EMS and ODM Market Global Development, Demand, Growth Analysis, Key Findings and Forecast-2025

Posted August 6, 2019 by rahulwgr123

EMS and ODM Market Research Report: by Product (EMS and ODM), by Application (Communication, Computer, Consumer, Industrial, Medical and others), by Region (North America, Europe, Asia-Pacific) Forecast till 2025
Market Overview

The Global EMS and ODM Market is expected to reach USD 1106.3 Billion by 2025 at a CAGR of 8.62% during the forecast period. Market Research Future (MRFR) in its report envelops segmentations and drivers to provide a better glimpse of the market in the coming years.

Competitive Analysis

The key players of global EMS and ODM Market are Foxconn Technology Co. Ltd (Taiwan), New Kinpo Group (Taiwan), Universal Scientific Industrial Co., Ltd (China), Shenzhen Kaifa Technology Co., Ltd (China), Venture Corporation Ltd (Singapore), Zollner Elektronik AG (Germany), UMC Electronics Co., Ltd (Japan), Flex Ltd (Singapore), Jabil Inc. (US), and Sanmina Corporation (US), among others.

In July 2018, Flex Ltd partnered with USound, a developer of advanced audio solutions, to manufacture and provide technology, engineering, and design support for various micro-electro-mechanical-systems (MEMS) speaker applications. This partnership will enable USound to introduce innovative MEMS speakers into the market quickly at a lower cost.

In May 2018, Jabil Inc., through its division Green Point, announced the opening of its new Optics Technology Innovation Center in Haifa, Israel. This center spans across 2000 square meters and provides Israel tech community with more opportunities in computational cameras, projection systems, and combined solutions.

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Segmental Analysis

The global EMS and ODM market has been segmented based on product, application, and region.

Based on product the market has been classified as EMS and ODM. The EMS segment accounted for the larger market share in 2018, with a market value of USD 435.65 billion; it is expected to register the higher CAGR during the forecast period. However, the ODM segment contributed less as compared to EMS in 2018. EMS companies offer to manufacture printed circuit boards, microelectronics components, optoelectronic devices, and RF and wireless devices. EMS companies also specialize in various production levels and speeds to build multiple prototypes at different design and planning stages. Many organizations adopt EMS solutions to produce large volumes of prototypes and products. Moreover, EMS providers also offer onsite services such as PCB etching, necessary for the manufacturing process. The key benefits that OEMs avail through ODMs are low labor costs, reduced transportation costs, and strong connectivity with the market. With core design manufacturing handled by the ODM, the OEMS can focus on their core business to attain higher profit margins. ODM models are generally used in large organizations where overseas design firms may partner with a domestic company and manufacture products according to their specifications.

Based on application, the market has been segmented into communication, computer, consumer, industrial, medical, and others. The communication segment accounted for the largest market share in 2018; it is expected to register the higher CAGR during the forecast period. The computer segment accounted for the second highest market, while the others segment was the least valued segment in 2018. The communications industry has seen rapid technological advancements in recent years with a number of smartphone manufacturers opting for EMS and ODM companies to outsource the designing and development of their products. EMS-ODM providers play a crucial role in the manufacturing of computer and peripheral devices. Many companies in Asia-Pacific design and manufacture components of notebooks, desktops, tablets, servers, workstations, and other peripherals. Consumer electronics have a huge dependency on EMS firms and ODM companies to enhance the manufacturing of consumer electronics products. Several OEMs of consumer electronics require contract manufacturers to manufacture products near regions where these products are sold. Industrial electronics providers rely on EMS firms and ODMs for the provision of process control and testing solutions. A number of industrial electronics providers focus on deploying external technical experts to perform measurement testing of high-end systems. Medical electronics providers outsource the design and production of class I, II, and III medical devices. EMS firms and ODMs offer various services in medical electronics markets such as engineering, electrical systems development, and testing, product concept manipulation and prototyping, and PCB layout. Various other applications of EMS firms and ODMs include automotive electronics such as advanced driver assistance systems and advanced motor control. High demand for building intelligent transportation motor vehicles is encouraging the automotive electronics providers to outsource their design requirements to EMS firms and ODMs.

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Regional Analysis

The global EMS and ODM market, by region, has been segmented into Asia-Pacific, North America, Europe, and the rest of the world. Asia-Pacific is expected to dominate the EMS and ODM market during the forecast period due to the growing demand for consumer electronics in the region, which has led to rapid technological developments. As a result, the original equipment manufacturers are continuously introducing innovative products in the consumer electronics market to cater to the growing demand.

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Last Updated August 6, 2019