Global Electronics Manufacturing Services Market Overview:
Electronics Manufacturing Services Market Size was valued at USD 541.5 Billion in 2022. The Electronics Manufacturing Services Market industry is projected to grow from USD 582.1 Billion in 2023 to USD 1,038.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.50% during the forecast period (2023 - 2032). Key manufacturers in the Electronics Manufacturing Services (EMS) sector are enhancing their production capacity in response to growing competition from medium-tier companies. This involves adopting various technological advancements, including augmented reality, the Internet of Things (IoT), and 3D printing are expected to be significant market drivers for the Electronics Manufacturing Services Market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Electronics Manufacturing Services Market Trends
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Surging demand for electronic devices, including smartphones and smartwatches and rising government initiatives are driving the market growth
Market CAGR for Electronics Manufacturing Services is being driven by the surging demand for electronic devices, including smartphones and smartwatches, and rising government initiatives. Recent data from IBEF indicates that the Indian appliances and consumer electronics industry, valued at USD 9.84 billion, is poised to more than double, reaching INR 1.48 lakh crore (USD 21.18 billion) by 2025. Companies, aiming to optimize their manufacturing operations, are increasingly redirecting capital investments from inventory, facilities, and equipment toward sales, marketing, and research and development. This strategic shift has led to a heightened demand for outsourcing to third-party manufacturing service providers. An illustrative example is an avionics company opting to outsource its Printed Circuit Board Assembly (PCBA) production to an Electronics Manufacturing Services (EMS) partner. This decision was driven by the desire to expand product and service offerings without making additional investments in manufacturing. Key requirements included compliance with AS9100 standards and the ability to handle multiple Ball Grid Arrays (BGAs) on the PCBAs, some with up to 16 layers.
Government initiatives in various regions are playing a pivotal role in driving market growth. Notably, the Indian government's approval of 14 companies under the IT hardware production-linked incentive (PLI) scheme is anticipated to result in a total production value of USD 21.64 billion over the next four years. This initiative is expected to attract additional investment in electronics manufacturing within India. Furthermore, the Government of India's approval of 100% Foreign Direct Investment (FDI) in the electronics systems design and manufacturing sector under the automatic route is a significant driver. With FDI in single-brand retail already increased from 51% to 100%, there are plans to raise the FDI limit in multi-brand retail to 51%, contributing to the overall growth trajectory of the market. As a result, it is anticipated that throughout the projection period, demand for the Electronics Manufacturing Services Market will increase due to the surging demand for electronic devices, including smartphones and smartwatches, and rising government initiatives. Thus, driving the Electronics Manufacturing Services Market revenue.
Electronics Manufacturing Services Market Segment Insights:
Electronics Manufacturing Services Service Type Insights
The Electronics Manufacturing Services Market segmentation, based on Service Type includes Electronics Design and Engineering, Electronics Assembly, Electronics Manufacturing, and Other Service Types. The electronics manufacturing segment dominated the market, accounting for 58% of market revenue (314.0 billion). The Electronics Manufacturing segment is also influenced by the growing focus on sustainability and environmental responsibility. Many companies are adopting green practices, incorporating recyclable materials, and optimizing production processes to reduce their carbon footprint. This shift towards eco-friendly manufacturing practices is attracting businesses seeking electronics manufacturing services that align with their environmental objectives.
Figure 1: Electronics Manufacturing Services Market, by Service Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Electronics Manufacturing Services Application Insights
The Electronics Manufacturing Services Market segmentation, based on Application includes Consumer Electronics, Automotive, Industrial, Aerospace and Defense, Healthcare, IT and Telecom, and Other Applications. The industrial segment dominated the market, accounting for 60% of market revenue (324.9 Billion). The adoption of Industry 4.0 promises substantial gains in efficiency and productivity through automated data processes in factory operations. The concurrent progress in the Industrial Internet of Things (IoT) and artificial intelligence (AI) contributes to this growth to a certain extent. While the electronics industry has not yet fully realized a comparable level of intelligence and automation, the ongoing shift towards Industry 4.0 is evident in recent trends within the electronics manufacturing services market.
