Electronic Manufacturing Services Market Share, Size, Growth, Industry Trends, and Forecast 2032: Global Market Insights
The Electronic Manufacturing Services (EMS) Market is anticipated to grow over 2023-2032 owing to the increasing initiatives taken by organizations to speed up their product development. The scope of the electronics manufacturing industry is wide. It spans consumer and industrial products (smartphones, PCs, robotics, and automation), government (aerospace and defense), health care (medical devices), and electronic components (connectors, semiconductors, etc.).
Constantly mounting demand for electronic components, consumer electronics, tech innovations, and outsourced manufacturing services will positively favor industry expansion in the coming future. The budding use of smart home devices owing to the rising penetration of the internet and internet users, in line with the growing adoption of IoT & connected devices will also push the demand for EMS in the consumer electronics sector.
Besides, the major industry operators are constantly engaging in partnerships, acquisitions, and mergers and launching new products to strengthen their presence in the electronic manufacturing services business space. To cite an instance, in March 2022, Reliance Industries, one of the leading Indian firms, acquired a 50.1% share in Sanmina SCI India for US$221 million to strengthen its position in electronics manufacturing.
Overall, the electronic manufacturing services industry is segmented in terms of product, application, and region.
Based on the product, the cable assembly segment will gain high momentum during the estimated timeframe owing to the rising use of pre-terminated cable assemblies by the OEMs as they help make the installation quicker and easier when mass producing the kit. Besides, the increasing demand for cloud computing and data transmission will spur its adoption in the future.
By application, the consumer electronics segment is slated to grow substantially through 2032. The increasing sales of consumer electronics and home appliances such as smartphones, tablets, smartwatches, TVs, and air conditioners would boost the product demand. In addition, manufacturing services with high quality and reliability have become less expensive, which will positively influence the demand for EMS services among several consumer electronics manufacturers.
As per the regional context, the Europe electronic manufacturing services market is poised to depict over 5% CAGR through 2032. The regional market growth will be mainly driven by the increasing adoption of robotics and factory automation. Besides, the growing trend toward modernization of manufacturing facilities and integration of IIoT devices, Human-Machine Interface (HMI), Programmable Logic Controllers, and Industrial and Collaborative Robots will offer lucrative growth opportunities to the regional market players in the ensuing years.