EMS & ODM Market is projected to grow at a CAGR of 7.6% during the forecast period: MRFR.

Market Research Future (MRFR) has published on the “Global EMS & ODM Market”.

EMS ODM Market Highlights

The EMS & ODM market is predicted to reach USD 1,457.95 billion by 2032, registering a 7.6% CAGR during the forecast period, 2024–2032. In this report, Market Research Future (MRFR) includes the segmentation and dynamics of the market to offer a better glimpse of the market in the next few years.

Growing demand for consumer electronics plays a pivotal role in propelling the consumer electronics market forward, fostering innovation, market expansion, and technological advancements to meet the evolving needs of consumers. Likewise, Electronics Manufacturing Services or EMS are services offered by companies engaged in the design, manufacture, assembly, and testing of electronic products and components such as complex computer systems, PCBs (printed circuit boards), switches, and semiconductor devices. ODMs are companies that provide manufacturing and post-sales services, apart from the key activity of product designing. Increasing demand for home appliances, computer hardware, high-end gaming PCs, and several other consumer electronic products accelerated the growth of the global market. The key driver for the significant growth of the EMS market is the increasing demand for consumer electronics. The electronics manufacturing service (EMS) market remains a highly dynamic market driven primarily by the consumer electronics and communication sector. In response to the growing competition levels in the industry, EMS providers increasingly adopt innovative and strategic business models. These include better knowledge of customer needs, understanding the business models of customers/original equipment manufacturers (OEMs), effective communication tools, creating global footprints, and focusing on core competencies. The growing demand for consumer electronics will increase the outsourcing trend in the industry. Cost savings, flexible solutions, quality, and operational speed provided by EMS providers increase the dependence of OEMs on EMS providers for design services.

The surge in electric vehicles market will be the most lucrative in the automotive industry over the next decade. With an ever-increasing electronic content in each car, energy-related modules and sub-assemblies, as well as charging infrastructure, which requires an overall ecosystem; it is a paving out major potential for EMS firms to enter this fast developing industry and serve the leading EV manufacturers. As more emphasis is placed on electric vehicles, both original equipment manufacturers (OEMs) and electronic manufacturing services (EMS) providers are experiencing a surge in demand. This transition is reshaping the industry landscape, with a heightened focus on developing components and systems catering to the EV ecosystem. OEMs are now seeking specialized EMS partners to support their production of electric vehicles, driving collaboration and innovation in this evolving market. Embrace the electrifying changes ahead and explore the boundless opportunities they bring.

Neways opened its first Circular Service Center in Son, Netherlands, for circular solutions in semicon, connectivity, and smart mobility sectors. The center offers repair, re-use, and sustainable supply chain services, with plans for global expansion.

TE Connectivity and Phoenix Contact collaborated to develop Single Pair Ethernet (SPE) M12 hybrid connectivity, aligning with the IEC 63171-7 standard. This partnership is aimed to drive market adoption of SPE in industrial networks by creating hybrid interfaces that integrate SPE with existing infrastructure.  

Segmental Analysis

The scope of the global EMS & ODM market has been segmented based on type, application, and region.

Based on type, the global EMS & ODM is segmented into EMS & ODM. The ODM segment is expected to have the fastest growth rate during the forecast period since OEMs are gradually opting for ODMs as their contract manufacturer as they offer additional benefits such as limited control over IP rights, designs of PCBs, and control boards. They are largely being adopted by SMEs and startups which require services within a constrained budget. ODMs provide the OEMs with a design template that can be customized as per client requirements, that too at a reduced cost. The end-user verticals that are rapidly adopting ODM services are the communication, computer, and consumer sectors.

Based on application, the global EMS & ODM market is segmented into consumer electronics, communications, automotive & transportation, industrial, medical, energy and others. The communications segment is expected to have the fastest growth during the forecast period. The communications industry has seen rapid technological advancements in recent years with many smartphone manufacturers opting for EMS and ODM companies to outsource the designing and development of their products. EMS and ODM companies primarily design and develop mobile wireless infrastructure, broadband, and IP telephony (media gateways, soft switches, IP PBX), among other telecom products.

Browse In-depth Details [Table of Content, List of Figures, List of Tables] of EMS & ODM Market Research Report

Regional Analysis

Geographically, the global EMS & ODM market has been segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.

Asia Pacific contributed significantly to the growth of the EMS & ODM sector in 2023 and is likely to maintain its market dominance in the following years. By working intimately with OEMs, EMS suppliers guarantee that the item configuration is advanced for proficient assembling, cost-adequacy, and dependability. EMS organizations handle the whole assembling process, from obtaining parts to collecting the eventual outcome. EMS organizations execute thorough quality control estimates all through the assembling system. Re-appropriating assembling to EMS suppliers frequently brings about cost investment funds for OEMs. Teaming up with EMS organizations permits OEMs to use state of the art advancements. For surface mount technology (SMT), through-hole assembly, and testing, they have specialized facilities with cutting-edge equipment.

The North America, on the other hand, is expected to have a significant market over the projection period. 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.

Key Players

The key players in the global EMS & ODM market are Alteryx, Foxconn (Hon Hai Technology), Sanmina, New Kimpo Group, Zollner Elektronik, Flex Ltd., Compal Electronics, Jabil, Wistron, Cicor, ENICS (GPV International A/S), RAFI GmbH & Co. KG (BWK), AEMtec GmbH (Capiton), KATEK Group (PRIMEPULSE SE), and Kappa optronics GmbH among others.