Procurement Resource’s New Electronic Manufacturing Services Industry Intelligence Report (2022) – Analyses the Key Sourcing Strategies, Demand Indicators, Price Drivers, and Supplier Assessment

Category Driver

Owing to the expanded adoption of networking and wearable technologies and increased use of cell phones helping in the development of the communications electronic market making the communication segment is the leading segment. Besides, digitalisation of the market demands the utilisation of advanced electronics and capabilities, along with a high level of networking. Due to this electronic manufacturing services are being extensively used in the communication electronics industry. Likewise, the healthcare category is also gaining popularity since electronics such as printed circuit boards from x-rays to pacemakers have become primarily important in the medical industry. The digital health sector most commonly point-of-care products and devices is projected to drive the growth of the EMS market.

Other important drivers are the increasing need to reduce the time to market, shifting manufacturing units to countries in the Asia Pacific which have low labour costs, the growing need for medical device production in Europe and America, intensifying inclination toward outsourcing by original equipment manufacturers to augment output, expanding electrification in vehicles, and increasing move toward electric vehicles and rise in the use of smart home gadgets.

Industry Developments in terms of Technology/Innovation/R&D/Sustainability

Leading manufacturers in the EMS market such as Vinatronic Inc., Hon Hai Precision Industry Co. Ltd. (Foxconn), Flex Ltd, Sanmina Corporation, and Nortech Systems Incorporated are launching differentiated solutions with advanced technologies such as AL, ML, and others. Besides, due to the rising competition in the market, the EMS providers are focussing on acquiring strategies to make their positions stronger by investing actively to expand factory production and implement the latest technology, to achieve new global standards. To keep up with the rising competitiveness in the EMS market, the manufacturers are embracing various technical revolutions, including virtual reality, the Internet of Things (IoT), and 3D printing to improve their output capability and investing heavily in R&D. The massive R&D activities are pushing the expansion of the Middle East and Africa, and South American markets. In May 2021, an electronic manufacturing services company, Foxconn Technology Group, affiliated with global automaker Stellantis NV to build inter-connected vehicles and produce electric cars in the Chinese market.

Key Findings of the Report:

• The has been an astounding impact of COVID-19 on the electronic manufacturing services industry that led to a lowering in the demand for the services globally. However, looking at the trend in 2021, the automotive sector saw growth as the demand for electronic manufacturing services increased.
• The demand for outsourcing manufacturing services to third-party manufacturing services providers has increased as companies intend to lessen inventory, warehouses, and infrastructure as part of their industrial operations, and move the balance of their investment resources toward sales and marketing, and R&D. 
• The communication segment is the leading segment owing to the expanded adoption of networking and wearable technologies and increased use of cell phones helping in the development of the communications electronic market.
• The healthcare category is also gaining popularity since electronics such as printed circuit boards from x-rays to pacemakers have become primarily important in the medical industry. The digital health sector most commonly point-of-care products and devices is projected to drive the growth of the EMS market.
• Numerous EMS businesses across the globe are making major investments in R&D and are implementing IoT technology to shorten their production processes.
• North America’s EMS market has grown heavily due to the increase in the use of consumer electronics in middle- and high-income populations due to the region’s fast urbanisation and constant population growth.
• In the Asia Pacific region, China is one of the most important markets in the EMS market, because of its strong presence in consumer electronics, semiconductors, and other telecommunications products and machinery manufacturing sectors.
• The European EMS market is growing for PCBA assembly, research, prototyping, and construction, as major European automotive manufacturers such as Volkswagen, BMW, and Renault are affiliating with electronic manufacturing service providers.
• Countries like China, Japan, Singapore, and Taiwan have cheap electricity, labour, and raw material because of which the production cost is comparatively lower than European countries and the United States.
• The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.
• The key market players are HON HAI Precision Industry Co. Ltd, Pegtron, Quanta, Compal, Jabil Inc., Flextronics, Wistron Corporation, Celestica, PLEXUS Corporation, Benchmark Electronics Inc., and SIIX Corporation

Why Choose Procurement Resource?

• The electronic manufacturing services industry report includes preferred sourcing strategies by key suppliers present in the category
• The report provides an overview of the production process along with recent technologies being positioned
• The information regarding price movement, price hedging, and demand-supply is also included in the report
• The electronic manufacturing services industry report further offers category-specific regional trends and market dynamics
• The report also covers supplier profiles including financial data, product portfolio, and recent category-based initiatives 
• It provides extensive data pertaining to the demand, supply, cost, and pricing of electronic manufacturing services, along with an in-depth analysis of key indicators of category demand and pricing 
• The electronic manufacturing services industry report provides category-based buyer and supplier negotiation levers and sourcing and procurement practices
• The report extensively assesses the demand influencing and restricting factors on a regional and global level

About Us:

At Procurement Resource we have a team of highly skilled and seasoned experts who undertake extensive research to deliver our customers the newest and most up-to-date sourcing and procurement reports, cost models, price analysis, benchmarking, and category insights, which support our clientele to simplify their procurement process. Procurement Resource ensures that our clients remain at the forefront of their industries by offering actionable procurement intelligence with the help of our expert analysts, researchers, and domain experts. We work with a varied collection of procurement teams across industries to get insights and real-time data that our customers can effectively execute. Our team also tracks the prices and production costs of a broad range of goods and commodities, thus, providing our clients with updated and reliable data. We, at Procurement Resource, with the help of the latest and cutting-edge methodologies in the industry, assist our clients to understand the supply chain, procurement, and industry environment to form strategies that ensure their optimum growth and success in every step.

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