EMS and ODM Market Research Report - Forecast till 2027

EMS and ODM Market Research Report: by Product (EMS and ODM), by Application (Communication, Computer, Consumer, Industrial, Medical and others), by Region (North America, Europe, Asia-Pacific and Rest of the world) - Forecast till 2027

ID: MRFR/SEM/6605-CR | February 2020 | Region: Global | 119 pages

EMS and ODM Market Overview


The EMS and ODM market analysis were closed at a market valuation worth USD 620.02 billion during the historic forecast period that ended in 2018. With the pandemic year of 2020, the report curated has analyzed the current market trends and developing factors that will help the market grow during the current forecast period of 2019-2025. Based on the analysis, the EMS and ODM market is expecting an 8.62% CAGR growth which is likely to help the market reach the final market valuation at USD 1,106.3 billion by the end of the forecast period in 2025.


The Electronics manufacturing services (EMS) are rendered by companies that provide services like designing, manufacturing, assembling, and distributing the electronic test components and printed circuit boards (PCB) assemblies. The companies further offer to repair and return the services like components and assemblies of OEMs. OEM stands for original equipment manufacturers. The overall concept is known as ECM - electronics contract manufacturing. ODM stands for original design manufacturer and is referred to as a company that deals in designing and manufacturing any product-based design that works on existing specifications. These companies require original specifications from the end-users based on the product designs. These companies lend a helping hand to the other companies and suppliers with the capacity to get their hands on the product built that can design the hardware. Also, they should help in investing in the production lane and facilities fully.


COVID 19 Analysis


Most of the production and manufacturing units of various enterprises and companies functional across various global regions are witnessing the after-effects of the pandemic. The EMS and ODM market has also been subject to the adversity of the trends and changes initiated by the pandemic. New norms like social distancing and healthier lifestyle changes are pushing the market players to opt for alternate means to generate demand and make the raw material available to produce and meet the supply chain mechanism of the market. The functional restrictions are further adding to the challenges available to the EMS and ODM market and hence, giving a hard time to the market players aiming for expansion and growth. The pandemic has introduced new struggles in the global market which is likely to be treated with collaborative efforts rendered by the government, public sector, and the prominent market players.


The government and public sector are allocating their budget to increase their investment in the research and development department that is likely to come up with new and innovative strategies to implement on a global scale that will help the market players cover the losses, cater to the audiences’ demand and dominate the global market operations during the forecast period of 2019-2025.


Market Dynamics


Drivers


Based on the market trends highlighted and the viewpoints presented by the market experts and industry leaders, the EMS and ODM market is exposed to several factors that will present growth prospects during the ongoing forecast period of 2019-2025. The cumulative demand for customer electronic products is one of the major reasons that is pushing to propel the EMS and ODM market share. Also, another factor that is presenting excellent growth opportunities to the EMS and ODM market is that the semiconductor sector is witnessing expansion on a wide scale thus, presenting excellent prospects for the market to grow during the forecast period.


Restraints


However, on the contrary, the cost associated with the process of EMS management and equipment is high which might limit the global growth of the EMS and ODM market as per the predicted figures.


Technology Analysis


Most of the market vendors and players are improving their profitability degree and are on the lookout for expanding their area of services around the market sectors like medical and pharmaceutical, industrial sector, and automotive. The players are also expecting a decent return on investment thus, expanding the EMS and ODM market scope.


Market Segmentation


The EMS and ODM market has been segregated all across the globe based on the product, application, and region.


Based on the Product



  • The market has been divided all across the globe based on the product into ODM and EMS. The largest market share in the product dividend in 2018 is held by the EMS. It offers various manufacturing services like testing, assembly, and design whereas ODM companies help in the manufacturing and designing of products.


Based on the Application



  • The EMS and ODM market has been divided all across the globe based on the application into the medical industry, industrial sector, consumer industry, computer industry, communication industry, and others.


Based on the Region



  • The EMS and ODM market has been divided all across the globe based on the region into the North American region, European region, Asia-Pacific region, Latin American region, and the Middle East and African region.


Regional Analysis


The EMS and ODM market has been divided all across the globe based on the region into the North American region, European region, Asia-Pacific region, Latin American region, and the Middle East and African region. The largest market share in the EMS and ODM market all across the globe is held by the Asia-Pacific region owing to increasing demand for consumer electronics drives the market demand in this region. Rapid technological advancement is another contributing factor. This region is expected to grow at a high CAGR of 10.33%.


The second-largest market share in the EMS and ODM market all across the globe is held by the North American region owing to the increasing innovations in consumer electronics product markets to cater to the increasing demand in this region.


The third-largest market share in the EMS and ODM market all across the globe is held by the European region owing to the presence of countries like Germany, Italy, France, and the UK. Moreover, an increase in personal disposable income also fuels the market demand in this region.


The least market share is held by the Latin American region and the Middle East and African region owing to the presence of low infrastructure in both these regions. Low per capita disposable income is another factor that restricts the market growth in these regions.


Competitive Landscape


The most prominent major key players in the EMS and ODM market all across the globe are mentioned below:



  • Sanmina Corporation (US)

  • Jabil Inc. (US)

  • Flex Ltd. (Singapore)

  • UMC Electronics Co., Ltd. (Japan)

  • Zollner Elektronik AG (Germany)

  • Venture Corporation Ltd. (Singapore)

  • Shenzhen Kaifa Technology Co., Ltd. (China)

  • Universal Scientific Industrial Co., Ltd. (China)

  • New Kinpo Group (Taiwan)

  • Foxconn Technology Co. Ltd. (Taiwan)


These major key players use various strategies to sustain their market position in the EMS and ODM market in the global market by going for mergers, and acquisitions, collaborating, establishing a partnership, developing a new production process, setting up a new joint venture. Developing a new product line, innovation in the existing product, and many others to expand their customer base in the untapped market of the EMS and ODM all across the globe.


Recent Developments



  • In July 2018, two new manufacturing units were announced to be built in the Philippines by the New Kinpo Group for making a manufacturing hub in the South-East Asian region. Due to the availability of proper infrastructure and skilled labor, the company aims to extend its manufacturing facilities.

  • In February 2018, for the installation of a semiconductor module facility, a joint venture was formed between Qualcomm and Universal Scientific in Sau Paulo, Brazil. It will help in manufacturing components for smartphones, fabricates modules, and facility design in Brazil.

  • In January 2018, a new wholly-owned subsidiary named Venture Enterprise Innovative, Inc. has been acquired by Venture in California, US. It will help in engaging advanced technology in the US market.

  • Foxconn Technology Co. Ltd. (Taiwan) is spending a huge sum of money on research and development to get an upper edge over its competitors.


Report Overview


This global EMS and ODM market research report consists of the following elements mentioned below:



  • Market Overview

  • COVID 19 Analysis

  • Market Dynamics

  • Technical Analysis

  • Market Segmentation

  • Regional Analysis

  • Competitive Landscape

  • Recent Developments


This market research report contains factors that drive the growth of the EMS and ODM market in the global market along with the factors that restrict its growth in the global market. The technical analysis for the growth estimation during the forecasted period is mentioned. The impact of COVID 19 on the EMS and ODM market all across the globe is mentioned. The future growth rate in the EMS and ODM market during the forecasted period is estimated and mentioned.



Report Scope:
Report Attribute/Metric Details
  Market Size   USD 1106.3 Billion
  CAGR   8.62%
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Product, Application
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Foxconn Technology Co. Ltd (Taiwan), New Kinpo Group (Taiwan), Universal Scientific Industrial Co., Ltd (China), Shenzhen Kaifa Technology Co., Ltd (China), Venture Corporation Ltd (Singapore), Zollner Elektronik AG (Germany), UMC Electronics Co., Ltd (Japan), Flex Ltd (Singapore), Jabil Inc. (US) and Sanmina Corporation (US)
  Key Market Opportunities   Demand for computers and consumer products has significantly increased.
  Key Market Drivers

  • The growing semiconductor industry.
  • Growing demand for consumer electronics.


  • Frequently Asked Questions (FAQ) :


    The worldwide market of EMS and ODM can stand at a value at USD 1106.3 Bn at 8.62% CAGR by 2025.

    Foxconn Technology Co. Ltd (Taiwan), Universal Scientific Industrial Co., Ltd (China), and New Kinpo Group (Taiwan) are some well-established players of the EMS and ODM market.

    In 2018, the EMS and ODM market worth was recorded at USD 620.02 Bn.

    The APAC EMS and ODM market can surge at 10.33% CAGR from 2018 to 2025, suggests MRFR.

    The EMS product segment of the market can generate a revenue exceeding USD 430 Bn by 2025.

    Communication gadgets and medical devices are likely to deploy EMS and ODM.

    The adoption of fail-safe strategies by business giants can favor the EMS and ODM market.