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Electronic Manufacturing Services Market Size By Service (Electronics Manufacturing Services, Engineering Services, Test & Development Implementation, Logistics Services), By Application (Computer, Consumer Electronics, Aerospace & Defense, Medical & Healthcare, Automotive), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026

  • Report ID: GMI2971
  • Base Year: 2019
  • Report Format: PDF

Industry Trends

Electronic Manufacturing Services (EMS) Market size exceeded USD 500 billion in 2019 and is predicted to grow at a CAGR of over 5% between 2020 and 2026.

Electronic Manufacturing Services (EMS) providers are continuously investing to improve the factory performance and adapt new technologies, which aids to achieve new global standards. Increasing competition in EMS has led companies to improve their production capacity by adapting several technological transformations such as augmented reality, Internet of Things (IoT), and 3D printing. Also, to achieve high value parts and mass customization, market players are engaged to form collaboration agreements with several original design manufacturers (ODMs), original equipment manufacturers (OEMs), and other stakeholders.

Electronic Manufacturing Services (EMS) Market Overview

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Market leaders are paving their way to cater to the high demand from the defense & aerospace industry by offering manufacturing services for cable systems, PCBs used in critical communication, and security & control systems. EMS providers help aerospace & defense manufacturers to reduce the size of conventional missiles by replacing rigid circuit with flex circuit boards in micro sensors and aircraft power distribution. Furthermore, market participants are integrating strategies to maintain long-term contracts with government agencies in the aerospace & defense sector to gain high competitiveness in the electronic manufacturing services market.

Companies with diversified business offerings including major automotive manufacturers are inclined toward research & development activities and increasing investments in advanced technological program, catering to the high demand from critical applications. This will further help companies to establish their market positions among other electronic manufacturing service providers.

The ongoing trade war between China and the U.S. has bought several manufacturers in the Asia to readjust their facilities from China.to South East Asian countries to avoid tariffs. According to Thailand Development Research Institute (TDRI), Vietnam has received majority of relocation credited to low labor cost and high-tech industries. However, rising work from home initiative due to COVID-19 has accelerated the demand for computers and laptops, driving the market for EMS in computer application.

Rising trend toward smart home devices will augment the demand for electronic manufacturing segment

The electronic manufacturing segment dominated more than 55% of revenue share in 2020 and is anticipated to witness 6% growth rate through 2026 led by the growing adoption of smart home devices in developed economies with the U.S. acquiring majority of the market. In the U.S. The electronic manufacturing service offered by the companies includes manufacturing of radio frequency & wireless devices, optoelectronics services, and microelectronics devices for ongoing smart home trends.

Industry leaders are inclined toward improving their engineering and factories by the integration of Artificial Intelligence (AI), cloud computing, 3D printing, and big data analysis to develop connected devices for smart homes. Industry players are expanding their manufacturing location to integrate new technologies and cater to the high demand for smart home services in the industry.

Increasing electrification in vehicles to create new market opportunities in automotive application

EMS Market Size

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The automotive segment captured 15% of the electronic manufacturing services market share in 2019 on account of the rise in electrification in vehicles. Companies are engaged in delivering end-to-end solutions and assisting automakers in service realization, fueling the industry growth. The proliferation of electric vehicles owing to rising government initiatives to control CO2 emission will encourage automakers to opt for electronic manufacturing services. Governments from several nations are also planning to launch schemes and policies to increase the acceptance of electric vehicles. In Korea, subsidies for low carbon vehicle purchase increased to 57,000 in 2019 from 37,000 in 2018 with China leading in electric vehicle adoption.

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, impelling the market opportunities over the forecast period.

Growing collaboration with automakers in Europe will foster the market revenue

Europe Electronic Manufacturing Services (EMS) Market

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Europe electronic manufacturing services market is projected to attain a CAGR of over 5% and will reach USD 110 billion by 2026. Major automotive manufacturers in Europe, such as BMW, Ford, Hyundai, and Renault, are collaborating with EMS providers for PCBA manufacturing, engineering, prototyping, and designing for efficient development in connected vehicle technology. In January 2020, Fiat Chrysler Automobiles (FCA) along with Foxconn announced the establishment of a joint venture for the manufacturing and development of electric vehicles for the China market.

Several initiatives by the European Union to accelerate the production of electric vehicles, electronic lighting, and safety electronic equipment are the major drivers for EMS expansion in the region.

Focus on accelerating business reach to stay competitive in the market

Major companies functioning in the market include ASE Group, Benchmark Electronics, Inc, Compal Electronics, Inc. Foxconn Electronics, Inc., Jabil Inc, Sanmina Corporation, among others. EMS manufacturers are continuously focusing on boosting their market presence to expand their electronics manufacturing services and cater to new customers in developing regions.

The market research report on electronic manufacturing services (EMS) includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

Market, By Service

  • Electronics manufacturing services
  • Engineering services
  • Test & development implementation
  • Logistics services
  • Others

Market, By Application

  • Computer
  • Consumer Electronics
  • Aerospace & Defense
  • Medical & Healthcare
  • Automotive
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • France
    • Italy
    • Germany
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Taiwan
    • Australia
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa


Authors: Preeti Wadhwani, Shubhangi Yadav

Frequently Asked Questions (FAQ) :

The market size of electronics manufacturing services exceeded USD 500 billion in 2019 and is estimated to grow at a CAGR of over 5% between 2020 and 2026.

Electronics manufacturing service providers have been investing to enhance factory performance and deploy new technologies, such as IoT, 3D printing, & AR. Collaborations with ODMs and OEMs will help improve market share too.

Increasing adoption of smart home devices in developed economies will push electronic manufacturing, owing to which the segment will prove lucrative for market growth. Estimates claim the segment to have held a revenue share of over 55% in 2019 with an anticipated growth of 6% through 2026.

The automotive application segment may majorly augment market dynamics, having held over 15% market share in 2019, driven by rising vehicle electrification and efforts by companies to deliver end-to-end services to automakers.

Europe may be a major investment ground for EMS providers, given the massive presence of prominent automakers and increasing collaborations between EMS providers and automakers. Europe market may hit USD 110 billion by 2026 with a projected CAGR of 5%.

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Premium Report Details

  • Published Date: Jul 2020
  • Companies covered: 21
  • Tables & Figures: 157
  • Countries covered: 19
  • Pages: 230

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