Global Electronics Manufacturing Service Trends Statistics and Facts: Competitors, Material Supply-Chain Analysis, Top Countries Analysis, and Demand Analysis with Price

Global Electronics Manufacturing Service Trends Statistics and Facts: Competitors, Material Supply-Chain Analysis, Top Countries Analysis, and Demand Analysis with Price  

 

Synopsis

Electronics Manufacturing Services (EMS) is the term used to describe a service provider chosen by businesses that design, assemble, create, and test printed circuit boards (PCB) assemblies and electronics components for original equipment manufacturers (OEM). There are serval services like manufacturing services, including design, assembly, and testing are provided by EMS. EMS providers may be hired at different stages of the production cycle. Some businesses build products, get components from reputable distributors, assemble and test the product, and then simply need the design file from the buyer.  On the other hand, assembly-focused EMS suppliers could ask for the design, the parts needed for production, and an assembled sample from the client. Additional onsite services like PCB etching may be offered by EMS businesses directly or through a different contractor.

 

Market Overview: Global Electronic Manufacturing Services [EMS] Market Size was valued at USD 500 billion in 2021 and Worldwide Electronic Manufacturing Services [EMS] Market is expected to reach USD 790 billion by 2030. The market is growing at a CAGR of 6% from 2022 to 2030, According to Spherical Insights and Consulting

 

The Background of Electronic Manufacturing Services (EMS)

Solectron Corporation was the first EMS provider, offering original equipment manufacturers outsourced services, it was founded in 1977. Upon discovering that printed circuit board (PCB) assembly was in high demand from electronics companies at the time, Roy Kusumoto and Prabhat Jain formed this company, which integrated design, manufacturing, and after-sales support. After that, the industry enjoyed its greatest growth in the 1980s, a period that witnessed the founding of several well-known EMS companies, most notably Sanmina Corporation, which was established in 1980. Surface mount technology (SMT) has made it possible to quickly build devices. It also catalyzes the growth of the EMS sector. By the middle of the 1990s, EMS businesses were becoming more and more popular as a result of OEMs outsourcing PCB assembly services to them to cut costs. The majority of original equipment manufacturers sold their assembly lines to EMS suppliers in the late 1990s and early 2000s, and this industry also brought about a wave of consolidation. Small-scale EMS businesses and factories were being acquired by large EMS enterprises. Solectron Corporation was one of them; Flex bought it in 2007.

 

Manufacturing and Production Capabilities

Businesses that manufacture electronics may focus on one or more aspects of production volume and manufacturing technique.

 

Manufacturing

Numerous varieties of electrical items fall under the umbrella of electronics manufacturing.

 

• Printed Circuit Boards

Electronic components are held on flat boards called printed circuit boards, or PCBs.EMS providers may be able to deal with a variety of board types and populate PCBs with components to build printed circuit assemblies (PCAs).Since PCBs are made to be hard, inflexible boards, it is considered that they are rigid.Flexible PCBs can bend and fit flexible circuitry found in automotive, medical, and instrumentation applications. PCBs that are rigid with flexible interconnects are known as rigid-flexible PCBs. Additionally, EMS firms could focus on through-hole technology (THT) or surface mount (SMT) PCB technology.

 

1. Through-hole technology

Through-hole technology mounts components by passing their leads through holes that are drilled into the board.On the other side of the board, the leads are then soldered into position.In a production line, THT components are usually wave-soldered or hand-soldered to a PCB.

 

1. Surface mount technology

Surface mount components are typically smaller and less expensive than THT components because they are soldered to the top of the board.Modern pick-and-place machinery can mount SMT components precisely and swiftly from a production perspective.

 

Microelectronics

Microelectronics, as the name suggests, is the manufacturing of minuscule semiconductor components, such as flip chips and chip-on-board devices.  Flip chips are integrated circuits (ICs) that use solder bumps placed on the chip to link to external circuitry.  They are frequently found in pagers, cell phones, and other tiny devices.  Bare dies are bonded to PCBs in chip-on-board (COB) devices.

