Electronic Manufacturing Services Market Growth Fueled by OEM Outsourcing, EV Demand, and Automation Advancements

Electronic Manufacturing Services Market Size and Forecast 2025 to 2034

The global electronic manufacturing services market size was estimated at USD 577.32 billion in 2024 and is predicted to increase from USD 617.90 billion in 2025 to approximately USD 1,130.89 billion by 2034, expanding at a CAGR of 6.95% from 2025 to 2034. The trend of outsourcing manufacturing activities to cater to the growing demand for customized electronic products, as well as the trend of outsourcing manufacturing activities, are significant forces fueling the electronics manufacturing services market.

Electronic Manufacturing Services Market Key Takeaways

• The global electronic manufacturing services market was valued at USD 577.32 billion in 2024.
• It is projected to reach USD 1,130.89 billion by 2034.
• The market is expected to grow at a CAGR of 6.95% from 2025 to 2034.
• Asia Pacific has held the largest market share of 36% in 2024.
• Europe is expected to show significant growth over the forecast period.
• By service type, the engineering services segment dominated the market in 2024.
• By service type, the electronics manufacturing services segment is projected to be the fastest-growing segment over the forecast period.
• By industry type, the IT and telecom segment dominated the market in 2024.
• By industry type, the automotive segment is experiencing notable growth in the market.

Asia Pacific Electronic Manufacturing Services Market Size and Growth 2025 to 2034

The Asia Pacific electronic manufacturing services market size was estimated at USD 207.84 billion in 2024 and is predicted to be worth around USD 412.77 billion by 2034, at a CAGR of 7.10% from 2025 to 2034.

Asia Pacific dominated the electronic manufacturing services market in 2024. China is a key player in its region because of lower maintenance costs, material availability, and faster production compared to other countries like the United States. Cities like Shenzhen and Penang in China have become major hubs for electronic manufacturing services (EMS), attracting companies like Apple Inc. However, Pegatron, based in Taiwan, had to move its production to countries like Vietnam and Indonesia due to rising costs and trade issues. Many Asian businesses had to reassess their investments and relocate their operations due to the uncertainty caused by trade tensions.

• In January 2023, VVDN Technologies announced that it would expand its portfolio by offering automotive engineering and manufacturing services to automotive OEMs, suppliers, fleet owners, and start-ups globally.

Unquestionably, China leads the EMS global market, as a result of its manufacturing infrastructure, low labor cost and supply chain ecosystem. Shenzhen and Guangzhou, for example, are two of the largest EMS cities in China that can support high-volume electronic production for consumer electronics, telecom and automotive OEMs. With initiatives from the Chinese government such as "Made in China 2025" and their aggressive rollouts of 5G networks, there is now EMS demand coming from products that are high tech and IoT based. The presence of OEMs and ODMs in China has established the country as the base for manufacture of products from cradle to grave.

Europe is expected to show significant growth in the electronic manufacturing services market over the forecast period. Major European automotive companies like Mercedes, BMW, Ferrari, and Audi are teaming up with electronic manufacturing services (EMS) suppliers for various aspects like PCB production, engineering, prototyping, and design to advance connected car technologies. Furthermore, The European Union's initiatives to boost the production of electric vehicles, electronic lighting, and safety equipment are also fueling the growth of EMS in the region.

The EMS market in the U.S. is largely driven by demand for advanced and specialized electronic manufacturing products, with a primary focus on the aerospace, defense, healthcare and automotive markets. Companies are investing in innovation, product quality, and are focused on protecting their intellectual property. However, companies also tend to do high-mix, low-volume production. The current trend of reshoring, for product safety and innovation purposes, rising labor costs overseas and disruptions to global supply chains, may increasingly incentivize more investment in domestic capabilities. Companies like Jabil and Sanmina, leading manufacturers in the global EMS industry, are maximizing their operations to serve next-gen technology, specifically autonomous systems, EVs and AI-driven devices.

Germany stands out as the leader of the EMS market in Europe because of Germany's engineering excellence and a well-established automotive and industrial automation vertical. The German EMS providers are known for their high quality and precision. These providers of EMS tend to focus on the more technical aspects of PCB assembly and provide services in the industrial IoT, medical electronics. The German government has also identified Industry 4.0 and smart manufacturing technologies as priorities; and this has compelled the EMS industry to operate alongside robotics, AI, and real-time data analytics, seamlessly integrated as though it is one functional operation. Germany also has the benefit of being centrally located with access to the EU market; and the actual market opportunity is much larger in the EU for multinational and large domestic clients seeking reliability and quality.

