Electronics Manufacturing Service Market to grow by USD 188 Billion from 2025-2029, driven by rising service providers in low-wage economies, AI impact – Technavio

NEW YORK, Jan. 30, 2025 /PRNewswire/ — Report on how AI is driving market transformation- The global electronics manufacturing service market size is estimated to grow by USD 188 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 6.6%  during the forecast period. Increasing number of electronics manufacturing services providers in economies with low hourly wages is driving market growth, with a trend towards collaborative co-innovation partnership with electronics manufacturing services providers. However, risk of intellectual property theft and misuse  poses a challenge. Key market players include 3CEMS Group, Accton Technology Corp., Benchmark Electronics Inc., Celestica Inc., Compal Electronics Inc., Creation Technologies LLC, Data IO Corp., Elbit Systems Ltd., ESCATEC Sdn. Bhd., Flex Ltd., Hon Hai Precision Industry Co. Ltd., Integrated Micro Electronics Inc., Jabil Inc., Key Tronic Corp., Kimball Electronics Inc., Kitron ASA, Neo Tech Inc., Plexus Corp., Sanmina Corp., and Venture Corp. Ltd..

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The Electronics Manufacturing Services (EMS) market is experiencing significant trends in various industries. In healthcare, there’s in demand for medical devices and equipment. The automotive sector is witnessing a shift towards sub-assembly manufacturing, testing, and component assembly & re-engineering for advanced vehicle systems. Industrial output is increasing with the adoption of new technologies like virtual reality, 3D printing, and structural electronics. The coronavirus pandemic has disrupted the electronics supply chain, highlighting the need for cybersecurity measures. Capacitors, connectors, LCD panels, and other components are in high demand across Consumer Electronics, Aerospace & Defense, IT and Telecom, IoT, and Electric vehicles. Productivity levels are improving due to new technologies and EMS providers are focusing on E-waste recycling and Greener Electronic Devices. The Global E-waste Monitor 2020 reports growing urban and population growth leading to increased electronic waste. Low-income individuals are being targeted with affordable smart home products, smartphones, and televisions. Structural electronics penetration is increasing in high-end autos and space vehicles. EMS providers are offering logistics services and engineering services to OEMs. The demand for IoT-enabled cars and electric car sales is driving growth in the electronics manufacturing industry. Structural electronics are being used in various applications from smartphones to smart homes and urban infrastructure. Zero-waste nations are pushing for circular economy solutions, and EMS providers are responding with innovative approaches to electronic equipment manufacturing and structural electronics demand. The future of the EMS market is bright, with continued growth and innovation in various sectors. 

Electronics manufacturing services (EMS) outsourcing involves collaborative partnerships between customer organizations and service providers. These partnerships require risk and value sharing, resulting from the joint functioning of both parties. Co-innovation is a key aspect of these collaborations, where knowledge is exchanged to create new solutions and products, generating significant value. Despite the increasing challenges and risks in EMS adoption, successful outsourcing relationships continue. EMS providers are viewed as strategic partners, integrated into their clients’ supply chains. 

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•         The Electronics Manufacturing Services (EMS) market faces several challenges in various industries. In healthcare, ensuring regulatory compliance and maintaining productivity levels are key concerns. In automotive, sub-assembly manufacturing, testing, and component assembly & re-engineering are crucial for OEMs. The electronics supply chain is impacted by coronavirus, cybersecurity risks, and new technologies like virtual reality, 3D printing, and structural electronics. Industries like healthcare, automotive, consumer electronics, aerospace & defense, IT and telecom, IoT, and electric vehicles drive demand for capacitors, connectors, LCD panels, and other components. EMS providers must adapt to new technologies and the circular economy, focusing on e-waste recycling and greener electronic devices. Urban and population growth increase the need for logistics services and engineering services. Low-income individuals benefit from smart home products, smartphones, and televisions. Structural electronics penetration is growing in high-end autos, space vehicles, and IoT-enabled cars. Electric car sales and electronic equipment manufacturing require structural electronics demand. EMS providers must address these challenges to remain competitive in the ever-evolving electronics manufacturing industry.

•         The electronics manufacturing service market encounters a significant challenge with the risk of intellectual property (IP) theft. Many electronics businesses guard their manufacturing designs closely, implementing strict policies to safeguard against outsourcing to electronic manufacturing services (EMS) providers. EMS providers work under contract, catering to multiple businesses, increasing concerns over potential IP technology and design leakage, data theft, and misuse. Despite thorough documentation before awarding contracts, these fears persist. EMS providers must ensure security measures to mitigate these risks and maintain trust with their clients.

