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Electronics Manufacturing Service Market to grow by USD 188 Billion from 2025-2029, driven by rising service providers in low-wage economies, AI impact – Technavio

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NEW YORK, Jan. 30, 2025 /PRNewswire/ — Report on how AI is driving market transformation- The global electronics manufacturing service market size is estimated to grow by USD 188 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 6.6%  during the forecast period. Increasing number of electronics manufacturing services providers in economies with low hourly wages is driving market growth, with a trend towards collaborative co-innovation partnership with electronics manufacturing services providers. However, risk of intellectual property theft and misuse  poses a challenge. Key market players include 3CEMS Group, Accton Technology Corp., Benchmark Electronics Inc., Celestica Inc., Compal Electronics Inc., Creation Technologies LLC, Data IO Corp., Elbit Systems Ltd., ESCATEC Sdn. Bhd., Flex Ltd., Hon Hai Precision Industry Co. Ltd., Integrated Micro Electronics Inc., Jabil Inc., Key Tronic Corp., Kimball Electronics Inc., Kitron ASA, Neo Tech Inc., Plexus Corp., Sanmina Corp., and Venture Corp. Ltd..

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Electronics Manufacturing Service Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 6.6%

Market growth 2025-2029

USD 188 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

6.2

Regional analysis

APAC, North America, Europe, South America, and Middle East and Africa

Performing market contribution

APAC at 56%

Key countries

China, US, Taiwan, Japan, Canada, Germany, Brazil, UK, UAE, and France

Key companies profiled

3CEMS Group, Accton Technology Corp., Benchmark Electronics Inc., Celestica Inc., Compal Electronics Inc., Creation Technologies LLC, Data IO Corp., Elbit Systems Ltd., ESCATEC Sdn. Bhd., Flex Ltd., Hon Hai Precision Industry Co. Ltd., Integrated Micro Electronics Inc., Jabil Inc., Key Tronic Corp., Kimball Electronics Inc., Kitron ASA, Neo Tech Inc., Plexus Corp., Sanmina Corp., and Venture Corp. Ltd.

Market Driver

The Electronics Manufacturing Services (EMS) market is experiencing significant trends in various industries. In healthcare, there’s in demand for medical devices and equipment. The automotive sector is witnessing a shift towards sub-assembly manufacturing, testing, and component assembly & re-engineering for advanced vehicle systems. Industrial output is increasing with the adoption of new technologies like virtual reality, 3D printing, and structural electronics. The coronavirus pandemic has disrupted the electronics supply chain, highlighting the need for cybersecurity measures. Capacitors, connectors, LCD panels, and other components are in high demand across Consumer Electronics, Aerospace & Defense, IT and Telecom, IoT, and Electric vehicles. Productivity levels are improving due to new technologies and EMS providers are focusing on E-waste recycling and Greener Electronic Devices. The Global E-waste Monitor 2020 reports growing urban and population growth leading to increased electronic waste. Low-income individuals are being targeted with affordable smart home products, smartphones, and televisions. Structural electronics penetration is increasing in high-end autos and space vehicles. EMS providers are offering logistics services and engineering services to OEMs. The demand for IoT-enabled cars and electric car sales is driving growth in the electronics manufacturing industry. Structural electronics are being used in various applications from smartphones to smart homes and urban infrastructure. Zero-waste nations are pushing for circular economy solutions, and EMS providers are responding with innovative approaches to electronic equipment manufacturing and structural electronics demand. The future of the EMS market is bright, with continued growth and innovation in various sectors. 

Electronics manufacturing services (EMS) outsourcing involves collaborative partnerships between customer organizations and service providers. These partnerships require risk and value sharing, resulting from the joint functioning of both parties. Co-innovation is a key aspect of these collaborations, where knowledge is exchanged to create new solutions and products, generating significant value. Despite the increasing challenges and risks in EMS adoption, successful outsourcing relationships continue. EMS providers are viewed as strategic partners, integrated into their clients’ supply chains. 

