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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, 2023 – 2032
- Report ID: GMI2971
- Published Date: Feb 2023
- Report Format: PDF
Industry Statistics
Electronic Manufacturing Services Market size was worth around USD 500 billion in 2022 and is projected to grow at over 5% CAGR from 2023 to 2032, owing to the growing penetration of smart devices globally.
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Growing working-class populations in emerging nations have increased demand for consumer electronics and high-end technological products. Furthermore, industry participants are accelerating their efforts to adapt to emerging technologies and provide the best services and solutions to clients, which is expected to enhance market performance through 2032. For instance, in Oct 2021, the first Automation Center by OMRON in Europe received a major redesign and now incorporates a vast demonstration space for innovative automation applications. Across the facility, visitors can experience full industrial automation solutions by the company, including quality control, robotics, flexible manufacturing, and AI, and learn how to adapt their business to meet the altering customer needs.
| Report Coverage | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 500 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 5% |
| 2032 Value Projection: | USD 1000 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 140 |
| Tables, Charts & Figures: | 337 |
| Segments covered: | Service, Application, and Region |
| Growth Drivers: | |
| Pitfalls & Challenges: |
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Rising adoption of high-volume production strategies to impede the electronic manufacturing services market growth
Rising emphasis on mass production by manufacturing companies results in significant upfront costs due to space constraints and the demand for infrastructure and equipment. Mass manufacturing also impacts the quality and delivers generic products, limiting the manufacturers' capacity to create personalized products that fit individual client requirements. Furthermore, the trend toward shorter product lifecycles is having a negative impact on industry growth. As consumer preferences vary from time to time, EMS firms must maintain quick and effective new product introduction procedures to overcome this restraint.
Widespread use of smart electronic devices to foster PCB assembly segment expansion
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Electronics manufacturing segment is further segmented into PCB assembly, cable assembly, electromechanical assembly/box build, testing, and prototyping. The PCB assembly segment generated more than USD 300 billion in revenue in 2022 and is expected to depict appreciable growth through 2032 as demand for smart electronic devices rises. A wide range of consumer electronic devices rely heavily on well-designed and manufactured PCBs with a large number of connections. Furthermore, the introduction of 3D printing has helped lower the cost, time required, and resources contributing to PCB development.
Increasing efforts by electronic product manufacturers to enhance user experience to favor engineering services segment outlook
Based on products, the electronic manufacturing services market from electronic manufacturing segment is expected to generate more than USD 600 billion in revenue by 2032, attributed to the rapid expansion of several end-use verticals, including automotive electronics, semiconductors, healthcare, etc. The growing propensity of the European industrial sector to modernize production facilities and the emergence of IIoT have created competitive and collaborative dynamics. These focus on the supply of digital infrastructures, services, and platforms for industrial users in Germany, the United Kingdom, and other major European countries, which are expected to stimulate segment growth through 2032.
Rising implementation of digital technologies to escalate EMS usage across the medical and healthcare sectors
In terms of application, the medical & healthcare segment of the electronic manufacturing services market accounted for more than 5% market share in 2022 and is foreseen to grow exponentially due to the proliferation of compact electrical components and wearables devices in the medical sector. Furthermore, the rising popularity of digitized medical records, leveraging data analytics, automating manual processes, and implementing ML/AI/IOMT to improve personalized patient care may increase the need for electronic contract manufacturing services. Moreover, government programs promoting the digitization and electrification of medical and surgical equipment, such as the Ayushman Bharat Digital Mission in India, are expected to support segment growth.
Expanding electronics sector to augment the Asia Pacific market share
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Asia Pacific electronic manufacturing services market held more than 40% share in 2022 and is poised to grow significantly from 2023 to 2032. Low labor costs, government subsidies, low taxes & customs duties, a favorable approach to regulatory compliances, and a steadily advancing business ecosystem are some key factors contributing to the booming electronics sector, which is expected to support regional market growth. For instance, in September 2022, China government decided to eliminate institutional barriers to develop high-quality electrical and electronics sectors, enhance the effectiveness of regulatory control of the government, release the vitality of market entities, and encourage technological innovations and industrial upgrading.
Strategic collaborations with OEMs to define the competitive landscape
Some of the major companies operating in the electronic manufacturing service market are Compal Electronics, Inc., FLEX LTD, Jabil, Inc., Sanmina Corporation, and Wistron Corporation.
These firms largely focus on forming strategic collaborations with key OEMs to meet high demand and supply enhanced product offerings in accordance with industry standards. In October 2022, DYNICS, a computer system manufacturer, extended its partnership with SINCI, a technology business, to assist in the installation of the ProViewDS suite, a DYNICS product collection designed to ease data transparency and analysis within operations' systems, while SINCI plans to increase its use of ProViewDS in projects including those to aid pharmaceutical businesses with visualization.
Impact of COVID-19 pandemic on electronic manufacturing services (EMS) market trends
COVID-19 pandemic has expedited the adoption of digital technologies across industries, notably in the healthcare sector, resulting in new innovations and uptake in virtual care at hospitals and other healthcare organizations. These technologies focus on improving patient outcomes, thus, accelerating the pace of digital innovation and providing growth opportunities for industry participants in the electronic manufacturing services market. Additionally, the pandemic has also impacted regular business operations, mandating extensive digitalization. The increasing consumer reliance on technology for day-to-day activities, entertainment, and communication has positively influenced industrial growth.
The Electronics Manufacturing Services Market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments: Click here to buy sections of this report
By Product:
- Electronic Manufacturing
- PCB Assembly
- Cable assembly
- Electromechanical assembly/ box build
- Testing
- Prototyping
- Others
- Engineering services
- Circuit design
- PCB layout
- Others
- Test & development implementation
- Component level testing
- Circuit assembly testing
- Fully assembled unit testing
- Others
- Logistics services
- Inventory management
- Remanufacturing
- Others
- Others
By Application:
- Computer
- Consumer electronics
- Aerospace & defense
- Medical & healthcare
- Automotive
- Semiconductor Manufacturing
- Robotics
- Agriculture
- Power & Energy
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Switzerland
- Sweden
- Austria
- Poland
- Slovakia
- Czech Republic
- Norway
- Finland
- Denmark
- Benelux
- Asia Pacific
- China
- Japan
- India
- ANZ
- South Korea
- Indonesia
- Taiwan
- Vietnam
- Cambodia
- Latin America
- Brazil
- Mexico
- MEA
- Saudi Arabia
- UAE
- South Africa