Electronic Manufacturing Services Market Research Report
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.
Electronic Manufacturing Services - Global Market Outlook
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The global EMS market is expected to reach $415.6 Billion by 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
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The EMS market in the US and Canada region was at $66.41 Billion in 2017 and is growing at a CAGR of around 0.25-0.5 percent
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Taiwan positioned as a core for the 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
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In 2017, the EMS industry expanded by 10.7 percent, and this is mainly due to large growth in end-use segments, such as the telecom sector (35.5 percent), industrial and medical markets
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EV, hybrid EV smartphone innovations, automotive electronics growth due to smart cars and industrial electronics are the major driving factors for the EMS industry
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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 the US and some of the Eastern European regions.
Why should you Buy this Report
The report provides insights on the following:
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Information relating to market, supply, cost, and pricing analysis
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Hard to find data on cost and TCO models, supplier details, and performance benchmarks
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Macroeconomic and regional trends impacting cost, supply, and other market dynamics
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Category-specific negotiation and sourcing advice
The report discusses the regional EMS market overview constituting market size, growth rate and key suppliers in the 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.
Methodology for writing this Report
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.
Electronic Manufacturing Services - Global Drivers and Constraints
Drivers
Increasing demand from downstream industries is expected to be the primary driver for the increase in global CEM/EMS industry
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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
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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
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 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 acquisitions, 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
The increasing 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
Closure
Zytek EMS, a contract electronics assembler, located in Silicon Valley, is closing its factory and selling its assets at auction
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