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 Market Challenges

•         The Electronics Manufacturing Services (EMS) market faces several challenges in various industries. In healthcare, ensuring regulatory compliance and maintaining productivity levels are key concerns. In automotive, sub-assembly manufacturing, testing, and component assembly & re-engineering are crucial for OEMs. The electronics supply chain is impacted by coronavirus, cybersecurity risks, and new technologies like virtual reality, 3D printing, and structural electronics. Industries like healthcare, automotive, consumer electronics, aerospace & defense, IT and telecom, IoT, and electric vehicles drive demand for capacitors, connectors, LCD panels, and other components. EMS providers must adapt to new technologies and the circular economy, focusing on e-waste recycling and greener electronic devices. Urban and population growth increase the need for logistics services and engineering services. Low-income individuals benefit from smart home products, smartphones, and televisions. Structural electronics penetration is growing in high-end autos, space vehicles, and IoT-enabled cars. Electric car sales and electronic equipment manufacturing require structural electronics demand. EMS providers must address these challenges to remain competitive in the ever-evolving electronics manufacturing industry.

•         The electronics manufacturing service market encounters a significant challenge with the risk of intellectual property (IP) theft. Many electronics businesses guard their manufacturing designs closely, implementing strict policies to safeguard against outsourcing to electronic manufacturing services (EMS) providers. EMS providers work under contract, catering to multiple businesses, increasing concerns over potential IP technology and design leakage, data theft, and misuse. Despite thorough documentation before awarding contracts, these fears persist. EMS providers must ensure security measures to mitigate these risks and maintain trust with their clients.

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Segment Overview 

This electronics manufacturing service market report extensively covers market segmentation by  

End-user 1.1 C and CA1.2 Telecommunication1.3 Industrial1.4 Automotive1.5 OthersService Type2.1 Electronics design and engineering2.2 Electronics assembly2.3 Electronics manufacturing2.4 OthersGeography 3.1 APAC3.2 North America3.3 Europe3.4 South America3.5 Middle East and Africa

1.1 C and CA-  The global Electronics Manufacturing Services (EMS) market is experiencing significant growth, particularly in the Computing and Consumer Appliances (C&CA) segment. This segment includes consumer electronics devices, data centers, and consumer appliances. The primary driver of this growth is the increasing demand for consumer electronic devices such as smartphones, tablets, laptops, AR/VR devices, gaming consoles, and wearable devices. Technological advancements, including air gesture and facial recognition technologies, are leading to the adoption of advanced sensor technologies in smartphone cameras. ToF sensors and cameras are increasingly being implemented in various consumer electronic devices. The consumer electronics sector is witnessing continuous innovation and competition, leading manufacturers to differentiate their offerings and outsource manufacturing services. The global consumer electronics market is expected to grow at a Compound Annual Growth Rate (CAGR) of over 6% during the forecast period. Emerging markets in Asia Pacific (APAC) and South America are major contributors to this growth, driven by factors such as population growth, improving economic conditions, increasing employment rates, and rising income levels. Data centers in computing applications present significant opportunities for EMS vendors. With the increasing Internet penetration, rising adoption of IoT devices, and the growing implementation of automation technologies, data traffic is experiencing exponential growth. Business enterprises need to securely store this data, leading to the construction of many data centers globally. This will accelerate the demand for data center components such as racks, cooling solutions, servers, storage devices, and power management systems. The increasing investments in data centers will result in the demand for many electronic components from data center equipment manufacturers, thereby accelerating the demand for electronic manufacturing services.

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Research Analysis

The Electronics Manufacturing Services (EMS) market encompasses a wide range of services, including healthcare and automotive sub-assembly manufacturing, testing, component assembly and re-engineering, and engineering services. The industry’s industrial output is driven by the demand for new technologies such as virtual reality, 3D printing, and structural electronics. Capacitors, connectors, LCD panels, and other components are essential in the production of various electronic devices, from smart home products and smartphones to industrial equipment. New technologies continue to push productivity levels higher, enabling OEMs to bring innovative products to market faster. E-waste recycling is a critical aspect of the industry, ensuring the sustainable production of electronics while minimizing environmental impact. The EMS industry caters to a diverse range of sectors, from healthcare and automotive to consumer electronics, and even low-income individuals, who benefit from affordable and accessible electronic devices.

Market Research Overview

The Electronics Manufacturing Services (EMS) market encompasses a wide range of industries and technologies. In healthcare, EMS providers support the production of medical devices and equipment. In automotive, sub-assembly manufacturing, testing, and component assembly & re-engineering are crucial for the production of advanced electronics in vehicles. Industrial output is boosted by EMS providers in sectors like virtual reality, 3D printing, and consumer electronics. The coronavirus pandemic has disrupted electronics supply chains, highlighting the need for cybersecurity measures. Capacitors, connectors, LCD panels, and other components are key elements of electronics manufacturing. New technologies like structural electronics, IoT, and 3D technologies are driving innovation. E-waste recycling is a critical issue, with initiatives like Greener Electronic Devices and the Global E-waste Monitor 2020 promoting circular economy principles. The electronics manufacturing industry also addresses the needs of various sectors such as healthcare, automotive, aerospace & defense, IT and telecom, and consumer electronics. Urban growth and population expansion increase the demand for electronics, particularly smart home products, smartphones, televisions, and electric vehicles. Structural electronics penetration is growing in high-end autos, space vehicles, and IoT-enabled cars. EMS providers offer logistics services, engineering services, and support OEMs in the production of electronics. The shift towards zero-waste nations and greener electronic devices is a significant trend.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

End-userC And CATelecommunicationIndustrialAutomotiveOthersService TypeElectronics Design And EngineeringElectronics AssemblyElectronics ManufacturingOthersGeographyAPACNorth AmericaEuropeSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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Mouser Electronics Explores How Artificial Intelligence Shapes Everyday Technologies and Experiences

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SHANGHAI, April 20, 2026 /PRNewswire/ — Mouser Electronics, Inc., the authorized global distributor with the newest electronic components and industrial automation products, today announced the first 2026 installment of its Empowering Innovation Together (EIT) technology series, Engineering AI for Daily Life. This installment explores how artificial intelligence is increasingly embedded in everyday products and services, from assisted search and messaging tools to healthcare wearables that monitor personal well-being. As AI capabilities expand across consumer and connected devices, engineers continue to design systems that make these technologies more useful, intuitive, and trustworthy in real-world applications.

“AI is quickly moving from experimental technology into products people rely on every day, and engineers play a major role in shaping how it’s applied,” said Jeff Newell, President of Mouser Electronics. “As AI becomes embedded across consumer devices and connected systems, it’s important that these technologies are designed to support human expertise while remaining reliable and trustworthy. This EIT segment helps engineers explore the tools and insights they need to build the next generation of AI-enabled solutions.”

As AI agents and intelligent tools become integrated into homes, connected devices, and digital services, engineers are developing systems that enhance user judgment and keep users in control while maintaining transparency and privacy. New AI-powered platforms already demonstrate this potential – turning simple conversations into complete travel itineraries or providing deeper health insights through connected devices.

On The Tech Between Us podcast, Raymond Yin, Director of Technical Content at Mouser Electronics, and Dr. Marisa Tschopp, Senior Researcher at scip AG in Zurich, examine the new role of AI in human interaction and day-to-day experiences. They explore how AI advancements shape technology-enabled collaboration, including the long-term impact of daily integration and applications for mental health.

“AI is moving beyond experimental settings into the products people rely on every day,” said Yin. “Our first EIT navigates the next era in AI innovation, looking at how to use the technology to enhance people’s abilities and rethink how we can live for the better.”

In addition to the podcast, the EIT series includes an in-depth video, technical articles, a topic-related infographic, as well as subscriber-exclusive content, diving into everyday AI. By examining the range of cases where AI can level up technical expertise, engineers can build a class of tools to help reshape how people think, decide, and create while protecting privacy and control.

Established in 2015, Mouser’s Empowering Innovation Together program is one of the electronic component industry’s most recognized educational programs. To learn more, visit https://www.mouser.com/empowering-innovation/engineering-ai-daily/ and follow Mouser on Facebook, LinkedIn, X, and YouTube.

For more Mouser news and our latest new product introductions, visit https://www.mouser.com/newsroom/.

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SOURCE Mouser Electronics

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The Global Economy Could Split in Very Different Directions by 2050

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Research from the BCG Henderson Institute Details Four Plausible Scenarios for the World over the Next 25 Years, Based on Analysis of More Than 100 Megatrends and a Century of Historical Data

BOSTON, April 20, 2026 /PRNewswire/ — The global economy could follow markedly different paths over the next 25 years. For business leaders, the challenge is how to make decisions today while preparing for a wide range of possible futures.

New Scenarios 2050 research from the BCG Henderson Institute (BHI), Boston Consulting Group’s think tank, anticipates four distinct futures that push boundaries but remain plausible. The report explores what each scenario could mean for businesses and how early signals may indicate which direction the world is heading.

Among the findings:

Global GDP growth could slow to about 1.8% or rise to 5.0% annually, with the economy reaching anywhere from 1.6 to 3.4 times today’s size.Global trade could fall to about 35% of GDP—roughly Cold War–era levels—or remain near current levels of about 60%.Defense spending could climb to as much as 7% of global GDP.Low-carbon electricity could account for 55% to 90% of power generation.

The report, Beyond Tomorrow: Four Scenarios for the World of 2050, is based on a century of historical data and analysis of more than 100 megatrends across technology, geopolitics, climate, society, and economics.

“The decisions made in the next 5 years will shape the next 25,” said Nikolaus Lang, global leader of the BCG Henderson Institute and a coauthor of the report. “Too often, the future is framed in extremes—either collapse or abundance. In reality, leaders need to be ready for a range of outcomes and make decisions that hold up across very different conditions.”

Four Plausible Futures Leaders Should Plan For

Each scenario presents a different operating environment for businesses, reflecting the range of conditions leaders may face.

Scenario 1: AI Abundance. Global cooperation on AI standards leads to faster productivity growth, wider access to technology, and abundant low-carbon energy:

Global GDP more than triples, growing by about 5% annually from 2025 to 2050—the highest level across BHI’s four plausible scenarios.Average working hours fall by about 25%, with four- or even three-day workweeks becoming common in some regions.AI-supported advances in new materials and carbon removal put the world on a delayed but credible path to net zero emissions.

Scenario 2: Battling Blocs. Geopolitical tensions divide the world into competing blocs, reducing cooperation and reshaping global trade:

Global trade falls to about 35% of global GDP, down from 57% in 2024—reversing decades of globalization.Defense spending rises to about 7% of global GDP, the highest across BHI’s four scenarios, as countries prioritize security and self-sufficiency.Global GDP growth slows to about 1.8% annually, the lowest across the four scenarios, underpinned by government spending on national security, pensions, and climate mitigation.

Scenario 3: Climate Coalition. A series of extreme weather events in the late 2020s push governments, industries, and consumers to prioritize climate resilience, accelerating the shift to low-carbon energy and infrastructure:

Global warming stabilizes at about 1.8°C.Carbon markets expand globally, with most major economies participating by 2040.The share of fossil fuels in the energy mix falls from 81% today to 35% in 2050, while electricity is generated almost entirely from low-carbon sources.Global GDP growth averages about 2.5% annually, reflecting a focus on the climate transition, slower population growth, and aging societies.

Scenario 4: Digital Darwinism. Rapid technological progress continues under limited regulation, driving strong growth while concentrating wealth and power among leading companies and tech-rich nations:

Global GDP grows at 4% per year, resulting in a near tripling of GDP.The richest 1% holds nearly half of global wealth, while the middle class continues to shrink.Gig-style and short-term contract work expands as AI and automation displace routine knowledge work.Defense spending rises to about 4% of GDP, up from 2.4% in 2024, as the global order becomes more fragmented. At the same time, global trade and supply chains remain open, driven by commercial interests.

What Leaders Can Do Now

 Across all four scenarios, the report highlights “low regret” moves that make sense for business leaders today, including:

Enhance structural resilience. Rebalance toward resilience over efficiency to maintain operations in a more volatile environment.Reimagine talent for aging populations and AI. Build strategies for intergenerational work, more flexible roles, and talent mobility—and recruit more widely, especially from emerging labor markets.Build digital flexibility and trust. Take a modular approach to tech and data stacks that accounts for rapidly changing technologies.Sharpen sensing and influencing capabilities. Develop sensing capacities along dimensions like regulation, geopolitics, resources, and technology. Build the capability to act on them quickly.Embrace a broader societal role. Prepare to shoulder more responsibility for workers’ well-being, local resilience, crisis management, and community needs.

“No one can predict exactly what 2050 will look like, but the forces shaping it are already visible,” said Alan Iny, a partner and director at BCG, a BCG Henderson Institute Fellow, and a coauthor of the report. “Planning for a single future is a gamble. The advantage will go to leaders who prepare for multiple futures and act to shape them before the direction of the world is clear.”

