EMS and ODM Market to Grow with a CAGR of 8.42% through 2029
Increasing demand for consumer electronics, regulatory and compliance requirements, rising demand for IoT and Smart Devices are expected to drive the market throughout the forecast period.
According to TechSci Research report, “EMS
and ODM Market - Global Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2029F". Global EMS and ODM Market was valued at
USD 538.9 Billion in 2023 and is anticipated to register a CAGR of 8.42% through 2029. The strategic
shift of businesses towards outsourcing non-core activities to focus on core
competencies is a significant driver of the global EMS and ODM market.
Companies across various industries, from automotive to healthcare, recognize
the benefits of partnering with specialized EMS and ODM providers to handle
their manufacturing needs. This approach allows businesses to allocate
resources and capital towards R&D, marketing, and customer service,
enhancing their overall competitive position. The complexity of modern
electronics manufacturing, requiring specialized skills, equipment, and
regulatory compliance, further incentivizes OEMs to leverage the expertise of
EMS and ODM providers. These partnerships enable companies to reduce
operational costs, mitigate risks, and gain access to innovative manufacturing
technologies and processes. By outsourcing manufacturing tasks, businesses can
achieve greater agility and responsiveness to market changes, ensuring timely
product launches and the ability to adapt to evolving consumer demands.
Consequently, the trend towards strategic outsourcing is driving substantial
growth in the EMS and ODM market, as companies seek to optimize their
operational efficiency and drive innovation.
Browse over XX Market data Figures spread through XX Pages and an in-depth TOC on "Global EMS and ODM Market”.
The Global EMS and ODM Market is segmented into type, application, and region.
Based on application, In 2023, the electronics sector held the largest market share in the Global Electronics Manufacturing Services (EMS) and Original Design Manufacturing (ODM) markets, primarily due to the rapid technological advancements. The consumer electronics segment, which includes products like smartphones, tablets, laptops, and wearable devices, saw significant growth. The increasing complexity and sophistication of these devices demanded advanced manufacturing capabilities that EMS and ODM providers are uniquely positioned to offer. The rise of 5G technology significantly contributed to this dominance. As countries worldwide continued to roll out 5G networks, there was a corresponding surge in demand for compatible devices and infrastructure. This necessitated large-scale, high-precision manufacturing, which EMS and ODM providers excel at. Their ability to scale operations efficiently and maintain high quality standards made them the preferred partners for original equipment manufacturers (OEMs) looking to capitalize on the 5G wave.
Another factor was the Internet of Things (IoT). The proliferation of IoT devices in both consumer and industrial applications created a vast market for electronics manufacturing. From smart home devices to industrial sensors, the need for reliable and innovative manufacturing solutions boosted the EMS and ODM sectors. These providers not only offered the production capabilities but also the design and development expertise needed to bring IoT products to market quickly. Consumer preferences also played a crucial role. With the increasing demand for personalized and customized electronics, EMS and ODM companies had to be agile and flexible in their manufacturing processes. This trend towards customization required providers to offer shorter production runs and more varied product lines, which they were able to do thanks to advanced manufacturing technologies and robust supply chain management. The competitive landscape of the electronics market further emphasized the importance of EMS and ODM providers. Companies seeking to outpace their rivals in innovation and time-to-market turned to these services to handle the complexities of production. This allowed OEMs to focus on research and development, marketing, and customer engagement, while leaving the manufacturing challenges to their EMS and ODM partners.
The push for sustainability and compliance with environmental regulations influenced the electronics sector significantly. EMS and ODM providers adapted by implementing greener manufacturing practices and ensuring compliance with international standards. This not only helped in reducing the environmental impact but also met the growing consumer demand for eco-friendly products, further solidifying the electronics sector's market position. The integration of artificial intelligence (AI) and machine learning (ML) in electronics also spurred growth. Advanced electronics with AI capabilities required specialized manufacturing processes. EMS and ODM providers, with their state-of-the-art facilities and expertise, were able to meet these requirements, driving further growth in the sector.
Global supply chain disruptions, particularly in the semiconductor industry, underscored the importance of efficient and resilient manufacturing partners. EMS and ODM providers proved their worth by navigating these challenges effectively, ensuring continuous production and timely delivery. Their extensive networks and strategic sourcing capabilities mitigated the impact of supply chain issues on electronics manufacturing. The expansion of emerging markets also contributed to the electronics sector's dominance. Regions such as Asia-Pacific saw increased consumer electronics consumption and local manufacturing requirements. EMS and ODM providers expanded their presence in these markets, leveraging local knowledge and resources to tap into the growing demand. This regional expansion was crucial in maintaining the electronics sector's leading market share.
Major companies operating in Global EMS and ODM Market
are:
- Hon Hai Precision Industry Co., Ltd.
- Jabil Inc.
- PEGATRON Corporation
- Sanmina Corporation
- Celestica Inc.
- Wistron Corporation
- Benchmark Electronics, Inc.
- TT Electronics PLC
- ASE Technology Holding Co., Ltd.,
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“The Global EMS and ODM Market is expected to rise in the upcoming years and register a significant CAGR during the forecast period. The global
EMS and ODM market is primarily driven by rapid technological advancements and
surging consumer demand for sophisticated electronic devices. Innovations in
IoT, AI, and 5G are propelling the need for high-quality, cutting-edge products
such as smartphones, wearables, and smart home devices. EMS and ODM providers
enable OEMs to quickly scale production, reduce costs, and bring new products
to market faster. Their specialized expertise, advanced manufacturing
capabilities, and global supply chain networks are essential in meeting the
evolving demands of the electronics industry, ensuring competitiveness and
sustained growth”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.
“EMS and ODM Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Electronics Manufacturing Services (EMS), Original Design Manufacturer (ODM)), By Application (Electronics, Servers and Storage, Networking, Others), By Region, By Competition, 2019-2029F”, has evaluated the future growth potential of Global
EMS and ODM Market and provides statistics & information on market
size, structure and future market growth. The report intends to provide
cutting-edge market intelligence and help decision makers take sound investment
decisions. Besides, the report also identifies and analyzes the emerging trends
along with essential drivers, challenges, and opportunities in Global EMS
and ODM Market.
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