The Electronic Manufacturing Services (EMS) market is set to experience a significant upswing, with projections indicating a growth from USD 503.91 billion in 2022 to an astounding USD 856.20 billion by 2030. This represents a Compound Annual Growth Rate (CAGR) of 7.0% over the forecast period, according to a report by Fortune Business Insights™ titled “Electronic Manufacturing Services (EMS) Market Forecast, 2023-2030.”
One of the key drivers of this growth is the escalating trend towards research and development activities across industries such as healthcare, automotive, and industrial applications. The EMS market is experiencing a surge in product adoption, fuelled by technological advancements and increased investments by industry players.
A noteworthy instance of such industry collaboration came in May 2023 when Hon Hai Precision Industry Co Ltd, popularly known as Foxconn, entered into an alliance with Infineon Technologies AG, an Electric Vehicle (EV) manufacturer. This partnership aims to leverage the EMS for enhanced manufacturing activities.
Moreover, the EMS market is witnessing a significant rise in engineering services, primarily due to the increased focus on R&D by electronic assembly materials manufacturers. Pioneering this growth are companies such as Sanmina Corporation (U.S.), Hon Hai Precision Industry Co. Ltd (Foxconn) (Taiwan), Benchmark Electronics Inc. (U.S.), Flex Ltd (Singapore), Jabil Inc. (U.S.), Celestica Inc. (Canada), Wistron Corporation (Taiwan), Plexus Corporation (U.S.), Fabrinet (Thailand), and COMPAL Inc. (Taiwan).
Another contributing factor to the expansion of the EMS market is the growing emphasis on green electronic devices. Industry players are shifting their focus towards sustainable plans aimed at reducing carbon emissions, thereby driving the demand for greener electronic devices.
However, the market growth could face potential challenges due to intellectual property rights issues and concerns over violations. Despite these hurdles, the Asia Pacific EMS market is expected to witness substantial growth, driven by the increasing demand for consumer electronic devices in countries like Australia, India, China, and Japan.
Furthermore, the North American market is also set to see a considerable surge, thanks to the availability of affordable consumer electronic products. Leading industry players are adopting strategic initiatives such as increased research activities, participation in trade conferences, and formation of alliances to consolidate their market positions.
The EMS market’s impressive growth trajectory is a testament to the role of electronics, computers, and programming languages in shaping our future. Coding has become an integral part of creating advanced electronic devices, further bolstering the EMS market’s expansion.
In conclusion, the EMS market’s forecasted growth rate of 7.0% CAGR from 2023 to 2030 is a testament to the industry’s resilience and adaptability. With a focus on innovation, sustainability, and strategic collaborations, the EMS market is well on its way to reaching the projected USD 856.20 billion by 2030.
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