PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1753083
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1753083
Global Electronic Manufacturing Services Market to Reach US$704.0 Billion by 2030
The global market for Electronic Manufacturing Services estimated at US$517.7 Billion in the year 2024, is expected to reach US$704.0 Billion by 2030, growing at a CAGR of 5.3% over the analysis period 2024-2030. Electronics Manufacturing, one of the segments analyzed in the report, is expected to record a 4.3% CAGR and reach US$249.7 Billion by the end of the analysis period. Growth in the Engineering Services segment is estimated at 6.8% CAGR over the analysis period.
The U.S. Market is Estimated at US$141.0 Billion While China is Forecast to Grow at 8.1% CAGR
The Electronic Manufacturing Services market in the U.S. is estimated at US$141.0 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$139.1 Billion by the year 2030 trailing a CAGR of 8.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 2.6% and 5.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.4% CAGR.
Global Electronic Manufacturing Services Market - Key Trends & Drivers Summarized
Why Are OEMs Relying More Heavily on Electronic Manufacturing Services Today?
Electronic Manufacturing Services (EMS) have evolved into a central element of the global electronics supply chain, enabling Original Equipment Manufacturers (OEMs) to streamline production, reduce costs, and accelerate innovation cycles. As products across nearly every industry-from smartphones and medical devices to automotive systems and industrial machinery-become more technologically complex, OEMs are increasingly turning to EMS providers to manage the intricacies of circuit board assembly, system integration, and final product testing. Outsourcing manufacturing allows OEMs to focus on core competencies such as product design, branding, and market development, while leveraging the expertise and infrastructure of EMS providers for scalable, efficient production. The globalization of electronics production has further fueled this shift, as OEMs look to EMS partners with global footprints that can provide near-market manufacturing, reduce tariffs, and navigate regional logistics. Additionally, EMS firms now offer vertically integrated services beyond simple assembly, including supply chain management, component procurement, after-sales support, and product lifecycle services, making them indispensable strategic allies. This outsourcing model reduces capital expenditure for OEMs and minimizes inventory risks, especially in volatile markets. The rising demand for high-mix, low-volume production-particularly in medical electronics, IoT devices, and industrial controls-has also made EMS providers more relevant than ever, given their ability to rapidly reconfigure lines and adapt to custom requirements without compromising quality or timelines.
How Is Advanced Technology Reshaping the EMS Industry Landscape?
The Electronic Manufacturing Services sector is undergoing rapid transformation driven by the adoption of cutting-edge technologies that are redefining manufacturing efficiency, traceability, and agility. Industry 4.0 is at the forefront of this evolution, with EMS providers increasingly deploying smart factory solutions, including robotic process automation (RPA), real-time analytics, and digital twins to optimize manufacturing workflows. Surface Mount Technology (SMT) advancements, high-speed placement machines, and 3D Automated Optical Inspection (AOI) systems now enable ultra-precise component mounting and defect detection at unprecedented speeds. Artificial Intelligence and Machine Learning are being used to forecast production bottlenecks, detect anomalies in real time, and optimize yield rates. In parallel, the use of digital manufacturing execution systems (MES) allows EMS companies to offer real-time data sharing with clients, facilitating transparent production tracking, rapid quality assurance, and tighter supply chain collaboration. Additive manufacturing (3D printing) is beginning to supplement prototyping and low-volume component production, providing agility in design testing and reducing tooling costs. Furthermore, Green Manufacturing initiatives-driven by global environmental mandates-are prompting EMS providers to implement lead-free soldering, waste recycling programs, and energy-efficient production lines, enhancing their appeal to sustainability-conscious OEMs. With technology continuing to advance, EMS companies are shifting from pure assemblers to full-scale, digitally enabled manufacturing partners, capable of managing highly customized, geographically dispersed production cycles with greater speed and accuracy than ever before.
Why Is the EMS Market Expanding Into New Industry Verticals and Geographic Regions?
The traditional dominance of EMS in consumer electronics is being increasingly balanced by rapid expansion into emerging verticals such as healthcare, automotive electronics, aerospace and defense, industrial automation, and telecommunications. In the healthcare sector, the demand for compact, high-precision medical electronics-such as wearable monitors, diagnostic equipment, and implantable devices-has surged, requiring EMS partners with cleanroom capabilities and compliance with stringent standards like ISO 13485. Automotive OEMs are turning to EMS providers for the assembly of Advanced Driver Assistance Systems (ADAS), infotainment systems, and electric vehicle power electronics, especially as vehicle electrification and autonomous driving accelerate. In the aerospace and defense sector, EMS companies are supplying mission-critical components that must endure extreme environmental conditions and meet rigorous MIL-SPEC standards. Industrial applications, from robotics to smart metering, also benefit from EMS firms' ability to deliver high-mix, reliable production suited for long lifecycles and demanding use cases. Regionally, EMS activity is expanding into Southeast Asia, Eastern Europe, and Latin America as manufacturers seek alternatives to China amid shifting trade policies, labor cost changes, and risk diversification strategies. Countries like Vietnam, Poland, and Mexico are emerging as major EMS hubs due to favorable investment policies, skilled labor availability, and proximity to major markets. This broadening of end-use industries and geographies is strengthening the resilience of the EMS market and creating new opportunities for providers with the flexibility and certifications needed to serve diverse global sectors.
What Forces Are Accelerating the Growth of the Electronic Manufacturing Services Market?
The growth in the Electronic Manufacturing Services market is driven by several interrelated factors grounded in technological evolution, customer demand shifts, and supply chain strategy. A major catalyst is the accelerating product innovation cycles in consumer electronics, medical technology, and IoT devices, which require fast and flexible manufacturing partners to bring new designs to market without delay. The ongoing digitalization of industries has increased demand for custom PCBs, embedded systems, and advanced mechatronics-areas where EMS providers are increasingly delivering value through both engineering and production expertise. Additionally, the COVID-19 pandemic exposed vulnerabilities in global supply chains, leading companies to restructure their sourcing and manufacturing strategies-resulting in renewed focus on EMS partners who offer redundancy, regional manufacturing options, and supplier risk management. The proliferation of connected devices and edge computing has also contributed to higher PCB complexity and tighter integration between hardware and software, areas that EMS firms are now supporting with embedded development capabilities. From an economic perspective, rising labor costs in traditional manufacturing hubs are prompting companies to explore automation-led EMS partnerships that can reduce total cost of ownership while maintaining quality. Moreover, sustainability goals are pushing OEMs to choose EMS providers that follow environmentally responsible practices, such as carbon footprint reduction, responsible sourcing, and recycling of electronic waste. Lastly, the increasing demand for end-to-end service-from prototyping and DFM to after-sales logistics-is encouraging OEMs to consolidate their supplier base and partner more closely with EMS firms, further solidifying their role as integral components of modern global production networks.
SCOPE OF STUDY:
The report analyzes the Electronic Manufacturing Services market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Service (Electronics Manufacturing, Engineering Services, Test & Development Implementation, Logistics Services, Other Services); Vertical (Consumer Electronics, Automotive, Heavy Industrial Manufacturing, Aerospace & Defense, Healthcare, IT & Telecom, Other Verticals)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.
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TARIFF IMPACT FACTOR
Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by increasing the Cost of Goods Sold (COGS), reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.