What is EMS?

EMS is a service provided by companies that specialize in manufacturing electronic components and sub-assemblies for other companies. These companies offer a range of services, from design and prototyping to full-scale manufacturing and assembly. EMS companies work closely with their clients to ensure that their products meet the required specifications, quality standards, and regulatory requirements.

EMS companies typically offer the following services:

• Design and Engineering
• Prototyping
• Component Sourcing and Procurement
• PCB Assembly
• Testing and Quality Control
• Packaging and Distribution
• After-sales Support and Repair Services

Advantages of using EMS

There are several advantages to using EMS companies for electronic manufacturing:

1. Cost Reduction: EMS companies can often manufacture products at a lower cost than OEMs due to their economies of scale and expertise in manufacturing processes.

2. Flexibility: EMS companies can quickly adapt to changes in demand and can scale production up or down as needed.

3. Access to Expertise: EMS companies have experienced engineers and technicians who can provide valuable insights and recommendations for product design and manufacturing.

4. Focus on Core Competencies: By outsourcing manufacturing to an EMS company, OEMs can focus on their core competencies, such as research and development, marketing, and sales.

5. Reduced Time-to-Market: EMS companies can often manufacture products faster than OEMs due to their streamlined processes and expertise in manufacturing.

Types of EMS Companies

There are several types of EMS companies, each with their own specialties and areas of expertise:

1. Printed Circuit Board (PCB) Assembly: These companies specialize in assembling PCBs, which are the foundation of most electronic devices.

2. Cable and Harness Assembly: These companies specialize in assembling cables and wire harnesses for electronic devices.

3. Box Build Assembly: These companies specialize in assembling complete electronic devices, including the enclosure, PCBs, and other components.

4. Electro-Mechanical Assembly: These companies specialize in assembling devices that have both electronic and mechanical components, such as motors, sensors, and actuators.

Choosing an EMS Partner

When choosing an EMS partner, there are several factors to consider:

1. Technical Capabilities: Does the EMS company have the technical expertise and equipment needed to manufacture your product?

2. Quality Control: Does the EMS company have robust quality control processes in place to ensure that your product meets your specifications?

3. Communication and Collaboration: Does the EMS company have a track record of working closely with their clients and communicating effectively throughout the manufacturing process?

4. Cost: Does the EMS company offer competitive pricing for their services?

5. Location: Is the EMS company located in a region that is convenient for your supply chain and distribution needs?

EMS Industry Overview

The global EMS industry is expected to reach $654 billion by 2026, growing at a CAGR of 7.5% from 2021 to 2026. The industry is highly fragmented, with the top 10 EMS companies accounting for only about 25% of the total market share.

The following table shows the revenue and market share of the top 5 EMS companies in 2020:

Company	Revenue (USD Billion)	Market Share
Foxconn	$181.9	30.4%
Pegatron	$44.8	7.5%
Wistron	$28.1	4.7%
Jabil	$27.3	4.6%
Flex	$24.2	4.0%

The EMS industry is highly competitive, with companies constantly striving to offer better services and lower costs to their clients. In recent years, there has been a trend towards consolidation in the industry, with larger EMS companies acquiring smaller ones to expand their capabilities and geographic reach.

Another trend in the EMS industry is the increasing use of automation and robotics in manufacturing processes. This has led to increased efficiency and reduced costs for EMS companies, allowing them to offer more competitive pricing to their clients.

Future of EMS

The future of the EMS industry looks bright, with several factors driving growth in the coming years:

1. Increasing Demand for Electronic Devices: As the world becomes increasingly digital, the demand for electronic devices is expected to continue growing, driving demand for EMS services.

2. Advancements in Technology: Advancements in technology, such as 5G, artificial intelligence, and the Internet of Things (IoT), are expected to create new opportunities for EMS companies.

3. Growing Outsourcing Trend: As companies seek to reduce costs and focus on their core competencies, the trend towards outsourcing manufacturing to EMS companies is expected to continue.

4. Expansion into New Markets: EMS companies are expected to expand into new markets, such as healthcare, automotive, and aerospace, as these industries increasingly rely on electronic components and devices.

Conclusion

Electronics Manufacturing Services (EMS) is a critical component of the global electronics industry, providing a range of services to help companies design, manufacture, and distribute electronic products. The industry is highly competitive and constantly evolving, with advancements in technology and changing market demands driving innovation and growth.

As the demand for electronic devices continues to grow, the EMS industry is well-positioned to capitalize on new opportunities and expand into new markets. By partnering with experienced and capable EMS providers, companies can reduce costs, improve quality, and bring new products to market faster than ever before.

Frequently Asked Questions (FAQ)

1. What is the difference between EMS and ODM?

EMS (Electronics Manufacturing Services) companies provide manufacturing services to other companies, while ODM (Original Design Manufacturer) companies design and manufacture products that are sold under another company’s brand name.

2. What are the benefits of using an EMS company?

The benefits of using an EMS company include cost reduction, increased flexibility, access to expertise, the ability to focus on core competencies, and reduced time-to-market.

3. How do I choose the right EMS partner for my company?

When choosing an EMS partner, consider factors such as technical capabilities, quality control processes, communication and collaboration, cost, and location.

4. What is the future outlook for the EMS industry?

The future outlook for the EMS industry is positive, with increasing demand for electronic devices, advancements in technology, a growing outsourcing trend, and expansion into new markets driving growth in the coming years.

5. What are some of the challenges facing the EMS industry?

Some of the challenges facing the EMS industry include intense competition, rapidly changing technology, supply chain disruptions, and the need to constantly innovate and adapt to changing market demands.