Electronic Manufacturing Services Market (By Service Type: Electronics Manufacturing, Engineering Services, Test & Development Implementation, Logistics Services, Others; By Industry Type: Computer, Consumer Electronics, Aerospace & Defense, Medical & Healthcare, IT & Telecom, Automotive, Semiconductor Manufacturing, Robotics, Heavy Industrial Manufacturing, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033
The global electronic manufacturing services market size was valued at USD 539.40 billion in 2023 and is anticipated to reach around USD 1,064.06 billion by 2033, growing at a CAGR of 7.03% from 2024 to 2033. The trend of outsourcing manufacturing activities to cater to the growing demand for customized electronic products, as well as the trend of outsourcing manufacturing activities, are significant forces fueling the electronics manufacturing services market.
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The Asia Pacific electronic manufacturing services market size was estimated at USD 194.18 billion in 2023 and is predicted to be worth around USD 388.38 billion by 2033, at a CAGR of 7.17% from 2024 to 2033.
Asia Pacific dominated the electronic manufacturing services market in 2023. China is a key player in its region because of lower maintenance costs, material availability, and faster production compared to other countries like the United States. Cities like Shenzhen and Penang in China have become major hubs for electronic manufacturing services (EMS), attracting companies like Apple Inc. However, Pegatron, based in Taiwan, had to move its production to countries like Vietnam and Indonesia due to rising costs and trade issues. Many Asian businesses had to reassess their investments and relocate their operations due to the uncertainty caused by trade tensions.
Europe is expected to show significant growth in the electronic manufacturing services market over the forecast period. Major European automotive companies like Mercedes, BMW, Ferrari, and Audi are teaming up with electronic manufacturing services (EMS) suppliers for various aspects like PCB production, engineering, prototyping, and design to advance connected car technologies. Furthermore, The European Union's initiatives to boost the production of electric vehicles, electronic lighting, and safety equipment are also fueling the growth of EMS in the region.
The North America electronic manufacturing services market size was calculated at USD 161.82 billion in 2023 and is projected to expand around USD 324.54 billion by 2033, poised to grow at a CAGR of 7.20% from 2024 to 2033.
Year | Market Size (USD Billion) |
2023 | 161.82 |
2024 | 173.20 |
2025 | 185.37 |
2026 | 198.40 |
2027 | 212.35 |
2028 | 227.28 |
2029 | 243.26 |
2030 | 260.36 |
2031 | 278.66 |
2032 | 298.25 |
2033 | 324.54 |
The electronics manufacturing services market comprises of specialized companies that handle all aspects of manufacturing electronic components and devices. This includes design, assembly, testing, and logistics. EMS suppliers support original equipment manufacturers (OEMs), enabling them to concentrate on their main strengths. Furthermore, EMS providers offer cost-effective and efficient solutions to various industries such as telecommunications, automotive, consumer electronics, and healthcare.
EMS providers' expertise in electronic production ensures top-notch products and empowers OEMs to meet market demands with flexibility and innovation. Today's electronic manufacturing services market is driven by diverse consumer preferences, leading to a rise in demand for personalized electronic items. Consumers also seek products related to their specific needs and interests. EMS providers facilitate effective customization of electronic products to ensure they meet individual customer requirements, which drives market growth.
Report Coverage | Details |
Growth Rate from 2024 to 2033 | CAGR of 7.03% |
Electronic Manufacturing Services Market Size in 2023 | USD 539.40 Billion |
Electronic Manufacturing Services Market Size in 2024 | USD 577.32 Billion |
Electronic Manufacturing Services Market Size by 2033 | USD 1,064.06 Billion |
Largest Market | Asia Pacific |
Base Year | 2023 |
Forecast Period | 2024 to 2033 |
Segments Covered | By Service Type and By Industry Type |
Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Driver
Rising functionalities across various industries
The global electronic manufacturing services market is primarily driven by the growing demand for various functionalities such as engineering, component assembly, and premium circuit board design. Contract manufacturers play a crucial role by offering functional testing and sub-assembly production services. Moreover, electronic contract manufacturing provides outsourcing services for core production skills by allowing OEMs to focus on their strengths. This strategic outsourcing helps enhance operational efficiency, reduce production costs, and minimize the need for fixed capital investment.
