Electronic Manufacturing Services Market

Market Definition

Electronic Manufacturing Services (EMS) refer to end-to-end solutions offered by specialized firms for the design, assembly, testing, distribution, and post-sales support of electronic components and assemblies on behalf of original equipment manufacturers (OEMs).

The EMS market encompasses services such as printed circuit board assembly, box build, and system integration, catering to sectors including consumer electronics, automotive, aerospace, healthcare, and industrial manufacturing.

Electronic Manufacturing Services Market Overview

The global electronic manufacturing services market size was valued at USD 601.20 billion in 2024 and is projected to grow from USD 638.97 billion in 2025 to USD 1,040.42 billion by 2032, exhibiting a CAGR of 7.21% during the forecast period. 

The market is witnessing steady growth as industries increasingly rely on outsourced manufacturing solutions. Rising demand for consumer electronics, coupled with technological advancements in sectors such as automotive and healthcare, has expanded the need for complex electronic assemblies.

Major companies operating in the electronic manufacturing services industry are PEGATRON Corporation, Hon Hai Precision Industry Co., Ltd., FLEX LTD., Celestica Inc., Jabil Inc., Sanmina Corporation, Plexus Corp., Benchmark Electronics, Inc., USI, Shenzhen Kaifa Technology Co., Ltd., KINPO GROUP, Zollner Elektronik AG, GPV Group A/S, Keytronic, and BMK Group GmbH & Co. KG.

The increasing adoption of smart devices, 5G technology, and the Internet of Things (IoT) is driving demand for more advanced and high-performance electronic components. In response, original equipment manufacturers (OEMs) are increasingly partnering with EMS providers not only to reduce production costs and speed up time-to-market but also to concentrate on innovation and core business functions.

• In May 2025, Advanced Micro Devices (AMD) entered into a definitive agreement to divest ZT Systems’ U.S.-headquartered data center infrastructure manufacturing business to Sanmina Corporation. The agreement established Sanmina as AMD’s preferred new product introduction (NPI) manufacturing partner for cloud rack and cluster-scale AI solutions.

Key Highlights

1. The electronic manufacturing services industry size was valued at USD 601.20 billion in 2024.
2. The market is projected to grow at a CAGR of 7.21% from 2025 to 2032.
3. North America held a market share of 34.09% in 2024, with a valuation of USD 204.95 billion.
4. The electronic manufacturing segment garnered USD 253.05 billion in revenue in 2024.
5. The computer segment is expected to reach USD 278.87 billion by 2032.
6. The market in Europe is anticipated to grow at a CAGR of 8.13% during the forecast period.

Market Driver

Growth in Cloud & AI Infrastructure Demand

The electronic manufacturing services market is witnessing strong growth driven by rising global demand for cloud computing and artificial intelligence (AI) infrastructure. Hyperscalers and data center operators are rapidly scaling operations to meet the performance, reliability, and scalability requirements of advanced AI models and cloud services. 

Companies are expanding capabilities to meet the specialized needs of hyperscalers and data center providers. As cloud and AI workloads become increasingly complex, EMS companies play a critical role in delivering customized, scalable manufacturing solutions that support rapid innovation and deployment cycles.

• In May 2025, Sanmina Corporation acquired the data center infrastructure manufacturing business of ZT Systems from AMD in a transaction valued at up to USD 3 billion. The acquisition expands Sanmina’s manufacturing capabilities in cloud and AI infrastructure, adding advanced facilities in the U.S. and the Netherlands, and strengthens its position as a vertically integrated manufacturing partner for hyperscalers.

Market Challenge

Supply Chain Disruption and Component Shortages

A key challenge in the electronic manufacturing services market is supply chain disruption and component shortages. Global reliance on complex supplier networks for semiconductors, circuit boards, and passive components exposes EMS providers to risks stemming from geopolitical instability, raw material constraints, and transportation delays. These issues lead to longer lead times, elevated procurement costs, and inconsistent delivery performance. 

To address this, EMS providers are increasingly adopting regionalization and onshoring strategies. By relocating operations closer to end-use markets, companies aim to reduce logistical risks, improve inventory visibility, and strengthen supply chain resilience. 

This strategic shift improves operational stability and enables faster responsiveness to customer demand, especially in highly regulated or time-critical sectors such as automotive, aerospace, and medical devices.

