Introduction
The electronic manufacturing services (EMS) industry is a global industry that provides a wide range of services to original equipment manufacturers (OEMs) in the electronics industry. EMS providers offer a variety of services, including design, engineering, manufacturing, testing, and logistics.
The EMS industry is expected to grow significantly in the coming years, driven by the increasing demand for electronic products and the growing complexity of electronic devices. According to a report by MarketsandMarkets, the global EMS market is expected to grow from $527.6 billion in 2017 to $694.4 billion by 2022, at a compound annual growth rate (CAGR) of 5.1%.
The growth of the EMS industry is being driven by a number of factors, including the increasing demand for electronic products in emerging markets, the growing complexity of electronic devices, and the increasing need for OEMs to focus on their core competencies.
Key Trends in the EMS Industry
There are a number of key trends that are shaping the EMS industry in 2018. These trends include the following:
- The increasing demand for electronic products in emerging markets is driving the growth of the EMS industry. OEMs are increasingly looking to EMS providers to help them meet the demand for electronic products in these markets.
- The growing complexity of electronic devices is also driving the growth of the EMS industry. As electronic devices become more complex, OEMs are increasingly relying on EMS providers to help them design, engineer, and manufacture these devices.
- The increasing need for OEMs to focus on their core competencies is also driving the growth of the EMS industry. OEMs are increasingly looking to EMS providers to take on non-core activities, such as manufacturing, testing, and logistics, so that they can focus on their core competencies.
Challenges Facing the EMS Industry
The EMS industry is facing a number of challenges in 2018. These challenges include the following:
- The increasing cost of labor is a major challenge for the EMS industry. As labor costs continue to rise, EMS providers are increasingly looking to automate their operations in order to reduce costs.
- The increasing complexity of electronic devices is also a challenge for the EMS industry. As electronic devices become more complex, EMS providers need to invest in new equipment and technologies in order to keep up with the latest trends.
- The increasing competition from low-cost countries is also a challenge for the EMS industry. EMS providers in low-cost countries are often able to offer lower prices than EMS providers in developed countries.
Opportunities for the EMS Industry
There are a number of opportunities for the EMS industry in 2018. These opportunities include the following:
- The growing demand for electronic products in emerging markets is an opportunity for EMS providers to expand their businesses into these markets.
- The growing complexity of electronic devices is an opportunity for EMS providers to offer new services to OEMs.
- The increasing need for OEMs to focus on their core competencies is an opportunity for EMS providers to take on non-core activities, such as manufacturing, testing, and logistics.
Strategies for Success in the EMS Industry
EMS providers can adopt a number of strategies to succeed in the industry in 2018. These strategies include the following:
- Invest in automation to reduce labor costs and improve efficiency.
- Invest in new equipment and technologies to keep up with the latest trends in electronic device design and manufacturing.
- Expand into emerging markets to take advantage of the growing demand for electronic products in these markets.
- Offer new services to OEMs, such as design, engineering, and testing, to meet the increasing need for OEMs to focus on their core competencies.
- Partner with other companies to offer a wider range of services to OEMs.
Common Mistakes to Avoid in the EMS Industry
EMS providers should avoid making the following common mistakes in 2018:
- Underestimating the cost of labor and the impact of rising labor costs on their business.
- Failing to invest in new equipment and technologies to keep up with the latest trends in electronic device design and manufacturing.
- Expanding into emerging markets without a clear understanding of the market and the challenges involved.
- Offering new services to OEMs without the necessary expertise and resources.
- Partnering with the wrong companies and entering into agreements that are not mutually beneficial.
Conclusion
The EMS industry is expected to grow significantly in the coming years, driven by the increasing demand for electronic products and the growing complexity of electronic devices. EMS providers that are able to successfully navigate the challenges and capitalize on the opportunities in the industry are well-positioned to succeed in 2018 and beyond.
How to Generate Ideas for New Electronic Products
One of the biggest challenges facing EMS providers is how to generate ideas for new electronic products. Here are a few tips for generating new electronic product ideas:
- Look for unmet needs in the market. What problems do people have that could be solved with an electronic product?
- Identify trends in the electronics industry. What new technologies are emerging that could be used to create new products?
- Brainstorm with customers, employees, and other stakeholders. What do they think would be a great new electronic product?
- Attend industry events and trade shows. This is a great way to learn about new technologies and meet potential partners.
- Read industry publications and websites. This is a great way to stay up-to-date on the latest trends and developments in the electronics industry.
4 Useful Tables for the EMS Industry
The following tables provide some useful data for the EMS industry:
| Year | Market Size (USD Billion) |
|---|---|
| 2017 | 527.6 |
| 2018 | 561.3 |
| 2019 | 596.5 |
| 2020 | 633.3 |
| 2021 | 671.6 |
| 2022 | 694.4 |
| Rank | EMS Provider | Revenue (USD Billion) |
|---|---|---|
| 1 | Foxconn | 155.0 |
| 2 | Jabil | 22.5 |
| 3 | Celestica | 11.7 |
| 4 | Sanmina | 8.1 |
| 5 | Flex | 7.8 |
| 6 | Hon Hai Precision Industry | 7.2 |
| 7 | Pegatron | 6.8 |
| 8 | Elcoteq | 5.9 |
| 9 | HiTek Global | 5.3 |
| 10 | Benchmark Electronics | 5.2 |
| Trend | Description |
|---|---|
| Increasing demand for electronic products in emerging markets | OEMs are increasingly looking to EMS providers to help them meet the demand for electronic products in emerging markets. |
| Growing complexity of electronic devices | As electronic devices become more complex, OEMs are increasingly relying on EMS providers to help them design, engineer, and manufacture these devices. |
| Increasing need for OEMs to focus on their core competencies | OEMs are increasingly looking to EMS providers to take on non-core activities, such as manufacturing, testing, and logistics, so that they can focus on their core competencies. |
| Strategy | Description |
|---|---|
| Invest in automation | EMS providers can invest in automation to reduce labor costs and improve efficiency. |
| Invest in new equipment and technologies |
