Electronic Manufacturing Services (EMS) Market Size, Share & Industry Analysis, By Service (Electronics Manufacturing Services, Engineering Services, Test & Development Implementation, Logistics Services, and Others), By Industry (Consumer Electronics, Automotive, Heavy Industrial Manufacturing, Aerospace and Defense, Healthcare, IT and Telecom, and Others), and Regional Forecast, 2025 – 2032

The global electronic manufacturing services (EMS) market size was valued at USD 609.79 billion in 2024. The market is projected to grow from USD 648.11 billion in 2025 to USD 1,033.17 billion by 2032, exhibiting a CAGR of 6.89% during the forecast period. Asia Pacific dominated the market with a share of 44.13% in 2024.

The global market plays a crucial role in the electronics supply chain, offering services such as design, assembly, production, and aftermarket support for electronic components and devices. These services cater to various industries, including consumer electronics, automotive, telecommunications, healthcare, and industrial automation. The key players in the market are Hon Hai Precision Industry Co Ltd, Wistron Corporation, Jabil Inc., Flex Ltd, and COMPAL Electronics, Inc. The growing demand for high-quality, cost-effective, and technologically advanced electronics is driving market expansion. Original Equipment Manufacturers (OEMs) increasingly rely on EMS providers for scalable production, allowing them to meet global demand efficiently while reducing operational complexities and costs. This factor is increasing the EMS market growth.

The outbreak of coronavirus affected the demand for electronic manufacturing services owing to the COVID-19 pandemic’s severe effect on the global electronics supply chain. Also, due to supply chain issues, companies began to prefer local EMS suppliers over those from distant regions, such as the Far East. This shift presented both opportunities and challenges for the industry.

IMPACT OF GENERATIVE AI

Enhancements in Decision-Based Data for EMS to Fuel Market Growth

The impact of generative AI on the Electronic Manufacturing Services (EMS) industry is multifaceted, bridging improvements in design, manufacturing, and market dynamics. When integrated with a focus on human needs and decisions based on data, advanced manufacturing technologies can enhance productivity, environmental efficiency, flexibility, resilience in the supply chain, speed of market entry, and a focus on customers. Achieving success will accelerate the use of these cutting-edge technologies to gain additional advantages. A recent study by an industry expert shows that AI-driven approaches can speed up the discovery of new materials by 30-40% compared to traditional methods.

ELECTRONIC MANUFACTURING SERVICES (EMS) MARKET TRENDS

Growing Adoption of Industry 4.0 Technologies Fuels Market Growth

Industry 4.0 involves the integration of advanced technologies such as automation, robotics, Artificial Intelligence (AI), and the Internet of Things (IoT) to improve manufacturing processes. EMS providers are adopting these technologies to increase efficiency, lower operational costs, and enhance product quality. As Industry 4.0 continues to evolve, it will be crucial to meet the rising demand for more complex and high-quality electronic products. For instance,

• According to Nasscom’s report, by 2025, industry 4.0 is at a critical turning point in Indian manufacturing. By 2025, over two-thirds of Indian manufacturers are expected to adopt digital transformation, contributing to the objective of increasing India’s manufacturing GDP to 25%.

MARKET DYNAMICS

Market Drivers

Increasing Demand for Consumer Electronics Drives Market Growth

The widespread adoption of devices such as smartphones, tablets, wearables, and smart home technologies has created a growing need for reliable and efficient manufacturing solutions. For instance,

• According to TechInsights Inc., consumer spending on smart home technology has experienced significant growth. In 2022, global consumer expenditure on smart home systems was estimated at USD 135 billion, with projections indicating an increase to USD 170 billion by 2025, reflecting a 26% growth rate.

EMS providers deliver affordable manufacturing options by utilizing economies of scale and streamlined production techniques. By outsourcing manufacturing to EMS providers, consumer electronics firms reduce their total production expenses. Moreover, technology advancements have encouraged consumers to seek more sophisticated products, further increasing the demand for high-quality EMS providers. To meet these evolving needs, OEMs are increasingly outsourcing their production processes, contributing to the global electronic manufacturing services (EMS) market growth.

