Electronic Manufacturing Services (EMS) Market size worth over $650bn by 2026

Electronic Manufacturing Services Market size is set to surpass USD 650 billion by 2026, according to a new research report by Global Market Insights, Inc.
 

The EMS market growth is attributed to the increasing penetration of Original Design Manufacturers (ODMs) across the globe. The outsourcing of electronic manufacturing services through ODMs has witnessed high growth as major electronics players, such as Dell, Hewlett-Packard, Sony, Philips, and Apple, demand technical solutions from ODMs. ODMs offer high-end manufacturing services such as engineering, logistics, re-engineering, and manufacturing as well as intellectual proprietary rights (IP) including patents and original design rights. Major ODMs in the market, such as Compal, Wistron, Quanta Computer, and Inventec, are highly focusing on increasing their business operations, which will contribute to the market expansion.

 

Request Sample Buy NowInquiry Before Buying

 

The growing digitization and advancements in medical devices are creating the need for electronic contracting manufacturing services to provide safe & secure machinery across the globe. Technical advancement in sensor technology and growing adoption of remote health-monitoring devices are creating new growth opportunities for EMS service providers. Companies in the healthcare sector are building strategic partnership to achieve high-quality and high-precision medical equipment.
 

The major factor hindering electronic manufacturing services market progression is inefficiency to deliver high volume of production owing to the limitation in the supply of raw materials and electronic components from the supplier. Mass production requires large space, extensive infrastructure, and equipment, which incur high costs. In addition, it also limits the ability of EMS providers to make custom products that meet the specific desires of clients. Moreover, high-volume products are sometimes viewed as being of low quality or generic. In such a scenario, outsourcing manufacturing services is not a preferred option for a company, hindering growth opportunities.
 

Stringent government regulations pertaining to safety for electronic devices will increase the acceptance of test & development implementation in the market

The test & development implementation segment in the EMS market was valued at around USD 50 billion in 2019 and is projected to register 4% growth rate through 2026 driven by the increasing safety and quality guidelines directed by several governments for service manufacturing companies.
 

Test & development implementation plays a crucial role in the overall manufacturing process due to the growing need for developing products with appropriate components to avoid failures and improper functioning. Additionally, these services are also becoming popular due to the emergence of electronic devices comprising hardware & software capabilities. In order to facilitate correct functioning of these devices, companies are increasingly adopting testing & implementation services to gain manufacturing benefits. Increasing device complexities and the development of IoT-based devices are majorly driving the need for test & development implementation. Service providers offer trained employees, testers, and testing software to carry out the required process, further fueling the industry growth.
 

Browse key industry insights spread across 230 pages with 129 market data tables and 28  figures & charts from the report, “Electronic Manufacturing Services (EMS) 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” in detail along with the table of contents:

https://www.gminsights.com/industry-analysis/electronic-manufacturing-services-ems-market
 

Growing usage of AI and IoT technologies in the consumer electronics sector will propel the demand for EMS

U.S. Electronics Manufacturing Services Market

Get more details on this report - Request Free Sample PDF
 

The electronic manufacturing services market for consumer electronics application is slated to attain a CAGR of 5% by 2026 impelled by the proliferation of connected devices and integration of Artificial Intelligence (AI) and Internet of Things (IoT) into wearable devices, home appliances, among others. Prominent companies in the industry offer specific services to consumer electronics companies including engineering, prototyping, service designing, and mass production services. The device manufacturers are more inclined to avail these services to gain a competitive advantage and maintain an effective supply chain management. With the help of logistics, return & repair services, service providers are able to cater to OEM demands accordingly, supporting the industry expansion.
 

Rising trends toward digitalization, such as online shopping and mobile banking, have accelerated the demand for smartphones, which is likely to bring new growth opportunities for electronic manufacturing service providers over the coming years. Several smartphone manufacturers are focusing on availing EMS services to cater to the high service demand.
 

Favorable government policies for electronics manufacturing development in the APAC region will support the market revenue

Asia Pacific EMS market is predicted to expand at a CAGR of over 8% during 2020 to 2026 led by the increasing government initiatives and policies support electronics manufacturing development. For instance, ‘Made in China 2025’ initiative by the government of China focuses on manufacturing high-end electronic products and ‘Make in India’ initiative by the government of India focuses on augmenting the electronics manufacturing and services in the country, further boosting the growth for APAC market.
 

China is one of the important markets for EMS in the world due to its strong position in semiconductor, consumer electronics, and telecommunication equipment & device manufacturing capabilities.  However, after the COVID-19 outbreak, companies are planning to shift their assembly & manufacturing base from China to India.
 

Key players in the EMS market include Sanmina, Foxconn, Flex Ltd., Benchmark Electronics Inc., Advanced Semiconductor Engineering Inc., Jabil, Integrated Microelectronics, among others. Industry leaders are continuously focusing on R&D activities and viewing service development & innovation as a lucrative path for industry progression. Furthermore, these companies are forming long-term contracts.
 

Chat with us
We use cookies to enhance user experience. (Privacy Policy) X