• For instance, in April 2025, TCCI Manufacturing launched its Clean Energy Innovation Hub in Decatur, Illinois, under a USD 45 million public-private partnership to onshore EV component manufacturing. The hub includes a production line for electric compressors, a Clean Energy Workforce Academy in partnership with Richland Community College, and a Climatic Center for Innovation & Research (CCIR) focused on thermal management and natural refrigerant technologies for EVs.

Market Trend

Adoption of Agentic AI and Smart Manufacturing Solutions

The electronic manufacturing services market is undergoing a transformation driven by the increasing adoption of agentic AI and smart manufacturing solutions. These advanced technologies enable autonomous decision-making, real-time anomaly detection, and predictive maintenance across manufacturing lines. By integrating AI agents with smart factory infrastructure, EMS providers are enhancing operational visibility, improving product quality, and reducing downtime.

• In March 2025, HCLTech launched HCLTech Insight, an agentic AI-powered smart manufacturing solution. It is built on Google Cloud using the Cortex Framework, Manufacturing Data Engine, Vertex AI, and the Agentic Framework. The solution is designed to help manufacturers in sectors such as automotive, aerospace, and electronics improve efficiency and product quality through real-time defect detection, AI-powered virtual assistance, and interactive analytics dashboards.

These solutions also support scalable production environments by streamlining workflows and optimizing resource allocation. As manufacturing complexity increases, EMS companies are leveraging digital twins, AI-enabled analytics, and intelligent robotics to meet evolving customer expectations and boost production efficiency. This shift toward automation and data-driven decision-making marks a significant trend shaping the future of the EMS industry.

Electronic Manufacturing Services Market Report Snapshot

Segmentation	Details
By Product	Electronic Manufacturing (PCB Assembly, Cable Assembly, Electromechanical Assembly/Box Build, Testing, Prototyping, Others), Engineering Services (Circuit Design, PCB layout, Others), Test & Development Implementation (Circuit Assembly Testing, Fully Assembled Unit Testing, Others), Logistics Services (Inventory Management, Remanufacturing, Others)
By Application	Computer, Consumer Electronics, Aerospace & Defense, Medical & Healthcare, Automotive, Semiconductor Manufacturing, Robotics, Agriculture, Power & Energy, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Product (Electronic manufacturing, Engineering services, Test & development implementation, and Logistics services): The electronic manufacturing segment earned USD 253.05 billion in 2024 due to the growing complexity of electronic components and the rising demand for outsourced production across consumer and industrial applications.
• By Application (Computer, Consumer Electronics, Aerospace & Defense, Medical & Healthcare, Automotive, Semiconductor Manufacturing, Robotics, Agriculture, Power & Energy, and Others): The computer segment held 26.12% of the market in 2024, due to increasing demand for high-performance computing systems and the widespread use of electronics in data centers and cloud infrastructure.

Electronic Manufacturing Services Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America electronic manufacturing services market share stood at around 34.09% in 2024, with a valuation of USD 204.95 billion. This is driven by strong demand from sectors such as medical devices, aerospace, defense, and telecommunications, which require complex and specialized electronic components. 

The United States attracts substantial investment through multiple channels, including government incentives like tax credits and grants aimed at boosting domestic manufacturing. Additionally, reshoring efforts by key manufacturers seek to reduce supply chain risks and enhance production resilience. 

Increased funding and strategic partnerships in semiconductor fabrication and advanced defense technologies further strengthen the regional EMS infrastructure, positioning North America as a critical hub in the global electronics manufacturing ecosystem. 

The presence of advanced EMS capabilities, a well-established design-to-production ecosystem, and increasing emphasis on security continue to reinforce North America’s dominant position in the global EMS market.

• In December 2024, Eagle Electronics set up a manufacturing facility in Solon, Ohio, with USD 14 million in funding led by the O.H.I.O. Fund and Asymmetric Capital Partners. In collaboration with CO-AX Technology and Quectel, the facility focuses on U.S.-made cellular modules with built-in cybersecurity. Eagle partnered with Finite State to conduct all firmware audits within the U.S. to ensure supply chain security.