 

1. Optoelectronics

Devices that use optoelectronics sources, detect, or regulate light.Optical switches, fiber optic transmitters and receivers, and laser modules can all be assembled by EMS businesses.

 

1. RF/Wireless

Wireless or radio frequency (RF) devices are widely utilized in data transfer and telecommunications applications.Radiofrequency identification (RFID) and other wireless and telecommunication technologies may be assembled by EMS providers.

 

Production

Based on their equipment and skills, EMS businesses might specialize in multiple production levels and rates.

 

• Prototyping

Prototypes are early examples created to test a product's concept, and some providers make them after the design phase.By using prototyping, a product's intended use can be ensured even after it is created as part of a larger production run.Prototypes are frequently constructed from less expensive materials than final products.Electronics makers used to create prototypes with breadboards and THT components, but with the increasing availability of custom prototype PCBs, manufacturers can now create prototypes that are almost exactly like the final product.A project may go through several iterations of prototyping at different phases of the planning and design phases.

 

• Volume

EMS providers frequently state their capacity for large production volumes.Despite the relative nature of production volume figures, the following broad recommendations can be stated:

 

1. Low Volume

The providers make one to one hundred things in tiny quantities.Prototyping and low volume are sometimes synonymous or comparable terms.

 

1. Medium Volume

The production capacity of medium-volume providers ranges from 100 to 10,000 items per year.

 

1. High Volume

More than 10,000 units can be produced yearly by high-volume suppliers.

 

Specialty Production

Manufacturers of electronics may additionally specify specialized production methods, such as cabling services and quick-turn production. After receiving all of the components, quick-turn manufacturers can create PCBs in a short amount of time typically 48 hours.  Manufacturers of cabling secure cables to electronic assemblies.

 

Electronics manufacturing process in production.

• Design and prototyping
• Component sourcing
• PCB assembly
• Testing
• Enclosure Manufacturing
• Final assembly
• Quality control
• Packaging and shipping

 

Challenges

One of the most dynamic and competitive industries in the world is consumer electronics manufacturing. To prosper, businesses need to innovate continuously and adjust to the ever-changing environment. Nonetheless, the industry does face certain difficulties. The difficulties encountered throughout the electronic manufacturing process are outlined below:

 

• Shorter Product Lifespans
• Neck-to-Neck Competition
• Rapidly Advancing Technologies
• Price Increase Pressure
• Existence of Raw Materials
• Environmental Factors
• Risk to the Security of Data
• Warranty and Assistance
• Environmental Laws & Regulations

 

Future and Current Trends in Electronics Manufacturing Service

It is just now starting to become more significant for engineers and fans to be able to develop their designs in the same facilities used for mass production. In this instance, it is "Made to Order". And it's considered one of the most likely trends when decentralization and individual inventions make a comeback. Another wave that is now underway is the development and improvement of assembly lines that yield better and more affordable electronic components. Manufacturers of electronics are also endorsing it. Space tourism and aerospace are two of these expanding businesses. One last important area is the development of technology utilizing machine learning and artificial intelligence. These devices can permanently alter civilization as we know it. The most well-known AI applications from science fiction include GPT-3, Deepmind, and the impending Autopilot FSD suite from Tesla. PCBs specifically developed for neural networks and machine learning algorithms have made this possible.

 

• The Use of Eco-Friendly Materials

The adoption of environmentally friendly materials is one of the main developments in electronics manufacturing today. Cost-cutting measures and worries about how electronics affect the environment are the main drivers of this movement. Businesses are trying to employ more sustainable materials, like bioplastics and recycled materials. They are also making items that are simpler to reuse and recycle in an effort to reduce waste.

 

• The Focus on Supply Chain Management

The emphasis on supply chain management is a third trend in the electronics manufacturing industry. The emergence of globalization has presented businesses with the difficulty of overseeing intricate international supply chains. They need to have a thorough awareness of their suppliers, clients, and target markets in order to succeed. Additionally, they are utilizing technology—such as big data and analytics to streamline their operations—to increase the visibility and effectiveness of the supply chain.

