EMS-ODM Market Forecast 2023 - 2031

By Type :

Based on the type, the market is bifurcated into electronic manufacturing service (EMS) and original design manufacturer (ODM). The electronic manufacturing service (EMS) segment accounted for the largest revenue share in the year 2022. Electronics manufacturing service (EMS) involves companies associated with designing, manufacturing, testing, distributing, and providing repair services for electronic components and assemblies for original equipment manufacturers. Moreover, the deployment of electronic manufacturing service offers several benefits including diversified business mode, end-to-end manufacturing capabilities, improved inventory management, reduced operational costs, lower production times, and others. The above benefits of electronic manufacturing services are further increasing the utilization in consumer electronics, IT & telecommunication, automotive, and other related industries.

For instance, Sanmina Corporation offers electronic manufacturing services including design & engineering, prototyping, testing, supply chain management, system manufacturing, and aftermarket services. Further the company offers electronic manufacturing services for automotive, medical, IT & telecommunication, and other industrial sectors. Therefore, the increasing prevalence of electronic manufacturing service providers for automotive, telecommunication, and other industrial sector is a prime factor proliferating the growth of the segment.

The original design manufacturer (ODM) segment is anticipated to register the fastest CAGR growth during the forecast period. ODM refers to companies that are responsible for designing and producing products that are marketed and sold under the name of the original equipment manufacturer (OEM). Additionally, partnering with an original design manufacturer offers a range of benefits including cost-effective production, higher expertise and experience, improved flexibility, reduced risk, along with the ability to customize and adapt to various customer needs.

For instance, Qisda Corporation is an original design manufacturer serving several business sectors including consumer electronics, telecommunication, automotive, and medical among others. Thus, the rising prevalence of original design manufacturers serving multiple industrial sectors is a prime factor anticipated to drive the growth of the market during the forecast period.

By Enterprise Size :

Based on the enterprise size, the market is segregated into large enterprise and small & medium enterprise. The large enterprise segment accounted for the largest revenue share in the year 2022. Large enterprises refer to companies that have an above-average business size, perform large operations, and have high economies of scale. Large enterprises primarily comprise of a larger workforce, generate a high amount of revenue, and have a greater competitive capacity in comparison to small and medium enterprises. Moreover, large enterprises operating in EMS-ODM sector often target national and international markets for delivery of advanced design and manufacturing services.

For instance, Sanmina Corporation and Kinpo Group are few of the large enterprises that offer a range of EMS and ODM services for consumer electronics, automotive, telecommunication, and other industrial sectors. Thus, the prevalence of large enterprises operating in the EMS-ODM sector is a key factor driving the growth of the segment.

Small & medium enterprise segment is expected to witness fastest CAGR growth during the forecast period. Small and medium enterprises refer to companies that maintain revenues, workforce, and assets below a certain threshold. SMEs often account for the majority of the businesses that are operating across the world. SMEs are segregated from large enterprises because it operates differently with more simple operations.

For instance, Coconics is an India-based small & medium enterprise operating in the ODM sector. The company is responsible for manufacturing IT products in India. Thus, the rising development of small & medium enterprises operating in the EMS-ODM sector is projected to boost the growth of the segment during the forecast period.

By Application :

Based on the application, the market is classified into electronic devices, servers and storage, networking, medical instruments, and others. The electronic devices segment accounted for the largest revenue share in the year 2022. EMS services are often employed by electronic brands for outsourcing electronic manufacturing and reducing cost of production. Moreover, EMS services are utilized for design, manufacturing, testing, and assembly of a range of electronic products including smartphones, wearables, computers, and others.

For instance, Shenzhen Kaifa Technology Co. Ltd. is an EMS provider that offers electronic manufacturing services for electronic devices including smartphones, wearables, routers, ICT communications devices, and others. Hence, the increasing innovation associated with electronic manufacturing services for electronic device applications is a prime factor fostering the growth of the market.

