Global Electronics Manufacturing Services (EMS) Growth Opportunities

Global Electronics Manufacturing Services (EMS) Growth Opportunities

Embracing Digital Transformation to Enable Factories of the Future Through Artificial Intelligence and Machine Language Based Solutions will Drive EMS Participants Into the Next Phase of Growth

RELEASE DATE
03-Sep-2021
REGION
Global
Research Code: K5A7-01-00-00-00
SKU: ES01185-GL-MT_25623
$4,950.00
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$4,950.00
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Description

The global electronics manufacturing services market traditionally comprised of companies that manufacture electronic products, predominantly assembling components on Printed Circuit Boards (PCBs) and box builds for OEMs. The market was established more than five decades ago to execute manufacturing designs from government, defense, and research institutions. As the years progressed, the market grew to support the overflowing demands that exceeded volume capacity in OEMs. Today OEMs and Original Design Manufacturers (ODMs) are seeing more value from EMS companies, leading to involvement beyond just manufacturing services to product design and developments, testing, aftersales services, such as repair, remanufacturing, marketing, and product lifecycle management. Thus, the EMS market has grown into a multi-billion dollar business over the years.

Conventionally, 3C products have been the majority revenue contributor to the EMS market. However, with the start of the digital age driven by the ever-growing dependence on data, automation, and artificial intelligence, the need to embed electronics into products across all verticals has increased drastically. Some emerging verticals that introduce innovative products by adopting IoT include medical and smart-home devices. The automotive vertical will be one of the growth opportunities in the next decade. The development of self-driving cars and Electric Vehicles (EVs) necessitates advanced electronics-based products such as Advanced Driver Assistance System (ADAS) and infotainment that require the expertise of EMS companies.

While growth opportunities remain strong, there are several significant challenges that EMS companies face. One among them is the stiff competition leading to pricing issues, another being shortening product life cycles, leading to planning and profitability challenges due to low-volume manufacturing. EMS companies are trying to overcome these challenges in a myriad ways combining the traditional and emerging tools and methodologies. However, it would be worth mentioning that the adoption of digital technologies, combining software, connectivity, automation, AI and ML to optimize every aspect of operations to improve time-to-market, time-to-volume, planning and scheduling, and profitability to ultimately improve the customer experience and create a win-win situation.


Research Highlights

This research focuses on assessing the market potential and future growth prospects of the EMS industry, while considering the risks involved, short-term and long-term challenges, micro- and macro-level trends, vertical specific trends, the current and future impact of Digital Transformation, technology advancements, the evolving role of EMS companies in design and innovation building technology platforms, and components in the value chain, to arrive at estimates.

Key Issues Addressed

  • How big is the EMS market in terms of the revenue?
  • Did the market grow in 2020?
  • Will the market grow in the next 5 years, and to what extent?
  • Where is the major growth coming from?
  • What will be the impact of convergence of AI/ML, IoT, 5G, and automation on EMS companies and end-user products?
  • How can EMS companies defy competition, improve profitability, and expand the customer base?
  • How can EMS companies defy challenges coming from new technology advancements and shorter product life cycles?

Author: Prabhu Karunakaran

RESEARCH: INFOGRAPHIC

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Table of Contents

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of Top Three Strategic Imperative on the Electronics Manufacturing Services Industry

Growth Opportunities Fuel the Growth Pipeline Engine™

Electronics Manufacturing Services Market Scope of Analysis

Market Definitions

Market Definitions (continued)

Market Definitions (continued)

Market Segmentation

Key Competitors for Electronics Manufacturing Services Market

Key Growth Metrics for Electronics Manufacturing Services Market

Growth Drivers for Electronics Manufacturing Services Market

Growth Restraints for Electronics Manufacturing Services Market

Forecast Assumptions—Electronics Manufacturing Services Market

Revenue Forecast—Electronics Manufacturing Services Market

Revenue Forecast Analysis—Electronics Manufacturing Services Market

Revenue Forecast Analysis—Electronics Manufacturing Services Market (continued)

Revenue Forecast Analysis—Electronics Manufacturing Services Market (continued)

Revenue Forecast Analysis—Electronics Manufacturing Services Market (continued)

Revenue Forecast by Service Type—Electronics Manufacturing Services Market

Revenue Forecast Analysis by Service Type—Electronics Manufacturing Services Market

