Our lives are largely dependent on machines and electronic gadgets. We are very lucky that we live in an era where all of these luxuries were possible through electronic manufacturing services. This allows us to identify our needs and routine tasks. So that we can design and manufacture electronic gadgets to automatically take care of these needs and tasks. Hence, it allows us to make our lives easier and our world a better place.
A report published by a leading market research firm suggests that the market share of contract electronic manufacturing is estimated at $417 billion in the USA alone. This report also suggests that contract electronic manufacturing services will see exponential growth in Europe, UK, Australia, and other developed countries in the coming years. In light of these facts, it is quite easy to see that these services are in high demand for a good reason.
In 2021, the global electronic manufacturing services (EMS) market size was valued at $500.26 billion, which is expected to grow at $849.72 billion in 2028 with a CAGR of 7.9%. The whole market grows rapidly which is driven by industries like telecommunication and medical, and according to the statistics, most end-users of EMS are from communication and computer hardware industries account for about 59% of the total demand.
The demand for electronic manufacturing services is constantly increasing, more and more companies start to outsource such services to reduce the cost caused by large inventory, warehouse construction, and maintenance, so they can shift the investment into other aspects such as sales, marketing, research, and development. With the rising demand, competition among electronic manufacturing service providers has also intensified, but this has also raised global norms in the EMS industry. The EMS companies are devoted to upgrading their facilities and applying new technologies such as virtual reality, the Internet of Things (IoT), and 3D printing to improve their production efficiency and quality. And they build collaboration with many Original Design Manufacturers and Original Equipment Manufacturers to enhance their EMS performance.