The electronics manufacturing services (EMS) market is dynamic, and the demand for electronic components and outsourced manufacturing services is growing.
The industry is forecast to grow at a compound annual growth rate of 7.5% between 2018 and 2024, according to market research.
Growing demand for consumer electronics and innovative technological advancements allows manufacturers to capitalize on current opportunities. With rising customer demands and the need to control costs, manufacturers may need to partner with solution providers that offer industry expertise and experience.
As a global leader in high-mix low-volume manufacturing, we see first-hand the evolution the EMS industry is experiencing and the critical role we play in the electronics value chain. In this new guide, you'll learn about the driving factors of EMS, applications, challenges, and what to consider when outsourcing the manufacturing of your product.
The core of any electronics manufacturing service offering stems from design, manufacture, test and distribution. An EMS provider will perform these functions which may also include full systems assembly for original equipment manufacturers.
For example, offering systems integration or "box build" services - manufacturers can use a process to combine printed circuit board assemblies, wire harnesses, fabrication of enclosures, testing and more.
The electronics manufacturing industry is broad and spans across government (aerospace & defence), consumer (smartphones, PC, etc.) and industrial products (robotics and automation), electronic components (connectors, semiconductors etc.), and health care (medical devices). As the EMS market continues to grow, four driving forces can be observed.
According to Market Research engine, the major driving factors of the Electronics Manufacturing Services (EMS) market are:
Rising demand for automotive electronics - the surge can be credited to the demand for safety systems.
Growing demand for consumer electronics - new analysis from Frost & Sullivan, finds the growing demand for consumer electronics will increase the outsourcing trend.
Advanced skill and focus on core competencies - companies are searching for solution providers that provide expertise in their specific field or market sector.
Proliferation of mobile devices - (The market for Android devices, iPhones and wearable technology is continually growing). Cisco's annual report on mobile traffic stated, "By 2020, 5.4 billion people around the world will have a phone."
Applications in the electronics manufacturing space are broad and diverse. Most processes can be applied in any industry for use in the global market. As specified, it includes commercial, industrial and consumer.
Medical - Medical OEMs look to their EMS provider to offer not only the best processes and highest quality standards, but the industry expertise and experience that can guide new product introductions seamlessly through development.
Industrial - Industrial applications use many technologies in a wide array of industries. The complete product lifecycle - from scope and specification, through prototyping and testing, to final assembly, these are services needed to bring a new product to market.
Telecom - Telecommunication and data processing is complex. Support is needed for various devices themselves, and the network infrastructure underpinning the technology.
For instance, if a manufacturer needed a way to ensure the protection of their circuit boards, their instrument would instantly reveal the cleanliness level of the surface. In doing so, "it creates a successful bond between the conformal coating and the circuit boards."
The manufacturer would cut down on failure and waste while experiencing successful coatings.
Benefits of Outsourcing Your Electronics Manufacturing
One of the top reasons manufacturing companies outsource and use solution providers is to lower their costs. OEM's can focus on research and development while saving on capital investments. However, another reason is to gain or maintain competitive advantage by improving speed to market.
What are the other top benefits to outsourcing?
Top 7 Benefits of Outsourcing Your Electronics Manufacturing
Converting your fixed costs investments to a variable cost model
Speed to market
EMS providers offer more agility
Greater experience and competence in manufacturing processes
Much broader and more global supply chain (extension of the global network)
There are over 4,000 EMS providers. Only one is the right fit. They should provide the structure and support mechanisms of a large manufacturer, with the customized, intimate approach of a smaller specialty group.
Yeetek Electronics offers PCB assembly, electronic parts supply, electronics design and manufacturing.
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