EMS & ODM Market Size was valued at USD 743.78 billion in 2023. The EMS & ODM Market industry is projected to grow from USD 809.64 billion in 2024 to USD 1,457.95 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.6% during the forecast period (2024-2032). EMS are contract manufacturers operating in the field of electronics, similar to ECM, EMS providers design, manufacture, test, ship, and repair electronic components and assemblies for an original equipment manufacturer. EMX is also involved in software development, product development, design assistance, and other value-added services including supply chain management, outbound logistics, and configure-to-orders. ODM are similar to ECMs, ODM develop and own their own IP for products used in CEMs. For instance, a contract electronic manufacturer uses customer design and IP in order to manufacture a wide range of products on the other hand ODM develop their own specialized IP for a specific market
Electronic Manufacturing Services (EMS) include the creation, testing, and creation of electrical parts and gathered parts for producers. The term additionally alludes to organizations that plan, make, test, circulate, and render return or fix administrations for electronic parts and gatherings for unique hardware producers (OEMs). Growing semiconductor industry is fuelling interest for EMS and OEM administrations inferable from the rising requirement for electronic parts and gadgets. The use of silicon is expected to increase in the fabrication of integrated circuits as its material is readily available, affordable, and provides high quality. Subsequently, this developing interest for superior execution semiconductor chips has coordinated to an extension in the creation of additional semiconductors.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Implementing advanced production equipment and systems in the global EMS and ODM Market offers a myriad of opportunities for companies in terms of efficiency, cost-effectiveness, quality, innovation, scalability, and competitiveness. Industries in various countries are under pressure to upgrade and transform due to the widespread use of AI, artificial intelligence, and big data. As part of the transformation and upgrading of the electronic information industry towards high-end manufacturing, various industry associations have cooperated to promote intelligent manufacturing of PCBs, passive components, and LEDs. EMS factories will be forced to improve their production processes, control costs, and collaborate better with supply chains in response to a new wave of industrial competition, especially with the latest generation of electronic products. High-end manufacturing bottlenecks will gradually be eliminated with the introduction of common standards and applications. Also, by upgrading to state-of-the-art machinery and systems, EMS and ODM providers can significantly enhance their operations. For instance, the integration of robotics and automation technology can streamline manufacturing processes, leading to increased output and efficiency. This efficiency boost can attract more clients and elevate market competitiveness, as companies can deliver products faster and more reliably.
Moreover, advanced equipment and systems often lead to cost reduction in the production processes. Through automation and optimized workflows, companies can minimize operational expenses and material waste. This cost-saving benefit can translate into more competitive pricing for clients, making the company more attractive in the market. For example, a company investing in advanced production technologies may be able to offer lower manufacturing costs compared to competitors, positioning itself as a cost-effective and reliable partner for clients.
Furthermore, energy optimization in semiconductor manufacturing is considered a remedial measure for cost savings and efficiency. Lowering energy consumption and reducing other operational losses can improve the performance and efficiency of these manufacturing processes. Several electronics and semiconductor companies and process engineers consistently struggle to reduce variable costs while maintaining product quality, efficient design, and reliability of implemented hardware components. The development of advanced manufacturing processes incorporating effective human-machine interfaces has created opportunities for several EMS and ODMs. Many EMS and ODM companies use traditional methods of etching, wafer processing, and device manufacturing. The use of advanced manufacturing equipment by companies such as Foxconn, which aims to build electric vehicle factories in Europe, and Sanmina have resulted in efficient and reliable information transfer, enabling the management of component and device production. A variety of advanced tools and systems are employed to identify the best method for existing process units, including real-time optimization (RTO). As a result, EMS and ODM markets will have a great opportunity as they implement advanced production equipment and systems to modernize their industry.
Based on type, the global EMS & ODM Market is segmented into EMS & ODM Market. In 2023, the EMS segment is expected to have the largest market share. EMS companies provide various types of testing, including compliance testing, analytical laboratory testing, automated optical inspection, environmental testing, functional testing, in-circuit testing, and X-ray testing. It may also be necessary that the customer supply the design, the necessary components, and an assembled sample to EMS providers who specialize in assembly. A company may also provide onsite services, such as PCB etching, through another contractor.
FIGURE 1: EMS & ODM Market Share BY TYPE 2023 VS 2032 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The EMS & ODM Market based on application has been bifurcated into consumer electronics, communications, automotive & transportation, industrial, medical, energy and others. In 2023, the consumer electronics segment is expected to have the largest market share. Consumer electronics are often produced by EMS and ODM companies providing design, engineering, prototyping, mass production, and end-to-end product lifecycle solutions. Manufacturers of electronic components and devices and their OEMs offer full turnkey services, ranging from design through reverse engineering to obsolescence management.
By region, the study segments the market into North America, Europe, Asia-Pacific, the Middle East, & Africa, and South America. Asia Pacific had the greatest market share in 2023. The rising working-class populations in emerging countries have led to increased demand for consumer electronics and high-end technological products. Industry participants are actively adapting to emerging technologies and providing better services and solutions to clients, which enhances market performance. Outsourcing of engineering services and contract manufacturing by consumer electronics OEMs is also contributing to market expansion. The development of more innovative and feature-rich consumer electronics has significantly contributed to market growth. Consumers now demand devices that offer enhanced performance, connectivity, and convenience.
Businesses want to grow slowly, and the Asia-Pacific region is now the global leader in outsourcing. ODMs are increasingly focusing on controlling key high-cost components, such as CPUs, GPUs, and critical materials. CSPs are cautious in their supply chain management, aiming for flexibility and integration of system integrators into ODM production.
