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Electronic Manufacturing Services
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Competitive Intelligence

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Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

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Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

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Assess Supplier Risk based on key risk and compliance parameters

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Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

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Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

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Measure category performance on 15 key parameters across cost, risk and strategy KPIs

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Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Abi will answer all Electronic Manufacturing Services related
procurement queries with relevant data points

Abi - AI powered digital procurement assistant

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Get up-to-date market and supplier info on Electronic Manufacturing Services to help you build

Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

1

Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

manage-risk

Assess Supplier Risk based on key risk and compliance parameters

1

Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

2

Supplier assessment is powered by world’s leading data partners including D&B, CreditSafe, Dow Jones, Refinitiv, Orpheus

discover-supplier

Identify right fit suppliers based on your selection criteria including revenue, capabilities, certification, geography

1

Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

assess-category-perforamnce

Benchmark your category performance against peers and the market

1

Measure category performance on 15 key parameters across cost, risk and strategy KPIs

source-market-indices

Get information on key factors affecting your supply

1

Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Report Coverage

The report provides insights on the following:

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

Market Size

CAGR

7-8 Percent

Market Size Asia Pacific

$317.26 Bn

Market Size Latin America

$59.03 Bn

Market Size US and Canada

$91.51 Bn

The global electronic manufacturing services (EMS) market was valued at $463.2 Bn in 2019 and is expected to grow at a CAGR of 7-8% by 2022, reaching $575.69 Bn.  In 2017, the market size expanded by 10.7%, majorly driven by the huge growth in the telecom, industrial, and medical sectors.

The EMS market incorporates both EMS and ODM businesses as most manufacturers (ODM and EMS) get involved in other businesses simultaneously. The major end-users of EMS are communication and computer hardware sectors, which hold around 59% of the demand.

 Electronic Manufacturing Services Market Analysis and Global Outlook

  • Significant decline in the  laptop/desktop shipment due to COVID-19 induced stressors is putting a dent in the electronic manufacturing services market size.
  • The EMS market in the US and Canada was collectively valued at $66.41 Bn in 2017 and grew at a CAGR of 0.25-0.5% during 2017-2018. The growth rate for 2019-2020 was 1-2%.
  • Nowadays, many electronics original equipment manufacturers (OEM) are adopting a regional strategy for manufacturing. The US and Canada are developing their manufacturing capabilities to quench the needs of OEMs.
  • Labor rates in China, which were the cheapest in the world about 10 years ago, have increased rapidly in recent times. Thus, Apple is building its new MacPro computer in Texas, the US. GE has moved production of some of its appliances from China to its Appliance Park in Kentucky, the US. Similarly, Lenovo and Google Glass have started shifting their EMS industry needs to the US.
  • The Latin America (LATAM) EMS market size in 2019 stood at $54.42 Bn, with a CAGR of 3% during 2019-2020.
  • Mexico is the leading exporter of domestic electronic appliances in LATAM and the sixth-largest in the world.
  • Mexico’s key strategies are cost savings, the presence of technical talents, excellent transport infrastructure, and developing efficient supply chain processes to improve its position in the world ranking.
  • Europe and the Middle East and Africa (EMEA) EMS market revenue size in 2019-2020 was $32.01 Bn, with a 0.5–1% CAGR for the same period.
  • EMS revenue in Western Europe reached €13.5 Bn in 2019, from €11.2 billion in 2017, with the market increasingly focussed on end-use industries such as aerospace, defense, automotive, medical, control and instrumentation, and telecom.
  • In Western Europe, when there was a visible decrease in revenue of around 1.2%, Eastern and Central Europe, Middle East, and North Africa are balancing the situation by showing 3.4% growth thus stabilizing the European market.
  • Taiwan is ground zero for the electronics industry with 75% of the electronic manufacturing service providers from the country. Also, Asia Pacific (APAC) dominated the EMS market in terms of growth prospects until 2018-19.
  • Demand for consumer electronic products is on the rise, driven by innovation, price deflation, and growing household incomes, particularly in the emerging countries in Asia.
  • APAC’s supply chain starts with product design, semiconductor fabrication and packaging, components and subsystems, final assembly and testing, which is also slowly moving toward low-cost countries in APAC, including India, and Indonesia, for reducing the manufacturing cost.
  • The APAC EMS market size in 2019 was $292.46 Bn and was expected to grow at a CAGR of 3-4% during 2019-2020.
  • Electric vehicles (EV), hybrid EVs, automotive electronics growth owing to smart cars and industrial electronics are also majorly contributing to the EMS industry revenue.
  • As the Asian EMS market is expected to grow equally expensive over western regions, the supply chain trend is expected to gradually shift from APAC to the US and some of the Eastern European regions.

electronic-manufacturing-services-market-size

Why should you Buy this Report

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.

