SAN FRANCISCO , March 1, 2022 /PRNewswire/ -- A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled "EMS and ODM - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
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Edition: 20; Released: February 2022 Executive Pool: 512 Companies: 242 - Players covered include Benchmark Electronics, Inc.; BYD Co., Ltd.; Celestica, Inc.; Foxconn Technology Group; Inventec Corporation; Jabil, Inc.; Pegatron Corporation; Plexus Corporation; Sanmina Corporation; Wistron Corporation; and Others. Coverage: All major geographies and key segments Segments: Type (EMS, ODM); and Application (Consumer Devices, Computers, Other Applications) Geographies: World; United States ; Canada ; Japan ; China ; Europe (France ; Germany ; Italy ; United Kingdom ; Spain ; Russia ; and Rest of Europe ); Asia-Pacific (Australia ; India ; South Korea ; and Rest of Asia-Pacific ); Latin America (Argentina ; Brazil ; Mexico ; and Rest of Latin America ); Middle East (Iran ; Israel ; Saudi Arabia ; United Arab Emirates ; and Rest of Middle East ); and Africa .
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Global EMS and ODM Market to Reach US$958.6 Billion by the Year 2026 Electronics Manufacturing Services or EMS, also referred to as Electronics Contract Manufacturing (ECM), are services offered by companies engaged in design, manufacture, assembly and testing of electronic products and components such as complex computer systems, PCBs (printed circuit boards), switches and semiconductor devices. ODMs are companies who provide manufacturing and post-sales services, apart from the key activity of product designing. Increasing demand for home appliances, computer hardware, high-end gaming PCs, and several other consumer electronic products accelerated the growth of the global market. The key driver for the significant growth of the EMS market is the increasing demand for smartphones. Another important driver of the EMS market is the implementation of stringent policies that are difficult to comply with, requiring enhancement of companies' research and development activities. There is a rising demand for electronic circuit boards in the EMS market owing to their surging application in various electronic devices. Several OEMs are outsourcing to EMS service providers their circuit assembly requirements, which significantly augment their profit margins. Increasing functionalities such as sub-assembly manufacturing, functional testing, design and engineering of printed circuit boards, and component assembly provided by contract manufacturers are anticipated to foster growth in the contract manufacturing services market. These factors are also likely to drive gains in the market.
Amid the COVID-19 crisis, the global market for EMS and ODM estimated at US$672.7 Billion in the year 2022, is projected to reach a revised size of US$958.6 Billion by 2026, growing at a CAGR of 8.5% over the analysis period. EMS, one of the segments analyzed in the report, is projected to grow at a 9% CAGR to reach US$759.8 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the ODM segment is readjusted to a revised 7.5% CAGR for the next 7-year period. This segment currently accounts for a 29.2% share of the global EMS and ODM market. The EMS model is gaining momentum supported by the ability of contract manufacturers to offer production-related economies of scale, procurement of raw materials, industrial design expertise, and resource pooling, in addition to providing value added services such as repairs and warranty. The ODM segment has gained popularity in mobile phones and personal computers sector, mainly due to increasing commoditization.
The U.S. Market is Estimated at $61.9 Billion in 2022, While China is Forecast to Reach $366.7 Billion by 2026 The EMS and ODM market in the U.S. is estimated at US$61.9 Billion in the year 2022. The country currently accounts for a 9.3% share in the global market. China , the world's second largest economy, is forecast to reach an estimated market size of US$366.7 Billion in the year 2026 trailing a CAGR of 9.5% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada , each forecast to grow at 6% and 7.6% respectively over the analysis period. Within Europe , Germany is forecast to grow at approximately 6.3% CAGR while Rest of European market (as defined in the study) will reach US$402.1 Billion by the end of the analysis period. Asia Pacific represents a key market and growth is being driven by the labor-intensive economies in the region. China , with availability of raw material in abundance and low-cost labor, leads Asia Pacific's electronic contract manufacturing services market. North America's EMS market growth would be driven by the presence of a large number of medical institutions and extensive research and development activities in the region. More
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