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This electronics manufacturing service market report extensively covers market segmentation by  

1. End-user 

• 1.1 C and CA
• 1.2 Telecommunication
• 1.3 Industrial
• 1.4 Automotive
• 1.5 Others

• 2.1 Electronics design and engineering
• 2.2 Electronics assembly
• 2.3 Electronics manufacturing
• 2.4 Others

• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 C and CA-  The global Electronics Manufacturing Services (EMS) market is experiencing significant growth, particularly in the Computing and Consumer Appliances (C&CA) segment. This segment includes consumer electronics devices, data centers, and consumer appliances. The primary driver of this growth is the increasing demand for consumer electronic devices such as smartphones, tablets, laptops, AR/VR devices, gaming consoles, and wearable devices. Technological advancements, including air gesture and facial recognition technologies, are leading to the adoption of advanced sensor technologies in smartphone cameras. ToF sensors and cameras are increasingly being implemented in various consumer electronic devices. The consumer electronics sector is witnessing continuous innovation and competition, leading manufacturers to differentiate their offerings and outsource manufacturing services. The global consumer electronics market is expected to grow at a Compound Annual Growth Rate (CAGR) of over 6% during the forecast period. Emerging markets in Asia Pacific (APAC) and South America are major contributors to this growth, driven by factors such as population growth, improving economic conditions, increasing employment rates, and rising income levels. Data centers in computing applications present significant opportunities for EMS vendors. With the increasing Internet penetration, rising adoption of IoT devices, and the growing implementation of automation technologies, data traffic is experiencing exponential growth. Business enterprises need to securely store this data, leading to the construction of many data centers globally. This will accelerate the demand for data center components such as racks, cooling solutions, servers, storage devices, and power management systems. The increasing investments in data centers will result in the demand for many electronic components from data center equipment manufacturers, thereby accelerating the demand for electronic manufacturing services.

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The Electronics Manufacturing Services (EMS) market encompasses a wide range of services, including healthcare and automotive sub-assembly manufacturing, testing, component assembly and re-engineering, and engineering services. The industry’s industrial output is driven by the demand for new technologies such as virtual reality, 3D printing, and structural electronics. Capacitors, connectors, LCD panels, and other components are essential in the production of various electronic devices, from smart home products and smartphones to industrial equipment. New technologies continue to push productivity levels higher, enabling OEMs to bring innovative products to market faster. E-waste recycling is a critical aspect of the industry, ensuring the sustainable production of electronics while minimizing environmental impact. The EMS industry caters to a diverse range of sectors, from healthcare and automotive to consumer electronics, and even low-income individuals, who benefit from affordable and accessible electronic devices.

The Electronics Manufacturing Services (EMS) market encompasses a wide range of industries and technologies. In healthcare, EMS providers support the production of medical devices and equipment. In automotive, sub-assembly manufacturing, testing, and component assembly & re-engineering are crucial for the production of advanced electronics in vehicles. Industrial output is boosted by EMS providers in sectors like virtual reality, 3D printing, and consumer electronics. The coronavirus pandemic has disrupted electronics supply chains, highlighting the need for cybersecurity measures. Capacitors, connectors, LCD panels, and other components are key elements of electronics manufacturing. New technologies like structural electronics, IoT, and 3D technologies are driving innovation. E-waste recycling is a critical issue, with initiatives like Greener Electronic Devices and the Global E-waste Monitor 2020 promoting circular economy principles. The electronics manufacturing industry also addresses the needs of various sectors such as healthcare, automotive, aerospace & defense, IT and telecom, and consumer electronics. Urban growth and population expansion increase the demand for electronics, particularly smart home products, smartphones, televisions, and electric vehicles. Structural electronics penetration is growing in high-end autos, space vehicles, and IoT-enabled cars. EMS providers offer logistics services, engineering services, and support OEMs in the production of electronics. The shift towards zero-waste nations and greener electronic devices is a significant trend.

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• C And CA
• Telecommunication
• Industrial
• Automotive
• Others
• Service Type
• Electronics Design And Engineering
• Electronics Assembly
• Electronics Manufacturing
• Others
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio