Electronic Manufacturing Services Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Service Type (Electronics Manufacturing, Engineering Services, Test & Development Implementation, Logistics Services, Others), By Industry (Consumer Electronics, Automotive, Heavy Industrial Manufacturing, Aerospace & Defense, Healthcare, IT & Telecom, and Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 630.93 Billion
CAGR (2026-2031)	11.22%
Fastest Growing Segment	Engineering Services
Largest Market	Asia Pacific
Market Size (2031)	USD 1194.21 Billion

Market Overview

The Global Electronic Manufacturing Services Market will grow from USD 630.93 Billion in 2025 to USD 1194.21 Billion by 2031 at a 11.22% CAGR. Electronic Manufacturing Services encompass the design, assembly, testing, and distribution of electronic components and printed circuit boards for original equipment manufacturers. The market expansion is primarily driven by the increasing strategic reliance of companies on outsourcing to optimize operational costs and the intensifying demand for automotive and industrial electronics. These factors enable firms to focus on core innovation while leveraging the specialized capabilities of service providers for scalable production and faster market entry.

However, the sector encounters a significant challenge regarding supply chain volatility which includes raw material shortages and logistical disruptions that can impede delivery schedules. Navigating geopolitical instability and maintaining component availability remains a critical hurdle for sustained stability. According to IPC, in 2024, total North American EMS shipments in October increased by 14.7 percent compared to the same month in the previous year. This data highlights the resilience of the industry despite ongoing global operational complexities.

Key Market Drivers

The rapid electrification and digitization of the automotive sector act as a primary catalyst, compelling providers to enhance their capabilities in high-voltage power electronics and complex sensor integration. As original equipment manufacturers transition toward software-defined vehicles, they increasingly outsource the assembly of printed circuit board assemblies and box-builds to specialized partners to mitigate production risks. This shift allows automotive companies to focus on software development while relying on service providers for hardware scalability and supply chain resilience. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', global electric car sales are projected to reach approximately 17 million units in 2024, creating a substantial baseline for outsourced automotive electronic components and battery management systems.

Concurrently, the adoption of AI and robotics in manufacturing operations and the surging demand for AI-driven hardware significantly influence market dynamics. Service providers are rapidly reconfiguring production lines to assemble liquid-cooled server racks and high-performance computing modules required for data centers. This trend necessitates rigorous testing standards and precision assembly that internal teams often cannot scale efficiently. According to Hon Hai Precision Industry Co., Ltd., August 2024, in the 'Second Quarter 2024 Financial Results', the company witnessed AI server revenue grow more than 60 percent quarter-on-quarter, highlighting the aggressive pivot toward next-generation infrastructure. This operational scale is evident across the broader industry; according to Jabil Inc., in 2024, the firm achieved net revenue of $28.9 billion for the fiscal year, reflecting the immense financial volume flowing through top-tier electronic manufacturing channels.

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Key Market Challenges

Supply chain volatility, manifesting as raw material shortages and logistical disruptions, stands as a significant hurdle to the growth of the Global Electronic Manufacturing Services Market. When component availability fluctuates, EMS providers struggle to maintain consistent production schedules, leading to delayed deliveries for original equipment manufacturers. This unreliability undermines the confidence of clients who rely on outsourcing for speed and efficiency. Furthermore, the necessity to procure scarce materials often forces manufacturers to pay premium rates, significantly inflating operational expenses. This erosion of cost advantages negates a primary driver for market expansion, as clients may reconsider their reliance on external service providers.

The persistence of these supply chain complexities directly hampers the ability of the sector to scale operations in response to increasing demand. Operational halts caused by missing components prevent firms from fulfilling orders, thereby stalling revenue growth and market penetration. The financial strain is evident across the industry, reflecting the severity of the situation. According to IPC, in 2025, 60 percent of electronics manufacturers reported higher material costs due to these ongoing constraints. This substantial increase in input expenses reduces profit margins and limits the capital available for reinvestment in advanced manufacturing capabilities, ultimately slowing the broader market advancement.

Key Market Trends

Regionalization and nearshoring of global supply chains are reshaping the industry as manufacturers actively diversify production footprints to mitigate geopolitical risks and reduce dependency on single-source regions. This strategic restructuring involves the "China Plus One" model, where major industry players establish substantial manufacturing hubs in countries like India, Vietnam, and Mexico to serve local and Western markets more effectively. This shift is not merely about capacity expansion but represents a fundamental redesign of logistics to ensure long-term resilience against cross-border trade disruptions. The scale of this geographic pivot is evident in the aggressive capital allocation by market leaders toward these emerging regions. According to Mint, August 2024, in the article 'Foxconn invested $1.4 billion in Indian business till date', the company's India business revenue surpassed $10 billion for the fiscal year, signaling a massive structural pivot toward the region to secure alternative production bases.

The adoption of circular economy and green manufacturing practices has evolved from a corporate social responsibility initiative into a critical operational requirement for service providers. Electronic manufacturing services companies are increasingly integrating renewable energy sources, waste-to-energy systems, and closed-loop material recycling to lower their carbon footprint and meet the stringent ESG mandates of their clients. This trend influences the entire product lifecycle, compelling facilities to redesign assembly processes for energy efficiency and reduced hazardous emissions. The commitment to measurable environmental impact is becoming a decisive factor in contract acquisitions and vendor partnerships. According to Flex Ltd., September 2024, in the '2024 Sustainability Report', the firm reported a 33 percent decrease in absolute scope 1 and 2 greenhouse gas emissions compared to its 2019 baseline, demonstrating the accelerated implementation of low-carbon manufacturing protocols across the sector.

Segmental Insights

The Engineering Services segment currently represents the fastest-growing category within the Global Electronic Manufacturing Services Market due to a strategic shift among Original Equipment Manufacturers toward outsourcing product design and development. This expansion is primarily driven by the need to minimize internal research costs while addressing increasing technical complexity in product architecture. Furthermore, adherence to rigorous international standards, such as those maintained by the International Electrotechnical Commission, requires specialized external expertise during the design phase. Consequently, companies utilize these services to ensure regulatory compliance and accelerate product entry into the global marketplace.

Regional Insights

Asia Pacific commands the leading position in the Global Electronic Manufacturing Services market due to its extensive manufacturing ecosystems and cost-competitive labor markets. Major economies such as China and India provide substantial production capabilities and established supply chains that significantly reduce operational costs for international enterprises. Additionally, supportive government policies promoting industrial growth and foreign investment facilitate the continuous expansion of manufacturing infrastructure. The region also experiences high local demand for consumer electronics, which encourages companies to localize production facilities. Consequently, these factors collectively establish Asia Pacific as the primary hub for global electronic manufacturing activities.

Recent Developments

• In November 2025, Foxconn Technology Group entered into a strategic partnership with OpenAI to design and manufacture advanced hardware for artificial intelligence data centers. The collaboration focused on the co-development and production of critical infrastructure, including high-performance AI servers and rack systems, at manufacturing facilities located in the United States. This agreement was established to address the surging global demand for the immense computing power required by large language models and generative AI applications. By leveraging its extensive production scale and supply chain expertise, the company aimed to accelerate the deployment of AI infrastructure while strengthening its manufacturing footprint in North America.
• In June 2025, Jabil Inc. selected Rowan County, North Carolina, as the site for a new advanced manufacturing facility dedicated to supporting cloud and artificial intelligence data center infrastructure. The company committed to an investment of approximately $500 million over several years to establish this campus, which was projected to create more than 1,000 new jobs. This strategic expansion was designed to increase domestic production capabilities for server racks, liquid cooling systems, and other essential hardware. The new facility aimed to enhance supply chain resilience and agility for major technology customers navigating the rapid growth of the AI sector.
• In January 2025, Tata Electronics finalized an agreement to acquire a controlling 60% stake in the India-based manufacturing operations of Pegatron Corporation. This significant consolidation positioned the company as a primary supplier for Apple Inc., substantially expanding its capacity for iPhone assembly within the region. The joint venture allowed the companies to integrate their respective strengths, combining local operational knowledge with global manufacturing standards to improve efficiency and scale. The deal underscored the increasing importance of India as a global electronics manufacturing hub and aimed to capture a larger share of the smartphone production market through combined expertise.
• In October 2024, Flex Power Modules launched a new series of high-density digital power solutions specifically designed to meet the intense energy demands of artificial intelligence data centers. Unveiled at a major industry trade show, these advanced power conversion modules were engineered to improve efficiency and thermal management in high-performance computing environments. The new product line addressed the critical challenge of powering energy-intensive AI processors while minimizing power loss and physical footprint. This launch highlighted the company's focus on providing specialized component-level innovations that support the broader ecosystem of electronic manufacturing services for next-generation technology infrastructure.

Key Market Players

• Hon Hai Precision Industry Co. Ltd
• FLEX LTD
• Jabil Inc
• Celestica Inc
• Sanmina Corporation
• Benchmark Electronics, Inc
• Plexus Corp.
• TT Electronics PLC
• Wistron Corporation
• Zollner Elektronik AG

By Service Type	By Industry	By Region
Electronics Manufacturing Engineering Services Test & Development Implementation Logistics Services Others	Consumer Electronics Automotive Heavy Industrial Manufacturing Aerospace & Defense Healthcare IT & Telecom Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Electronic Manufacturing Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Electronic Manufacturing Services Market, By Service Type:

• Electronics Manufacturing
• Engineering Services
• Test & Development Implementation
• Logistics Services
• Others

• Electronic Manufacturing Services Market, By Industry:

• Consumer Electronics
• Automotive
• Heavy Industrial Manufacturing
• Aerospace & Defense
• Healthcare
• IT & Telecom
• Others

• Electronic Manufacturing Services Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE