US EMS ODM Market Research Report: By Type (EMS, ODM) and By Application (Consumer Electronics, Communications, Automotive & Transportation, Industrial, Medical, Energy, Others) - Forecast to 2035.
US EMS ODM Market Overview:
As per MRFR analysis, the US EMS ODM Market Size was estimated at 139.46 (USD Billion) in 2023. The US EMS ODM Market Industry is expected to grow from 151.81(USD Billion) in 2024 to 406.45 (USD Billion) by 2035. The US EMS ODM Market CAGR (growth rate) is expected to be around 9.366% during the forecast period (2025 - 2035).
Key US EMS ODM Market Trends Highlighted
In the US EMS ODM market, key market drivers include the increasing demand for customized electronics and the push for faster product development cycles. As technology evolves, consumer preferences shift towards tailored solutions, prompting manufacturers to offer On-Demand Manufacturing (ODM) services. The rise of the Internet of Things (IoT) and advancements in artificial intelligence have significantly influenced production processes, making it essential for companies to adapt and innovate. Additionally, the current trend of reshoring and localizing supply chains has gained momentum, driven by the need to reduce dependence on overseas suppliers and ensure efficient logistics.This shift not only aims to enhance security and sustainability but also supports the growth of domestic manufacturing capabilities in the US. Opportunities to be explored in the US market stem from the growing investment in research and development, particularly in the fields of renewable energy and smart technologies. As businesses increasingly invest in sustainable practices, EMS ODM providers can capitalize on this shift by developing eco-friendly products and solutions. Furthermore, partnerships with emerging startups in tech hubs can enhance market position and stimulate innovation. Recent trends also reflect a surge in demand for flexible manufacturing solutions that cater to various industry sectors, including automotive, healthcare, and consumer electronics.This adaptability presents significant prospects for EMS ODM companies to align with industry needs while enhancing their efficiency. Overall, the US EMS ODM market is witnessing transformational changes driven by technology, evolving consumer preferences, and a focus on sustainability, all of which present a fertile ground for growth and innovation.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US EMS ODM Market Drivers
Increasing demand for consumer electronics
The surge in demand for consumer electronics in the United States is a significant driver for the US Electronics Manufacturing Services Original Design Manufacturer (EMS ODM) Market Industry. According to the Consumer Technology Association, the US consumer technology revenue reached approximately 400 billion USD in 2021 and is projected to grow by an average of 5% annually. Companies such as Apple and Samsung continue to innovate and expand their product lines, driving the need for efficient manufacturing processes.As technology advances and consumer preferences shift towards smart devices, the EMS ODM market in the US is likely to witness robust growth. This demand for advanced electronics and fresh models promotes the need for flexible manufacturing solutions provided by EMS ODM firms and drives collaborative engagements in Research and Development initiatives, which are critical for staying competitive in the evolving market landscape.
Rise of automation and Industry 4.0
The transition towards automation and Industry 4.0 technologies is transforming manufacturing practices in the US, benefiting the US EMS ODM Market Industry significantly. The National Institute of Standards and Technology states that companies implementing Industry 4.0 technologies experience an estimated productivity increase of 30%. This trend encourages EMS ODM providers to invest in cutting-edge manufacturing technologies such as robotics, artificial intelligence, and the Internet of Things to streamline production processes.Moreover, established firms like Flex and Jabil are leading the change by deploying smart factories in the US, which effectively enhances operational efficiency and meets the rising consumer demand for customized electronics.
Growing focus on sustainability and eco-friendly practices
The green manufacturing trend is becoming increasingly important in the United States, with companies focusing on sustainable practices to reduce environmental impacts. In accordance with the Environmental Protection Agency, sectors implementing sustainability initiatives can reduce waste by up to 30%, which presents a compelling case for the EMS ODM Market Industry in the US. Major manufacturers like Intel and Dell are investing in eco-friendly material sourcing and energy-efficient production processes, which not only comply with regulatory standards but also attract environmentally-conscious consumers.This commitment to sustainability presents an opportunity for EMS ODM companies to differentiate themselves and create value by adopting green initiatives to meet market demands.
US EMS ODM Market Segment Insights:
EMS ODM Market Type Insights
The US EMS ODM Market has been categorized into distinct types, primarily encompassing Electronics Manufacturing Services (EMS) and Original Design Manufacturing (ODM), each showcasing unique strategic value within the market. The EMS segment plays a critical role in the manufacturing landscape by offering a variety of services including product design, assembly, and logistics support. This service-oriented segment thrives on advancements in technology, as it allows companies to streamline operations and reduce costs without sacrificing quality. Due to the increasing complexity of electronic products and the rapid pace of innovation, the EMS market sees consistent demand from various industries such as consumer electronics, automotive, and healthcare. Conversely, the ODM segment focuses on designing and manufacturing products that are branded by another company. This capability proves advantageous for businesses aiming to expand their product offerings without investing in extensive Research and Development (R&D) resources. The ODM segment often features in markets where quick time-to-market is crucial, as it allows businesses to leverage existing design expertise while focusing on branding and marketing efforts. The growing trend of customization in consumer electronics propels ODM services into prominence, as companies seek tailored products to meet specific consumer preferences. As both segments develop, they are shaped by several growth drivers, including the ongoing digital transformation and increasing automation across sectors. The demand for smart technologies, particularly in the home electronics market, pushes EMS and ODM manufacturers to adapt and innovate continuously. However, challenges such as regulatory compliance and supply chain disruptions can impact market dynamics and production timelines. Nevertheless, opportunities exist for those capable of responding swiftly to change and adjusting to the ever-evolving consumer landscape. Overall, the segmentation of the US EMS ODM Market highlights the diversity and interdependence of manufacturing services that cater to a wide array of consumer needs and market demands. The strategic significance of both EMS and ODM services not only showcases their individual contributions to the manufacturing ecosystem but also underscores the collaborative synergy that drives growth within this dynamic industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
EMS ODM Market Application Insights
The US EMS ODM Market within the Application segment is multifaceted and showcases robust growth across various industries. Consumer electronics remains a vital area, driven by the continuous demand for smartphones, tablets, and smart home devices, emphasizing the significance of innovation and rapid production cycles. In the communications sector, the expansion of 5G technology has resulted in increased demand for reliable manufacturing services, fostering collaboration between OEMs and EMS providers. Automotive and transportation are experiencing transformation due to electrification and autonomous vehicles, necessitating advanced manufacturing capabilities to meet evolving safety and performance standards.The industrial applications are seeing growth driven by automation and IoT integration, while the medical sector insists on high-quality manufacturing for devices critical to patient care and diagnostics, highlighting stringent regulatory requirements. The energy segment, particularly in renewable energy solutions, is expanding, reflecting the US's commitment to sustainability and energy efficiency. Other sectors also contribute to the diverse landscape, in which flexibility and responsiveness to market trends are crucial. Collectively, these applications leverage EMS ODM Market statistics that indicate a vibrant and dynamic environment poised to support technological advancements and consumer needs.
US EMS ODM Market Key Players and Competitive Insights:
The US EMS ODM market is characterized by a highly competitive landscape where numerous firms are vying for a significant share of this dynamic sector. As businesses increasingly seek to outsource their manufacturing processes to enhance efficiency and reduce costs, the demand for electronics manufacturing services (EMS) and original design manufacturers (ODM) continues to grow. This market is defined by rapid technological advancements, necessitating companies to innovate consistently. The presence of specialized players who cater to distinct segments, while also adapting to changing consumer preferences, contributes to an intricate competitive environment. By leveraging strategic partnerships, advanced technology, and an increasingly skilled workforce, companies in the US are positioning themselves to capitalize on emerging trends and opportunities in the market.Microchip Technology Inc stands out in the US EMS ODM market due to its solid reputation for high-quality semiconductor solutions and its extensive product portfolio. The company is known for its commitment to innovation and has established a robust supply chain that enables it to respond effectively to market demands. Microchip Technology Inc leverages its strengths in design support and customer service, which helps it maintain strong relationships with clients across various sectors, including automotive, aerospace, and industrial applications. By continuously enhancing its manufacturing capabilities, the company is well-positioned to address the complexities of modern electronics manufacturing. Its emphasis on quality control and the ability to customize solutions further bolsters its market presence, ensuring that it meets the diverse needs of its customers.Sanmina Corporation serves as a prominent player in the US EMS ODM market, offering a wide range of services that include electronic manufacturing, design, logistics, and repair services. The company’s strengths lie in its exceptional engineering capabilities and state-of-the-art manufacturing facilities, allowing it to produce high-quality products across various industries, including telecommunications, computing, and medical devices. Sanmina Corporation has made strategic acquisitions to enhance its technological capabilities and expand its service offerings, ensuring a diversified and resilient business model that caters to a wide array of customer requirements. Its focus on operational excellence and efficiency enables it to deliver cost-effective solutions, fostering long-term partnerships with clients. The company's comprehensive portfolio, combined with its commitment to sustainability and innovation, strengthens its foothold in the competitive landscape of the US EMS ODM market.