Revenue Forecast Analysis by Service Type—Electronics Manufacturing Services Market (continued)

Revenue Forecast by Region—Electronics Manufacturing Services Market

Revenue Forecast Analysis by Region—Electronics Manufacturing Services Market

Key Findings by Region—North America

Key Findings by Region—Europe

Key Findings by Region—Asia-Pacific

Key Findings by Region—Asia-Pacific (continued)

Key Findings by Region—Asia-Pacific (continued)

Key Findings by Region—RoW

Revenue Forecast by Industry Vertical—Electronics Manufacturing Services Market

Revenue Forecast Analysis by Industry Vertical—Electronics Manufacturing Services Market

Revenue Forecast Analysis by Industry Vertical—Electronics Manufacturing Services Market (continued)

Factors Influencing Operational Efficiency and Business Risks

Competitive Environment—Electronics Manufacturing Services Market

Revenue Share—Electronics Manufacturing Services Market

Revenue Share Analysis—Electronics Manufacturing Services Market

Revenue Share Analysis—Electronics Manufacturing Services Market (continued)

Company Overview—Foxconn

Segment Overview—Foxconn

R&D Focus—Foxconn

Electric Vehicle Initiative—Foxconn

Key Activities—Foxconn

SWOT Analysis—Foxconn

Company Overview—PEGATRON Corporation

Segment Overview—PEGATRON Corporation

Portfolio and Technology Development—PEGATRON Corporation

SWOT Analysis—PEGATRON Corporation

Company Overview—Flex

Segment Overview—Flex

Strategic Focus—Flex

Key Highlights in the Automotive Industry—Flex

SWOT Analysis—Flex

Company Overview—Jabil

Segment Overview—Jabil

SWOT Analysis—Jabil

Company Overview—Sanmina Corporation

Segment Overview—Sanmina Corporation

SWOT Analysis—Sanmina Corporation

Key Trends—Digital Transformation in Electronics Manufacturing Services Market

Key Trends—Industry 4.0 in the Electronics Manufacturing Services Market

Key Trends—Emerging Technologies to Improve Operational Efficiency

Key Trends—Emerging Technologies to Improve Operational Efficiency (continued)

Key Growth Metrics—Automotive Vertical

Value Chain and Scope of EMS in Automotive Vertical

Revenue Forecast—Automotive Vertical

Revenue Forecast Analysis—Automotive Vertical

Revenue Forecast Analysis—Pandemic’s Impact on the Automotive Vertical

Electric Vehicle Sales

Electric Vehicle Sales (continued)

EV Strategy for EMS Market Participants

AV and EV Collaborations in the EMS Market

Autonomous Vehicles Sales Outlook by Level of Autonomy

Autonomous Driving Definitions

Key Trends in Autonomous Driving

Key Factors EMS Companies Should Consider for Long-term Growth

Revenue Share—Automotive Vertical

Key Growth Metrics—Aerospace and Defense Vertical

Introduction to EMS in the A&D Vertical

Revenue Forecast—Aerospace and Defense Vertical

Revenue Forecast Analysis—Aerospace and Defense Vertical

Revenue Forecast Analysis—Aerospace and Defense Vertical (continued)

Revenue Forecast Analysis—Aerospace and Defense Vertical (continued)

Key Trends in Aerospace and Defense that Affect the EMS Market

Aircraft Revenue Prospects for EMS

Opportunity Analysis from Drones (Unmanned Aerial Vehicles)

Role of Additive Manufacturing (AM) in Aerospace and Defense EMS Market

Revenue Share Analysis—Aerospace and Defense Vertical

Key Growth Metrics—Consumer Electronics Vertical

Revenue Forecast—Consumer Electronics Vertical

Revenue Forecast Analysis—Consumer Electronics Vertical

Revenue Forecast Analysis—Consumer Electronics Vertical (continued)

IoT will Be a Key Driver in the Consumer Electronics EMS Market

Competitive Strategies to Consider

Revenue Share—Consumer Electronics Vertical

Key Growth Metrics for Communications Vertical

Revenue Forecast—Communications Vertical

Revenue Forecast Analysis—Communications Vertical

Revenue Forecast Analysis—Communications Vertical (continued)