The electronic manufacturing services industry in Europe is expected to register the fastest growth in the market, with a projected CAGR of 8.13% over the forecast period. This expansion is driven by rising demand for industrial automation, electric vehicles, and advanced medical electronics. 

Automotive OEMs across the region are increasingly collaborating with EMS providers to meet the growing production requirements for EV components such as battery management systems, power electronics, and in-vehicle infotainment modules. Moreover, the presence of major automotive manufacturers that are actively investing in EV technology, is further driving the adoption of EMS across this region.

• In February 2025, Eberspaecher and Farasis Energy Europe entered into an exclusive strategic partnership to co-develop, produce, and market low-voltage battery systems for automotive applications. The collaboration combines Eberspaecher’s expertise in battery management systems with Farasis’ cell and housing technology to develop next-generation solutions for mild hybrid and electric vehicles.

Regulatory Frameworks

EMS providers are regulated according to the specific industries and applications they serve, with oversight varying by region:

• In the U.S., the Food and Drug Administration (FDA) oversees medical device manufacturing, the Federal Communications Commission (FCC) regulates products that emit radiofrequency, the International Traffic in Arms Regulations (ITAR), enforced by the U.S. Department of State, apply to defense-related manufacturing, and the Occupational Safety and Health Administration (OSHA) ensures compliance with workplace safety standards.
• In Europe, the European Medicines Agency (EMA) oversees electronics used in medical devices under the Medical Device Regulation (MDR); the European Union (EU) ensures radio equipment compliance through the Radio Equipment Directive (RED); defense-related manufacturing may fall under national-level arms control regulations; and workplace safety is governed by the European Agency for Safety and Health at Work (EU-OSHA).
• In Japan, the Pharmaceuticals and Medical Devices Agency (PMDA) oversees electronics used in medical devices under the Pharmaceuticals and Medical Devices Act; the Ministry of Internal Affairs and Communications (MIC) regulates radiofrequency equipment under the Radio Act; the Ministry of Economy, Trade and Industry (METI) is responsible for export controls and product safety standards; and the Ministry of Health, Labour and Welfare (MHLW) governs workplace safety.

Competitive Landscape

The electronic manufacturing services industry is characterized by strategic initiatives aimed at expanding capabilities, increasing production capacity, and enhancing geographic reach. EMS providers are moving beyond traditional assembly services to offer design, prototyping, testing, and logistics, enabling end-to-end support for clients. 

To improve precision, reduce lead times, and meet complex product demands, many are adopting automation and digital manufacturing technologies. In addition, leading firms are establishing production facilities closer to major end-use industries-such as automotive, medical, and telecommunications-in regions like North America, Europe, and Southeast Asia. 

This approach improves customer responsiveness and reduces supply chain risks. Strategic acquisitions are also being pursued to access niche technologies, enter high-growth verticals, and strengthen regional market positions.

• For instance, in October 2024, Cyient DLM acquired Altek Electronics, a U.S.-based EMS company, to expand its presence in North America and strengthen its capabilities in the Medical, healthcare, industrial, and defense sectors. 

List of Key Companies in Electronic Manufacturing Services Market:

• PEGATRON Corporation
• Hon Hai Precision Industry Co., Ltd.
• FLEX LTD.
• Celestica Inc.
• Jabil Inc.
• Sanmina Corporation
• Plexus Corp.
• Benchmark Electronics, Inc.
• USI
• Shenzhen Kaifa Technology Co., Ltd.
• KINPO GROUP
• Zollner Elektronik AG
• GPV Group A/S
• Keytronic
• BMK Group GmbH & Co. KG

Recent Developments (Partnership/Agreement)

• In May 2025, Jabil signed a memorandum of understanding with AVL Software and Functions GmbH to jointly offer design and manufacturing solutions for automotive and transportation. The collaboration combines AVL’s expertise in software, simulation, and testing with Jabil’s manufacturing and supply chain capabilities to support the development of advanced powertrain, charging, and driver assistance technologies, to reduce product complexity, cost, and time-to-market.
• In April 2025, SKYX Technologies formed a strategic manufacturing partnership with Profab Electronics to establish U.S.-based production for its smart home product lines. Through this partnership, SKYX Technologies aims to utilize Profab’s expertise in new product introduction (NPI), assembly, and advanced automation to improve supply chain efficiency and product quality.