Electronic Manufacturing Services (EMS) Market Size & Share, by Service Type (Electronics Manufacturing, Engineering Services, Test & Development Implementation, Logistics); Application (Consumer Electronics, Industrial, Medical & Instrumentation, Aerospace & Defence, IT & Telecom, Automotive, Semiconductor, Robotics); Product Type (Printed Circuit Board, System-in-Package, Integrated Circuit) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 4833
  • Published Date: Sep 29, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024 - 2036

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.


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Electronic Manufacturing Services Market: Growth Drivers and Challenges

Growth Drivers

  • Increasing Adoption of Greener Electronic Devices - The expansion of the electronics manufacturing services market is being driven by the appearance of green electronic products. These devices are produced using recyclable materials, non-toxic chemicals, and low carbon emissions. It improves process control, lowers energy use, and reduces carbon footprints.
  • Expanding Automobile Industry - It is projected that the growing electrification of cars and other vehicles, along with the increased need for electronic components by manufacturers, will drive the EMS market's expansion. Previously, PCBs were primarily used in headlight switches and windshield wipers, but as automation & sensor technology increased in the automotive industry, the demand for PCBs & many other electronic part components increased to enable many high-tech features to improve safety & automation while driving. According to predictions, the electronics in cars are expected to account for 50% of a new car's overall cost in the future.
  • Growing Investment in Semiconductor Foundry – Sales of semiconductors are expanding, and there is a global shortage of them, which has prompted increased investment in semiconductor manufacture. This will ultimately help the market grow. It was noted that in Japan, semiconductor sales peaked in April 2020 at around USD 2.8 billion and peaked in December 2020 at around USD 3.3 billion.
  • Increasing Automation in Various End-Use Industries – According to projections, automation will increase worldwide productivity by as much as 15 % and this is why the majority of companies and processes are adopting it. This is also leading to an increase in demand for industrial robots. The growth of the market is expected to be supported by all these factors.

Challenges

  • Uneven Presence of Semiconductor Foundries Worldwide –The microchip shortage is restraining the growth of many companies in the global market. Moreover, stiff competition among the EMS clusters, lowering profits for small market players, especially in developing & underdeveloped nations, and rapid technological advancements in the area of semiconductor manufacturing are further estimated to hamper the market growth over the forecast period
  • High Upstart Investment
  •  Rising Concern About the Environmental Impact of Electronics Manufacturing.

Electronic Manufacturing Services (EMS) Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 7%

Base Year Market Size (2023)

~ USD 534 Billion

Forecast Year Market Size (2036)

~ USD 1200 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Electronic Manufacturing Services Segmentation

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:

                      Service Type

  • Electronics Manufacturing
  • Engineering Services
  • Test & Development
  • Implementation
  • Logistics Services

                      Application

  • Consumer Electronics
  • Industrial
  •  Medical and Instrumentation
  • Aerospace & Defense
  • IT & Telecom
  • Automotive
  • Semiconductor Manufacturing
  • Robotic

                       Product Type

  • Printed Circuit Board
  • System-in-Package
  • Integrated Circuit

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Electronic Manufacturing Services Industry - Regional Synopsis

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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Companies Dominating the Electronics Manufacturing Services Market

top-features-companies
    • General Electric Company
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Hon Hai Precision Industry Co., Ltd.
    • Benchmark Electronics, Inc
    • WISTRON CORPORATION
    • Koninklijke Philips N.V.
    • Quanta Computer lnc.
    • ams-OSRAM International GmbH. 
    • Kimball Electronics
    •  Jabil Inc. 
    • Plexus Corp. 

In-the-news

In The News

  • Yield Engineering System has teamed with Benchmark Electronics Inc., a pioneer in manufacturing, design, and engineering services globally. Through this collaboration, Benchmark Electronics Inc. increased the size of their Malaysian production line.
  • Plexus Corp. announced plans to expand by building a manufacturing facility in Bangkok, Thailand, with a floor area of 400,000 square feet. The facility will have four levels of office space, two levels for production and warehousing, and two levels for production.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 4833
  • Published Date: Sep 29, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing investments in semiconductor industry , expanding automobile industry , surging electronic devices are some of the major growth drivers for the market .

The market size of Electronic Manufacturing Services is anticipated to attain a CAGR of 7 % over the forecast period, i.e., 2024 – 2036.

The major players in the market are General Electric Company, Hon Hai Precision Industry Co., Ltd., Benchmark Electronics, Inc,WISTRON CORPORATION, Koninklijke Philips N.V., Quanta Computer lnc., ams-OSRAM International GmbH. ,Kimball Electronics, Jabil Inc. ,Celestica Inc.,Plexus Corp. and others

The Electronic Manufacturing segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Electronic Manufacturing Services Market Report Scope
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