Europe Electronic Contract Manufacturing And Design Services Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Europe Electronic Contract Manufacturing And Design Services Market Trends and Insights

Accelerating Outsourcing of Complex Electronics by European OEMs

Automotive tier-ones and industrial automation leaders are expanding EMS partnerships to offload advanced driver-assistance, high-density powertrain, and edge-AI modules, thereby avoiding fresh CAPEX while accessing state-of-the-art process equipment. Bosch, Continental, and ZF signed multi-year agreements with regional EMS houses for next-generation inverter boards in 2024. Infineon’s packaging and test alliance with Amkor in Porto highlights the shift from in-house to external specialists for once-in-house steps.^{[1]Infineon Technologies, “Infineon and Amkor Deepen Partnership,” infineon.com Source: in4ma, “Half-Year Statistics 2025,” in4ma.de} Stronger collaboration now spans life-cycle testing and field-failure analytics, pushing EMS providers into roles traditionally reserved for OEM engineering teams.

Demand Spike from E-Mobility Power Electronics and Battery Management Systems

EV penetration surpassed 22% of regional light-vehicle sales in 2025, catalyzing call-offs for high-current boards, SiC inverter stacks, and battery management controllers. Semikron-Danaher and Infineon expanded the outsourcing of press-fit assembly to support Bosch’s rollout of the ninth-generation e-axle. Automotive functional-safety constraints anchor this work in established European sites where ASIL-D certification experience exists.

Expansion of Smart-MedTech and Wearable Device Manufacturing

Post-pandemic healthcare policies accelerated procurement of connected diagnostic equipment and continuous remote-monitoring devices. Swiss-based EMS plants with ISO 13485 accreditation doubled surface-mount capacity in 2024. Ireland’s med-tech corridor added micro-fluidics back-end lines capable of sub-15 µm placement accuracy, attracting start-ups commercializing implantable biosensors.

Near-Term Inventory Rightsizing After 2022-2023 Bullwhip Distortion

Channel partners curtailed bookings throughout 2024, but destocking largely concluded by Q1 2025, enabling EMS providers to normalize WIP days. in4ma reports rising book-to-bill ratios above 1.05 across the D-A-CH cluster during April 2025. Healthy backlog visibility now underpins capex for selective capacity debottlenecking.

Skilled Labour Shortage and Rising Wage Inflation in Manufacturing Hubs

Germany alone is expected to enter 2025 short of 13,000 SMT technicians, press-fit specialists, and test engineers needed for planned semiconductor fabs. Wage rates in Bavaria and Baden-Württemberg increased by 6–8% year-on-year in 2024, narrowing the landed-cost gap with select Asian locations. Policymakers responded by funding dual-education pathways; however, the talent deficit remains acute for high-mix, low-volume lines that require process-capability expertise.^{[2]European Commission, “IPCEI Microelectronics Workforce Strategy,” europa.eu}

Persistent Component Lead-Time Volatility and Allocation Risk

Although headline shortages eased in 2025, automotive-grade microcontrollers, SiC MOSFETs, and certain MLCC types continue facing allocation windows exceeding 40 weeks. Smaller EMS houses lack purchasing power for guaranteed allocations and must carry higher buffer stocks, inflating working capital. Many diversify toward regional distributors but encounter extended qualification cycles that delay NPI ramps.

Segment Analysis

By Service Type: Engineering Design Accelerates Innovation Partnerships

Engineering design captured renewed priority, expanding at a 7.81% CAGR through 2030 as OEMs seek collaborative ideation frameworks that compress time-to-market. Electronics assembly still supplied 46.12% of the Europe electronic contract manufacturing and design services market share in 2024, anchored by steady consumer and industrial volumes. System integration rose on the back of turnkey edge-AI gateways, while aftermarket services monetized circular economy mandates.  

The Europe electronic contract manufacturing and design services market size for engineering design is projected to climb further as ASIC design houses such as IC’Alps formalize foundry alliances that cover tape-out to final test, shortening prototype cycles by up to 30 days. Joint design-manufacturing arrangements likewise grow at an 8.56% CAGR, underscoring the competitive weight of unified DFM, regulatory validation, and volume transfer capabilities.

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

By End-Use Industry: Healthcare Drives Premium Service Demand

Healthcare and medical devices are expected to register an 8.12% CAGR, driven by surgical robotics, connected drug-delivery platforms, and Class III implantables that require ISO 13485 traceability. Industrial and robotics maintained the largest slice, equal to 28.36% of the Europe electronic contract manufacturing and design services market size in 2024, thanks to sustained automation spending across EU factories.  

The Europe electronic contract manufacturing and design services industry benefits where medical OEMs outsource PCB-As requiring stringent biocompatibility and 100% electronic lot history. Polish EMS entities such as Assel invested in bio-cleanroom upgrades to capture this premium segment. Automotive electrification, meanwhile, anchors mid-term volume through inverter boards and thermal-management controllers.

By Contract Model: Joint Design-Manufacturing Partnerships Reshape Relationships

Turnkey projects accounted for 55.74% of 2024 bookings, underscoring OEMs' preference for single-point responsibility that encompasses procurement, build, and logistics. Yet joint design-manufacturing projects, scaling at 8.56% CAGR, illustrate an evolution toward shared IP generation and early-stage co-engineering that improves manufacturability and regulatory compliance.  

This shift favors EMS providers investing in EDA toolchains, simulation labs, and certification consulting. The Europe electronic contract manufacturing and design services market size attached to joint design-manufacturing is forecast to expand disproportionately in automotive ADAS modules, where functional-safety reviews commence at concept freeze. Consignment and build-to-print niches persist where legacy BOM ownership or sensitive semiconductor content dictates OEM control.

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

By Company Size: Small Providers Capitalize on Specialization Opportunities

While providers exceeding USD 500 million capture 48.06% share, firms in the USD 20–100 million band clock a 9.71% CAGR, reflecting nimble pivots into med-tech, avionics LRUs, and after-sales repair. Regional champions employ deep domain know-how, bilingual technical sales, and proximity advantages to dislodge larger rivals in low-volume, high-complexity tenders.  

M&A remains active: Variosystems’ purchase of Schurter Solutions and Cicor’s NEP acquisition strengthen regional footprints, but dozens of founder-led specialists remain independent. These niche players anchor the fragmented long-tail of the Europe electronic contract manufacturing and design services market, offering OEMs redundancy and local language program management.

Geography Analysis

Germany retained a 22.51% revenue share in 2024, driven by automotive and sophisticated industrial automation projects. Capacity additions are closely tied to public-private programs, such as IPCEI-Microelectronics, which subsidize high-complexity backend lines. However, energy costs running 20–25% above the EU median, as well as acute engineering vacancies, dampened some 2024 margins. Firms respond by colocating high-labor content work in Slovakia or Hungary while keeping pilot lines and final test in Bavaria.

Poland is on course for an 8.41% CAGR to 2030, supported by FDI flows from Western OEMs seeking nearshored capacity within the single market. Electronics parks near Wroclaw and Gdansk benefit from logistics corridors that shorten lead times versus East Asia. Government R&D grants under the Smart Growth Operational Program further encourage investments in automation.^{[3]Sertec 360, “Company Profile,” sertec360.com}

France, Italy, Spain, and the United Kingdom supply mature demand anchored in aerospace, rail, and defense. France is expected to show a recovery in early 2025 for aerospace LRUs as Airbus output normalizes, while Switzerland is enjoying double-digit momentum in wearable diagnostics. Nordic countries specialize in telecom baseband and ruggedized industrial PCs but see heightened consolidation, evidenced by 43 EMS M&A deals across 2019–2025.