Restraint
Increased competition
As technology evolves, consumer preferences also change. To stay competitive, electronics manufacturers must have efficient processes for introducing new products. The global electronic manufacturing services market faces increased competition, leading to shrinking profit margins and economic losses. Economic instability and fluctuating demand can further impact the electronic manufacturing services market. Additionally, concerns about confidentiality and security raise risks of information leaks and intellectual property theft.
Opportunities
Focus on core competencies
A key reason for the electronic manufacturing services market growth is the focus on the core strengths of companies in various industries. They recognize the importance of specializing in what they do best to stay competitive in today's fast-paced business world. By outsourcing tasks like manufacturing to EMS providers, companies can concentrate on vital areas like marketing, innovation, and research and development. This shift in resources enhances efficiency and profitability. EMS providers play a crucial role in supporting businesses by streamlining processes and ensuring high-quality output.
Industrial applications to drive the demand for EMS
As the environmental movement gains momentum, there's a growing demand for electric motor controls that enhance the efficiency of industrial motors. Also, there's a pressing need for increased integration at minimal costs to support the widespread adoption of new technologies, ensuring improved safety and reliability. This surge in demand is particularly evident in electronic products used in smart motors, including digital signal controllers for voltage control operations. Moreover, the advent of Industry 4.0 promises significant enhancements in factory data automation efficiency and productivity. The concurrent progress in industrial IoT and artificial intelligence (AI) also contributes to this growth trajectory. While the electronics industry has yet to fully realize the potential of intelligence and automation, the transition toward Industry 4.0 is underway, as evidenced by recent trends in the electronics manufacturing services market.
The engineering services segment dominated the electronic manufacturing services market in 2023. The rise in investment in research and development for high-performance electronic assembly materials is attributed to the dominance of the electronics manufacturing services segment in the market. Circuit boards are gaining significance in tablets and other electronic devices, driving this trend.
In the electronic manufacturing services market, the electronics manufacturing services segment is projected to be the fastest-growing segment over the forecast period. Companies in the industrial automation sector require continuous access to all system-generated data. However, due to the complexity of many operational utility applications, acquiring this data can be challenging. Regions such as Europe and North America are increasingly implementing Supervisory Control and Data Acquisition (SCADA) systems to ensure accurate data collection.
The IT & telecom segment dominated the electronic manufacturing services market in 2023. The growth of the industry is fueled by technological advancements, rising demand for mobile devices, and the need for cost-effective manufacturing solutions to meet the dynamic needs of the telecom sector. This emphasizes the industry's dependence on EMS providers to boost productivity, innovation, and competitiveness in the rapidly evolving telecommunications market.
The automotive segment is experiencing notable growth in the electronic manufacturing services market. This growth is driven by increasing digitization, the integration of IoT in vehicles, and the growing popularity of electric vehicles. Companies in these industries are turning to outsourcing services to improve flexibility and reduce expenses. Also, the rise of the electric vehicle market is propelled by increased component production outsourcing.
Segments Covered in the Report
By Service Type
By Industry Type
By Geography
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology (Premium Insights)
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Electronic Manufacturing Services Market
5.1. COVID-19 Landscape: Electronic Manufacturing Services Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Electronic Manufacturing Services Market, By Service Type
8.1. Electronic Manufacturing Services Market, by Service Type, 2024-2033
8.1.1. Electronics Manufacturing
8.1.1.1. Market Revenue and Forecast (2021-2033)
8.1.2. Engineering Services
8.1.2.1. Market Revenue and Forecast (2021-2033)
8.1.3. Test & Development Implementation
8.1.3.1. Market Revenue and Forecast (2021-2033)
8.1.4. Logistics Services
8.1.4.1. Market Revenue and Forecast (2021-2033)
8.1.5. Others
8.1.5.1. Market Revenue and Forecast (2021-2033)
Chapter 9. Global Electronic Manufacturing Services Market, By Industry Type
9.1. Electronic Manufacturing Services Market, by Industry Type, 2024-2033
9.1.1. Computer
9.1.1.1. Market Revenue and Forecast (2021-2033)
9.1.2. Consumer Electronics
9.1.2.1. Market Revenue and Forecast (2021-2033)
9.1.3. Aerospace & Defense
9.1.3.1. Market Revenue and Forecast (2021-2033)
9.1.4. Medical & Healthcare
9.1.4.1. Market Revenue and Forecast (2021-2033)
9.1.5. IT & Telecom
9.1.5.1. Market Revenue and Forecast (2021-2033)
9.1.6. Automotive
9.1.6.1. Market Revenue and Forecast (2021-2033)
9.1.7. Semiconductor Manufacturing
9.1.7.1. Market Revenue and Forecast (2021-2033)
9.1.8. Robotics
9.1.8.1. Market Revenue and Forecast (2021-2033)
9.1.9. Heavy Industrial Manufacturing
9.1.9.1. Market Revenue and Forecast (2021-2033)
9.1.10. Others
9.1.10.1. Market Revenue and Forecast (2021-2033)
Chapter 10. Global Electronic Manufacturing Services Market, Regional Estimates and Trend Forecast
10.1. North America
10.1.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.1.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.1.3. U.S.