FIGURE 2: EMS & ODM MARKET SHARE BY REGION 2023 VS 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America benefits from mass availability of raw materials and a skilled workforce. The availability of cheap labor has been a major factor in the expansion of EMS in the region. Organizations in North America progressively re-appropriate their gadgets producing necessities to EMS suppliers. This permits them to zero in on their center skills while depending on EMS aptitude for assembling and production network the board. EMS providers in North America focus on shortening the time to market for electronic products.
The demand for EMS and ODM market in Europe is mainly driven by the presence of top semiconductor players in this region in region. Moreover, the government is continuously expanding its investments to attract more and more chip productions due to which there is a rise in EMS and ODM businesses.
Furthermore, successful manufacturers frequently focus on exports and make greater investments in cutting-edge production techniques which are driving the demand for EMS and ODM market. Additionally, the government of Italy has taken various initiatives to bolster the adoption of EVs which are driving the demand for EMS and ODM market in this region.
The countries considered in the scope of the EMS & ODM MARKET market are the U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, Poland, Austria, Sweden, Netherlands, Russia, Rest of Europe, China, Japan, India, Australia, South Korea, Taiwan, and Rest of Asia Pacific.
The EMS & ODM Market is expected to witness high competition as this technology helps industries to present and design product/services easily. Some of the key players in 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.
These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position. Furthermore, companies follow organic and inorganic strategies to strengthen their presence in the global market. They are focusing on product development and expansion to expand their product portfolio and enhance their customer relationships.
The global EMS and ODM market have witnessed significant growth over the forecast period due to growing semiconductor industry and growing demand for consumer electronics. There are several domestic, regional, and global players operating in the EMS and ODM market who continuously strive to gain a significant share of the overall market.
In April 2024, Cicor acquired TT Electronics IoT Solutions Ltd. and becomes the leading provider of high-end electronics in the UK. This acquisition make Cicor a European market leader in the production of high-end electronics for aerospace and defence applications. With this transaction Cicor has taken another step forward in implementing its strategy to become the European leader in electronics manufacturing services for medical technology, industry, aerospace and defence.
In November 2023, Power Electronics, announced a strategic partnership with EMS Jabil. Together, presented the cutting-edge NEVI compatible DC Fast Charger NB400, with a common objective of changing the electric vehicle charging infrastructure in the United The 400kW fast charger will be produced at Jabil's state-of-the-art factory located in Salt Lake City, Utah. Through this strategic agreement, the production capacity and efficiency of the NB400 are further enhanced by leveraging Jabil's world-class manufacturing capabilities.
In April 2023, FlexTrade’s FlexNOW, announced a major rebrand to become Spark, a multi-asset EMS built for the cloud. Spark was developed as a one-click installation with same-day onboarding for traders, brokers, and algos while remaining broker neutral on FlexLINK FIX Network. The rebrand solidified the Spark team’s dedication to focus on cloud-based innovation leveraging FlexTrade's industry experience and trader feedback to serve the trading community with best in-class trading software that can be done on the desktop, mobile, or the web.
Intel in November 2023, will work with eight of the leading Electronics Manufacturing Services (EMS) companies and Original Design Manufacturers (ODMs) to hasten laptop production in India next month. In essence, Intel wants to support its extensive domain knowledge in the IT industry ecosystem that extends into some important technological and operational insights for the indigenous laptop manufacturing segment.
Flex Ltd. has purchased Kaifa Technology, one of China's largest EMS firms, in February 2023.
Jabil Inc. announced on March 2023 that it has opened a new facility for producing EMS products in Vietnam.
Foxconn Technology Co.Ltd. said in April 2023 that a brand new $10 billion EMS plant is being built in Mexico.
In May 2022, Zetwerk’s subsidiary, Zet Town India, launched a new facility spread across 50k sq ft at Noida for wearables, hearables and IoT devices manufacturing. The factory hosts advanced testers, sixteen production lines, plus an innovation lab for future customization of products. This move further solidifies Zet Town as a major player in India’s hearables, wearables and wider IoT product design and assembly.
Ikotek is expanding its leadership team with industry veterans to fuel its continued growth this September 2022. Based in San Diego, Ikotek offers end-to-end IoT solutions from design all the way through manufacturing up to certification. They have designed millions of these devices over time.
Hon Hai Precision Industrial Co., Ltd., also known as Foxconn Technology Group, completed Taiwan's largest supercomputer on June 2022. The supercomputer has been used for various purposes, including animation imaging, sports data analysis or picture analysis, surgery or patient test records, radiation therapy simulation etc.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 743.78 billion |
| Market Size 2024 | USD 809.64 billion |
| Market Size 2032 | USD 1,457.95 billion |
| Compound Annual Growth Rate (CAGR) | 7.6% (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2019 - 2023 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application and Region |
| Geographies Covered | North America, Europe, Asia Pacific, Middle East & Africa, and South America |
| Countries Covered | U.S, Canada, Mexico, Germany, France, UK, Italy, Spain, Poland, Netherlands, Sweden, Austria, Russia, Rest of Europe, China, Japan, India, Australia, South Korea, Taiwan, Rest of Asia Pacific. |
| Key Companies Profiled | 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. |
| Key Market Opportunities | · Implementing advanced production equipment and systems |
| Key Market Dynamics | · The growing semiconductor industry · Growing demand for consumer electronics · Greater emphasis on vehicle electrification |
EMS ODM Market Highlights:
Frequently Asked Questions (FAQ) :
A 7.6% CAGR is expected to transform the market.
The Asia Pacific regional market is projected to be the major driver of the market.
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 GmbHare the key players in the market.
The segments in the market are type, application and region.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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