The global “Electronic Manufacturing Services (EMS) market” is poised for substantial growth, fueled by the escalating demand and robust sales of consumer electronics. According to the latest market projections, the Electronic Manufacturing Services market is anticipated to reach a valuation of US$ 541.5 billion by the end of 2023.
This market is forecasted to experience a steady Compound Annual Growth Rate (CAGR) of 4.7% during the period 2023-2033, ultimately soaring to a total value of approximately US$ 859.9 Billion by 2033.
Electronic Manufacturing Services has received a warm welcome in a variety of industries since its introduction, owing to its diverse applications in areas such as control framework for radar observation, mission control PC in airplanes and satellites, and so on.
Electronic Manufacturing Services Market: Drivers and Challenges
An increased demand and sales of electronics, especially consumer electronics, is witnessed globally which is further expected to rise in the forecast period. This demand correspondingly increases the adoption and implementation of Electronic Manufacturing Services, which as a result, drives the global Electronics Manufacturing Services market.
In addition to this, the implementation and utilization of Electronic Manufacturing Services offer flexibility aligned with market demand, provides a continuous supply of services, mitigates the risk, and reduce the overall operational cost of a company. These factors are expected to; furthermore, drive the growth of the Electronic Manufacturing Services market.
The decline in the adoption of Personal Computers (desktops, notebooks, etc.) is one of the major factors challenging the growth of the Electronic Manufacturing Services market.
Competition Analysis – Regional Trends:
The Electronic Manufacturing Services landscape is marked by intense competition on a global scale. Leading players in regions such as North America, Europe, Asia-Pacific, and Latin America are vying for market dominance. Asia-Pacific, in particular, stands out as a frontrunner in the market, owing to its robust manufacturing infrastructure, skilled labor force, and favorable regulatory environment. North America and Europe, while mature markets, continue to play a significant role in shaping industry trends through technological advancements and innovations.
- In May 2022- Ohio. Hon Hai Technology Group (“Foxconn”), signed a contract with Lordstown Motors Corp. (“Lordstown Motors” or “LMC”) for a manufacturing agreement and a joint venture agreement for product development.
- In August 2021, Toronto-based contract electronics manufacturer Celestica Inc. marked the grand opening of its AbelConn Electronics facility in Maple Grove, Minn, a wholly-owned subsidiary of Celestica. The facility provides rapid prototyping, volume manufacturing, and engineering support for the defense and aerospace industries.
- In August 2022, Taiwanese electronics giant Foxconn is looking at making electric vehicles in India, part of a larger diversification plan to expand its Asian manufacturing supply chain beyond China, according to people aware of developments at the contract phone maker for Apple.
These insights are based on a report on the Electronic Manufacturing Services Market by Future Market Insights