Table of contents

  1. Electronic Manufacturing Services Executive Summary
  2. Category Landscape
  3. Regional Market Outlook
  4. Supply Landscape
  1. Electronic Manufacturing Services Market Analysis
  2. Global Market Maturity
  3. Market Overview and End - use
  4. Supply Demand Scenario
  5. Global Market Outlook
  6. Regional Market Analysis
  7. Porter’s Five Force Analysis
  8. Market Drivers and Constraints
  9. Industry Events
  1. COVID-19 IMPACT
  2. Current Scenario – COVID-19 Impact
  3. COVID-19 IMPACT - INDUSTRY WATCH
  1. Cost and Pricing Analysis
  2. Cost Structure
  3. Price Drivers
  4. Price Forecast
  5. Pricing Model and Mechanism
  6. Impact Analysis
  1. Procurement Best Practices
  2. Industry Practices
  3. Sourcing Models
  4. Engagement Models
  5. Contract Model
  6. RFP/RFI Support Levers

 

  1. RFP/RFI Support Levers
  2. General RFP/RFI Support questions

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Electronic Manufacturing Services (EMS) Market Trends

Rising Trend of Smart Home 

The increasing adoption of smart home devices in developed regions such as the US are setting high hopes for electronic manufacturing service vendors. In the US, the electronic manufacturing services delivered by the companies contain developing optoelectronics services, radio frequency (RF) & wireless devices, and microelectronics devices for the rapidly emerging smart home trend.

 Market players are focusing on stepping up their production capacities by integrating cloud computing, artificial intelligence (AI), big data analysis, and 3D printing to manufacture connected devices for smart homes.  

Greater Emphasis on Vehicle Electrification

The expansion of EVs owing to rising stringency in  government policies to curb carbon footprint will influence automakers to opt for electronic manufacturing services. Also, governments across the world are launching schemes and policies to promote the adoption of EVs. 

 The EMS expertise in the automotive sector includes box build assembly, PCB assembly services, and module assembly to provide high-volume production units to OEMs. Industry players are creating long-term collaborations with tier-1 suppliers and prominent automakers.

A significant demand for communication and automotive electronics has been one of the key driving factors for EMS 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 the increase in global CEM/EMS industry

  • Technological Advancements

Development of new manufacturing technologies and upcoming end-use segments, such as the Internet of Things (IoT), is expected to boost the demand for the EMS market. Major manufacturers are increasing their spending on R&D to differentiate their products and 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 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

Sanmina Corporation says that it has received FDA registration at its manufacturing facilities in Chennai (India) enabling it to manufacture finished medical instruments and devices in the country.

The EMS company has also announced capacity expansion in Thailand, which will have leading-edge customized packaging and assembly capabilities to develop innovative high-speed, optical, and radio frequency (RF) microelectronic products.

Closure

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

Why should you Buy this Report

The report on the electronic manufacturing services market discusses the regional market overview constituting market size, growth rate and key suppliers in the US, Canada, LATAM, EMEA, and APAC. Also, it highlights Porter's Five Force Analysis including the supplier power, buyer power, barriers to new entrants, intensity of rivalry and threat of substitute. 

Comprehensive analysis of market drivers and constraints, cost and pricing forecast as well as the impact of key price drivers have been included. The research study scrutinizes key global suppliers' profiles and offers a SWOT analysis of some of the major industry giants including Foxconn, Pegatron, Flextronics, Jabil Inc., and Sanmina. Furthermore, the electronic manufacturing service market study covers procurement best practices such as sourcing strategy, engagement models, contract models, and risk analysis.

 

Electronic Manufacturing Services Market Frequently Asked Questions

  1. What is the market size of the electronics manufacturing services market? 
  2. The global market size of the electronics manufacturing industry is expected to reach $575.69 billion by 2022 according to Beroe's analysts.

 

  1. Who are the major players in the electronics manufacturing services industry? 
  2. As per Beroe’s electronic manufacturing services trends report, the high market maturity regions are China, Taiwan, Japan, South Korea, Mexico, Brazil, and Germany and the medium market maturity regions are India, UAE, Africa, Eastern Europe, Indonesia, US, and Canada. 

 

  1. What are the latest trends in the electronics manufacturing services market?
  2. The latest electronics manufacturing services trends are that the market regions of the US, LATAM, and Canada are expected to grow significantly. The overall market size of the electronic manufacturing industry is also expected to grow. The demand for consumer electronics is also surging. 

 

  1. What will be the expected growth of the electronics manufacturing services industry?
  2. The electronics manufacturing industry is expected to grow at a CAGR of 7-8% by 2022. 

 

  1. What are the key drivers of the electronics manufacturing services market?
  2. Some of the major driving factors for the electronics manufacturing industry are EV, hybrid EV smartphone innovations, and automotive electronics growth as a result of the emergence of smart cars and industrial electronics. 

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