Market Overview

The electronics manufacturing services market comprises of specialized companies that handle all aspects of manufacturing electronic components and devices. This includes design, assembly, testing, and logistics. EMS suppliers support original equipment manufacturers (OEMs), enabling them to concentrate on their main strengths. Furthermore, EMS providers offer cost-effective and efficient solutions to various industries such as telecommunications, automotive, consumer electronics, and healthcare.

EMS providers' expertise in electronic production ensures top-notch products and empowers OEMs to meet market demands with flexibility and innovation. Today's electronic manufacturing services market is driven by diverse consumer preferences, leading to a rise in demand for personalized electronic items. Consumers also seek products related to their specific needs and interests. EMS providers facilitate effective customization of electronic products to ensure they meet individual customer requirements, which drives market growth.

Electronic Manufacturing Services Market Growth Factors

• Companies are rapidly outsourcing their production activities across various industries, which can lead to the electronic manufacturing services market expansion.
• Globalization of the electronics store chain can have a positive impact on the growth of the electronic manufacturing services market.
• Industries like IT & telecom, aerospace, and automotive are the key factors that can fuel the market growth.
• The rising number of electronic device servicing centers worldwide can continue the market expansion.
• Growing consumer demand for electronic manufacturing is also an important factor propelling the electronic manufacturing services market growth in the future.

Market Scope

Market Dynamics

Driver

Rising functionalities across various industries

The global electronic manufacturing services market is primarily driven by the growing demand for various functionalities such as engineering, component assembly, and premium circuit board design. Contract manufacturers play a crucial role by offering functional testing and sub-assembly production services. Moreover, electronic contract manufacturing provides outsourcing services for core production skills by allowing OEMs to focus on their strengths. This strategic outsourcing helps enhance operational efficiency, reduce production costs, and minimize the need for fixed capital investment.

• In March 2024, Chinese electronics maker Xiaomi launched a 'connected' smart EV. Xiaomi is a well-known maker of smart consumer electronics in China, with its new EV boasting lots of new smart features. Chinese electronics maker Xiaomi is joining the country's booming but crowded market for electric cars with a sporty, high-tech sedan.

Restraint

Increased competition

As technology evolves, consumer preferences also change. To stay competitive, electronics manufacturers must have efficient processes for introducing new products. The global electronic manufacturing services market faces increased competition, leading to shrinking profit margins and economic losses. Economic instability and fluctuating demand can further impact the electronic manufacturing services market. Additionally, concerns about confidentiality and security raise risks of information leaks and intellectual property theft.

Opportunities

Focus on core competencies

A key reason for the electronic manufacturing services market growth is the focus on the core strengths of companies in various industries. They recognize the importance of specializing in what they do best to stay competitive in today's fast-paced business world. By outsourcing tasks like manufacturing to EMS providers, companies can concentrate on vital areas like marketing, innovation, and research and development. This shift in resources enhances efficiency and profitability. EMS providers play a crucial role in supporting businesses by streamlining processes and ensuring high-quality output.

Industrial applications to drive the demand for EMS

As the environmental movement gains momentum, there's a growing demand for electric motor controls that enhance the efficiency of industrial motors. Also, there's a pressing need for increased integration at minimal costs to support the widespread adoption of new technologies, ensuring improved safety and reliability. This surge in demand is particularly evident in electronic products used in smart motors, including digital signal controllers for voltage control operations. Moreover, the advent of Industry 4.0 promises significant enhancements in factory data automation efficiency and productivity. The concurrent progress in industrial IoT and artificial intelligence (AI) also contributes to this growth trajectory. While the electronics industry has yet to fully realize the potential of intelligence and automation, the transition toward Industry 4.0 is underway, as evidenced by recent trends in the electronics manufacturing services market.

• In October 2022, Rockwell Automation Inc. announced that it had signed a definitive contract to acquire CUBIC, which specializes in modular systems for constructing electrical panels. The collaboration is expected to benefit a company by offering faster time to the electronic manufacturing services market, enabling broader plant-wide applications for intelligent motor control, and generating smart data to increase sustainability and productivity for a wide range of customers.