Market Restraints

Increasing Operational Costs, Technological Issues, Geopolitical Tensions, and Labor Shortages to Restrain Market Growth

The market is facing several challenges that could impact its growth in the future. These challenges mainly come from factors such as increasing operational costs, technological issues, geopolitical tensions, and labor shortages. EMS providers adopt advanced technologies such as automation, robotics, and artificial intelligence, which require significant initial investments in upgrading their equipment and facilities. Geopolitical tensions and trade uncertainties such as trade wars, tariffs, and regulatory changes can disrupt the flow of materials and components, causing production delays and higher costs. The integration of advanced features such as 5G connectivity, AI, and IoT into devices requires specialized knowledge, advanced equipment, and skilled labor.

Moreover, the growing demand for more complex electronic products has led to an increased need for skilled workers in areas such as electronics assembly, quality control, and testing. However, many regions face shortages of qualified technicians, engineers, and operators, which can hinder production and increase labor costs.

Market Opportunities

Increasing Demand for Electronics in Emerging Technologies Creates Significant Market Opportunities

The increasing demand for electronics in emerging technologies, such as Electric Vehicles (EVs), renewable energy, and 5G networks, is creating significant growth opportunities for the EMS market. For instance,

• According to the International Energy Agency, in 2023, approximately 14 million new EVs were recorded globally, increasing the total number on the roads to 40 million. This represents a growth of 3.5 million units compared to 2022, reflecting a 35% y-o-y increase in electric car sales.

These sectors require advanced electronic components and systems, which presents EMS providers with the chance to expand their service offerings and capitalize on new growth areas. As these industries continue to gain traction globally, the demand for high-quality manufacturing solutions is expected to rise, making it an important time for EMS companies to align their capabilities with these technologies.

SEGMENTATION ANALYSIS

By Service

Electronic Manufacturing Services Segment to Lead Market Due to its Comprehensive Offerings

By service, the market is segmented into electronics manufacturing services, engineering services, test & development implementation, logistics services, and others.

The electronics manufacturing services segment held the highest electronic manufacturing services (EMS) market share of 47.93% in 2024 due to its comprehensive offerings, covering the design, assembly, and testing of electronic components and products. EMS providers cater to various industries, offering a wide range of electronic products, contributing to their dominant market share. The global footprint of EMS providers ensures they can efficiently serve diverse markets, supporting their leading positions in the industry.

The engineering services segment exhibits the highest CAGR in the market due to the increasing demand for product innovation and design manufacturers' expertise. An increased focus on innovation and technological progress drives the demand for specialized engineering services, resulting in the highest CAGR for this segment. The necessity for quick product development and reduced lifecycles increases the demand for engineering services, thereby improving their growth potential.

The others segment encompasses various ancillary services within the EMS market, such as aftermarket services, which include post-sales support, repairs, and maintenance.

By Industry

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Consumer Electronics Segment to Experience High Growth Owing to Technological Advancements in Consumer Electronics Industry

Based on industry, the market is classified into consumer electronics, automotive, heavy industrial manufacturing, aerospace and defense, healthcare, IT and telecom, and others.

The consumer electronics segment held the largest market share of 24.31% in 2024, due to the need for specialized manufacturing services that can handle complex designs and meet rapid innovation cycles. Consumer electronics is becoming more sophisticated, necessitating advanced manufacturing capabilities such as complex electronic assemblies and PCB design. The continuous introduction of new products and ongoing technological developments in the consumer electronics sector lead to ongoing growth in this segment of the market.

On the other hand, the IT and telecom segment exhibits the highest CAGR due to the constant evolution of technology and the growing demand for seamless communication solutions. This includes the production of devices such as routers, switches, and network infrastructure. The introduction of 5G technology has significantly propelled the expansion of EMS services within the IT and telecom industries.

Automotive segment is projected to grow at the highest CAGR of 6.78% during the forecast period (2025-2032).

The others segment includes diverse industries, such as energy utility and others, that contribute to electronic manufacturing.

