Electronic Manufacturing Services (EMS) Market Analysis & Trends 2021

In 2021, the global electronic manufacturing services (EMS) market size was valued at $500.26 billion, which is expected to grow at $849.72 billion in 2028 with a CAGR of 7.9%. The whole market grows rapidly which is driven by industries like telecommunication and medical, and according to the statistics, most end-users of EMS are from communication and computer hardware industries account for about 59% of the total demand.

The demand for electronic manufacturing services is constantly increasing, more and more companies start to outsource such services to reduce the cost caused by large inventory, warehouse construction, and maintenance, so they can shift the investment into other aspects such as sales, marketing, research, and development. With the rising demand, competition among electronic manufacturing service providers has also intensified, but this has also raised global norms in the EMS industry. Th0e EMS companies are devoted to upgrading their facilities and applying new technologies such as virtual reality, the Internet of Things (IoT), and 3D printing to improve their production efficiency and quality. And they build collaboration with many Original Design Manufacturers and Original Equipment Manufacturers to enhance their EMS performance.

Electronic Manufacturing Services Market Analysis

EMS Market Share in Different Regions

Based on geographic location, the entire EMS market can be divided into five regions, which are North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

1.1 Asia Pacific Region

Asia Pacific is the largest electronic manufacturing services market that was valued at more than USD300 billion, which would keep expanding in the future. And countries like China, Vietnam, Japan, Korea, and Singapore play important role in this area’s EMS market, especially China. It is one of the most important EMS markets players in the world that fabricates and assembles about 60-70% of the world's electronics, which also plays an important role in consumer electronics, semiconductors, and other telecommunication products.  As Semiconductor Industry Association (SlA) mentioned: “In 2020, the Chinese semiconductor industry registered an unprecedented annual growth rate of 30.6% to reach $39.8 billion in total annual sales.”

In addition, the Chinese EMS market is expected to grow further thanks to its world-leading 5G technologies. More than 50 cities are covering 5G services in China, which can definitely raise the demand for telecommunication and navigation devices to drive the growth of electronic manufacturing services.

1.2 Europe EMS Market

The European electronics manufacturing services market is undergoing huge changes, the product design, development, and manufacturing processes begin to separate. And the emerging economies in Europe like Romania, Bulgaria, Slovakia, Estonia, Belarus, and Turkey attract more and more manufacturers’ attention.

This market is expected to reach USD 110 billion by 2026 with a CAGR of over 5%, and the Eastern European EMS market accounts for about 50% of the total European EMS markets. Thanks to the European Union which supports fabricating electric vehicles, electronic lighting, and safety electronics, the EMS market in the region is growing strongly. In addition, there are many automotive manufacturers in Europe such as BMW and Ford that work with EMS providers for PCB manufacturing and assembly, designing, engineering, prototyping, and so on. 

1.3 North and Latin American EMS Market

The North American market grows strongly in 2021, and the total electronic manufacturing services market in the United States and Canada exceeds 90 billion US dollars, which is driven by rapid urbanization and steady population growth. Along with the emergence of new technologies, the demand for electronics manufacturing services grows significantly, especially in young generations...