EMS and ODM Market Types, Regions and Applications Research Report Forecast to 2025


Posted October 21, 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, Rest of the world) - Forecast till 2025
 
Market Scope

The global electronics manufacturing services (EMS) and original design manufacturer (ODM) market could achieve a CAGR of 8.62% during the forecast period (2018-2025), reveals Market Research Future (MRFR). In 2018, the market value was USD 620.02 billion and it is projected to touch the valuation of USD 1106.3 billion by 2025.

Market Boosters and Top Barriers

With the increasing cost of electronics products and devices, penetration of EMS providers is expected to rise significantly in the near future. The EMS and ODM market benefits mainly from the booming semiconductor industry. The market holds substantial opportunities for small EMS vendors owing to mounting demand for computers and consumer products. In recent years, thanks to surge in shipments of mobile phone companies including Huawei, Xiaomi and Apple, the EMS and ODM market picked up immense speed. The 4G construction of Radio Access Networks was on an all-time high in 2016 and with the data size of mobile Internet increasing, the data center market has grown robustly since then.

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EMS/ODM vendors in the United States and Europe are focused on enhancing profitability by bringing down revenue proportion of communication and telecom infrastructure, and triggering expansion of medical, automotive and industrial sectors. They are also striving to handle the weaknesses in components, by venturing into the upstream segment of industrial chains. However, compared to Taiwanese vendors, the vendors in Europe and the U.S somewhat lag far behind with respect to the components field.

Soaring demand, as well as sales of electronics, particularly consumer electronics, is expected to benefit the market in the coming years. This demand gives rise to the adoption and implementation of EMS and ODM. Apart from this, the use of EMS and ODM offers flexibility, steady supply of services, mitigates risk and brings down the overall operational cost of a company. Such factors are touted to induce market growth for EMS and ODM during the evaluation period.

Top Vendors

Top vendors competing in the worldwide EMS And ODM Market include New Kinpo Group (Taiwan), Universal Scientific Industrial Co., Ltd (China), Flex Ltd (Singapore), Sanmina Corporation (US), Zollner Elektronik AG (Germany), Venture Corporation Ltd (Singapore), Foxconn Technology Co. Ltd (Taiwan), Shenzhen Kaifa Technology Co., Ltd (China), Jabil Inc. (US), UMC Electronics Co., Ltd (Japan), among others.

Market Segmentation

The worldwide market for EMS and ODM has been segregated the product and application.

Depending on product, the market can be broken down to EMS and ODM. EMS was identified as the leading market in 2018, touching the valuation of USD 435.65 billion. It is expected to attain a higher growth rate during the review period. ODM controlled the smaller share of the market in 2018.

Application-wise, the market has been considered for computer, communication, industrial, consumer, medical, and others. In 2018, the communication segment’s coverage was maximum in the market and is estimated to obtain a higher CAGR during the given time frame. The computer segment held the second position in the market among applications, whereas others segment held the least value in 2018. The communications segment’s dominance is the result of the rapid technological advancements in the industry which have led numerous smartphone manufacturers to outsource the designing and development of their products to EMS and ODM vendors.

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Regional Insight

The EMS and ODM market has been geographically distributed into North America, Asia Pacific, Europe, and the rest of the world (RoW).

Asia Pacific is touted to seize the maximum share of the EMS and ODM market during the appraisal period. Soaring demand for consumer electronics has prompted technological developments in the field, which induces market growth in the region. Given the strong demand for electronics in the region, several original equipment manufacturers sense the opportunity and are striving to develop innovative products that could meet with the burgeoning demand. A broad range of consumer electronic products is currently manufactured in China owing to easy availability of raw materials, speed, quality, as well as low maintenance costs. Cities like Shenzhen have emerged as a prominent industrial hub that is attracting renowned consumer electronics companies like Apple.

In North America, EMS has left other segments of the electronics industry far behind owing to expanded outsourcing of electronics manufacturing as well as design by OEMs. A number of EMS companies in the region offer global procurement, design services, advanced technology access, cost reduction programs, system build, and dedicated plant setups and management, along with traditional PCB assembly, rework, repair and test services. All these efforts by companies are found to be highly effective in terms of revenue and sales.

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Last Updated October 21, 2019