Electronics Manufacturing Services Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Electronics Manufacturing Services market in North America can be attributed to several key factors. The swift progress in technology, marked by the emergence of 5G networks, the Internet of Things (IoT), and artificial intelligence (AI), is driving demand for increasingly sophisticated and specialized electronic components. Leading e-commerce platforms, including Amazon.com, Apple.com, and Walmart.com, continue to maintain their top positions with revenues of US$133.5 billion, US$56.6 billion, and US$52.4 billion, respectively. Notably, Target.com has risen to the fourth position, surpassing its U.S. ranking, with revenues reaching US$20 billion. In response to these technological shifts, Electronics Manufacturing Services (EMS) providers in North America are adapting their services to cater to the production requirements of advanced and connected devices.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Electronics Manufacturing Services Market SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Electronics Manufacturing Services Market accounts for the second-largest market share as Europe is strategically prioritizing Industry 4.0, the fourth industrial revolution marked by the integration of digital technologies into manufacturing processes. Notably, in 2022, high-tech products constituted 16% of total extra-EU imports and 17% of total extra-EU exports. Large businesses held a significant share, with 30% at a very high digital intensity and 54% at a high digital intensity, in contrast to SMEs, where only 4% exhibited very high digital intensity, and 27% demonstrated high digital intensity. The majority of SMEs recorded low (38%) or very low (31%) levels of digital intensity. This strategic emphasis on smart manufacturing, automation, and data exchange aligns seamlessly with the services provided by Electronics Manufacturing Services (EMS) providers, contributing substantially to the growth of the market. Further, the German Electronics Manufacturing Services Market held the largest market share, and the UK Electronics Manufacturing Services Market was the fastest-growing market in the European region
The Asia-Pacific Electronics Manufacturing Services Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia Pacific region has solidified its position as a key manufacturing hub, especially for the electronics sector. In India, manufacturing exports achieved an unprecedented milestone, reaching the highest annual exports of US$ 447.46 billion during FY23, showcasing a substantial growth of 6.03% compared to the previous year's record of US$ 422 billion in FY22. Noteworthy countries such as China, Japan, South Korea, Taiwan, and others exert significant influence in electronic manufacturing within the region. This dominance is underpinned by a well-established infrastructure, a skilled labor force, and supportive policies, collectively enhancing its prominence in the global supply chain. Moreover, China’s Electronics Manufacturing Services Market held the largest market share, and the Indian Electronics Manufacturing Services Market was the fastest-growing market in the Asia-Pacific region.
Electronics Manufacturing Services Market Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Electronics Manufacturing Services market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Electronics Manufacturing Services industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Electronics Manufacturing Services industry to benefit clients and increase the market sector. In recent years, the Electronics Manufacturing Services industry has offered some of the most significant advantages to the global electronics supply chain. Major players in the Electronics Manufacturing Services Market, including Vinatronic Inc., Benchmark Electronics Inc., Hon Hai Precision Industry Co. Ltd (Foxconn), Flex Ltd, Sanmina Corporation, Jabil Inc., SIIX Corporation, Nortech Systems Incorporated, Celestica Inc., Integrated Micro-electronics Inc., Creation Technologies LP, Wistron Corporation, Plexus Corporation, TRICOR Systems Inc., Sumitronics Corporation are attempting to increase market demand by investing in research and development operations.
Flex Ltd (Flex) is a comprehensive provider of design, engineering, manufacturing, and supply chain services, encompassing the fabrication of printed circuit boards (PCBs). The company's diverse offerings include consumer devices, optical products, power supply design solutions, solar trackers, software solutions, circular economy solutions, and distribution and logistics services. Flex specializes in the design and production of consumer and enterprise products, ranging from medical devices and connected automotive systems to sustainable lighting and cloud and data center solutions. The company markets its products and services under various brand names such as Farm, Infinex, MCi, NEXTracker, Sheldahl, Sonderborg Vaerktojsfabrik, and Irumold. With a client base spanning the automotive, industrial, lifestyle, cloud, communications, consumer devices, energy, and healthcare sectors, Flex operates globally with business operations in the Americas, Europe, and Asia. The company is headquartered in Singapore.
