Electronics Manufacturing Service Market Size 2025-2029

The electronics manufacturing service (EMS) market is projected to grow significantly, with an increase of USD 188 billion and a compound annual growth rate (CAGR) of 6.6% between 2024 and 2029.

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Market Segmentation

The EMS market is divided into various segments, each contributing to the industry's growth:

1. End-User

   • C and CA
   • Telecommunication
   • Industrial
   • Automotive
   • Others

2. Service Type

   • Electronics design and engineering
   • Electronics assembly
   • Electronics manufacturing
   • Others

3. Geography

   • APAC
     • China
     • Japan
   • North America
     • Canada
     • US
   • Europe
     • Germany
     • UK
     • France
   • South America
     • Brazil
   • Middle East and Africa

Market Dynamics

• Drivers:

  • The growing number of EMS providers in low-wage economies significantly reduces production costs. Countries in the APAC region are especially attractive due to low hourly wages, skilled labor, and access to advanced technologies. This cost efficiency has encouraged companies in healthcare, automotive, consumer electronics, aerospace, and other sectors to outsource manufacturing to these regions.
  • The automotive sector is experiencing increased demand for advanced electronics, further fueling the market.
  • New technologies such as virtual reality, 3D printing, and structural electronics are accelerating the need for EMS.
  • The adoption of a circular economy, with a focus on E-waste recycling and greener electronic devices, creates new opportunities for EMS providers.

• Trends:

  • Collaborative co-innovation partnerships between EMS providers and businesses are driving product innovation.
  • The ongoing rise in demand for structural electronics in high-end automobiles, electric vehicles, space vehicles, and smartphones is transforming the industry.
  • The focus on Greener Electronic Devices and E-waste recycling aligns with global sustainability goals, contributing to the growth of the EMS market.
  • Cybersecurity and logistics services are becoming essential due to supply chain disruptions and intellectual property concerns.

• Challenges:

  • Intellectual property theft and misuse are significant risks, especially as EMS providers handle projects for multiple businesses.
  • The complexity of managing the increasing demand for various components like capacitors, connectors, and LCD panels, while maintaining high-quality standards and efficiency, poses a challenge.
  • The market faces the ongoing need for resilience in manufacturing processes, particularly in light of disruptions caused by global events like the COVID-19 pandemic.

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Key Players

The key players contributing to the growth and evolution of the EMS market include:

• 3CEMS Group
• Accton Technology Corp.
• Benchmark Electronics Inc.
• Celestica Inc.
• Compal Electronics Inc.
• Creation Technologies LLC
• Data IO Corp.
• Elbit Systems Ltd.
• ESCATEC Sdn. Bhd.
• Flex Ltd.
• Hon Hai Precision Industry Co. Ltd.
• Integrated Micro Electronics Inc.
• Jabil Inc.
• Key Tronic Corp.
• Kimball Electronics Inc.
• Kitron ASA
• Neo Tech Inc.
• Plexus Corp.
• Sanmina Corp.
• Venture Corp. Ltd.

Recent Developments

• March 2024: 3CEMS Group announces the expansion of its services, including PCB assembly and Box-Build services, to enhance manufacturing processes for US businesses.
• February 2024: Flex Ltd. reports significant growth due to new strategic partnerships in the automotive and healthcare sectors.