Key Companies in the US EMS ODM Market Include:
Microchip Technology Inc
Sanmina Corporation
Flex Ltd
Benchmark Electronics Inc
Nam Tai Electronics Inc
Celestica Inc
LiteOn Technology Corp
PS4 Technology
Kinpo Electronics Inc
Jabil Inc
Plexus Corp
Foxconn Technology Group
Western Digital Corporation
US EMS ODM Market Industry Developments
Recent developments in the US EMS ODM Market have been marked by heightened competition and a focus on technological advancements. Companies such as Microchip Technology Inc and Flex Ltd have been actively investing in expanding their capabilities to meet the increasing demand for electronic components due to the surge in consumer electronics and automotive technology. In September 2023, Jabil Inc announced its plans to expand operations in the US, focusing on advanced manufacturing technologies to enhance production efficiency. Meanwhile, in October 2023, Benchmark Electronics Inc reported a growth in its market valuation, attributed to its strategic partnerships and increased market share in the aerospace and defense sectors.Moreover, notable mergers and acquisitions have shaped the landscape, with Celestica Inc acquiring a small electronic design firm in August 2023 to bolster its Research and Development efforts. Sanmina Corporation has also been eyeing potential collaborations to enhance its service offerings. The overall market has been impacted positively, with increased valuations reflecting investor confidence in the sector's resilience and growth potential, driven by a robust supply chain and innovation in manufacturing processes. These trends collectively highlight the evolving dynamics within the US EMS ODM market.
US EMS ODM Market Segmentation Insights
EMS ODM Market Type Outlook
EMS
ODM
EMS ODM Market Application Outlook
Consumer Electronics
Communications
Automotive & Transportation
Industrial
Medical
Energy
Others
Report Scope:
Report Attribute/Metric Source: |
Details |
MARKET SIZE 2018 |
139.46(USD Billion) |
,
MARKET SIZE 2024 |
151.81(USD Billion) |
,
MARKET SIZE 2035 |
406.45(USD Billion) |
,
COMPOUND ANNUAL GROWTH RATE (CAGR) |
9.366% (2025 - 2035) |
,
REPORT COVERAGE |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
,
BASE YEAR |
2024 |
,
MARKET FORECAST PERIOD |
2025 - 2035 |
,
HISTORICAL DATA |
2019 - 2024 |
,
MARKET FORECAST UNITS |
USD Billion |
,
KEY COMPANIES PROFILED |
Microchip Technology Inc, Sanmina Corporation, Flex Ltd, Benchmark Electronics Inc, Nam Tai Electronics Inc, Celestica Inc, LiteOn Technology Corp, PS4 Technology, Kinpo Electronics Inc, Jabil Inc, Plexus Corp, Foxconn Technology Group, Western Digital Corporation |
,
SEGMENTS COVERED |
Type, Application |
,
KEY MARKET OPPORTUNITIES |
Cost efficiency in manufacturing, Increased demand for custom solutions, Growth in IoT device production, Rising electrification of transportation, Focus on sustainability initiatives |
,
KEY MARKET DYNAMICS |
growing demand for electronic devices, rising cost pressures on manufacturers, emphasis on supply chain efficiency, increasing investment in automation, focus on sustainability and green practices |
,
COUNTRIES COVERED |
US |
Frequently Asked Questions (FAQ) :
The projected market size of the US EMS ODM Market in 2024 is expected to be valued at 151.81 USD Billion.
By 2035, the US EMS ODM Market is expected to reach a valuation of approximately 406.45 USD Billion.
The US EMS ODM Market is anticipated to grow at a compound annual growth rate (CAGR) of 9.366% during the period from 2025 to 2035.
For the year 2024, the EMS segment of the US EMS ODM Market is valued at 70.54 USD Billion.
In 2024, the ODM segment of the US EMS ODM Market is projected to be valued at 81.27 USD Billion.
Key players in the US EMS ODM Market include Microchip Technology Inc, Sanmina Corporation, Flex Ltd, and Benchmark Electronics Inc among others.
By 2035, the EMS segment of the US EMS ODM Market is expected to grow to 186.52 USD Billion.
The ODM segment is projected to increase to 219.93 USD Billion by 2035.
Increased demand for electronic devices and technological advancements are driving growth opportunities in the US EMS ODM Market.
Challenges in the US EMS ODM Market include supply chain disruptions and increasing competition among major players.