• Electronic Manufacturing Services Market Intelligence | Analysis, Trends, Forecast, Outlook

Electronic Manufacturing Services Market Description

The global EMS (Electronic Manufacturing Services) market is expected to grow at a CAGR of 4-5 percent by 2022. The expansion in the EMS industry is mainly due to a huge growth in end-use segments, such as the telecom sector, industrial sector, and medical markets. The major end-use industries in EMS are communication and computer hardware sectors, which hold around 65 percent of the demand. The report discusses the regional EMS market overview constituting market size, growth rate and key suppliers in U.S., Canada, LATAM, EMEA, and APAC regions.

The report also highlights Porter’s Five Force Analysis including the supplier power, buyer power, barriers to new entrants, intensity of rivalry and threat of substitute. The report covers the global EMS market drivers and constraints, cost and pricing forecast as well as the impact of key price drivers. The report also analyses key global suppliers’ profile and provides a SWOT analysis of some of the major industry giants in the EMS market including Foxconn, Pegatron, Flextronics, Jabil Inc., Sanmina etc. It covers procurement best practices comprising of sourcing strategy, engagement models, contract models, and risk analysis.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Cost Structure Analysis
Price Driver Analysis
Impact Analysis of Key Price Drivers

Electronic Manufacturing Services Market Trend, Analysis & Forecast

Category Intelligence on Electronic Manufacturing Services covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Electronic Manufacturing Services Executive Summary

1.1 Category Landscape
1.2 Regional Market Outlook
1.3 Supply Landscape

2. Electronic Manufacturing Services Market Analysis

2.1 Global Market Maturity
2.2 Market Overview and End-use
2.3 Supply Demand Scenario
2.4 Global Market Outlook
2.5 Regional Market Analysis

3. Electronic Manufacturing Services Industry Analysis

3.1 Porter’s Five Force Analysis
3.2 Market Drivers and Constraints
3.3 Industry Events

4. Electronic Manufacturing Services Cost and Pricing Analysis

4.1 Cost Structure
4.2 Price Drivers
4.3 Price Forecast
4.4 Pricing Model and Mechanism
4.5 Impact Analysis

5. Electronic Manufacturing Services Supplier Analysis

5.1 Supplier Market Share and Key Supplier Capabilities
5.2 Key Supplier Manufacturing Capacities
5.3 Servicing Capabilities
5.4 Supplier Profiling
5.5 SWOT Analysis

6. Electronic Manufacturing Services Procurement Best Practices

6.1 Industry Practices
6.2 Sourcing Models
6.3 Engagement Models
6.4 Contract Models
6.5 Risk Analysis

Global Market Outlook on Electronic Manufacturing Services

Taiwan positioned as a core for electronics industry with 75 percent of the global EMS industry are Taiwanese companies. Also, APAC is expected to dominate the market in terms of growth prospects until 2018-19.
EV, hybrid EV smartphone innovations, automotive electronics growth due to smart cars and industrial electronics are the major driving factors for the EMS industry
As the Asian market is expected to grow equally expensive over western regions, the supply chain trend is expected to gradually shift from APAC regions to US and some of the Eastern European regions

electronic-manufacturing-services-market-size

EMS Market Overview - Global

The global EMS market is expected to grow at a CAGR of 4-5 percent from 2017 to 2022. This is due to the significant decline in laptop/desktop shipment, which is expected to drop further, in addition to the sluggish recovery of the global economy since 2013.
The EMS market comprises of both EMS and ODM businesses because most manufacturers (in ODM and EMS) get involved in the other business simultaneously. The major end-use industries are communication and computer hardware sectors, which holds around 65 percent of the demand

Global EMS Drivers and Constraints

A significant demand for communication and automotive electronics have been one of the key driving factors for EMS’s growth globally
Severe price competition due to significant fragmentation is expected to shrink the profit margins of the manufacturers

Drivers

Downstream Demand: Increasing demand from downstream industries is expected to be the primary driver for increase in global CEM/EMS industry
Technological Advancements: Development of new manufacturing technologies and upcoming end-use segments, like IoT, is expected to boost the demand for the EMS market. Major manufacturers are increasing their spend on R&D so as to differentiate their products, to attract new end-use applications

Constraints

Regulations & Violation of IP: Compliance with domestic stringent regulations and trade tariffs is impacting the EMS industry and forcing OEMs to build in house manufacturing capabilities. Also, increasing case of violation of Intellectual Property Rights (IP) is significantly impacting the Contract manufacturers
Industry Profit Margins: High competition among EMS providers leads to low profit margins within the industry. This restricts the growth of smaller manufacturers, especially in emerging markets. Such suppliers typically compete on price terms, which affects the quality of the products they manufacture

Industry Events

The EMS industry has witnessed a continuous and strategic growth, due to which various industry events take place, in order to sustain the growth.Some of the major industry events include mergers and acquisions, capacity additions, exhibitions and trade conferences, and technology-driven manufacturing

Plant Expansion

TKR Corp., the EMS business of Nippon Manufacturing Services, has expanded their production facilities in Vietnam, as the need for local production for local consumption is increasing, with a growing necessity to enhance production in the ASEAN region

M&A

TT Electronics Plc has completed its acquisition of Stadium Group plc, a supplier of design-led technologies with product capabilities

Components Shortages

Increasingly serious shortfall in the supply of passive components has disrupted production at some major EMS firms in Taiwan. This has affected the supply to brand clients, with consumers facing possible price hikes in end markets

Service Expansion

EMS provider, Sanmina, says that it has received FDA registration at its manufacturing facilities in Chennai, India, enabling Sanmina to manufacture finished medical instruments and devices in India

Clousure

Zytek EMS, a contract electronics assembler, located in Silicon Valley, is closing its factory and selling its assets at auction