoption of smart home devices in developed economies, with the U.S. acquiring the majority of the market. EMS providers focus on providing functionalities such as manufacturing sub-assembly, testing, designing printed circuit boards (PCBs), and component assembly and re-engineering. This will subsequently drive the market growth over the forecast period. EMS providers are continuously investing to improve factory performance and adopt new technologies, which aids in achieving new global standards. The growing demand for consumer electronics and innovative technological advancements allow manufacturers to capitalize on current opportunities. The market is moving toward fragmentation, owing to the improved adoption of these services across industries and the presence of several market players globally.

Challenges

Requirement for EMS providers to comply with various regulations and standards

EMS providers must comply with various regulations and standards to ensure the safety and quality of their services. Here are some of the key regulations and standards that EMS providers must comply with:

• Federal regulations: EMS providers in the United States must comply with federal regulations issued by different agencies, including the Department of Transportation (DOT) and the Drug Enforcement Administration (DEA)

• These regulations cover a wide range of topics, such as controlled substances, patient privacy, and workforce safety.

• State regulations: EMS providers must also comply with state regulations, which can vary widely depending on the state.

• These regulations cover topics such as licensing, certification, and scope of practice.
• Compliance programs: EMS providers must establish and maintain compliance programs to ensure that they are meeting all applicable regulations and standards.

• These programs should include policies and procedures for identifying and addressing compliance issues, as well as training for staff on compliance-related topics.

• Industry standards: EMS providers must also comply with industry standards, such as those set by the National Fire Protection Association (NFPA) and the Commission on Accreditation of Ambulance Services (CAAS). These standards cover topics such as vehicle safety, equipment maintenance, and patient care.

Overall, compliance with regulations and standards is essential for EMS providers to ensure the safety and quality of their services. EMS providers must stay up to date with changes in regulations and standards and implement appropriate policies and procedures to ensure compliance.

Trends 

The growing propensity of the European industrial sector to modernize production facilities and the emergence of IIoT

The European industrial sector is showing a growing propensity to modernize production facilities and adopt the Industrial Internet of Things (IIoT). Here are some of the key points:

• IIoT is expected to revolutionize the manufacturing industry by introducing new technologies and processes
• The European market for IoT solutions is accelerating, with Germany, the United Kingdom, and the Netherlands leading the way.
• The manufacturing sector is one of the front runners in IoT adoption, but impressive growth can also be found in the retail and agriculture sectors.
• Large corporations in the E.U. are six times more likely than SMEs to leverage the benefit of IIoT.
• Industrial IoT is one solution to modernize assets in most industrial organizations.

Overall, the adoption of IIoT and the modernization of production facilities in Europe is expected to drive growth in the industrial sector and create new opportunities for EMS providers.

Electronic Manufacturing Services Market Segmentation 

By Service

The segmentation analysis of the electronic manufacturing services market focuses specifically on electronics design and engineering, electronics assembly, electronics manufacturing, logistics services, etc. Segmenting the EMS market in this manner allows both EMS providers and clients to identify specific areas of expertise and services that cater to their needs. Industry trends, technological advancements, and evolving customer demands within the electronics manufacturing landscape influence the growth of each segment.

The engineering services category is experiencing a more substantial growth rate within these segments during the projected period. This is primarily attributed to increased research and development activities by Electronic Assembly Manufacturers. This segment encompasses services related to the design and development of electronic products. EMS providers collaborate with clients to create product concepts design printed circuit boards (PCBs), mechanical components, and embedded software.

By Application

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.

Consumer electronics holds the largest market share of around 22% within the global market due to initiatives by the government for consumer electronics sectors. Notably, the automotive and aerospace defence segment is experiencing substantial CAGR growth during the projected period. The accelerated progress in the automotive and, aerospace, defence sectors can be attributed to the increasing trend towards digitization, the integration of IoT technology into automobiles, and the expanding adoption of electric vehicles (E.V.s). For instance, according to industry analysis by the International Energy Agency (IEA), global electric car sales witnessed an impressive surge, registering approximately a 140% increase in the first quarter of 2021 compared to the same period in 2020. This surge was driven by combined E.V. sales reaching around 1 million vehicles in Europe and China. Furthermore, sales in the United States more than doubled compared to the first quarter of 2020, even though they started from a lower base.