10.1.3.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.1.3.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.1.4. Rest of North America
10.1.4.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.1.4.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.2. Europe
10.2.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.2.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.2.3. UK
10.2.3.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.2.3.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.2.4. Germany
10.2.4.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.2.4.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.2.5. France
10.2.5.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.2.5.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.2.6. Rest of Europe
10.2.6.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.2.6.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.3. APAC
10.3.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.3.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.3.3. India
10.3.3.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.3.3.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.3.4. China
10.3.4.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.3.4.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.3.5. Japan
10.3.5.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.3.5.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.3.6. Rest of APAC
10.3.6.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.3.6.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.4. MEA
10.4.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.4.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.4.3. GCC
10.4.3.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.4.3.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.4.4. North Africa
10.4.4.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.4.4.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.4.5. South Africa
10.4.5.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.4.5.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.4.6. Rest of MEA
10.4.6.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.4.6.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.5. Latin America
10.5.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.5.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.5.3. Brazil
10.5.3.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.5.3.2. Market Revenue and Forecast, by Industry Type (2021-2033)
10.5.4. Rest of LATAM
10.5.4.1. Market Revenue and Forecast, by Service Type (2021-2033)
10.5.4.2. Market Revenue and Forecast, by Industry Type (2021-2033)
Chapter 11. Company Profiles
11.1. Sanmina Corporation
11.1.1. Company Overview
11.1.2. Product Offerings
11.1.3. Financial Performance
11.1.4. Recent Initiatives
11.2. Vinatronic Inc.
11.2.1. Company Overview
11.2.2. Product Offerings
11.2.3. Financial Performance
11.2.4. Recent Initiatives
11.3. Inventec
11.3.1. Company Overview
11.3.2. Product Offerings
11.3.3. Financial Performance
11.3.4. Recent Initiatives
11.4. Hon Hai Precision Industry Co. Ltd
11.4.1. Company Overview
11.4.2. Product Offerings
11.4.3. Financial Performance
11.4.4. Recent Initiatives
11.5. Bharat FIH - A Foxconn Technology Group
11.5.1. Company Overview
11.5.2. Product Offerings
11.5.3. Financial Performance
11.5.4. Recent Initiatives
11.6. SIIX Corporation
11.6.1. Company Overview
11.6.2. Product Offerings
11.6.3. Financial Performance
11.6.4. Recent Initiatives
11.7. Benchmark Electronics Inc.
11.7.1. Company Overview
11.7.2. Product Offerings
11.7.3. Financial Performance
11.7.4. Recent Initiatives
11.8. Flex Ltd
11.8.1. Company Overview
11.8.2. Product Offerings
11.8.3. Financial Performance
11.8.4. Recent Initiatives
11.9. Quanta Computers Inc.
11.9.1. Company Overview
11.9.2. Product Offerings
11.9.3. Financial Performance
11.9.4. Recent Initiatives
11.10. Osram Opto Semiconductors GmbH
11.10.1. Company Overview
11.10.2. Product Offerings
11.10.3. Financial Performance
11.10.4. Recent Initiatives
Chapter 12. Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
Chapter 13. Appendix
13.1. About Us
13.2. Glossary of Terms
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