The global Electronic Manufacturing Services industry report broadly studies the important segments, trends, drivers and restraints, the competitive landscape, and other essential market aspects.
In 2021, the worldwide electronic manufacturing services market size was an aggregate value of USD 88.5 billion in 2021. Along with this, the market share is estimated to develop at a CAGR of 6.4 percent for the duration of 2022-2027 reaching a size of around USD 705.5 billion by the year 2027.
In the last decade electronic gadgets and appliances have become vital elements of the global electronic manufacturing services market trends. 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.
These factors are aiding the development of the communications electronic market. The crucial demand indicator in the industry report is the highest category spender by region i.e., North America (the United States and Canada) which is increasing the electronic manufacturing services market size.
Electronics manufacturing services (EMS) analysis is done as organisations that construct, produce, examine, circulate, and deliver replace/restore facilities for electronic modules and fabrications for original equipment manufacturers (OEMs). This model is also described as electronics contract manufacturing.
Electronics contract manufacturing companies help with various specialised tasks such as designing the product, model development, supply chain administration of electronic products as well as repair works.
The Electronic Manufacturing Services (EMS) market comprises segments by industry (consumer electronics, computer, automotive, industrial, communications, healthcare, defense, commercial aviation, etc.), services (electronic designing and engineering, assembly, manufacturing, supply chain management, and others), and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).
North American EMS industry trends displayed huge growth in 2020 with a great potential for future growth. The Asia Pacific region on the other hand reported the biggest electronic manufacturing services market share and it is estimated to continue to grow significantly in the future.
The communication segment is the leading trend in the electronic manufacturing services (EMS) market 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 usage 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 industry. 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, and the growing need for medical device production in Europe and America.
While there are few additional factors like growing movement towards subcontracting by advanced machinery producers to expand productivity, intensifying electrification in vehicles, growing transfer concerning electric vehicles and upsurge in the usage of smart household appliances that are also propelling the market.
The electronic market services 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.
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, Electronic Manufacturing Services 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. This is done 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. These 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 relatively lower than European countries and the United States.
Electronic gadgets and appliances have become essential elements of the global industry. Amongst other segments, the communication segment is leading. This is primarily due to the expanded adoption of networking and wearable technologies and increased use of cell phones. This in turn is helping in the development of the communications electronic market.
High-level electronic manufacturing results for buyer electronics include new designs, innovation, creating models, bulk development, and start-to-end product life span resolutions. Moreover, there are many steps taken by the governments and the automotive associations that are helping to increase the adoption of EMS in the long run.
The regional electronic manufacturing services (EMS) market can be classified into South America, the Asia Pacific, the Middle East and Africa, Europe, and North America.
The demand for outsourcing manufacturing services to third-party manufacturing service providers has augmented at a high level. This is because the companies are aiming 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 electronic manufacturing services (EMS) providers 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. These include the Internet of Things (IoT), 3D printing and virtual reality to enhance their output capability.
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
2.2.4. Test and Development
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
2.4. Electronic Manufacturing Services Category Analysis by Application
2.4.1. Consumer Electronics
2.4.2. IT and Telecommunications
2.4.3. Military and Aerospace
2.5. Regional Overview
2.5.1. North America
2.5.2. Latin America
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.
The worldwide electronic manufacturing services market size was valued at USD 488.5 billion in 2021.
As per the services provided, the electronic manufacturing segment is likely to lead the market between the period 2022 – 2027.
The major demand for automotive and communication electronics is one of the important drivers of the electronic manufacturing services market growth.
Here is the list of electronic manufacturing services companies that are leading 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 division of the EMS industry retains the prominent stake in the market.
The electronic manufacturing services firms offer facilities such as making, assembling, producing, and carrying out trials of electronic parts and assembling of printed circuit board (PCB) for original equipment manufacturers (OEMs) is the industry’s production management.
The electronic manufacturing services market reached a value of about USD 488.5 billion in 2021. The industry comprises segments by services, industry, and region. The North American EMS market displayed huge growth in 2020 with a great potential for future growth.
The communication segment is the leading segment in the electronic manufacturing services market. This is 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.
Due 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 beginning-to-end commodities lifecycle resolutions are included in the high-end electronic manufacturing solutions for buyer electronics.
Some of the leading companies are HON HAI Precision Industry Co. Ltd, Pegtron, Quanta, Compal, Jabil Inc., Flextronics, Wistron Corporation, Celestica, PLEXUS Corporation, Benchmark Electronics Inc. and SIIX Corporation.
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