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Global Electronic Manufacturing Services Industry Report: by Type; Product type; by Application; Country Overview; Value Chain Analysis; Cost Structure: Cost saving opportunities; Price Analysis; Trade Analysis; Market Dynamics: Drivers and Constraints, Industry Events, Innovations and Trends; Industry Best Practices; Key Supplier Analysis, 2022-2027

Electronic Manufacturing Services Industry Report by Regional Category Spend, Price Analysis, Key Demand and Price Indicators, and Best Buying Practices


The global electronic market reached a value of about USD XXX billion in 2021. The industry is projected to grow at a CAGR of around X% in the forecast period of 2022-2027 to reach a value of about XXX thousand tonnes by 2027.

The industry report gives a comprehensive analysis of the industry including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. In the last decade electronic gadgets and appliances have become vital elements of the global electronic manufacturing services (EMS) sector. In addition to other EMS divisions, the communication segment is leading due to the extended adoption of networking and wearable technologies and increased use of cell phones helping in the development of the communications electronic market. The crucial demand indicator in the industry report is the highest category spender by region—North America (the United States and Canada).

Industry Definition and Segmentation

Electronics manufacturing services (EMS) are classified as organisations that design, manufacture, test, distribute, and deliver return/repair services for electronic components and assemblies for original equipment manufacturers (OEMs). This model is also described as electronics contract manufacturing (ECM). Electronic manufacturing requires different levels of automation, that depend on the organisation and the project for which they require the equipment. The EMS industry report comprises segments by services (electronic designing and engineering, assembly, manufacturing, supply chain management, and others), industry (automotive, communications, computer, consumer electronics, industrial, healthcare, commercial aviation, defense, etc.), and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America). North American EMS market displayed huge growth in 2020 with a great potential for future growth. The Asia Pacific region on the other hand reported the biggest EMS market share and it is estimated to continue to grow significantly in the future.

North America, Europe, Asia Pacific, Middle East & Africa, and South America Regions are Driving the Growth of the Industry

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. To add to this digitalisation of the market demands for the utilisation of advanced electronics and capabilities, along with a high level of networking. Similarly, 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.

The EMS companies have felt the shortage of skilled labour with knowledge of Internet of Things (IoT) technologies. Nevertheless, several businesses across the globe are making major investments in R&D and are implementing IoT technology to shorten their production processes.

Best Procurement Practices

The global electronic manufacturing services industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global electronic manufacturing services regions across the globe, such as engagement models, contract terms, and buyer and supplier negotiation levers, among others.

Category Management Studies

There are various levels of automation depending on the company and the project in the electronic manufacturing services industry. Strong automated manufacturing is used by companies that produce significant turns of products. On the other hand, companies with a small production run generally gather PCBs physically to save time and expense involved in setting up automated assembly equipment. The second category is the design that provides services that incorporate various correlated actions that take place after ascertaining a customer’s requirements and needs before assembling and manufacturing begins. After designing the product, testing takes place which can be of one or more types after completing a model of the product.

The third step is to manufacture different types of electronic products such as Printed circuit boards (PCBs), Microelectronics, Optoelectronics, and Radio Frequency/Wireless. Finally, the EMS companies produce the equipment and specialises in several different production levels and speeds, which are based on their available equipment and resources. The leading PCB manufacturing companies are using various methods to reduce production costs by engaging automated robots and cheap labour. 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.

Substantial Demand for Automotive and Communication Electronics, Further Driving the Procurement of Electronic Manufacturing Services

Electronic gadgets and appliances have become essential elements of the global electronic manufacturing sector. Amongst other EMS segments, the communication segment is leading 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. High-end electronic manufacturing solutions for consumer electronics include new designs, innovation, prototyping, mass development, and end-to-end product lifecycle solutions. Moreover, there are many steps taken by the governments that are helping to increase the adoption of EMS in the long run. There are a few initiatives by the government and the automotive associations that are expected to enhance the market growth.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Electronic Manufacturing Services Industry Report

  • HON HAI Precision Industry Co. Ltd 
  • Pegtron
  • Quanta
  • Compal
  • Jabil Inc.
  • Flextronics
  • Wistron Corporation
  • Celestica
  • PLEXUS Corporation
  • Benchmark Electronics Inc.
  • SIIX Corporation

Market Landscape

The demand for outsourcing manufacturing services to third-party manufacturing service providers has augmented as companies aim to decrease the cost of inventory, warehouse, and infrastructure as part of their manufacturing processes and use the balance of their investment assets toward sales and marketing, and R&D. The EMS producers are investing actively to expand factory production and implement the latest technology, to achieve new global standards. Because of 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.

