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Electronic Manufacturing Services Market size is projected to exceed USD 1200 Billion by the end of 2036, growing at a CAGR of 7% during the forecast period, i.e., 2024-2036. In the year 2024, the industry size of electronic manufacturing services was over USD 534 Billion.
The market's expansion may be ascribed to rising manufacturing output globally as well as the expansion of EMS's industrial applications, which include designing, testing, acquiring parts, assembling components, manufacturing, re-engineering, and logistics. For instance, It was observed that global manufacturing output reached a robust USD 16,333.69 Billion for 2023, which a 2,33% increase from 2021.
In addition to these, factors that are speculated to be driving the market growth for electronic manufacturing services include the globalization of the digital revolution, which is to blame for the rise in demand for printed circuit boards (PCB) in various arenas and the consequent rise in the number of PCB manufacturers globally. It is observed that the best PCB manufacturers are located in Asia with over 44% located in China itself.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~ 7% |
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Base Year Market Size (2023) |
~ USD 534 Billion |
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Forecast Year Market Size (2036) |
~ USD 1200 Billion |
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Regional Scope |
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Service Type (Electronics Manufacturing, Engineering Services, Test & Development Implementation, Logistics)
The electronics manufacturing segment is estimated to hold 38% share of the global electronic manufacturing services (EMS) market in the year 2036. The growth of this segment can be attributed to an increasing global population and growing worldwide GDP per capita, which is driving the rising demand for consumer electronic products around the world. The global population has become more than 8 Billion as of 2023. Moreover, it was found that in 2023, consumers spent approximately USD 500 billion on electronics worldwide
Application (Consumer Electronics, Industrial, Medical & Instrumentation, Aerospace & Defence, IT & Telecom, Automotive, Semiconductor, Robotics)
Electronic manufacturing services market from the industrial segment is expected to garner a significant share in the year 2036 The segment growth is expected to be stimulated by rapidly developing industrialization and increasing automation of different industrial processes worldwide, as a result of an increase in demand for industrial products from end-use industries.
However, the IT & telecom sector is anticipated to grow significantly over the course of the forecast period due to the increasing global digitalization, which is fueling an increase in demand for various electronic devices, smartphones, and wearables, with internet connectivity serving as the most basic example. As a result, it is projected that this would generate a lot of prospects for the segment's growth in the years to come.
Our in-depth analysis of the global market includes the following segments:
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Service Type |
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Application |
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Product Type |
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APAC Market Forecast
Asia Pacific EMS market is anticipated to hold 36% of the revenue share. The existence of significant semiconductor foundries in the region, notably the Asia Pacific "Big 4" nations, as well as the increasing encouragement given to domestic manufacturers in growing economies like India to support the electronics manufacturing industry are the main factors contributing to the market's growth. For instance, the Asia Pacific region is the largest market for semiconductors, accounting for approximately 60% of global semiconductor sales, with China alone accounting for more than 30%.
North American Market Statistics
North America electronic manufacturing services market is expected to gain significant revenue share during the forecast period. The consumption of consumer electronics in middle- and high-income households is anticipated to increase as a result of the region's urbanization and steady population expansion. Low-income people are using consumer electronics more frequently because they are more readily available at affordable prices from a variety of local producers, including smart home gadgets, smartphones, and televisions. The prosperous financial standing of North America also enables it to make large R&D investments with a total expenditure on R&D at USD 706.1 Billion in 2019. Future market growth is also anticipated to be influenced by the region's rising structural electronics penetration and the rapid adoption of structural electronics in sensors, solar devices, and conductors for luxury automobiles and spacecraft.
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Author Credits: Abhishek Verma, Hetal Singh
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