Electronics 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

Published Date: Jul 2020  |  Report ID: GMI2971  |  Authors: Preeti Wadhwani, Shubhangi Yadav

Report Format: PDF   |   Pages: 230   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

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

Electronics Manufacturing Service 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

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Electronics manufacturing services 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, industry players are integrating strategies to maintain long-term contracts with government agencies in the aerospace & defense sector to gain high competitiveness in the 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 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 due 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 applications.
 

Electronics Manufacturing Services Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 500 Billion
Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 5% 2026 Value Projection: USD 650 Billion
Pages: 230 Tables, Charts & Figures: 157
Geographies covered (19): U.S., Canada, UK, Germany, France, Italy, Spain, Russia, China, India, Japan, South Korea, Australia, Taiwan, Brazil, Mexico, Saudi Arabia, UAE, South Africa
Segments covered: Service , Application
Companies covered (21): Advanced Semiconductor Engineering Inc., Benchmark Electronics, Inc., Celestica Inc, Compal Electronics, Inc., Delta Group Electronics, Inc, Fabrinet, Flex Ltd, Foxconn Technology Group, Integrated Micro-Electronics, Inc., Inventec Corporation , Jabil Inc., KeyTronicEMS , Kimball Electronics, Inc. ,Plexus Corp., Quanta Computer, Sanmina Corporation, SIIX Corporation, Sparton Corporation, TPV Technology Limited, TT Electronics, Wistron Corporation
Growth Drivers:
  • Growing need to shorten the time to market
  • Growing penetration of smartphones and smart devices
  • Production shift to countries in Asia Pacific with low labor cost
  • Growing opportunities in medical device manufacturing in North America and Europe
  • Rising trend of outsourcing by OEMs to enhance productivity
  • Increasing electrification in vehicles and rising shift towards electric vehicles
  • Proliferation of smart home devices in developing nations
Pitfalls & Challenges:
  • Focus of companies on high volume products
  • High risks associated with the model and lack of risk management competencies

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Rising trend toward smart home devices will drive the demand for electronic manufacturing in the industry

The electronic manufacturing segment held a market share of over 55% and is anticipated to witness a growth rate of around 6% through 2026. The growth is majorly attributed to the rising 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. Electronics manufacturing services market players are expanding their manufacturing location to integrate new technologies and cater to the high demand for smart home services in the industry. In March 2020, Sanmina Corporation announced the launch of a new factory in Thailand, which includes advanced assembly and custom packaging facilities to manufacture high-speed RF microelectronics and optical services.
 

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

South Korea Electronic Manufacturing Services Market Growth

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The automotive application segment accounted for more than 15% market share in 2019 due to the rise in electrification in vehicles. Companies are engaged in delivering end-to-end solutions and assisting automakers in service realization, driving the electronics manufacturing services (EMS) market growth. The proliferation of electric vehicles on account of rising government initiatives to control CO2 emission will encourage automakers to opt for EMS. Governments from several nations are also planning to launch schemes and policies to increase the adoption 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. This will positively influence the growth opportunity for EMS over the coming years.
 

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, influencing the market size expansion.
 

Increasing collaboration with automakers in Europe will accelerate the market revenue

Europe Electronic Manufacturing Services Market By Region

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Europe electronics manufacturing services market size is projected to reach USD 110 Billion market by 2026, registering around 5% growth. 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. In 2019, the Environment Bonus plan, the government of Germany, and regional automakers agreed to raise a cash incentive for electric vehicles providers in Europe to comply with energy efficiency & low carbon emission standards and adopt suitable manufacturing techniques, supply chain management, and logistics options.
 

Focus on accelerating business reach to stay competitive in the market

Some of key players in the industry include ASE Group, Benchmark Electronics, Inc, Compal Electronics, Inc. Foxconn Electronics, Inc., Jabil Inc, and Sanmina Corporation. EMS companies are continuously focusing on accelerating their market presence to expand their electronics manufacturing services and cater to new customers in developing regions.
 

The market research report on electronics manufacturing services 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
       

Frequently Asked Questions (FAQ) :

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
  • Pages: 230
  • Tables: 129
  • Charts / Figures: 28
  • Companies covered: 21
  • Countries covered: 19

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