ELECTRONIC MANUFACTURING SERVICES (EMS) MARKET REGIONAL OUTLOOK

In terms of geography, the market is studied across North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Asia Pacific

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Asia Pacific held the highest market share with the valuation of USD 250.03 billion in 2023 and USD 269.08 billion in 2024, and is expected to grow at the highest CAGR. This growth is driven by its cost-effective manufacturing capabilities, skilled labor, and rising consumer demand for electronic products. The region has become a global production hub, attracting OEMs seeking to outsource their manufacturing processes. Countries such as China, India, and South Korea are key players in this market, offering competitive pricing, strong infrastructure, and supportive government policies. Rapid industrialization and the adoption of advanced technologies further strengthen the region’s leadership in the EMS sector. For instance,

• In September 2024, Asia Pacific governments committed to working together on developing innovative solutions aimed at addressing the digital divide and advancing sustainability efforts. This initiative will drive EMS by increasing investment in digital infrastructure, fostering innovation in smart and sustainable technologies, and enhancing supply chain efficiencies.

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China holds a dominant position in the global electronic manufacturing services market with a valuation of USD 85.12 billion in 2025, driven by its status as a manufacturing powerhouse, and is a major player in the electronics industry. The country hosts numerous EMS providers catering to domestic and international markets. The country’s EMS market is robust in diverse industries, including consumer electronics, telecommunications, automotive, and industrial manufacturing. India is anticipated to be worth USD 44.51 billion in 2025, while the market in Japan is expected to be valued at USD 50.78 billion in the same year. The country’s cost-effective manufacturing capabilities make it a preferred location for outsourcing electronic manufacturing. Key players in the China EMS market include Foxconn (Hon Hai Precision Industry Co., Ltd.), BYD Electronic Co., Ltd., and Flex Ltd. Several Chinese EMS providers have expanded their operations globally, establishing a presence in key markets globally.

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Europe

Europe is expected to hold the third largest market share, valued at USD 119.45 billion in 2025, due to its strong industrial base, focus on high-quality production, and demand from various industries. European EMS providers are known for their precision, adherence to stringent quality standards, and compliance with regulations, making them preferred partners for OEMs. The U.K. market continues to expand, estimated to reach USD 21.57 billion in 2025. The increasing demand for advanced electronics and the integration of technologies such as 5G and electric vehicles further highlight Europe’s importance in the market. In this region, Germany is projected to reach a market value of USD 21.96 billion in 2025, while France is expected to be worth USD 16.15 billion in the same year.

North America

North America held the second-largest share in the market with a value of USD 168.47 billion in 2024 and is expected to hold the highest CAGR of 4.30% during the forecast period (2025-2032). This growth is driven by its advanced technology, strong presence in high-value industries, and demand for specialized, high-quality electronics. The region, with a well-developed infrastructure and a skilled workforce, provides an ideal environment for EMS providers to produce complex and customized electronic solutions. Additionally, its emphasis on Research and Development (R&D) and adherence to strict regulatory standards strengthen its position in the global EMS market. The U.S. is anticipated to maintain its position as a top market for electronic manufacturing services within North America. This is primarily due to the several original equipment manufacturers (OEMs) that are involved in the R&D of electronic devices and components. The U.S. market is anticipated to be valued at USD 130.53 billion in 2025.

Middle East & Africa

The Middle East & Africa region is projected to experience the second-highest CAGR in the market. This growth is driven by increasing industrialization, rising demand for consumer electronics, and expanding technological capabilities. This region continues to expand, projected to reach USD 40.12 billion in 2025. Economic diversification efforts in several Middle East & African countries have led to significant investments in the manufacturing sector. GCC is foreseen to encounter the market share of USD 16.79 billion in 2025.

South America

South America is expected to grow at a moderate rate in the market due to a combination of emerging opportunities and persistent challenges. While the region’s electronics manufacturing capabilities are gradually improving, factors such as economic instability, political uncertainty, and a less-developed technological ecosystem limit its potential for rapid growth.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Market Players Use Merger & Acquisition, Partnership, and Product Development Strategies to Expand Business Reach

Global electronics manufacturers such as Hon Hai Precision Industry Co Ltd, Wistron Corporation, Jabil Inc., Flex Ltd, and COMPAL Electronics, Inc. are launching distinctive solutions with modern technologies such as AI, ML, and others. In addition, the market's intense competition prompts service providers to focus on acquisition methods to enhance their market positions.

