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Electronic Manufacturing Services Market is Set to Surpass USD 650 billion by 2026

Electronic Manufacturing

Electronic Manufacturing Services Market is Set to Surpass USD 650 billion by 2026

According to a recent study from market research firm Global Market Insights, The Electronic Manufacturing Services Market is anticipated to witness exponential growth on account of rising investments and innovation in technologies like IoT & AI. Manufacturing companies are steadily adopting automation and smart manufacturing techniques to enhance their production capabilities, reduce operational costs and develop high-quality products.

Incorporation of industrial robots for smart production could enhance operational performance of the industrial unit and minimize human intervention. In November 2017, Asteelflash introduced a pilot program for its production facility in California for the creation of smart factory. The program would include installation of collaborative robots and connected equipment to increase productivity and generate real-time data.

Growing inclination towards smart home devices coupled with increasing integration of Internet of Things (IoT) & artificial intelligence (AI) solutions in consumer appliances may drive electronic manufacturers to adopt EMS. Considering these aspects, Global Market Insights, Inc., estimates that the electronic manufacturing services market could reach USD 650 billion by the year 2026.

The Electronic Manufacturing Services Market from the medical & healthcare application segment is poised to register a CAGR of over 4% through 2026. This appreciable growth rate is characterized mainly by the rapid digitalization of medical devices and surgical machinery. For instance, Bigfoot has developed a novel medical system, designed to offer continuous glucose monitoring capability and on-demand delivery of insulin to patients with varying diabetic conditions.

The solution includes a sensor-based wearable medical device, a data processing engine as well as an insulin dosage calculator for fully automated glucose management and delivery. Such endeavors are anticipated to significantly expedite the demand for EMS solutions in the medical domain, as the focus on delivering secure and safe treatments intensifies.

In addition to this, the growing adoption of real-time monitoring devices and systems in the healthcare sector is enhancing the need for effective PCB assembly through EMS, which is in turn likely to augment industry outlook over the projected timeframe. Key medtech entities such as Philips Healthcare, Fresenius Medical Care, Johnson & Johnson Medical Devices Companies, and GE Healthcare, among others are making collaborative efforts with EMS solution providers to facilitate cost-efficient production of advanced medical devices. For instance, Johnson & Johnson Medical Device Division partnered up with Jabil in 2018, for the manufacture of invasive surgical devices and orthopaedical devices. This joint effort not only enabled the companies to enhance medical device production but is also anticipated to help J&J achieve savings of nearly $600 million to $800 million by 2022.

The logistics segment held nearly 5% of the Electronics Manufacturing Services (EMS) industry share in 2019 and is expected to depict commendable growth at a 3% CAGR through 2026. This growth is attributed largely to the rising investment by EMS solution provides in logistics and transportation operations, in order to facilitate on-time deliveries and mitigate any potential service defects stemming from improper transportation.

The global Electronic Manufacturing Services Market consists of several key players offering logistics services, including SIIX Corporation, Kitron ASA, KENCO, and Syrma Technology, among others. Additionally, the ongoing trend of highly priced technical products has urged consumer electronics producers to engage third-party logistics services. This collaboration with contract manufactures will enable the companies to expand their global presence whilst ensuring quick and timely deliveries.

The consumer electronics sector, particularly in the APAC region is undergoing a major shift in manufacturing trends, mainly due to the current political tensions between China and the United States. Numerous electronics producers, including Samsung, have moved their operations bases to countries such as Vietnam and India, when the first visible fallouts from the tensions first came to light.

Moreover, lucrative policies implemented by the government of India, such as the Foreign Direct Investment initiative are providing foreign players ample opportunities to establish a manufacturing presence in the region. These favorable policies coupled with an abundance of cheap labor and raw material supply in the region will add impetus to electronic manufacturing services market expansion over the estimated timeline.

Key Companies covered in Electronic Manufacturing Services Market are Advanced Semiconductor Engineering Inc., Benchmark Electronics, Inc., Celestica Inc, Compal Electronics, Inc., Delta Group Electronics, Inc, Fabrinet, Flex Ltd, Foxconn Technology Group, Integrated Micro-Electronics, Inc., Inventec Corporation , Jabil Inc., KeyTronicEMS , Kimball Electronics, Inc. ,Plexus Corp., Quanta Computer, Sanmina Corporation, SIIX Corporation, Sparton Corporation, TPV Technology Limited, TT Electronics, Wistron Corporation

Source: https://www.gminsights.com/industry-analysis/electronic-manufacturing-services-ems-market

Dynamic EMS: Adding Value with Low Volume Manufacturing Strategy

Dynamic EMS is taking a different approach in responding to a shift in  development of outsourcing strategies in the UK. The electronics manufacturing service provider released information on how and why it will dedicate primary operations to customers with LV/HM complex assembly needs, creating a focal point on long-term relationships and optimizing its potential.

“By becoming our OEM partners ‘solutions architect’, we’ve been able to focus on delivering complete design, engineering, development, and distribution services to all main traditional and emerging market sectors including computing, communications, industrial, medical (ISO 13485 certified), IoT, security and storage etc.,” said John Dignan, Owner and Managing Director of Dynamic EMS . “From small hand-held devices to massive electromechanical products, Dynamic EMS provides every market niche with a total robust and transparent supply chain solution.”

Dynamic EMS takes pride in its approach in meeting the demand for customization. The company released details of its business model featuring specific benefits of operating with low volume manufacturing and how it directly impacts not only Dynamic’s customers, but the customer’s customer as well:

-Quality checks are easily monitored as each and every product is tested

-Low volume production enables rapid innovation, which initiates the need-for-speed

-Growth strategies are mapped out for both educated OEMs and developmental OEMs

-For developmental OEMs, we become their design engineer for DFM, DFT, and DFC

-For educated OEMs, we review their production forecast for next generation DFM engineering

By leveraging the in-house specialists for the OEMs closer to them, Dynamic EMS serves as a major provider to local customers with specific
LV/HM assembly needs in the UK.

“We enable our customers to grow by leveraging and merging design, development, and distribution capabilities and resources our partners can remain competitive within what’s thought to be a higher cost geography.  The UK’s history of manufacturing means we hold a unique set of skills, suited to low volume / high mix complex assembly, it’s what we were raised to do, and to a world leading quality standard,” Dignan concludes.


Infinite Electronics, Inc. Expands in Lewisville, Texas

Global electronic components supplier, Infinite Electronics Inc. announced the opening of its second Lewisville, Texas location this week. The ISO9001-certified, 160,000 square foot facility supports the company’s efforts in providing high demand products available for same-day shipping while adding the capability to fulfill more than 500 orders daily – spanning 750 to 1,000 product lines.

“By doubling our space, we are able to further our efforts to make Lewisville Infinite’s Center of Excellence for logistics and manufacturing in the Americas. Our production and logistics teams now have the space they need to be able to fulfill same-day production requirements for our growing family of brands, with room for continued growth to meet our customers’ urgent needs,” said Jim Dauw, Infinite’s Chief Operating Officer.

Infinite’s first facility was established in the region in October 2017, bringing support for product lines including NEMA enclosures, fiber optic cables, 1553 bus couplers, insertion tools, complex wire harnesses, and surge and lightning protectors.

A total of 130 employees serve a variety of functions between the two facilities from production, logistics and product management, to administration, accounting, sales and human resources to meet the demands of the company’s global engineering customer base.


Source: Infinite Electronics, Inc.