Medical instruments segment is expected to witness the fastest CAGR growth during the forecast period. Electronic manufacturing services are employed by medical companies for design, manufacturing, regulatory compliance, along with repair and refurbishment services for complex medical instruments including diagnostics & laboratory equipment, medical imaging system, patient monitoring system, and other medical devices.

For instance, Sanmina Corporation is an EDM provider that offers electronic manufacturing services for medical instrument manufacturing including ultrasound, CT scanners, MRI scanners, X-Ray systems, and other medical equipment. Thus, the increasing utilization of electronic manufacturing services for application in medical instrument manufacturing is anticipated to boost the market growth during the forecast period.

By End-User :

Based on the end-user, the market is segregated into consumer electronics, IT & telecommunication, medical, automotive, and others. The consumer electronics segment accounted for the largest revenue share of 33.95% in the year 2022. Factors including the growing adoption of laptops, smartphones, and other consumer devices, progressions in consumer electronics including IoT and AI, increasing demand for cost-efficient electronic devices are crucial aspects driving the growth of the consumer electronics sector.

According to GSM Association, the adoption of smartphones in Italy is projected to reach 81% by 2025, witnessing an increase from 77% in 2021. Additionally, according to Atradius, the consumer electronics industry in Spain observed a growth of 3.5% in 2021 in contrast to 2020. Thus, the growing consumer electronics sector is increasing the utilization of electronic manufacturing services for design, production, assembly, and testing of various components of consumer devices, in turn driving the market growth.

Medical segment is expected to witness the fastest CAGR growth during the forecast period. The growth of medical segment is primarily driven by multiple factors including rising healthcare expenditure and increasing investments in production of advanced medical devices among others.

For instance, Cyient Inc. offers a range of electronic manufacturing services including integrated design, engineering, and production capabilities for medical device companies worldwide. Thus, the prevalence of EDM providers dedicated to offering a range of electronic manufacturing services for facilitating medical companies for production of medical equipment is a vital factor expected to drive the market growth during the forecast period.

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By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Asia-Pacific is expected to grow with the highest CAGR of 9.1% and is estimated to reach over USD 303.96 Billion by 2031 from a value of USD 141.55 Billion in 2022 and is projected to grow by USD 151.01 Billion in 2023. In addition, in the region, the China accounted for the maximum revenue share of 29.1% in the same year.

The prevalence of significant number of EMS-ODM providers in the Asia-Pacific region including UMC Electronics Co. Ltd., Shenzhen Kaifa Technology Co. Ltd., Universal Scientific Industrial Co. Ltd., Kinpo Group, Qisda Corporation, and others are contributing to market growth in the region. Moreover, the growth of consumer electronics, automotive, IT & telecommunication, and other sectors is a vital factor driving the market demand for ODM and EMS services in the region.

For instance, according to the India Brand Equity Foundation, the consumer electronics sector in India was valued at USD 9.84 billion in 2021, while it is estimated to grow at a significant rate to reach USD 21.18 billion by 2025. The above factors are driving the utilization of electronic manufacturing services by consumer electronic brands for outsourcing electronic component manufacturing and reducing cost of production, in turn driving the market growth in Asia-Pacific region.

North America is expected to register a CAGR growth of 8.7% during the forecast period. The growing pace of industrialization and development is facilitating growth aspects for the market in the North American region. Further, factors including the growth of various industries including medical, automotive, and others are driving the market growth for EMS-ODM in North America.

For instance, according to the International Trade Administration (ITA), the medical device sector in Canada was valued at USD 6.5 billion in 2022, with primary activities including research & development and manufacturing of medical diagnostic, and therapeutic devices. Electronic manufacturing services are often employed by medical companies for design, engineering, and production of complex medical equipment. Thus, the growing medical sector in North America is expected to drive the adoption of EMS, thereby proliferating market growth in the region during the forecast period.