Electronic Manufacturing Services Market Size, Share, Report by 2033

The global electronic manufacturing services market size was calculated at USD 539.40 billion in 2023 and is predicted to grow around USD 1,064.06 billion by 2033, growing at a CAGR of 7.03% from 2024 to 2033.

Key Points

Asia Pacific has held the largest market share of 36% in 2023.
Europe is expected to show significant growth over the forecast period.
By service type, the engineering services segment dominated the market in 2023.
By service type, the electronics manufacturing services segment is projected to be the fastest-growing segment over the forecast period.
By industry type, the IT and telecom segment dominated the market in 2023.
By industry type, the automotive segment is experiencing notable growth in the market.

Electronic Manufacturing Services Market Size 2024 to 2033

The EMS market is experiencing robust growth due to several key factors. First, the increasing complexity of electronic products and the demand for faster time-to-market have driven OEMs to outsource manufacturing to specialized EMS providers. Additionally, globalization and the need for cost-effective production have fueled the expansion of EMS services across regions. Moreover, technological advancements such as IoT (Internet of Things), AI (Artificial Intelligence), and 5G connectivity are driving the demand for EMS solutions.

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Region Insights

The EMS market exhibits regional variations based on factors such as manufacturing costs, labor availability, infrastructure, and regulatory environment. Asia-Pacific dominates the EMS market, particularly countries like China, India, and Taiwan, owing to their established manufacturing ecosystems and skilled workforce. North America and Europe also hold significant market shares due to their strong technological base and demand for high-quality electronic products.

Electronic Manufacturing Services Market Scope

Report Coverage	Details
Growth Rate from 2024 to 2033	CAGR of 7.03%
Electronic Manufacturing Services Market Size in 2023	USD 539.40 Billion
Electronic Manufacturing Services Market Size in 2024	USD 577.32 Billion
Electronic Manufacturing Services Market Size by 2033	USD 1,064.06 Billion
Largest Market	Asia Pacific
Base Year	2023
Forecast Period	2024 to 2033
Segments Covered	By Service Type and By Industry Type
Regions Covered	North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Electronic Manufacturing Services Market Dynamics

Drivers

Several drivers propel the growth of the EMS market. These include the increasing outsourcing trend among OEMs to reduce operational costs and focus on core competencies. Additionally, the growing adoption of advanced technologies requiring specialized manufacturing capabilities drives EMS demand. Furthermore, the shift towards sustainability and eco-friendly manufacturing practices is pushing EMS providers to offer greener solutions, attracting environmentally conscious customers.

Opportunities

The EMS market presents various opportunities for expansion and innovation. For instance, diversification into new industry sectors such as aerospace, defense, and renewable energy presents untapped markets for EMS providers. Furthermore, offering value-added services such as design consulting, lifecycle management, and logistics optimization can differentiate EMS companies in a competitive landscape. Moreover, expanding into emerging markets and leveraging digital transformation can unlock new growth avenues.

Challenges

Despite its growth prospects, the EMS market faces certain challenges. One significant challenge is the volatility of component prices and supply chain disruptions, which can impact production schedules and costs. Additionally, maintaining high-quality standards and regulatory compliance across different markets poses operational challenges for EMS providers. Moreover, the need to continuously invest in technology upgrades and workforce training to keep pace with evolving industry demands adds complexity to EMS operations.

Electronic Manufacturing Services Market Recent Developments

In July 2023, Analog Devices, Inc., one of the global semiconductor leaders, and Hon Hai Technology Group (Foxconn), one of the largest global electronics manufacturing services providers, announced the completion of a Memorandum of Understanding (MoU) to develop the next-generation digital car cockpit and a high-performance battery management system (BMS).
In May 2023, Infineon Technologies AG, one of the global leaders in automotive semiconductors, and Hon Hai Technology Group (Foxconn), one of the largest global electronics manufacturing services providers, aim to establish a partnership in the electric vehicles (EV) field to develop advanced electromobility with efficient and intelligent features jointly. The Memorandum of Understanding (MoU) aims to develop silicon carbide (SiC) and leverage Infineon’s automotive SiC innovations in automotive systems.
In June 2022, Flex announced the development of its operations in the Mexican state of Jalisco’s automotive sector. The business is building a brand-new, cutting-edge 145,000-square-foot facility that will act as a strategic in-region automotive manufacturing hub to produce advanced electronic components that will hasten the transition to the era of electric and autonomous vehicles.
In March 2022, Sanmina Corporation (Sanmina), a leading integrated manufacturing solutions company, and Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), India’s largest private sector company, announced that they have agreed to create a joint venture through investment in Sanmina’s existing Indian entity (Sanmina SCI India Private Ltd, “SIPL”).