Electronic Manufacturing Services (EMS) Market size is set to surpass USD 750 billion by 2028, according to a new research report by Global Market Insights Inc.
The electronic manufacturing services market growth is owing to the growing commercialization of 5G technology across the globe. According to Ericsson Mobility Report, over 300 5G smartphone models are commercially launched by various smartphone manufacturers as of June 2021. In addition, the number of 5G devices will exceed 3.5 billion connections by 2026. To meet the growing demand for 5G devices in the coming years, smartphone manufacturers are expected to collaborate with electronic manufacturing services providers.
The increasing focus of companies on high-volume manufacturing to meet the industry demand is one of the major factors limiting electronic manufacturing services market expansion. The high-volume manufacturing requires enormous space requirements and extensive infrastructure & equipment that will lead to the high cost of operations. This further decreases the profitability of electronic manufacturing services vendors in the market. Adding to this, high-end electronics developers avoid opting for electronic manufacturing services due to the risk associated with Intellectual Property (IP) infringement. These players focus on in-house manufacturing of electronics, which is predicted to hamper the industry growth to some extent.
The rising demand for application-specific electronic devices will positively impact the engineering services market progression
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The engineering services segment held a market share of over 20% in 2021 and is projected to witness 5.5% growth rate through 2028. The industry expansion is credited to the rising demand for developing appropriate product designs by trained engineers & designers across the market. These engineers & designers help OEMs by providing application-specific and customized electronic devices to stay competitive in the market. The electronic manufacturing services providers are focusing on strategic collaborations and partnership activities to increase their customer base in the market.
Browse key industry insights spread across 230 pages with 181 market data tables and 32 figures & charts from the report, “Electronic Manufacturing Services 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”, in detail along with the table of contents:
The surging demand for portable medical devices will spur the market revenue
The medical & healthcare segment captured 10% of revenue share in 2021 and is poised to grow at a CAGR of around 6% by 2028. The growth is driven by the increasing demand for portable medical devices across healthcare facilities and hospitals. Medical & healthcare devices, such as ventilators, pulse oximeters, oxygen concentrators, and cleaning robots, are observing a high demand during the pandemic. To mitigate the surging medical devices demand, companies are collaborating with electronic manufacturing services providers to expediate the delivery of medical equipment during the pandemic.
The proliferation of computing devices across North America will support the market value
North America electronic manufacturing services market is anticipated to expand at more than 6.5% CAGR during 2022 to 2028 led by the growing penetration of computing devices, such as laptops, tablet, desktop/PCs, and smartphones, across the U.S. The region has a strong presence of computer hardware manufacturers such as Dell, Hewlett-Packard (HP), Apple, Inc., and BOXX Technologies. These participants are highly dependent on electronic manufacturing services providers to procure fully assembled personal computers, smartphones, laptops, tablets, and workstations.
The key players 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 market leaders are focusing on strategic acquisitions, mergers, joint ventures, and collaborations to gain a competitive advantage in the industry.