Europe Electronic Manufacturing Services Market Size (2024 - 2029)

Europe Electronic Manufacturing Services Market Analysis

The Europe Electronic Manufacturing Services Market size is estimated at USD 139.32 billion in 2024, and is expected to reach USD 175.51 billion by 2029, growing at a CAGR of 4.70% during the forecast period (2024-2029).

Europe's numerous innovation hubs maintain its reputation for innovation and robust R&D capabilities. With consumer electronics advancing swiftly, European EMS providers leverage their proximity to these innovation centers, ensuring access to the latest technologies.

The surge in digitalization across industries, fueled by the adoption of technologies like the Internet of Things (IoT) and artificial intelligence (AI), strengthens the need for electronic components and manufacturing services. According to the European Commission, IoT spending in Europe has grown significantly. By pivoting toward digitalization and providing comprehensive solutions, regional EMS providers stand to capitalize on such trends.

In addition, the rising consumer preference for personalized electronics is fueling the demand for EMS providers adept at agile manufacturing. EMS firms are embracing cutting-edge technologies like 3D printing, flexible electronics, and modular designs to meet this demand. These innovations empower EMS providers to deliver bespoke solutions, catering to various customer needs and setting themselves apart in a competitive landscape.

Further, rising government initiatives in several regional countries drive the market's growth. For instance, in April 2023, the European Commission introduced stringent regulations to curb energy consumption in electrical appliances. These rules extend to devices with external power supplies, notably targeting small network equipment (like Wi-Fi routers and modems) and wireless speakers, especially when in 'standby' mode. The commission projects a substantial energy-saving potential by mandating lower power consumption during idle states, estimating a cumulative 4 TWh reduction by 2030. These standards are designed to boost energy efficiency and curb greenhouse gas emissions.

Similarly, the United Kingdom made significant strides in embracing Industry 4.0, with widespread participation from businesses, consumers, and the workforce. The Department of Industrial Strategy projects that by accelerating innovations and embracing Industry 4.0 solutions, the UK's manufacturing sector could see significant growth in the coming decade, creating demand for industrial electronic devices and driving opportunities in the market.

However, surging demand for technologies such as IoT, 5G, and EVs is fueling an unprecedented need for electronic components, often surpassing available supply. Shortages of crucial raw materials and components like chips and capacitors are causing production delays. Compounding the issue, backlogs at component suppliers have stretched lead times from weeks to months. These disruptions hamper EMS manufacturers' assembly processes and complicate timely product deliveries.

The electronics manufacturing industry is rapidly evolving, posing challenges for producers to keep pace. Key hurdles include upskilling the workforce and modernizing production facilities, frequently leading to increased production costs and delays.

Europe Electronic Manufacturing Services Industry Segmentation

Electronics manufacturing services are used by organizations that design, manufacture, test, distribute, and provide return and repair services for electronic components and assemblies for original equipment manufacturers (OEMs). The study monitors revenue from services offered across multiple applications and provides a detailed breakdown of market estimates based on service types, applications, and countries.

The European electronic manufacturing services market is segmented by service type (electronics design and engineering, electronics assembly, electronics manufacturing, and other service types), application (consumer electronics, automotive, industrial, aerospace and defense, healthcare, IT and telecom, and other applications), and country (United Kingdom, Germany, France, and Rest of Europe). The market sizes and forecasts are provided in terms of value USD for all the above segments.