Electronic Manufacturing Services [EMS] Market Size (2024-2030)

According to the report published by Virtue Market Research in Global Electronic Manufacturing Services [EMS] Market was valued at USD 567.21 billion and is projected to reach a market size of USD 857.39 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 6.08%.

The demand, for manufacturing services is expected to increase as healthcare, automotive, and industrial applications adopt these products. Service providers are focused on offering a range of functions like manufacturing sub-assemblies, testing, designing Printed Circuit Boards (PCBs), and assembling and re-components. Furthermore, companies providing manufacturing services are investing significantly in expanding their output and incorporating new technologies, which helps establish global standards. In this industry, organizations have embraced advancements such as virtual reality the Internet of Things (IoT), and 3D printing to enhance their production capabilities. To access high-value components and enable mass customization, market participants are now forming partnerships with Original Equipment Manufacturers (OEMs) Original Design Manufacturers (ODMs), and other collaborators.

Key Market Insights:

IBE Foundational estimates that the vehicle (EV) market, in India will potentially reach INR 50,000 crores (USD 7.09 billion) by 2025. Additionally, the CEEW Centre for Energy Finance conducted a study that identified an opportunity of USD 206 billion for vehicles, in India by 2030.

Moreover Industry 4.0 guarantees improvements, in the efficiency and productivity of data automation in factories. The progress in IoT and artificial intelligence (AI) also contributes to this growth to an extent. Although the electronics industry has yet to attain the level of intelligence and automation the movement towards Industry 4.0 is gradually opening up possibilities as can be seen from developments in the market, for electronics manufacturing services.

Rockwell Automation Inc. recently revealed its plans to acquire CUBIC, a company that specializes in developing modular systems, for building panels. This partnership aims to bring advantages, including time to market expanded applications for intelligent motor control, across entire plants and the ability to generate insightful data that enhances sustainability and productivity for a diverse set of customers.

As, per the information provided by IBEF, 80% of the Production Linked Incentive Scheme (PLI) which aims to promote manufacturing in the country is focused on three sectors; electronics, automobiles, and solar panel production. This initiative involves an investment of INR 3 lakh crore (USD 38.99 billion). Is expected to facilitate significant advancements in technology products related to networking 5G, data centers, automotive/LIDAR systems as well, as aerospace and defense markets.

Electronic Manufacturing Services [EMS] Market Drivers:

To boost market prospects, greener electronics are being improved.

The growth of the electronics manufacturing services market is being fueled by the rise of electronic devices. These devices are made using components, and toxic chemicals and have reduced carbon emissions during production. Their purpose is to minimize carbon footprints decrease energy consumption and enhance process control. The increasing concern, over the escalating e-waste problem has spurred the development of electronic products. According to the Global E Waste Monitor 2020 a report published in partnership with the UN Environment Program (UNEP), 53.6 million tons of e-waste were generated in 2019 alone. The raw materials contained within this e-waste were valued at USD 57 billion. In response, to the carbon emissions associated with electronic device production providers of electronic manufacturing services are implementing strategies aimed at reducing emissions. Consequently, key market players are prioritizing planning for the production of electronic devices thereby propelling global market growth.

Increasing Automation in Various End-Use Industries is fueling the demand for EMS.

Projections suggest that automation will significantly boost productivity by, up to 15%. As a result, many companies and industries are embracing this trend. This increased adoption is also driving the demand for robots. All these factors are anticipated to contribute to the growth of the market.

Electronic Manufacturing Services [EMS] Market Restraints and Challenges:

Intellectual property rights infringement and a lack of them could impede market expansion.

Property (IP) rights play a role, in providing legal protection for innovative electronic devices giving business owners a competitive advantage. Violating these rights not only invades the privacy policies of innovators and investors but also hinders economic development across the market. Often medium-sized enterprises prioritize market growth without fully recognizing the importance of intellectual property rights (IPR) which can offer significant business opportunities in a secure environment. Developing economies face challenges, in allocating resources to strengthen their intellectual property systems. Therefore, key market players need to adapt their manufacturing processes and obtain IP rights securely. Failure to respect and protect these IP rights is anticipated to impede market growth.

Electronic Manufacturing Services [EMS] Market Opportunities:

Experts anticipate that the continuous shift, towards vehicles and the growing demand for components from manufacturers will propel the expansion of the EMS market. In the past printed circuit boards (PCBs) were mainly utilized in headlight switches and windshield wipers. However, with advancements in automation and sensor technology within the industry there has been an increased need for PCBs and various other electronic parts to incorporate features that enhance safety and driving automation. According to forecasts, it is anticipated that electronics in cars will represent 50% of the cost of a new vehicle, in the future.

ELECTRONIC MANUFACTURING SERVICES [EMS] MARKET REPORT COVERAGE:

Electronic Manufacturing Services [EMS] Market Segmentation:

Electronic Manufacturing Services [EMS] Market Segmentation: By Service Type

• Electronics Manufacturing
• Engineering Services
• Test & Development Implementation
• Logistics Services
• Others

Among these sectors, engineering services are anticipated to experience the fastest growth rate during the forecast period. This growth can be attributed to manufacturers' increased focus on research and development of high-performance electronic assembly materials. Additionally, the electronics manufacturing services sector has dominated the market share in 2022, due to the growing importance of circuit boards in tablets and other electronic devices. The test & development implementation and logistics services sectors are also experiencing growth. Market players are opting for outsourcing services to enhance flexibility and reduce costs. The rise in vehicles has further fueled the demand, for outsourced component manufacturing thus driving growth in the electronic manufacturing services market.

