Electronic Manufacturing Services For Healthcare And Medical Devices Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Electronic Manufacturing Services For Healthcare And Medical Devices Market Trends and Insights

Increasing Outsourcing of Medical Device Manufacturing to EMS Providers

OEM outsourcing penetration rose from 31% in 2020 to 38% in 2025 as companies diverted capital to clinical validation and digital-health software. Smaller firms without ISO 13485 infrastructure use contract manufacturing to satisfy FDA 21 CFR 820 compliance^{[1]Jabil. “Annual Report 2025.” jabil.com}. Jabil reported 14% growth in healthcare-segment in 2025, with 60% of new contracts bundling design-for-manufacturing and supply-chain services. India’s production-linked incentive attracted USD 1.2 billion in EMS commitments between 2024 and 2025, bolstering South Asian capacity. India’s production-linked incentive scheme attracted USD 1.2 billion in EMS commitments between 2024 and 2025, diversifying global capacity toward South Asia. These shifts collectively raise the addressable base for the electronic manufacturing services for healthcare and medical devices market.

Rising Complexity and Miniaturization of Medical Electronics

Abbott’s FreeStyle Libre 3 sensor integrates radio and power management in a 21 mm package. Medtronic’s 2 g Micra AV2 pacemaker employs vertical die stacking. EMS providers deploy 01005-capable placers and X-ray inspection. Plexus noted that 40% of 2025 engagements included early-stage engineering to optimize thermal management. Medtronic’s 2 g Micra AV2 pacemaker employs vertical die stacking to eliminate wire bonds. EMS providers, therefore, invest in pick-and-place systems capable of 01005 handling and X-ray inspection for hidden joints. Plexus disclosed that 40% of 2025 contracts featured early-stage engineering to optimize thermal profiles and component footprint. The escalating technical bar is driving demand for turnkey engagements in electronic manufacturing services for the healthcare and medical devices market.

Stringent Regulatory Requirements Driving Demand for ISO 13485-Certified Partners

Effective February 2026, U.S. regulation aligns with ISO 13485:2016, tightening process-validation and risk-management expectations. The EU Medical Device Regulation similarly obliges contract assemblers to maintain technical files and surveillance records. EMS providers without certification face disqualification from bids, as evidenced by Benchmark Electronics’ customer audits reported in Q4 2025. Consequently, ISO-accredited capacity commands premium pricing and strengthens the value proposition of large providers within the electronic manufacturing services for healthcare and medical devices market.

Adoption of AI-Enabled SMT Lines to Reduce Defect Rates Below 50 ppm

Jabil implemented AI-driven optical inspection across 18 lines, cutting escape rates by 35%. Flex deployed generative-design tools, reducing first pass yield loss by 22%. Panasonic’s NPM-W2S placer provides ±25 µm accuracy for 0201 passives. Flex piloted generative-design software that reduced first-pass yield losses by 22%. Panasonic’s NPM-W2S placer handles 0201 passives at ±25 µm accuracy while logging real-time process data. These investments translate into shorter validation cycles and lower warranty exposure, further catalyzing spending in the electronic manufacturing services for the healthcare and medical devices market.

Volatility in Semiconductor and Component Supply Chains

Analog front-ends and power-management ICs remained on allocation lists through 2025, driving 183 FDA-tracked medical-device shortages, 42% of which traced to component unavailability. Flex increased healthcare-segment inventory days from 45 in 2023 to 62 in 2025 to buffer supply risks. Smaller EMS firms lack the procurement leverage to secure allocations, pushing share toward larger providers and moderating growth in the electronic manufacturing services market for healthcare and medical devices.

High Capital Expenditure for Advanced Packaging and Hybrid Processes

A single SiP line can require USD 15 million–USD 50 million. Sanmina invested USD 35 million in Singapore during 2025, while Celestica spent USD 28 million upgrading Thai operations. Mid-tier providers struggle to justify such outlays, often subcontracting advanced steps, adding lead time, and eroding margins. The resulting barrier to entry slows supplier expansion and tempers the CAGR of the electronic manufacturing services market for healthcare and medical devices.