By Regions

By region, the market is divided into North America, Europe, APAC, and Others. Others are further divided into the Middle East and South America.

The Asia Pacific region currently holds a dominant market position, commanding a substantial market share of around 38%, and it is anticipated to maintain this influence throughout the forecast period. China plays a pivotal role in this region as a primary provider due to several factors, including cost-effectiveness in maintenance, material availability, and rapid production compared to other nations, such as the United States. Particularly, cities like Shenzhen and Penang in China have emerged as prominent hubs for electronic manufacturing services (EMS), drawing the interest of numerous consumer electronics companies, including industry giants like Apple Inc.

In Europe, leading automotive companies such as Mercedes, BMW, Ferrari, Audi, and others collaborate with EMS suppliers to facilitate activities like PCB production, engineering, prototyping, and design to expedite the efficient development of connected car technologies. The European Union's initiatives aimed at expediting the production of electric vehicles, electronic lighting solutions, and safety electronic equipment contribute significantly to the growth of EMS within the region.

Competitive Landscape

The competitive landscape of the Electronics Manufacturing Services (EMS) market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats that EMS providers face. A thorough competitive analysis in the EMS market can help stakeholders, including OEMs and investors, make informed decisions and identify potential partners or providers aligning with their needs and goals. The EMS market is dominated by global electronics manufacturers such as Hon Hai Precision Industry Co. Ltd (Foxconn), Jabil Inc., Sanmina Corporation, Flex Ltd, and Benchmark Electronics, Inc. Key players in the EMS market are focusing on developing advanced EMS to strengthen competition. They are launching distinctive solutions with modern technologies such as AI, ML, and others. EMS providers offer various services, including PCB assembly, cable assembly, electromechanical assembly, contract design, testing, prototyping, aftermarket services, laser I.D. marking on PCBs, conformal coating, repair and revision upgrading, and burn-in and thermal cycling.

Overall, the EMS market is highly competitive, with several players offering a range of services to clients. The market is projected to grow in the coming years, driven by increasing demand for consumer electronics, innovative technological advancements, and rising healthcare, automotive, and industrial applications.

Recent Developments in the Electronics Manufacturing Services (EMS) Market

• June 2022: Flex unveiled plans to expand its automotive industry operations in Jalisco, Mexico. The company is currently in the process of constructing a cutting-edge facility covering an area of 145,000 square feet. This facility is strategically positioned to become a central automotive manufacturing hub within the region, focusing on the production of advanced electronic components that will play a pivotal role in advancing the electric and autonomous vehicle era.

• March 2022: Sanmina Corporation, a comprehensive manufacturing solutions provider, and Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), India's largest private sector company, jointly announced their agreement to establish a collaborative venture. This venture is being formed through an investment in Sanmina's existing Indian entity, known as Sanmina SCI India Private Ltd, or "SIPL."

• April 2021: Jabil Inc. unveiled the release of an inventive new additive material, Jabil PA 0600, which is currently protected by a patent-pending status. This material has been engineered to offer the exceptional levels of strength and rigidity necessary for challenging manufacturing applications in the aerospace, automotive, and industrial sectors.

• October 2021: Celestica Inc. completed the acquisition of PCI Private Limited, an electronics manufacturing services (EMS) provider headquartered in Singapore. This strategic move was undertaken to enhance Celestica's capabilities in telematics, the Internet of Things (IoT), embedded systems, and human-machine interface development.

