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The Electronics Manufacturing Services (EMS) and Original Design Manufacturing (ODM) market are shaped by several key market factors that influence the industry's dynamics. One fundamental factor is the rapid pace of technological advancement. As electronic devices become more sophisticated and feature-rich, the demand for EMS and ODM services increases. Companies seek manufacturing partners with the technical expertise to produce cutting-edge products, prompting EMS and ODM providers to continually invest in advanced technologies to meet the evolving requirements of their clients.
Globalization is another significant market factor affecting the EMS and ODM industry. The increasing interconnectedness of markets and the ability to leverage resources from different regions have led to the globalization of supply chains. EMS and ODM providers often establish manufacturing facilities in strategic locations to cater to regional demands, take advantage of cost-effective labor, and reduce transportation costs. The ability to navigate and optimize global supply chains is a crucial factor in the competitiveness of EMS and ODM companies.
Cost considerations play a pivotal role in shaping the EMS and ODM market. Companies across various industries, including consumer electronics, telecommunications, and automotive, are under constant pressure to reduce manufacturing costs while maintaining product quality. EMS and ODM providers leverage economies of scale, efficient production processes, and global sourcing strategies to offer cost-effective solutions to their clients. The ability to provide competitive pricing while ensuring high-quality manufacturing is a key factor in attracting and retaining business in the highly competitive EMS and ODM market.
Market factors in the EMS and ODM industry are also influenced by regulatory requirements and standards. Compliance with industry-specific regulations and international standards is essential for companies operating in this space. EMS and ODM providers must stay abreast of evolving regulations related to product safety, environmental sustainability, and ethical manufacturing practices. Adhering to these standards not only ensures legal compliance but also enhances the reputation of EMS and ODM companies as reliable and responsible partners in the supply chain.
Customer demand for customization and flexibility is a driving force in the EMS and ODM market. Original Equipment Manufacturers (OEMs) increasingly seek partners who can offer flexible manufacturing solutions, rapid prototyping, and the ability to scale production according to market demands. EMS and ODM providers that can adapt to varying production volumes, accommodate design changes, and provide quick turnaround times gain a competitive edge in meeting the dynamic needs of their clients.
The rise of Industry 4.0 technologies is transforming the EMS and ODM market. The integration of digital technologies, automation, and data analytics into manufacturing processes enhances efficiency, reduces errors, and enables real-time monitoring. EMS and ODM providers embracing Industry 4.0 principles can optimize their operations, improve quality control, and offer clients enhanced visibility into the production process.
The geopolitical landscape is a factor that significantly influences the EMS and ODM market. Trade tensions, tariffs, and geopolitical uncertainties can impact the global supply chain, affecting the cost of materials and the feasibility of manufacturing in certain regions. EMS and ODM companies need to carefully navigate geopolitical factors, considering trade policies and regional stability when making strategic decisions about manufacturing locations and supply chain management.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 541.9 Billion |
| Market Size Value In 2023 | USD 588.611 Billion |
| Growth Rate | 8.62% (2023-2032) |
EMS ODM Market Highlights:
Global Electronics Manufacturing Services and Original Design Manufacturer Market Overview:
EMS and ODM Market Size were valued at USD 588.6 billion in 2023. The EMS and ODM market industry is projected to grow from USD 639.4 Billion in 2024 to USD 1238.8 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.62% during the forecast period (2024 - 2032). The expanding semiconductor industry and, proximity to markets, low labor inputs are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
EMS and ODM Market Trends
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The expanding semiconductor industry is driving the market growth
The penetration of EMS providers is rapidly rising as the price of electronic devices and related products rises. The expanding semiconductor industry is one of the key factors boosting the ODM and EMS markets. As computers and consumer electronics gain popularity, the EMS and ODM Market is anticipated to expand significantly. One or more of the main factors propelling the market's expansion include proximity to markets, low labor inputs, increasing saturation in PC outsourcing, increasing momentum in notebook PC manufacturing, a more varied product mix, and end markets. Additionally, it is anticipated that increased EMS and ODM use in several industries, including manufacturing, consumer electronics, and automotive, will accelerate market growth. Around the world, industries are being transformed by these quickly evolving technologies and services.
However, non-commoditized markets primarily concentrating on technical problems, erratic demand, a convoluted global supply chain, and product sustainability are substantial barriers to market expansion for ODMs and EMS. The high cost of EMS equipment maintenance can also hinder the market's expansion. The growth is primarily attributable to an increase in the use of smart home technology in developed economies around the globe. Corporations in industrialized nations offer various electronic manufacturing services, including the production of radio frequency and wireless devices, optoelectronics services, and microelectronics devices for developing smart home trends.
Key industry players are prone to integrating Artificial Intelligence (AI), cloud computing, 3D printing, and big data analysis to improve their engineering and factories to build Smart connected devices for smart homes. Players in the electronics manufacturing services market are expanding their production facilities to incorporate new technologies and satisfy the industry's high demand for smart home services. Due to this growing need, technology has advanced quickly. As a result, OEMs constantly suggest novel products in the consumer electronics market to satisfy the growing demand.
Additionally, the EMS market has expanded due to businesses providing end-to-end solutions and assisting automakers with service realization. Automakers are anticipated to be motivated to use EMS by the rise in electric vehicle adoption brought on by government initiatives to cut CO2 emissions. Several governments also intend to introduce plans and regulations to promote the use of electric vehicles. This is expected to have a favorable effect on EMS's growth prospects in the ensuing years. Thus, driving the EMS and ODM market revenue.