Electronic Manufacturing Services [EMS] Market Segmentation: By Application Type

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

It is anticipated that the consumer electronics sector will lead the market with the growth rate during the forecast period. This is due to the implementation of initiatives by government bodies in countries like the U.S., India, and others. These initiatives have also driven the demand for consumer electronics, computers, and communication devices in IT and telecom applications. The automotive and aerospace & defense sectors have experienced growth due to increasing digitization efforts the rise of enabled cars and an increase in electric vehicle sales. According to, International Energy Agency (IEA) electric car sales reached 3 million units in 2020 which is a 40% increase compared to 2019. Europe currently leads the electric car market followed by China and the U.S.

Electronic Manufacturing Services [EMS] Market Segmentation: Regional Analysis:

• North America
• Asia-Pacific
• Europe
• South America
• Middle East and Africa

In 2022 the Asia Pacific region held the share of the Electronic Manufacturing Services market. It is anticipated to continue its significant expansion throughout the forecast period. China stands out as a player, in electronic manufacturing services thanks to its extensive manufacturing facilities for consumer electronics, semiconductors, and other telecommunications devices and machinery. Moreover, with the lockdown during COVID-19, there was an increased demand for consumer electronic devices in China to facilitate remote work arrangements. This surge in demand further fueled the growth of the Asia Pacific market. Additionally, India’s manufacturing industries are experiencing growth, which could potentially drive electronic equipment manufacturing in the years

In the year 2020 the EMS market, in North America witnessed progress presenting opportunities for future growth. The region’s urban development and consistent population expansion are expected to drive the consumption of consumer electronics among high-income households. The availability of consumer products such as smart home devices, smartphones, and televisions from various local manufacturers has contributed to their increased adoption among individuals with lower incomes. Additionally, the familiarity of people with technology further fuels the demand in this area. Moreover, North America’s strong financial standing enables it to make investments, in research and development activities. The future growth of the market is anticipated to be driven by the rising adoption of electronics, in the region in sensors, solar devices, and conductors for high-end automobiles and space vehicles. These advancements in electronics are expected to result in increased penetration and application, across industries.

COVID-19 Impact Analysis on the Global Electronic Manufacturing Services [EMS] Market:

The COVID-19 pandemic had consequences for market players leading to a significant decline in their revenues. Additionally, the electronics manufacturing industry in 2020 faced challenges such as limited technology movement and worksite coordination, cybersecurity issues, and underutilization of fixed costs.

The electronics manufacturing industry is anticipated to be impacted due to the virus outbreak in major industrial countries, such as Germany, India, China, and the U.S. However, in the long run, experts predicted that the industry will bounce back strongly as there will be an increase in product development and demand across sectors such as healthcare, automotive, computer, and communication. One important aspect is the growing need for monitoring devices that allow companies to continue their operations during lockdowns. For example, in September 2020 Benchmark Electronics Inc. Joined forces, with DnaNudge (a company based in the UK) to produce a volume of DnaNudges lab RT PCR COVID-19 testing system.

Latest Trends/ Developments:

The increasing awareness regarding the recycling of waste is contributing to the market growth. According to the UN's Global E Waste Monitor 2020, there was a 21% increase, in e-waste volume in 2019. It is also projected that by 2030 the amount of discarded products with plugs or batteries worldwide will reach 74 million tons, nearly double the amount in just 16 years. As a result, government authorities and original equipment manufacturers (OEMs) have implemented strategies and initiatives for e-waste recycling. For example, Singapore introduced a system for managing electrical waste (e-waste) in July 2021. Although this has caused some inconvenience for consumers when it comes to recycling their e-waste it represents a circular economy approach, towards achieving zero waste as a nation. Similarly, Switzerland and Ghana have joined forces during the period to combat and eliminate e-waste.

Moreover, during March 2020, the European Commission (EC) introduced an approach, to the economy. A key focus of this proposal is the reduction of electronic waste. The plan lays out short-term objectives such, as implementing the "right to repair" and enhancing recycling and reusability practices overall. Additionally, it includes incentives to encourage electronic product recycling and the adoption of chargers. These measures will help decrease e-waste levels while also raising awareness about the importance of reuse and recycling.

Key Players:

1. Sanmina Corporation
2. Hon Hai Precision Industry Co. Ltd
3. Benchmark Electronics Inc.
4. Flex Ltd 
5. Jabil Inc. 
6. Celestica Inc. 
7. Wistron Corporation 
8. Plexus Corporation 
9. Fabrinet
10. COMPAL Inc.

In May 2023 Creation Technologies unveiled a brand manufacturing facility, in St. Peter, USA. The facility boasts an expanded floor space of 88,880 feet and offers a range of comprehensive services to original equipment manufacturers (OEMs) in the automotive, aerospace, and defense industries. This includes integrated EMS service providers as expert assistants, in design supply chain management and aftermarket solutions.

In October 2022 Benchmark Electronics Inc., a company specializing in manufacturing, design, and engineering services announced a collaboration, with Yield Engineering System. This partnership allowed Benchmark Electronics Inc. To broaden their production capabilities, in Malaysia.