According to ResearchAndMarkets, the Electronics Manufacturing Services (EMS) and Original Design Manufacturer (ODM) market is projected to witness a compound annual growth rate of 4.39% to grow to US$ 766.59 billion by 2027, from US$ 566.93 billion in 2020.
The market is expected to surge in the coming years due to the rise in the number of electric vehicles, cost reduction in the manufacturing process, and increasing investments in R&D.
EMS is a term used for companies that test, manufacture, 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). An ODM is a company that designs and manufactures a product as specified and eventually rebranded by another firm for sale.
Such companies allow the firm that owns or licenses the Company to produce products (either as a supplement or solely) without having to engage in the organization or running of a factory.
With the increasing innovation and advancement of emerging technologies, such as 5G and the IoT, electronic component manufacturing and designing had been revolutionized. There has been a surge in the demand for electronics manufacturing services in the consumer electronics industry, because of its growing connectivity among its products, like gaming, audio, wearable, and virtual reality.
Increasing investments in the semiconductor industry are expected to play a major role in the overall market growth.