Major Players in the EMS Market

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Key players are focusing on product portfolio expansion and technological updates, acquisitions and partnerships, and research & development activities to proliferate the demand for EMS solutions.

Long List of Electronic Manufacturing Service (EMS) Companies Studied:

• Sanmina Corporation (U.S.)
• Hon Hai Precision Industry Co. Ltd (Foxconn) (Taiwan)
• Benchmark Electronics Inc. (U.S.)
• Flex Ltd (Singapore)
• Jabil Inc. (U.S.)
• Celestica Inc. (Canada)
• Wistron Corporation (Taiwan)
• Plexus Corporation (U.S.)
• Fabrinet (Thailand)
• COMPAL Electronics Inc (Taiwan)
• Creation Technologies (U.S.)
• Venture Corporation Limited (U.S.)
• Kimball Electronics Inc (U.S.)
• ESCATEC (U.K.)
• Neo Tech Inc. (U.S.)
• Dixon Technologies (India)
• PG Group (India)
• Pegatron (Taiwan)
• Zollner Elektronik (Germany)
• VTech EMS (China)

KEY INDUSTRY DEVELOPMENTS:

• October 2024: 42Q, a division of Sanmina that specializes in cloud-based Manufacturing Execution Systems (MES), introduced 42Q Connected Manufacturing, which is now available for immediate use. This cutting-edge solution tackles real-time manufacturing supply issues, offering global visibility, optimization, and insights into manufacturing supply.
• May 2024: Siemens AG, a tech firm, and Hon Hai Technology Group (Foxconn), an electronics producer, entered into a Memorandum of Understanding (MoU) aimed at promoting digital transformation and sustainability within smart manufacturing systems. This partnership centers on worldwide manufacturing operations in electronics, information and communications technology, and Electric Vehicles (EV). Siemens and Foxconn are collaborating to create a flexible and integrated engineering and manufacturing ecosystem.
• May 2023: Hon Hai Precision Industry Co Ltd signed a partnership agreement with Infineon Technologies AG deals in Electric Vehicle (EV) manufacturing. The partnership aimed to provide electronic manufacturing services for manufacturing activities.
• October 2022: Benchmark Electronics Inc. signed a partnership with Yield Engineering Systems (YES) to transfer manufacturing of the YES flagship product lines to a facility in Malaysia and provide engineering and manufacturing services for the product portfolio of the company.
• February 2022: Foxconn, a global electronic goods manufacturing company, signed a Memorandum of Understanding (MoU) with the Indian multinational conglomerate company Vedanta. Through this partnership, Foxconn invested USD 118.17 million, a 40% stack of joint ventures. The business strategy focused on promoting electronics manufacturing production in India.

INVESTMENT ANALYSIS AND OPPORTUNITIES

The EMS market offers promising investment opportunities driven by growing demand across various sectors. Also, the need to integrate automation, robotics, and IoT solutions requires continuous investment in R&D. With sustainability as a base, the companies are expanding across regional locations by investing capital in new capabilities, such as the implementation of lean manufacturing initiatives and others, to reduce wastage and operation costs and improve efficiency.

For instance,

• In November 2024, Jabil planned to establish an Electronics Manufacturing Services facility in Gujarat, India, with an investment of approximately USD 115 million in DSIR.
• In April 2024, Ark Electronics, an Electronic Manufacturing Company, revealed its plan to enhance its Global Factory Network by incorporating Electronics Manufacturing Service (EMS) capabilities in both Mexico and Europe. This continuous expansion aligns with Ark's strategy for a global low-cost country network, offering customers improved flexibility and various options for low-cost manufacturing across high, medium, and low volumes.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, it encompasses several factors that contributed to the growth of the market in recent years.

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REPORT SCOPE & SEGMENTATION