Service Insights

The engineering services segment dominated the electronic manufacturing services market in 2024. The rise in investment in research and development for high-performance electronic assembly materials is attributed to the dominance of the electronics manufacturing services segment in the market. Circuit boards are gaining significance in tablets and other electronic devices, driving this trend.

In the electronic manufacturing services market, the electronics manufacturing services segment is projected to be the fastest-growing segment over the forecast period. Companies in the industrial automation sector require continuous access to all system-generated data. However, due to the complexity of many operational utility applications, acquiring this data can be challenging. Regions such as Europe and North America are increasingly implementing Supervisory Control and Data Acquisition (SCADA) systems to ensure accurate data collection.

• In February 2024, NEOTech, a leading provider of electronic manufacturing services (EMS), design engineering, and supply chain solutions in the high-tech industrial, medical device, and aerospace/defense markets, announced the upcoming launch of a state-of-the-art New Product Introduction (NPI) and electronics manufacturing center of excellence at its Fremont, CA facility.

Industry Insights

The IT & telecom segment dominated the electronic manufacturing services market in 2024. The growth of the industry is fueled by technological advancements, rising demand for mobile devices, and the need for cost-effective manufacturing solutions to meet the dynamic needs of the telecom sector. This emphasizes the industry's dependence on EMS providers to boost productivity, innovation, and competitiveness in the rapidly evolving telecommunications market.

The automotive segment is experiencing notable growth in the electronic manufacturing services market. This growth is driven by increasing digitization, the integration of IoT in vehicles, and the growing popularity of electric vehicles. Companies in these industries are turning to outsourcing services to improve flexibility and reduce expenses. Also, the rise of the electric vehicle market is propelled by increased component production outsourcing.

Electronic Manufacturing Services Market Companies

• Sanmina Corporation
• Vinatronic Inc.
• Inventec
• Hon Hai Precision Industry Co. Ltd
• Bharat FIH - A Foxconn Technology Group
• SIIX Corporation
• Benchmark Electronics Inc.
• Flex Ltd
• Quanta Computers Inc.
• Osram Opto Semiconductors GmbH
• Kimball Electronics Inc.
• Jabil Inc.
• Celestica Inc.
• Wistron Corporation
• General Electric Company
• Argus Systems
• Plexus Corporation
• Sparton Corporation
• Koninklijke Philips N.V.
• Integrated Microelectronics Inc

Recent Developments

• On June 28, 2025, Motilal Oswal released a bullish outlook on India’s leading EMS providers, forecasting a strong CAGR through FY27, signalling robust expansion driven by new orders and capacity add-ons. (Source: https://m.economictimes.com)
• In July 2023, Analog Devices, Inc., one of the global semiconductor leaders, and Hon Hai Technology Group (Foxconn), one of the largest global electronics manufacturing services providers, announced the completion of a Memorandum of Understanding (MoU) to develop the next-generation digital car cockpit and a high-performance battery management system (BMS).
• In May 2023, Infineon Technologies AG, one of the global leaders in automotive semiconductors, and Hon Hai Technology Group (Foxconn), one of the largest global electronics manufacturing services providers, aim to establish a partnership in the electric vehicles (EV) field to develop advanced electromobility with efficient and intelligent features jointly. The Memorandum of Understanding (MoU) aims to develop silicon carbide (SiC) and leverage Infineon’s automotive SiC innovations in automotive systems.
• In June 2022, Flex announced the development of its operations in the Mexican state of Jalisco's automotive sector. The business is building a brand-new, cutting-edge 145,000-square-foot facility that will act as a strategic in-region automotive manufacturing hub to produce advanced electronic components that will hasten the transition to the era of electric and autonomous vehicles.
• In March 2022, Sanmina Corporation (Sanmina), a leading integrated manufacturing solutions company, and Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), India's largest private sector company, announced that they have agreed to create a joint venture through investment in Sanmina's existing Indian entity (Sanmina SCI India Private Ltd, "SIPL").

Segments Covered in the Report

By Service Type

• Electronics Manufacturing
• Engineering Services
• Test & Development Implementation
• Logistics Services
• Others

By Industry Type

• Computer
• Consumer Electronics
• Aerospace & Defense
• Medical & Healthcare
• IT & Telecom
• Automotive
• Semiconductor Manufacturing
• Robotics
• Heavy Industrial Manufacturing
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa