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Behind every smartphone, electric vehicle, and connected device lies a vast ecosystem of manufacturers, suppliers, and innovators, with the Electronics Manufacturing Services (EMS) industry at its core.
The Role of the EMS Industry
EMS providers enable Original Equipment Manufacturers (OEMs) to bring products to life efficiently and at scale. They manage the entire production lifecycle, from design support and component sourcing to assembly, testing, and after-market services, allowing OEMs to focus on innovation and growth.
EMS companies typically specialise across different segments, such as:
- PCB assembly: mounting electronic components onto circuit boards
- Box-build assembly: integrating modules into complete systems
- System integration: connecting hardware and software
- Repair or refurbishment: extending product lifecycles
Each segment demands unique expertise and quality standards, together forming the foundation of modern electronics manufacturing.
(Sources: Mordor Intelligence, MARC Global)
PCB Assembly: The Core of EMS
Printed Circuit Board (PCB) assembly sits at the core of the EMS industry. It involves mounting and soldering electronic components onto a circuit board to create functional modules, which are the foundation of nearly every modern device.
Almost every product relies on at least one PCB; hence, this segment accounts for the largest share of the EMS market and continues to drive much of its global growth and innovation. According to Mordor Intelligence, PCB assembly and box-build services accounted for approximately 62.4% of EMS market revenue in 2024, illustrating the central role of PCBs in the industry.
The Global EMS Leaders
Today, the EMS market is becoming increasingly concentrated, with a handful of major players driving production worldwide.
According to Pristine Market Insights (2025), PCB assembly was dominated in 2024 by:
- Foxconn – 18.14%
- Flex – 8.41%
- Jabil – 6.78%
- Kinpo Group – 6.25%
Other major players include Luxshare ICT, ASE Holdings, Celestica, BYD, Wistron, and Goertek. Together, these top 10 EMS companies control over 60% of the global PCB assembly market, while hundreds of smaller regional firms share the remaining 37.6%.
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This concentration highlights how essential large-scale EMS providers have become, and how much influence they hold over global supply chains and component flows.
While market concentration has made global production more efficient, it has also increased the need for circular systems that reduce waste and prevent the depletion of critical resources.
As the top EMS providers manage massive component volumes, identifying and redistributing excess stock early becomes essential to keeping materials in circulation, a goal that supports both sustainability and supply-chain resilience.
A Market Built on Scale and Speed
Global demand for electronics is fuelling unprecedented EMS growth.
In 2024, the market was valued at USD 609.79 billion and is projected to exceed USD 1 trillion by 2032, growing at a 6.9% CAGR (Fortune Business Insights).
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Much of this production happens in the Asia-Pacific region, which holds nearly half of the global market due to its strong infrastructure and access to skilled labour and suppliers.
By contrast, Europe’s EMS output declined by about 14% in 2024, as reported by the Global Electronics Association, reflecting regional cost and capacity challenges.
AI and Automation: The Next EMS Revolution
This rapid expansion is being matched by an equally significant transformation in how electronics are manufactured. Emerging technologies such as automation, robotics, and artificial intelligence, including generative AI, are redefining electronics manufacturing.
According to Fortune Business Insights and Strait Research, AI-driven manufacturing improves productivity, flexibility, and environmental performance. For EMS providers, this means predictive maintenance, accurate demand forecasting, automated quality control, and intelligent component sourcing, all of which help manufacturers reduce waste and accelerate their time-to-market.
What’s Driving EMS Demand: From AI to Emerging Technologies
The EMS industry’s expansion is fuelled by both innovation and global market shifts.
- Rising consumer electronics demand
Smartphones, wearables, and smart home devices continue to drive EMS growth.
According to TechInsights Inc. (via Fortune Business Insights), global spending on smart home technology will rise from USD 135 billion in 2022 to USD 170 billion by 2025, a 26% increase.
To meet this demand, OEMs are partnering with EMS providers for scalable, cost-efficient production. - Emerging technology opportunities
Sectors like electric vehicles, renewable energy, and 5G networks are creating major new revenue streams. The International Energy Agency (IEA) reports that 14 million EVs were sold in 2023 - a 35% increase from 2022, driving strong demand for advanced electronic assemblies and high-reliability components. - Challenges shaping the market
EMS providers are navigating rising costs, labour shortages, and geopolitical risks that impact production and sourcing. Many are investing in automation and regional diversification, particularly in India, Vietnam, and Mexico, to build supply-chain resilience. - Sustainability pressures
With sustainability now a key market expectation, EMS companies are adopting energy-efficient, low-waste production models. According to Straits Research, the growing demand for sustainable and energy-efficient electronics is driving EMS providers to implement eco-friendly manufacturing and implement circular practices that extend the life of materials.
With COP30 underway, EMS providers will be under increasing pressure to demonstrate transparent, low-carbon supply chains and adopt circular production models that align with global climate commitments.
At Component Sense, we’ll be sharing key insights from the summit and exploring what they mean for the electronics industry on our socials. Stay tuned for our COP30 updates.
(Sources: Fortune Business Insights; Mordor Intelligence; IEA; Straits Research,)
Beyond Market Share: Building a Responsible Electronics Ecosystem
The EMS market may be led by a few global giants, but scale alone doesn’t define success.
As the EMS industry continues to grow and evolve, efficiency and sustainability are no longer optional but essential to long-term success. The future belongs to manufacturers who manage resources responsibly, minimise waste, and create transparent, circular supply chains.
At Component Sense, that’s our mission: helping the electronics industry move towards zero waste by redistributing excess and obsolete (E&O) stock safely, efficiently, and sustainably.
Through our innovative excess stock solutions such as InPlant™, we empower OEMs and EMS providers to unlock hidden value in their inventory and to make responsible manufacturing the standard.
Together, we can build a more circular electronics supply chain, one component at a time.