Benchmark Electronics Inc (Benchmark) is a leading provider of comprehensive electronic manufacturing services, specializing in integrated manufacturing, engineering, design, technology solutions, and precision machining. The company offers a range of manufacturing technologies, including advanced surface mount, substrate technologies, plated through holes, flip chips, in-circuit tests, stress tests, board-level functional test prototypes, testing, and related engineering services. Additionally, Benchmark provides specialized services such as conformal coating, potting, encapsulation, and ultrasonic welding, along with complex final assembly. Catering to original equipment manufacturers in aerospace and defense, medical technologies, complex industrials, semi-cap, next-generation telecommunications, and high-end computing products, Benchmark operates globally with a presence in the Americas, Asia, and Europe. The company, headquartered in Scottsdale, Arizona, USA, engages in strategic partnerships, as evidenced by its 2022 collaboration with Yield Engineering Systems (YES). This partnership involves transferring the manufacturing of YES's flagship product line to Benchmark's facility in Malaysia, while also providing engineering and manufacturing support for YES's upcoming innovative modular wet process systems in the Phoenix, Arizona area.
Key companies in the Electronics Manufacturing Services Market include
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Vinatronic Inc.
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Benchmark Electronics Inc.
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Hon Hai Precision Industry Co. Ltd (Foxconn)
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Flex Ltd
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Sanmina Corporation
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Jabil Inc.
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SIIX Corporation
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Nortech Systems Incorporated
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Celestica Inc.
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Integrated Micro-electronics Inc.
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Creation Technologies LP
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Wistron Corporation
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Plexus Corporation
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TRICOR Systems Inc.
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Sumitronics Corporation
Electronics Manufacturing Services Industry Developments
Vinatronic Inc.:
- January 2024: Vinatronic announced a partnership with a leading manufacturer of defense electronics to provide production services for a new product line.Â
- February 2024: The company invested in upgrading its automation and testing equipment to enhance efficiency and accuracy.
 Benchmark Electronics Inc.:
- December 2023: Benchmark acquired a medical device manufacturing company, expanding its presence in the healthcare sector.Â
- February 2024: The company reported a strong increase in revenue for its aerospace and defense segment, driven by rising demand for military electronics.Â
Electronics Manufacturing Services Market Segmentation:
Electronics Manufacturing Services Service Type Outlook
Electronics Manufacturing Services Application Outlook
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Consumer Electronics
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Automotive
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Industrial
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Aerospace and Defense
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Healthcare
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IT and Telecom
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Other Applications
Electronics Manufacturing Services Regional Outlook
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Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2022 |
USD 541.5 Billion |
| Market Size 2023 |
USD 582.1 Billion |
| Market Size 2032 |
USD 1,038.1 Billion |
| Compound Annual Growth Rate (CAGR) |
7.50% (2023-2032) |
| Base Year |
2022 |
| Market Forecast Period |
2023-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Service Type, Application, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Vinatronic Inc., Benchmark Electronics Inc., Hon Hai Precision Industry Co. Ltd (Foxconn), Flex Ltd, Sanmina Corporation, Jabil Inc., SIIX Corporation, Nortech Systems Incorporated, Celestica Inc., Integrated Micro-electronics Inc., Creation Technologies LP, Wistron Corporation, Plexus Corporation, TRICOR Systems Inc., Sumitronics Corporation |
| Key Market Opportunities |
The rapid expansion of the Internet of Things (IoT) is expected to drive substantial opportunities for electrical manufacturers in the burgeoning smart devices market. |
| Key Market Dynamics |
Increasing interest in consumer electronics |
Frequently Asked Questions (FAQ) :
The Electronics Manufacturing Services Market size was valued at USD 541.5 Billion in 2022.
The Electronics Manufacturing Services Market is projected to grow at a CAGR of 7.50% during the forecast period, 2023-2032.
North America had the largest share of the global market
The key players in the market are Vinatronic Inc., Benchmark Electronics Inc., Hon Hai Precision Industry Co. Ltd (Foxconn), Flex Ltd, Sanmina Corporation, Jabil Inc., SIIX Corporation, Nortech Systems Incorporated, Celestica Inc., Integrated Micro-electronics Inc., Creation Technologies LP, Wistron Corporation, Plexus Corporation, TRICOR Systems Inc., Sumitronics Corporation
The Electronics Manufacturing segment dominated the market in 2022.
The Industrial segment had the largest share of the global market.
