Electronics Manufacturing Services (EMS) Market Gaining Impetus from Growing Applications, Global revenue will reach $650bn by 2024

Electronics Manufacturing Services (EMS) Market growth driven by the rapid rise in the demand for consumer and smart electronic devices across the globe is driving the. Increasing demand for devices, such as smartphones and tablets, accounts for the development of new collaborations and partnerships between service providers and OEMs. As a result, Electronics Manufacturing Services (EMS) Market players deploy efficient manufacturing machines and service delivery facilities that further fuel the industry development. The demand for efficient & safe smart devices from manufacturers allows service providers to improvise their technical capabilities. Additionally, increasing investments in outsourcing activities by OEMs for availing the logistics, manufacturing, and testing services add up to the consumption of the products.

Electronics Manufacturing Services (EMS) Market will be driven by the electronic manufacturing, which is expected to exceed 55% of the revenue share due to the continuous demand for electronic components in various industry verticals such as automotive, consumer electronics, and others. The products include manufacturing of printed circuit boards, microelectronics, optoelectronics, and radio frequency & wireless devices for the electronics, medical, and telecommunication applications. The growing concerns regarding the production of technically and legally compliant products by the OEMs enforce them to utilize these products on a larger scale. This is attributed to the efficiency, high-quality, and application-specific products offered by the service providers.

Automotive electronics manufacturing services (EMS) market will grow at a CAGR of around 5% in the coming years owing to the penetration of electronic devices and components in vehicular systems. Increasing utilization of automotive electronics including electronic systems, sensors, and ECUs in the safety, comfort, and infotainment devices creates a demand for EMS. Auto manufacturers develop contracts with the EMS providers for a continual supply of the electronic components. Electronics Manufacturing Services (EMS) Market players have developed specialized design, manufacture, and diagnostic services for the automotive companies. For instance, Actia Group offers automotive industry-specific services to its vehicle manufacturing customers by supporting the production standards such as ISO TS 16949.

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The EMS market is expected to grow significantly due to the rapidly-growing consumer electronics sector. In 2016, the consumer electronics industry was valued at USD 1,100 billion. Increasing adoption of smartphones is encouraging the manufacturers to opt for these services to meet the demand-supply gap. Also, technological advancements in consumer electronics such as speakers, smart homes, and other intelligent devices are rapidly increasing the demand for these devices. To enhance productivity, OEMs are outsourcing the electronics manufacturing, thus propelling the EMS market.

The U.S. electronics manufacturing services (EMS) market dominates the global industry; the electronic manufacturing services demand in the country is estimated to exceed USD 70 billion by 2024. The emergence of several manufacturing companies across all industry verticals in the U.S. has increased competition and enforced OEMs to partner with the EMS providers. Additionally, increasing government rules to produce safe and tested electronic products to be used in industrial applications, such as medical devices and automobiles, supports Electronics Manufacturing Services (EMS) Market growth. To save the labor costs involved in manufacturing and logistics operations, OEMs in the U.S. are shifting toward electronics contract services. These factors coupled with the growth in outsourcing activities account for the rapid development in the industry.

All in all, with unprecedented growth in the demand for consumer electronics over the next few years, the electronic manufacturing services market will witness tremendous inflow of capital for expanding production capacities. Constant innovations, for instance EMS company New Kinpo Group’s AI-powered manufacturing robots and autonomous manufacturing capabilities, will further attract OEMs towards Asian companies. Key players dominating the global Electronics Manufacturing Services (EMS) Market share include Foxconn, Integrated Microelectronics, Inc., Benchmark Electronics, API Technologies Corp., Celestica, Inc., New Kinpo Group, Venture Corporation and Sanmina Corporation.