Download the publication here: https://www.bcg.com/publications/2026/beyond-tomorrow-four-scenarios-for-the-world-of-2050

Media Contact:                            
Eric Gregoire
+1 617 850 3783
gregoire.eric@bcg.com

About the BCG Henderson Institute
The BCG Henderson Institute is Boston Consulting Group’s strategy think tank, dedicated to exploring and developing valuable new insights from business, technology, and science by embracing the powerful technology of ideas. The Institute engages leaders in provocative discussion and experimentation to expand the boundaries of business theory and practice and to translate innovative ideas from within and beyond business. For more ideas and inspiration from the Institute, please visit our website and follow us on LinkedIn and X (formerly Twitter).

About Boston Consulting Group
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

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SOURCE Boston Consulting Group (BCG)

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DEKRA Korea to Acquire Global Product Service, Strengthening Consumer Electronics Testing and Certification Capabilities in Korea

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GIMHAE-SI, South Korea, April 20, 2026 /PRNewswire/ — DEKRA, a leading global provider of testing, inspection, and certification services, today announced it has signed a definitive agreement to acquire Global Product Service Co., Ltd (GPS), a prominent South Korean company renowned for its expertise in consumer electronics product testing and certification.

This strategic acquisition will significantly enhance DEKRA Korea’s capabilities within the rapidly growing consumer electronics sector, bringing together DEKRA’s global network and comprehensive service portfolio with GPS’s deep-rooted local knowledge and decades of experience serving South Korea’s leading manufacturers.

GPS has established a strong reputation for its in-depth technical expertise and unwavering commitment to quality, particularly within the consumer electronics market. For many years, GPS has been a trusted partner to major South Korean electronics companies, providing testing and certification services that ensure product safety, performance, and compliance with international standards.

The successful acquisition is a result of the strong collaboration and commitment from both DEKRA and GPS. Key representatives who participated in the signing, embodying this collaboration, were Dr. Kilian Aviles, Executive Vice President of DEKRA Group and Head of Asia Pacific Region; Ming Sheng, Vice President of Automotive Testing, DEKRA China; Young Seok Lee, CEO of Global Product Service Co., Ltd; and Seong Su Kim, Director of Global Product Service Co., Ltd.

“We are thrilled to welcome Global Product Service Co., Ltd to the DEKRA family,” said Dr. Kilian Aviles, Executive Vice President of DEKRA Group and Head of Asia Pacific Region. “This acquisition represents a significant milestone in our growth strategy in South Korea. GPS’s deep understanding of the local market, combined with their specialized expertise in consumer electronics, perfectly complements DEKRA’s global strengths. Together, we will offer unparalleled testing and certification solutions to our clients, empowering them to bring innovative and reliable products to market with greater speed and confidence.”

The integration of GPS into DEKRA Korea will leverage synergies in technology, talent, and market reach. This will enable DEKRA to further support South Korean manufacturers as they navigate complex global regulatory landscapes and strive for excellence in product development and quality assurance. Clients can expect a seamless transition and continued access to the high-quality services they have come to rely on from both organizations.

Young Seok Lee, CEO of Global Product Service Co., Ltd commented, “Joining forces with DEKRA is an exciting opportunity for GPS. DEKRA’s global reach and extensive resources will allow us to expand our service offerings and better serve our existing and future clients. We are confident that this partnership will create significant value for the South Korean consumer electronics industry, providing enhanced support and innovation.”

About DEKRA

For more than 100 years, DEKRA has been a trusted name in safety. Founded in 1925 with the original goal of improving road safety through vehicle inspections, DEKRA has grown to become the world’s largest independent, non-listed expert organization in the field of testing, inspection, and certification. Today, as a global partner, the company supports its customers with comprehensive services and solutions to drive safety and sustainability forward—fully aligned with DEKRA’s anniversary motto, “Securing the Future.” In 2024, DEKRA generated revenue of 4.3 billion euros. Around 48,000 employees are providing qualified and independent expert services in approximately 60 countries across five continents. DEKRA holds a Platinum rating from EcoVadis, placing it among the top 1% of the world’s most sustainable companies.

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SOURCE DEKRA Asia Pacific

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