EMS and ODM Market to Reach $958.6 Billion by 2026

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Asia Pacific represents a key market and growth is being driven by the labor-intensive economies in the region

Amid the COVID-19 crisis, the global market for EMS and ODM was estimated at US$588.7 Billion in the year 2020. The same is projected to reach a revised size of US$958.6 Billion by 2026, growing at a CAGR of 8.5 per cent over the analysis period.

EMS, one of the segments analyzed in the Global Industry Analysts report, is projected to grow at a nine per cent CAGR to reach US$759.8 Billion by the end of the analysis period.

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After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the ODM segment is readjusted to a revised 7.5 per cent CAGR for the next 7-year period. This segment currently accounts for a 29.2 per cent share of the global EMS and ODM market,” read the report.

The EMS model is gaining momentum supported by the ability of contract manufacturers to offer production-related economies of scale, procurement of raw materials, industrial design expertise, and resource pooling, in addition to providing value added services such as repairs and warranty. The ODM segment has gained popularity in mobile phones and personal computers sector, mainly due to increasing commoditization.

The China factor

China, the world’s second largest economy, is forecast to reach an estimated market size of US$366.7 Billion in the year 2026 trailing a CAGR of 9.5 per cent through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at six per cen and 7.6 per cent respectively over the analysis period.

Within Europe, Germany is forecast to grow at approximately 6.3 per cent CAGR while Rest of European market (as defined in the study) will reach US$402.1 Billion by the end of the analysis period. Asia Pacific represents a key market and growth is being driven by the labor-intensive economies in the region.

China, with availability of raw material in abundance and low-cost labor, leads Asia Pacific’s electronic contract manufacturing services market. North America’s EMS market growth would be driven by the presence of a large number of medical institutions and extensive research and development activities in the region.

“The EMS and ODM market in the U.S. is estimated at US$58.5 Billion in the year 2021. The country currently accounts for a 9.3 per cent share in the global market,” read the report.

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Mukul Yudhveer Singh
Mukul Yudhveer Singh
Mukul Yudhveer Singh is an Editor at EFY. He’s an experienced business journalist who is both an enthusiast and a cynic of technology. Believes in data, as well as hunch-based journalism. He defines journalism as- reporting facts which help the audience take their own decisions, not ones that influence them!

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