Electronics Manufacturing Services Market Trends

Statistics for the 2023 & 2024 Electronics Manufacturing Services market trends, created by Mordor Intelligence™ Industry Reports. Electronics Manufacturing Services trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Market Trends of Electronics Manufacturing Services Industry

Industrial Applications to Drive the Demand for EMS

  • With the rising trend of the environmental revolution, electric motor controls are demanding higher efficiency for industrial motors. Furthermore, increased integration at the lowest cost is required to support the market penetration of new technologies and improve safety and reliability. This further drives the demand for electronic products used in smart motors' digital signal controllers for voltage control operations.
  • According to IBEF, India's electric vehicle (EV) market is estimated to reach INR 50,000 crores (USD 7.09 billion) by 2025. Further, a study by the CEEW Centre for Energy Finance recognized a USD 206 billion opportunity for electric vehicles in India by 2030.
  • Furthermore, Industry 4.0 assures huge gains in factory data automation efficiency and productivity. The parallel advancements in industrial IoT and artificial intelligence (AI) drive growth to some extent. Even though the electronics industry is far from achieving the same level of intelligence and automation, the evolution toward Industry 4.0 is paving the way, as evident by recent trends in the electronics manufacturing services market.
  • For instance, 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 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.
  • The manufacturing of electronics for industrial automation is fueling the growth of this segment. The players in the industrial automation segment need consistent access to all the data generated on the system. However, because of the scope of many operational utility applications, this level of data acquisition is complicated. Regions like Europe and North America are increasingly deploying Supervisory Control and Data Acquisition (SCADA) for accurate data collection.
  • Further, in October 2022, DYNICS, a creator of quality hardware and software solutions for the industrial marketplace, announced a unique system integrator partnership with SINCI, one of Mexico's premier technology organizations dedicated to implementing technological solutions for digital transformation. Through this partnership, the company will continue working with SINCI to provide customers across multiple industries with the tools that enhance access to the benefits of automation.
  • Most SCADA systems consist of single-board remote terminal units (RTUs), compact, ruggedized products that locate all input/output (I/O) modules on a single printed circuit board. Hence, the increasing deployment of SCADA in the utility sector further drives the demand for EMS.
Electronics Manufacturing Services Market: Size of the Industrial Automation Market, in USD Billion, Global, 2021-2025

Asia-Pacific Expected to Witness Major Growth

  • The Asia-Pacific region is expected to grow significantly during the forecast period. India and China have strongly based markets for EMS worldwide, owing to their strong position in the consumer electronics, semiconductor, and other telecommunications devices and equipment manufacturing industries. For instance, Tata Group recently announced plans to enter the semiconductor manufacturing business, seeking a proportion of the USD 1 trillion high-tech electronics manufacturing sector.
  • Moreover, technology changes, such as the rollout of 5G networks and IoT, are driving the accelerated adoption of electronic products. Initiatives such as 'Digital India' and 'Smart City' projects have increased the demand for IoT in electronic devices.
  • Additionally, according to the Electronic Industries Association Of India, The country's electronic contract manufacturing sector is expected to more than sixfold to around USD 152 billion by 2025. The country has also set a target of approximately USD 100 billion in exports of mobiles alone by 2025, which was made possible with the support of the government's production-linked incentive (PLI) scheme. Furthermore, in May 2022, Voltas announced projects of INR 400 crores (USD 50.10 million) capex under the PLI scheme to manufacture components for white goods.
  • According to IBEF, about 80% of the Production-Linked Incentive scheme (PLI) to encourage manufacturing in the country, which covers 14 enterprises and has a total investment of INR 3 lakh crore (USD 38.99 billion), is concentrated in only three sectors, such as electronics, automobiles, and solar panel production. This expansion supports rapid growth for new technology products across networking, 5G, data center, automotive/LIDAR, and aerospace and defense markets.
  • APAC's supply chain starts with product design, semiconductor fabrication and packaging, components and subsystems, final assembly, and testing, which is also slowly moving toward low-cost countries in APAC, including India and Indonesia, for reducing the manufacturing costs.
  • For instance, rising costs and previous trade tensions compelled Taiwan's Pegatron to diversify production to countries such as Vietnam and Indonesia. Such uncertainty due to trade tension led many companies in Asia to readjust investments and shift their manufacturing bases to avoid tariffs.
Electronics Manufacturing Services Market - Growth Rate by Region

Electronic Manufacturing Services Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)