Segment Analysis

By Service Type: Box Build Drives Turnkey Demand

PCB assembly commanded 44.88% of 2025 revenue within the electronic manufacturing services for healthcare and medical devices market share. Electromechanical assembly and box build remains the fastest-growing sub-segment, advancing at a 7.63% CAGR, because OEMs favor partners that integrate boards, enclosures, cabling, and final testing in cleanroom conditions. This turnkey preference compresses launch timelines for Bluetooth-enabled glucose monitors and connected infusion pumps, while also reducing coordination overhead. The electronic manufacturing services for healthcare and medical devices market size for prototype and DFM engagements rose as early-stage companies secured EMS help for regulatory submissions. Engineering and logistics services, although smaller, enable ISO-compliant cold-chain distribution and circular-economy recycling, steadily broadening total addressable revenue.

Growing regulatory complexity and supply-chain risk encourage OEMs to co-locate design, assembly, and testing under one certified roof. Providers that can pivot from surface-mount to system-in-package without external transfers capture incremental value and deepen switching costs. Consequently, electromechanical assembly revenue is likely to approach parity with PCB assembly before 2031, further diversifying the electronic manufacturing services for healthcare and medical devices market.

Note: Segment shares of all individual segments available upon report purchase

By Business Model: Hybrid Approaches Blend Control and Speed

Contract manufacturing dominated with 61.71% of 2025 revenue, reflecting OEM preference for IP control and build-to-print clarity. Hybrid and turnkey contracts, however, are expanding at a 7.41% CAGR as venture-backed firms and resource-constrained mid-tier OEMs seek component-sourcing expertise and DFM support. Under hybrid agreements, the OEM defines clinical requirements, while the EMS provider architects circuits, selects components, and validates processes, sharing liability but accelerating commercialization. This model allows EMS partners to recommend alternative parts that mitigate semiconductor shortages, thereby protecting schedules.

Turnkey contracts shift procurement risk to the EMS provider and convert fixed capital into a per-unit expense. Such predictability is attractive to investors evaluating device scale-up plans. Growth in turnkey engagements strengthens provider bargaining power, supporting margin stability across the electronic manufacturing services for healthcare and medical devices market size.

By Manufacturing Process: Advanced Packaging Unlocks Miniaturization

Surface-mount technology contributed 53.57% of 2025 revenue, continuing its reign in diagnostic analyzers and patient monitors. Advanced packaging and hybrid processes, though smaller, are growing fastest at 7.99% on the back of SiP adoption in wearable glucose monitors and subcutaneous drug-delivery systems. A SiP solution cuts board area by up to 60%, facilitating implantables such as Medtronic’s Micra. Hybrid lines that combine SMT, through-hole, and advanced packaging on one board address ventilators and anesthesia machines requiring robust power connectors and densely populated DSP sections.

Capital-intensive bonding and X-ray inspection tools restrict advanced-packaging capacity to large EMS providers. Their early entry grants pricing premiums and long-term contracts, locking in share and raising the technical floor for new entrants. Sustained equipment upgrades will keep advanced packaging the principal growth engine of the electronic manufacturing services for healthcare and medical devices market.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Asia Pacific commanded 62.94% revenue share in 2025 and is set for an 8.19% CAGR to 2031, supported by China’s 12% output growth and India’s USD 1.2 billion EMS pledges. Vietnam, Thailand, and Malaysia capture diversionary projects mitigating tariff risk. South Korea and Japan specialize in implantables, leveraging semiconductor-fabrication prowess.

North America benefits from USMCA rules-of-origin incentives. Mexico’s exports to the United States rose 18% in 2024, with Jabil, Flex, and Sanmina adding 2,500 jobs. Federal stockpile policies encourage localizing assembly of high-acuity devices. Canada supplies complementary design expertise.

Europe repatriates ventilator and dialysis-machine assembly under HERA grants^{[3]The Wall Street Journal. “Advanced Packaging in Medical Devices Drives Miniaturization.” wsj.com}. Germany and Ireland expand ISO 13485 cleanrooms. Poland and Hungary appeal for cost-sensitive diagnostic work, while regulatory clarity supports capacity additions.South America and the Middle East and Africa remain nascent. Brazil and South Africa launch pilot lines for basic diagnostics. Limited local demand and regulatory complexity keep these regions a small contributor to electronic manufacturing services for healthcare and medical devices market size.