 

• The Rise of Automation

The increasing use of automation in electronics manufacturing is the sixth trend. Automation refers to the application of technology to mechanize labor-intensive tasks like testing and assembly. Automation is being used by businesses to increase productivity, cut expenses, and enhance product quality. Companies can make goods more quickly because of automation, which shortens the time it takes for new products to hit the market.

 

Eco-friendly Incentives

The priorities of customers are changing, according to future trends and projections. Businesses are more conscious of their influence on the environment. Some are even preparing to start green manufacturing enterprises. For example, certain industrial lines run on solar power, which lowers emissions and energy consumption. The manufacturing of electronics has a big impact on the world economy. Millions of people are employed by it and things that we use on a daily basis are produced. We should be conscious of the manufacturing process and environmental effects of the things we buy as consumers. Making the procedure as environmentally friendly as feasible is something we can all do.

 

• Increasing Demand for Recyclable and Biodegradable Materials

The growing need for recyclable and biodegradable materials is one of the trends that will affect the electronics manufacturing industry both now and in the future. By using these materials, the environmental effect of producing and disposing of electronics is lessened. For instance, using biodegradable plastics in electronic packaging contributes to improved sustainability and waste reduction.

 

• Investment in Renewable Energy

Investing in sustainable energy sources is another trend in the electronics manufacturing industry. This investment lessens the manufacturing of electronics' carbon footprint and dependency on fossil fuels. For instance, in order to lessen their reliance on non-renewable energy sources, numerous electronics manufacturers are making investments in solar and wind energy to power their manufacturing plants.

 

• Government Incentives for Eco-friendly Practices

Governments everywhere are offering incentives to electronics producers to switch to environmentally friendly methods. Companies that invest in waste reduction, renewable energy, and other sustainable projects may be eligible for tax rebates, grants, or subsidies. Governments are pushing electronics businesses to embrace more environmentally friendly methods and lessen their environmental effect by offering these incentives.

 

Indian Government Initiatives

In recent times, the Indian government has implemented several programs aimed at the ESDM sector. A few of these are included below:

 

• The Ministry of Electronics and Information Technology has been given Rs. 16,549 crore (US$ 2 billion) in the Union Budget 2023–24, an increase of about 40% from the previous year. The IT ministry was given Rs. 14,300 crore (US$ 1.73 billion) in the FY23 budget.

 

• The production of electronic hardware is highly valued by the government and is a key component of the "Make in India" and "Digital India" initiatives of the Indian government.

 

• The goal of ADIF, a think tank for IT start-ups, is to rank India's start-up ecosystem among the top three globally by 2030. They want to achieve this by focusing on increasing knowledge, promoting cooperation, and defining optimal regulations.

 

• The "Scheme for Promotion of Semiconductor Eco-System" in India has been announced by the Ministry of Electronics & Information Technology (MeitY), with a substantial budget of Rs. 76,000 crore (US$ 9.48 billion) in 2022.

 

• The Ministry of Electronics & Information Technology (MeitY) and Meta announced in September 2022 that MeitY Startup Hub (MSH), an initiative, will be launching an accelerator program to support and propel XR technology entrepreneurs throughout India.

 

Investments/ Developments in India

 

• The process of establishing a manufacturing facility in India has been made simpler by significant government programs like "Digital India," "Made in India," and beneficial FDI laws for the electronics manufacturing industry.

 

• The Indian government wants to boost the country's share of the global value chains from the existing 1-2% supply potential to about US$ 400 billion in electronics items, including US$ 120 billion in exports. This would represent 9–10% of the total value chains.

 

• The Ministry of Electronics and Information Technology has been given Rs. 16,549 crore (US$ 2 billion) in the Union Budget 2023–24, an increase of about 40% from the previous year. The IT ministry was given Rs. 14,300 crore (US$ 1.73 billion) in the FY23 budget.

 

• Established in 2016, MEITY and IESA established the first-ever Electropreneur Park (EP) in India. The park produced 51 hardware solutions, 51 patents, and 23 supported startups. With 20 spoke centers, the EP will expand into a hub with the goal of fostering innovation and producing unicorns in the ESDM space by providing access to a comprehensive ecosystem that will expedite government initiatives such as Make in India and Startup India.

 

• Memorandums of understanding are signed by STPI in an effort to improve the atmosphere for IT startups: AIC STPINEXT Initiatives (STPINEXT), a special purpose vehicle of Software Technology Parks of India (STPI), an organization under the Ministry of Electronics and Information Technology (MeitY), has signed two memorandums of understanding (MoUs): one with Excelpoint Systems India Pvt. Ltd. and the other with HDFC Bank, with the aim of promoting entrepreneurship and supporting tech startups in the country. These partners would be essential in helping the businesses along their growth journey by providing them with market connections and access, technical advice and assistance, mentorship, investor pitches, finance support, and more.

 

The following are some recent advancements and investments in the Electronics Manufacturing Service (EMS) industry:

 

• Investments under the production-linked plan (PLI) for large-scale electronics manufacturing, including the production of mobile phones, have totaled Rs. 6,887 crores (US$ 833 million) as of June 2023, above the FY24 target of Rs. 5,488 crores (US$ 664.4 million).

 

• Over the next five years, US CHIP design leader Advanced Micro Devices (AMD) plans to establish its largest design facility in India with investments of up to US$ 400 million.

 

• According to industry participants, India's electronics sector is expected to leverage $7 billion in untapped revenue by 2035 through the use of circular business models and legislative frameworks. The estimated market size for these circular models in 2035 is US$ 13 billion based on current commitments and targets.

 

• As per the 'India Monthly Wearable Device Tracker' report published by International Data Corporation (IDC), the debut of "hundreds" of smartwatch models in the first half of 2023 contributed to the 53.3% YoY growth of India's wearable market. In the first half of CY23, the companies brought 57.8 million wearables—such as smartwatches, earbuds, and spectacles—to market.

 

• In July 2023, the India Semiconductor Mission held the Semicon-India 2023 Conference in Gandhinagar, Gujarat, for three days with the topic "Catalysing India's Semiconductor Ecosystem." Leading global firms like Micron Technology, Applied Materials, Foxconn, Cadence, AMD, and the industry organization SEMI participated in Semicon-India 2023.

 

List of Key Market players

• Argus Systems
• Asteelflash
• Benchmark Electronics Inc.
• Bharat FIH - A Foxconn Technology Group
• Celestica Inc.
• COMPAL Inc.
• Creation Technologies LP
• Elin Electronics Ltd
• Fabrinet
• Flex Ltd
• General Electric Company
• Hon Hai Precision Industry Co. Ltd
• Integrated Microelectronics Inc.
• Inventec
• Jabil Inc.
• Key Tronics EMS
• Kimball Electronics Inc.
• Koninklijke Philips N.V.
• Osram Opto Semiconductors GmbH
• Plexus Corporation
• Quanta Computers Inc.
• Rohm Semiconductor
• Sanmina Corporation
• SIIX Corporation
• Sparton Corporation
• Venture Corporation Limited
• Vinatronic Inc.
• Wistron Corporation

 

Discover More Electronics Manufacturing Trends, Technologies & Startups

These emerging trends in electronics manufacturing drive the shift towards adaptable and intelligent manufacturing practices. Future manufacturers are focusing on creating efficient, miniature components tailored for specialized applications. Leveraging advanced materials, packaging, and printing technologies aids in achieving these objectives. Additionally, the shift towards organic electronics addresses global concerns about electronic waste and sustainability. Innovations like big data and analytics are further shaping the industry, enhancing decision-making processes.

 

The Top 10 Electronics Industry Trends & Startups showcased in this report offer just a glimpse into the vast array of trends we've uncovered in our comprehensive innovation and startup exploration. From additive manufacturing and organic electronics to miniaturized electronics and embedded systems, these innovations are poised to redefine the sector. Identifying new opportunities and emerging technologies to integrate into your business strategy can significantly elevate your competitive edge. Connect with us to effortlessly explore a wide range of relevant technologies and startups that align with your goals today! Get In Touch For More Details

 

About the Spherical Insights & Consulting

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