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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

  • Report ID: GMI2971
  • Published Date: Feb 2022
  • Report Format: PDF

Industry Trends

Electronic Manufacturing Services Market size valued at over USD 500 billion in 2021 and is estimated to grow at more than 6% CAGR between 2022 and 2028. The market growth is attributed to the rising trends of contract manufacturing and outsourcing of engineering services by consumer electronics OEMs across the globe.
 

Electronic Manufacturing Services (EMS) Market Overview

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Various consumer electronics OEMs lack in-house development, manufacturing, and testing capabilities. The outsourced electronic manufacturing services lower the cost of development, prototyping, and testing various electronic products. It further helps companies to fasten the product development lifecycle and gain high-profit margins to compete in the market. These intuitive benefits are expected to encourage OEMs to enter strategic collaborations and partnerships with market players to meet their demands, further propelling the industry growth. Several electronic manufacturing services providers are emphasizing on establishing dedicated manufacturing facilities and production lines to timely expedite the orders.
 

The COVID-19 pandemic has severely impacted the electronic manufacturing services (EMS) market in the first half of 2020. In early 2020, several government bodies and regulatory authorities have implemented stringent lockdowns to limit the spread of coronavirus. Adding to this, several electronic manufacturing services vendors reduced their production capacities due to supply-chain disruptions and declining demand from end-user industries such as the consumer electronics & automotive sectors. However, from the second half of 2020, enterprises across the globe adopted the work-from-home model, which increased the industry demand for computing hardware such as laptops, desktops/PCs, and tablets.
 

Increasing trend of high-volume manufacturing among OEMs will spur the market expansion

The electronic manufacturing segment dominated more than 60% of the market share in 2021 and is anticipated to witness 6% growth rate through 2028. The growth is driven by the growing trend of high-volume manufacturing of advanced safety systems among automotive OEMs. Various automotive safety systems, such as parking assistance systems, lane departure warning systems, adaptive cruise control, and advanced telematics, are integrated into vehicles. Electronic manufacturing services providers mass-produce these components to support the automotive industry participants.
 

Computer manufacturers are projected to switch toward electronic manufacturing services providers for the fast delivery of products in the market and manage logistics services during the pandemic crisis. Adding to this, market leaders are focusing on collaborative approaches to improve their mass production of computing solutions such as desktops, laptops, and portable PCs.
 

The rising adoption of work-from-home policies across IT enterprises to influence the market progression

EMS Market Share

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The computer segment held 30% of revenue share in 2021 and is poised to expand at 7% CAGR by 2028. The industry expansion is attributed to the rising usage of Bring-Your-Own-Device (BYOD) and work-from-home policies by IT enterprises across the globe during the pandemic. The trend has resulted in the increasing demand for various computing devices including laptops, desktops/PCs, and workstations, creating high growth opportunities for electronic manufacturing services vendors in the market.
 

Computer manufacturers are slated to switch toward electronic manufacturing services providers for the fast delivery of products in the market and manage logistics services during the pandemic crisis. Adding to this, market participants are focusing on collaborative approaches to improve their mass production of computing solutions such as desktops, laptops, and portable PCs.
 

Favorable government initiatives to support the manufacturing of medical devices will create growth opportunities for APAC region

APAC Electronic Manufacturing Services Market

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Asia Pacific electronic manufacturing services market accounted for 40% of revenue share in 2021 and is predicted to attain a CAGR of 7% till 2028. The industry progression is credited to favorable government initiatives supporting medical device manufacturing across Asia Pacific economies including India, China, and South Korea. For instance, in April 2021, the Government of India announced a Production-Linked Incentive (PLI) scheme with a total budget of USD 453.7 million from 2021 to 2028. The incentive scheme focuses on boosting the domestic manufacturing of healthcare and medical devices in India. Through this funding, the government will provide tax benefits to foreign medical electronics manufacturers if they establish manufacturing plants in the region.
 

Focus on strategic alliances and collaborations to gain a competitive advantage in the industry

Key companies operating in the market include Foxconn, Compal Electronics, Inc., Jabil, Inc., FLEX LTD., Inventec, Quanta Computer lnc., Fabrinet, Keytronic, Sparton Corporation, Sanmina Corporation, and Wistron Corporation. These leaders are heavily focusing on various strategies, such as joint ventures, partnerships, collaborations, and acquisitions, to gain a competitive edge.
 

The EMS market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2028 for the following segments:

Market, By Service

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

Market, By Application

  • Computer
  • Consumer electronics
  • Aerospace & defense
  • Medical & healthcare
  • Automotive
  • Semiconductor manufacturing
  • Robotics
  • Others

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

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

 

Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

The global market size of electronic manufacturing services crossed $500 billion in 2021 and is predicted to showcase more than 6% CAGR between 2022 and 2028.

The electronic manufacturing segment held a dominant share of over 60% of the market share in 2021 as the trend of high-volume production of innovative safety systems is growing at a robust pace among automotive OEMs.

The computer segment held nearly 30% of revenue share in 2021 as the Bring Your Own Device (BYOD) trend is gaining momentum with companies across the world formulating work-from-home policies for their employees.

Asia Pacific accounted for a revenue share of 40% of the market share in 2021 due to the introduction of supportive government policies to amplify the production of medical devices across India, South Korea, and China.

Eminent companies, including Jabil, Inc., Compal Electronics, Inc., Foxconn, Quanta Computer lnc., Inventec, Keytronic, and FLEX LTD., among several others, are positively influencing the global market forecast.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 25
  • Tables & Figures: 213
  • Countries covered: 19
  • Pages: 230

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