Table of Contents

1.    Executive summary

2.    MARKET INTRODUCTION

2.1               MARKET SCOPE

2.2               MARKET Definitions

3.    research methodology

4.    market outlook

4.1               Key Trends

4.2               GUIDELINES / REGULATIONS

4.3               COVID- 19 IMPACT ON GLOBAL Electronic Manufacturing Services MARKET

4.4               MARKET DYNAMICS

4.4.1                   Drivers

4.4.1.1               Growing demand for consumer electronics

4.4.1.2               Growing awareness about e-waste recycling

4.4.1.3               Emergence of green electronics manufacturing

4.4.2                   Restraints

4.4.2.1               Increasing use of high-volume production techniques

4.4.2.2               Violation and lack of intellectual property (IP) rights

4.4.3                   Opportunities

4.4.3.1               Increasing adoption of smart home devices

4.4.3.2               Rising R&D by electronic assembly materials manufacturers

4.4.4                   Challenges

4.4.4.1               Requirement for EMS providers to comply with various regulations and standards

4.4.4.2               Need for continuous investment by EMS providers

4.5               PriCing Analysis

4.6               Supply chain analysis

4.7               PORTER’S FIVE FORCE MODEL

4.7.1                   Threat of new entrants

4.7.2                   Threat of substitute

4.7.3                   Bargaining power of suppliers

4.7.4                   Bargaining power of buyers

4.7.5                   Intensity of competitive rivalry

5.    GLOBAL Electronic Manufacturing Services MARKET, By SERVICE TYPE, MARKET ESTIMATION AND FORECAST, 2019-2032, value (USD million)

5.1               INTRODUCTION

5.2               MARKET SHARE ANALYSIS

5.3               Electronics Design and Engineering

5.4               Electronics Assembly

5.5               Electronics Manufacturing

5.6               Others

6.    GLOBAL Electronic Manufacturing Services MARKET, BY application, MARKET ESTIMATION AND FORECAST, 2019-2032, value (USD million)

6.1               INTRODUCTION

6.2               MARKET SHARE ANALYSIS

6.3               Consumer Electronics

6.4               automotive

6.5               industrial

6.6               aerosapce and defence

6.7               healthcare

6.8               it and telecom

6.9               OTHERS

7.    GLOBAL Electronic Manufacturing Services MARKET, REGIONAL ANALYSIS MARKET ESTIMATION AND FORECAST, 2019-2032, value (USD million)

