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The global electronic manufacturing services (EMS) market is expected to reach $650 billion by 2024, according to a new research report by Global Market Insights Inc. The rapid rise in the demand for consumer and smart electronic devices across the globe is driving the EMS market growth.
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, electronic manufacturing services 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.
The demand for green and energy-efficient devices and components that creates a need for these services further contributes to the electronic manufacturing services market growth. To cater to these demands, OEMs are developing strategic partnerships with the service providers that aids them in controlling manufacturing costs. The service providers offer product design, development, and manufacturing operations according to the demand from OEMs. Due to these facilities, OEMs achieve appropriate product supplies and save major development costs. This trend allows the EMS market players to develop green manufacturing facilities and energy-efficient products that support the global sustainable goals.
The 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 and 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. Moreover, these providers also offer services based on the low to high quantity of product demand from OEMs.
Automotive electronics manufacturing services 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. EMS market players have developed specialized design, manufacture, and diagnostic services for the automotive companies.
The U.S. EMS market dominates the global industry; the electronic manufacturing services demand in the country is estimated to exceed $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 electronic manufacturing services 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.
The key companies operating in the electronics manufacturing services market include Flex Ltd., Kimball International, Foxconn, Celestica, Inc., Benchmark Electronics, Actia Group, Key Tronic EMS, Asteelflash, Venture Corporation, and Sanmina Corporation. These players focus on developing highly efficient service delivery capabilities. They innovate the products manufacturing and testing & development services to sustain in the highly competitive electronics manufacturing services market. The established players have an advantage of long-term customer contracts and focus on partnership and acquisition strategies.
About Global Market Insights
Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.