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Electronics manufacturing services (EMS) is a term used for companies that design, manufacture, test, distribute, and provide return/repair services for electronic components and assemblies for original equipment manufacturers (OEMs). The concept is also referred to as electronics contract manufacturing (ECM).
IT infrastructure, with data center or cloud computing services as the core, will constitute the biggest driving force. Server EMS is basically monopolized by the Taiwanese vendors, with a global market share of over 90%. Taiwan has a complete industrial chain of server, which is viewed as an extension of the computer. As the Taiwanese vendors have stronger and stronger technical ability, the future equipment cabinet solution of Server+Routing+Storage+Switching will gain more market space.
However, the European and US EMS vendors are dedicated to improving profitability by reducing the revenue proportion of telecom and communication infrastructure, and intensifying the expansion to industrial, medical, and automotive sectors. Meanwhile, they have also strengthened the weakness in components, and ventured into the upstream sector of industrial chains. But compared with the Taiwanese vendors, the European and US EMS peers lagged far behind in the field of components.
In the upcoming five years, the mobile phone market will embody the hugest growth potentials in the EMS industry. The success of Xiaomi that focuses on marketing hype and brand promotion while entirely outsources manufacturing to its contract vendors propels EMS services. Xiaomi’s remarkable achievement stimulates a large number of mobile phone companies to follow suit, which opens a wide space for EMS vendors. Samsung and LG may commission EMS vendors to conduct manufacturing partly. The EMS market size is expected to jump from 143.21 billion USD in 2018 to 222.13 billion USD in 2025, with a CAGR of 6.47%.
In classification, On the basis of product, the Electronics Manufacturing Services (EMS) market is primarily split into electronic manufacturing, engineering services, eest development & implementation, logistics services and others. Electronic manufacturing holds about 45.19 % of global share in 2018, and it will reach 93.9 billion USD in 2025.
On the basis on the end users/Application, the Electronics Manufacturing Services (EMS) market covers computer, communications, consumer, industrial and others.
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