Key Initiatives by Companies

  • In February 2020, a lead player in the EMS industry, Jabil Inc., introduced its healthcare manufacturing company Jabil Healthcare to bolster its footprint in global healthcare manufacturing services. The company would work in the field of medical devices, diagnostics, orthopedics, pharmaceutical delivery, and the overall health of the consumer.
  • In May 2021, an EMS company, Foxconn Technology Group, affiliated with global automaker Stellantis NV to build inter-connected vehicles and produce electric cars in the Chinese market.

1.    Executive Summary
2.    Global Electronic Manufacturing Services Market Snapshot

    2.1.    Electronics Manufacturing Market Outlook
    2.2.    Electronic Manufacturing Services Industry Analysis by Type
        2.2.1.    Electronic Manufacturing
        2.2.2.    Design and Engineering
        2.2.3.    Logistics 
        2.2.4.    Test and Development
        2.2.5.    Others
    2.3.    Electronic Manufacturing Services Industry Analysis by Product type
        2.3.1.    Printed Circuit Board
        2.3.2.    Optoelectronic Devices
        2.3.3.    Microelectronic Devices
        2.3.4.    Wireless Devices
        2.3.5.    Others
    2.4.     Electronic Manufacturing Services Category Analysis by Application
        2.4.1.    Consumer Electronics
        2.4.2.    IT and Telecommunications
        2.4.3.    Military and Aerospace
        2.4.4.    Automotive
        2.4.5.    Medical
        2.4.6.    Others
    2.5.    Regional Overview
        2.5.1.    North America
        2.5.2.    Latin America
        2.5.3.    Europe
        2.5.4.    Asia Pacific 
        2.5.5.    Middle East and Africa
3.    Impact of Recent Events 
4.    Electronic Manufacturing Services Value Chain Analysis
5.    Electronic Manufacturing Services Cost Structure

    5.1.    Cost saving opportunities 
6.    Electronic Manufacturing Services Price Analysis 
7.    Key Demand Indicator Analysis
8.    Key Price Indicator Analysis
9.    Trade Analysis 
10.    Electronic Manufacturing Services Market Dynamics

    10.1.    Drivers and Constraints
    10.2.    Industry Events 
    10.3.    Innovations and Trends
    10.4.    Porter’s Five Forces
        10.4.1.    Buyer Power
        10.4.2.    Supplier Power
        10.4.3.    Threat of New Entrants
        10.4.4.    Threat of Substitutes
        10.4.5.    Industry Rivalry
    10.5.    SWOT Analysis 
11.       Electronic Manufacturing Services Feedstock Market Analysis 
    11.1.    Market overview
    11.2.    Price Analysis 
12.    Industry Best Practices
    12.1.    Sourcing Strategies 
    12.2.    Procurement Model
    12.3.    Contract Structure
    12.4.    Negotiation Levers
    12.5.    Supplier Selection Criteria
    12.6.    Pricing Model
13.    Key Supplier Analysis
    13.1.    Wistron Corporation
    13.2.    Hon Hai Technology Group (Foxconn)
    13.3.    Flex Ltd.
    13.4.    Benchmark Electronics Inc.
    13.5.    Jabil Inc.
    13.6.    Plexus Corporation
    13.7.    Celestica Inc.

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Key Questions Answered in the Report

The global EMS market size was valued at USD XX billion in 2021.

As per the services provided, the electronic manufacturing segment is anticipated to lead the market between the period 2021 - 2028.

The major demand for automotive and communication electronics is one of the important drivers of the EMS market growth.

Some of the leading companies in the market are HON HAI Precision Industry Co. Ltd, Pegtron, Quanta, Compal, Jabil Inc., Flextronics, Wistron Corporation, Celestica, PLEXUS Corporation, Benchmark Electronics Inc. and SIIX Corporation.

The communication segment of the EMS industry holds the major share in the market.

Analyst Review

The global electronic market reached a value of about USD XXX billion in 2021. The EMS industry report comprises segments by services, industry, and region. North American EMS market displayed huge growth in 2020 with a great potential for future growth. 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. Owing to the increased adoption of networking and wearable technologies and increased use of cell phones there is a progression of the communications electronic market. New designs, innovation, prototyping, mass development, and end-to-end product lifecycle solutions are included in the high-end electronic manufacturing solutions for consumer electronics. Some of the leading companies in the market are HON HAI Precision Industry Co. Ltd, Pegtron, Quanta, Compal, Jabil Inc., Flextronics, Wistron Corporation, Celestica, PLEXUS Corporation, Benchmark Electronics Inc. and SIIX Corporation.

Procurement Resources’ detailed research approach explores deep into the industry, encompassing the macro and micro aspects of the industry. Its team of experts uses a combination of cutting-edge analytical tools and their expertise thus, delivering its customers with market insights that are accurate, actionable, and help them remain ahead of their competition.

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