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Ems And Odm Market

EMS and ODM Market Size, Share, Competitive Landscape and Trend Analysis Report by Type and by Application : Global Opportunity Analysis and Industry Forecast, 2023-2032

SE : Semiconductors

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Author's: | Sonia Mutreja
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EMS and ODM Market 

Companies that design, test, construct, transport, or provide after-market support for electronic parts and assemblies provide electronic manufacturing services (EMS). A steady, professional hand can offer these products an edge over its competition by guiding you through the manufacturing process.

The concept is also referred to as Electronics Contract Manufacturing (ECM). An original design manufacturer (ODM) is a company that creates or manufactures a product, which is later renamed and sold by another company. Such businesses enable the company that owns or licenses the brand to make products (either in addition to or instead of) without having to manage or run a plant. In other words, an ODM provides "ready-to-go" products for the original equipment manufacturers (OEM).

The global EMS and ODM market is segmented on the basis of type, application and region. Based on type, the market is divided into electronics manufacturing services (EMS) and original design manufacturer (ODM). In terms of application, the market is categorized into electronics, servers & storage, networking, and others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Key players operating in the global EMS and ODM industry include Foxconn Technology, New Kinpo Group, Universal Scientific Industrial Co. Ltd., Shenzhen Kaifa Technology, Venture Corporation Ltd., Zollner Electronik AG, UMC Electronics Ltd., Flex Ltd., Jabil Inc., and Sanmia Corporation. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global EMS and ODM market.

COVID-19 Scenario Analysis

The global expansion of COVID-19 has had a significant impact on the EMS and ODM market growth. The rapid spread of COVID-19 has prompted lockdowns in several nations, disrupted supply lines and forced the closure of a number of manufacturing plants. The delay in producing new products by ODMs has had a significant impact on the expansion of end-use sectors and is consequently likely to stifle EMS and ODM market forecast growth over the forecasted timeframe. For survival in the EMS and ODM sector, major players all over the world are focused on cutting operational costs.

The market's growth is predicted to be fueled by these major participants' future manufacturing operations in the post-lockdown phase. Over the projected period, supportive government policies and relaxations in the lockdowns are projected to raise demand for EMS and ODMs. The implementation of remote working practices by industry players to avoid the spread of COVID-19 at workplaces is expected to have a positive impact on the EMS and ODM industry. As a result of the increased adoption of innovative technologies in the automotive and electronics sectors, demand for EMS and ODM goods is likely to rise.

Top Impacting Factors

As the cost of electronic devices and related products continue to rise, EMS providers' penetration is increasing dramatically. One of the main drivers of ODM and EMS market growth is the continuously increasing semiconductor industry. The global EMS and ODM market is predicted to grow significantly as consumer electronics and computers become more popular.

Proximity to markets, low labor inputs, increasing saturation in PC outsourcing, increasing momentum in notebook PC manufacturing, a more diverse product mix, and end markets are only a few of the primary drivers driving the market’s growth. Furthermore, the growth in use of EMS and ODMs in a variety of industries, including manufacturing, consumer electronics, and automotive, is anticipated to boost the market growth. These rapidly changing technologies and services are reshaping industries all around the world.

However, non-commoditized markets that primarily focus on technical issues, uncertain demand, a complex global supply chain, and product sustainability are important roadblocks to market expansion for ODMs and EMS. Maintenance and high costs of EMS equipment can also create hindrance to the market growth.

Rise in Demand for Consumer Electronics

The rise in adoption of smart home gadgets in developed economies around the world is mostly responsible for the growth. Manufacturing of radio frequency & wireless devices, optoelectronics services, and microelectronics devices for ongoing smart home trends are among the electronic manufacturing services supplied by corporations in industrialized countries.

To build linked gadgets for smart homes, key leaders are inclined to integrate Artificial Intelligence (AI), cloud computing, 3D printing, and big data analysis to improve their engineering and factories. Players in the electronics manufacturing services market are extending their manufacturing locations in order to integrate new technologies and meet the industry's strong demand for smart home services. Rapid technical advancements have resulted from this rising need. As a result, to meet the increased demand, OEM constantly proposes innovative items in the consumer electronics sector.

Increasing Use in Electric Vehicle

The EMS market has grown due to the companies giving end-to-end solutions and supporting automakers with service realization. The increased number of electric vehicles on the road as a result of government attempts to reduce CO2 emissions is expected to motivate automakers to use EMS. Several governments are also intending to introduce plans and regulations to encourage the use of electric vehicles. This is anticipated to have a positive impact on the growth prospects of EMS in the following years.

In the automobile sector, EMS manufacturing competence encompasses PCB assembly, box build assembly, and module assembly to provide OEMs with high-volume production capabilities. Key players have formed long-term partnerships and collaboration agreements with key automakers and tier-1 suppliers, which has influenced market growth.

Key Benefits of the Report

  • This study presents the analytical depiction of the global EMS and ODM industry along with the current trends and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the EMS and ODM market share.
  • The current market is quantitatively analyzed to highlight the growth scenario of the EMS and ODM market.
  • Porter’s five forces analysis illustrates the potency of buyers and suppliers in the market.
  • The report provides a detailed EMS and ODM market analysis based on competitive intensity and how the competition will take shape in coming years.

Questions Answered in the EMS and ODM Market Research Report

  • Which are the leading players active in the EMS and ODM market size?
  • What are the current trends that will influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities in the EMS and ODM market trends?
  • What are the projections for the future that would help in taking further strategic steps?

EMS and ODM Market Report Highlights

Aspects Details
By Type
  • Electronics Manufacturing Services (EMS)
  • Original Design Manufacturer (ODM)
By Application
  • Electronics
  • Servers and Storage
  • Networking
  • Others
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (France, Germany, Italy, UK, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia-Pacific)
  • LAMEA  (UAE, Argentina, Rest of LAMEA)
Key Market Players

Inventec, Quanta, Sanmina, Compal, Wistron, Flextronics, Jabil, Pegatron, Celestica, Foxconn

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EMS and ODM Market

Global Opportunity Analysis and Industry Forecast, 2023-2032