EMS and ODM Market Segment Insights:
EMS and ODM Product Insights
Based on product, the EMS and ODM Market segmentation includes EMS and ODM. The EMS segment dominated the market; assembling, designing, and testing are just a few of an EMS vendor’s manufacturing services. Most EMS vendors test their designs' viability through consultation with industry professionals, user interviews, and examination of related, already-existing products.
Figure 1: EMS and ODM Market, by Products, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
EMS and ODM Application Insights
Based on application, the EMS and ODM Market segmentation includes communication, computer, consumer, industrial, medical and others. The industrial category generated the most income. Numerous technologies are used in a variety of industrial applications. The services required to buy a new product cover the entire product life cycle, from scope and specification to prototyping and testing to final integration. Aerospace and defense - Essential security solutions are needed for high performance and high reliability of demanding environmentally friendly applications. Aircraft electrification will receive much attention. Telecommunications - Data processing and telecommunications are complicated. Both the various devices themselves and the network infrastructure needed to support the technology must be supported.
EMS and ODM Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American EMS and ODM market area will dominate this market, By extending their business into the industrial, automotive, and medical sectors, American-based EMS and ODM vendors are becoming more profitable. The businesses have made sizeable purchases and investments that support market expansion in North America. The region is actively participating in a global marketplace; in the interim, these vendors have concentrated on expanding their portfolio.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: EMS and ODM Market SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe EMS and ODM market accounts for the second-largest market share because of the presence of nations like Germany, Italy, France, and the United Kingdom. Additionally, the market demand in this region is fueled by increased personal disposable income. Further, the German EMS and ODM market held the largest market share, and the UK EMS and ODM market was the fastest-growing market in the European region.
The Asia-Pacific EMS and ODM markets are expected to grow at the fastest CAGR from 2024 to 2032. This is due to the region's growing need for consumer electronics products. Rapid technological advancements are a result of this rising demand. To meet the growing demand, original equipment manufacturers (OEMs) frequently introduce innovative products in the consumer electronics market. Considering how many consumer electronics are produced in China, the country is regarded as a global hub for these goods. Due to significant market participants like Pegatron, Hon Hai (Foxconn), Wistron, and New Kinpo, Taiwan will most likely hold most of the global EMS market share. As a result, Taiwan and China, two Asian nations, offer the OMS and EDM market significant growth potential. Moreover, China’s EMS and ODM market held the largest market share, and the Indian EMS and ODM market was the fastest-growing market in the Asia-Pacific region.
EMS and ODM Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the EMS and ODM markets grow even more. Market participants are also undertaking various 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, EMS and ODM industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global EMS and ODM industry to benefit clients and increase the market sector. The EMS and ODM industries have offered some of the most significant advantages in recent years. Major players in the EMS and ODM market, including 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), and others, are attempting to increase market demand by investing in research and development operations.
Flex Ltd. (Singapore), Flex is a trusted global manufacturing partner of choice for a wide range of customers, helping to design, build, and support products that improve the world. Flex builds on our 50-year history with a clear vision, mission, and purpose. Flex offers manufacturing solutions and services, supply chain leadership, and technology innovation to various industries and end markets by leveraging the collective strength of a global workforce spread across 30 countries and responsible, sustainable operations. Everything we do is centered on this. We have the honor of working with the best makers, problem-solvers, innovators, craftspeople, and leaders in the field. By collaborating globally, we push the envelope to create a wide range of customer products to enhance the world. We produce the extraordinary through close cooperation and partnership. Be the most dependable global partner for manufacturing, supply chain, and technology solutions to better the world. Our goal is to fulfill our purpose and realize our vision. By offering a secure work environment with opportunities for professional growth, we achieve this for our global workforce. We produce goods that have a positive impact on the world using our manufacturing expertise for the benefit of our customers. We also care for the environment by promoting environmentally friendly manufacturing and operational methods.
Sanmina Corporation (US), is a US electronic manufacturing services (EMS) provider based in San Jose, California, serving OEMs in the telecommunications and computer equipment industries. The company has approximately 80 manufacturing facilities and is one of the world's largest independent manufacturers of printed circuit boards and backplanes. As of 2022, it is ranked 482 on the Fortune 500 list.
Key Companies in the EMS and ODM markets include
- 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)
EMS and ODM Industry Developments
June 2022: Hon Hai Precision Industrial Co., Ltd., doing business as Foxconn Technology Group, constructed Taiwan's biggest supercomputer. The supercomputer has been used in several fields, including animation imaging, sports data analysis, imagery analysis, and other surgery, patient test records, and radiation therapy simulations.
January 2022: The New Kinpo Group announced the construction of two new manufacturing facilities in the Philippines to establish a manufacturing hub in the South-East Asian region. The company wants to expand its manufacturing facilities because there is good infrastructure and skilled labor close by.
February 2021: A joint venture was established between Qualcomm and Universal Scientific in Sau Paulo, Brazil, to install a semiconductor module facility. It will aid in the fabrication of modules, the design of facilities, and the production of smartphone components in Brazil.
EMS and ODM Market Segmentation:
EMS and ODM Product Outlook
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EMS
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ODM
EMS and ODM Application Outlook
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Communication
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Computer
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Consumer
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Industrial
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Medical
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Others
EMS and ODM Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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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
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