Impact of COVID-19 on the Global EMS and ODM Market
Electronics manufacturing services (EMS) refers to the services related to companies that manufacture, supply, distribute, and provide repair services for electronic assemblies and components required by original equipment manufacturers (OEMs). Whereas original design manufacturers (ODM) are industry players that design, manufacture, and supply products as specified and eventually rebranded or sold by another company. Moreover, the rising adoption of EMS and ODMs in several industries, including manufacturing, consumer electronics, and automotive, is expected to stimulate market growth. These evolving technologies and services are transforming industries across the globe.
The spread of COVID-19 has considerably impacted the EMS and ODM market across the globe. The rapid spread of the pandemic has initiated lockdowns in several countries, which has led to the disruption of supply chains and the closing of numerous manufacturing plants. The slowdown caused in the production of new products by the ODMs has severely impacted the growth of end-use industries and is thus expected to hinder the market growth over the projected timeframe.
Industry players across the globe are focused on lowering operational costs for survival in the EMS and ODM market. The future manufacturing operations of these industry players in the post-lockdown period is expected to drive the growth of the market. Supportive government policies and relaxations in the lockdowns are expected to boost the demand for EMS and ODMs over the forecast timeframe. The industry players’ adoption of remote working policies to prevent the spread of COVID-19 at workplaces is likely to influence the EMS and ODM market positively. Thus, the demand for EMS and ODM products is expected to increase due to the rising adoption of advanced technologies in the automotive and electronics sectors, among others.