7.1               INTRODUCTION

7.2               NORTH AMERICA Electronic Manufacturing Services MARKET

7.2.1                   North America Electronic Manufacturing Services Market, By Country

7.2.1.1               US

7.2.1.2               Canada

7.2.1.3               Mexico

7.2.2                   North America Electronic Manufacturing Services Market, By Service Type

7.2.3                   North America Electronic Manufacturing Services Market, By Application

7.3               EUROPE Electronic Manufacturing Services MARKET

7.3.1                   Europe Electronic Manufacturing Services Market, By Country

7.3.1.1               Germany

7.3.1.2               UK

7.3.1.3               France

7.3.1.4               Italy

7.3.1.5               Spain

7.3.1.6               Russia

7.3.1.7               Rest of Europe

7.3.2                   Europe Electronic Manufacturing Services Market, By Service Type

7.3.3                   Europe Electronic Manufacturing Services Market, By Application

7.4               ASIA PACIFIC Electronic Manufacturing Services MARKET

7.4.1                   Asia Pacific Electronic Manufacturing Services Market, By Country

7.4.1.1               China

7.4.1.2               Japan

7.4.1.3               India

7.4.1.4               Australia

7.4.1.5               Singapore

7.4.1.6               South Korea

7.4.1.7               Thailand

7.4.1.8               Indonesia

7.4.1.9               Malaysia

7.4.1.10           Philippines

7.4.1.11           Rest of Asia Pacific

7.4.2                   Asia Pacific Electronic Manufacturing Services Market, By Service Type

7.4.3                   Asia Pacific Electronic Manufacturing Services Market, By Application

7.5               MIDDLE EAST & AFRICA Electronic Manufacturing Services MARKET

7.5.1                   Middle East & Africa Electronic Manufacturing Services Market, By Country

7.5.1.1               UAE

7.5.1.2               Saudi Arabia

7.5.1.3               South Africa

7.5.1.4               Rest of Middle East & Africa

7.5.2                   Middle East & Africa Electronic Manufacturing Services Market, By Service Type

7.5.3                   Middle East & Africa Electronic Manufacturing Services Market, By Application

7.6               SOUTH AMERICA Electronic Manufacturing Services MARKET

7.6.1                   South America Electronic Manufacturing Services Market, By Country

7.6.1.1               Brazil

7.6.1.2               Argentina

7.6.1.3               Peru

7.6.1.4               Rest of South America

7.6.2                   South America Electronic Manufacturing Services Market, By Service Type

7.6.3                   South America Electronic Manufacturing Services Market, By Application

8.    GLOBAL Electronic Manufacturing Services MARKET, COMPETITIVE Intelligence

8.1               COMPETITIVE POSITIONING

8.2               competitor benchmarking

8.3               COMPETITiVE QuaDRANT

8.4               market share analysis, 2022 (%)

9.    GLOBAL Electronic Manufacturing Services MARKET, COMPANY ANALYSIS

9.1               Argus Systems

9.1.1                   Company Overview

9.1.1.1               Business outlook

9.1.1.2               Headquarter

9.1.1.3               Established/Incorporated

9.1.1.4               Headcounts/ Employee strength

9.1.2                   Financial Overview

9.1.2.1               Sales/revenue

9.1.2.2               R&D expenditure

9.1.2.3               Business segment sales share

9.1.2.4               Regional sales share

9.1.3                   Product Offerings 

9.1.4                   SWOT Analysis

9.1.5                   Key Developments (Expansion/New Product Development/Agreement/Mergers & Acquisitions, Partnership/Investment/Etc.)

9.2               Asteelflash

9.3               Benchmark Electronics Inc.

9.4               Bharat FIH - A Foxconn Technology Group

9.5               Celestica Inc.

9.6               COMPAL Inc.

9.7               Creation Technologies LP

9.8               Elin Electronics Ltd

9.9               Fabrinet

9.10           Flex Ltd

9.11           General Electric Company

9.12           Hon Hai Precision Industry Co. Ltd

9.13           Integrated Microelectronics Inc.

9.14           Inventec

9.15           Jabil Inc.

9.16           Kimball Electronics Inc.

9.17           Koninklijke Philips N.V.

9.18           Osram Opto Semiconductors GmbH

9.19           Plexus Corporation

9.20           Quanta Computers Inc.

9.21           Rohm Semiconductor

9.22           Sanmina Corporation

9.23           SIIX Corporation

9.24           Sparton Corporation

9.25           Venture Corporation LTD.

9.26           Vinatronic Inc.

9.27           Wistron Corporation

9.28           OTHERS

*Financials and Details May Not be Included in Case of Privately Held Company

Global Electronic Manufacturing Services Market Segmentation

Electronic Manufacturing Services by Type: Market Size & Forecast 2023-2030

• Printed circuit board assembly (PCBA)
• Box build assembly
• Back-end services
• ODM/JDM services
• Design for manufacturing (DFM)
• Design for testability (DFT)

Electronic Manufacturing Services by Application: Market Size & Forecast 2023-2030

• Automotive
• Communications
• Computers
• Consumer electronics
• Industrial
• Medical
• Aerospace & defense

Electronic Manufacturing Services by Geography: Market Size & Forecast 2023-2030

• North America (USA, Canada, Mexico)
• Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)
• South America (Brazil, Argentina, Columbia, Rest of South America)
• Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)

Major Players:

• Foxconn Technology Group
• Flex Ltd.
• Jabil Inc.
• Sanmina Corporation
• Benchmark Electronics, Inc.
• Celestica Inc.
• Plexus Corp.
• Wistron Corporation
• Venture Corporation Limited
• Benchmark Electronics, Inc.
• Creation Technologies LP
• SIIX Corporation
• Kimball Electronics, Inc.
• KeyTronicEMS
• Pegatron Corporation
• Universal Scientific Industrial Co., Ltd. (USI)
• Zollner Elektronik AG
• S. Industry Berhad
• Sparton Corporation
• Kitron ASA
• Fabrinet
• New Kinpo Group
• Venture Corporation Limited
• Season Group International Co., Ltd.
• ESCATEC Engineering Pte Ltd.