5G Opportunity Analysis for EMS in Communications

COVID-19 Impact and Key Challenge Analysis in 5G for EMS

Urbanization and Smart Cities Mega Trend

Data Center Growth

Regional Insights

Regional Insights (continued)

Revenue Share—Communications Vertical

Key Growth Metrics—Other Industry Verticals

Revenue Forecast—Other Industry Verticals

Revenue Forecast Analysis—Others Industry Verticals

Revenue Forecast Analysis—Others Industry Verticals (continued)

Energy Market Opportunities

Medical Device Manufacturing Market

Medical Device Vertical Key Trends

Medical Device Market—Pandemic Impact Assessment

Regional Insights

Growth Opportunity 1: Industrial Digital Transformation, Led by IoT Implementation, is a High Growth Opportunity for the Next Five Years

Growth Opportunity 1: Industrial Digital Transformation, Led by IoT Implementation, is a High Growth Opportunity for the Next Five Years (continued)

Growth Opportunity 2: Solutions to Improve Productivity and Margins for Enhancing the Organic Growth Opportunity

Growth Opportunity 2: Solutions to Improve Productivity and Margins for Enhancing the Organic Growth Opportunity (continued)

Growth Opportunity 3: Energy Infrastructure will Propel the Future of EMS Growth

Growth Opportunity 3: Energy Infrastructure will Propel the Future of EMS Growth (continued)

Your Next Steps

Why Frost, Why Now?

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

Legal Disclaimer

Related Research
The global electronics manufacturing services market traditionally comprised of companies that manufacture electronic products, predominantly assembling components on Printed Circuit Boards (PCBs) and box builds for OEMs. The market was established more than five decades ago to execute manufacturing designs from government, defense, and research institutions. As the years progressed, the market grew to support the overflowing demands that exceeded volume capacity in OEMs. Today OEMs and Original Design Manufacturers (ODMs) are seeing more value from EMS companies, leading to involvement beyond just manufacturing services to product design and developments, testing, aftersales services, such as repair, remanufacturing, marketing, and product lifecycle management. Thus, the EMS market has grown into a multi-billion dollar business over the years. Conventionally, 3C products have been the majority revenue contributor to the EMS market. However, with the start of the digital age driven by the ever-growing dependence on data, automation, and artificial intelligence, the need to embed electronics into products across all verticals has increased drastically. Some emerging verticals that introduce innovative products by adopting IoT include medical and smart-home devices. The automotive vertical will be one of the growth opportunities in the next decade. The development of self-driving cars and Electric Vehicles (EVs) necessitates advanced electronics-based products such as Advanced Driver Assistance System (ADAS) and infotainment that require the expertise of EMS companies. While growth opportunities remain strong, there are several significant challenges that EMS companies face. One among them is the stiff competition leading to pricing issues, another being shortening product life cycles, leading to planning and profitability challenges due to low-volume manufacturing. EMS companies are trying to overcome these challenges in a myriad ways combining the traditional and emerging tools and methodologies. However, it would be worth mentioning that the adoption of digital technologies, combining software, connectivity, automation, AI and ML to optimize every aspect of operations to improve time-to-market, time-to-volume, planning and scheduling, and profitability to ultimately improve the customer experience and create a win-win situation.--BEGIN PROMO--

Research Highlights

This research focuses on assessing the market potential and future growth prospects of the EMS industry, while considering the risks involved, short-term and long-term challenges, micro- and macro-level trends, vertical specific trends, the current and future impact of Digital Transformation, technology advancements, the evolving role of EMS companies in design and innovation building technology platforms, and components in the value chain, to arrive at estimates.

Key Issues Addressed

  • How big is the EMS market in terms of the revenue
  • Did the market grow in 2020
  • Will the market grow in the next 5 years, and to what extent
  • Where is the major growth coming from
  • What will be the impact of convergence of AI/ML, IoT, 5G, and automation on EMS companies and end-user products
  • How can EMS companies defy competition, improve profitability, and expand the customer base
  • How can EMS companies defy challenges coming from new technology advancements and shorter product life cycles

Author: Prabhu Karunakaran

More Information
No Index No
Podcast No
Author Prabhu Karunakaran
Industries Electronics and Sensors
WIP Number K5A7-01-00-00-00
Is Prebook No
GPS Codes 9207-A3,9435,9592,9593