1. According to in4ma’s half-year survey, which gathered input from 224 companies representing 21% of the European EMS market, the first half of 2025 saw a decline of 8.1% compared to the same period last year. When combined with the final quarter of 2024, the result still showed a negative development of 3.1%.
2. Looking ahead, however, respondents indicated slightly more optimism. For the second half of 2025, the survey suggests a modest increase of 0.9%. Overall, when combining 2024 and 2025, the industry remains down by 2.1%.
3. Haass noted that while the forecast for 2026 from the survey currently stands at an 11.9% increase, she believes that figure is overly optimistic:
4. “I’m sure that we will see growth next year, but not a double-digit growth,” she said.
5. At the time of the presentation, in4ma had collected real data from 23% of companies for 2025, showing an overall decline of 3.8%. Haass expects the year to close with a small increase, possibly in the range of 2 to 3 %.
6. Despite the slow first half of 2025, Haass concluded that there is reason for cautious optimism about the remainder of the year and into 2026.
THE FUTURE OF ELECTRONIC MANUFACTURING SERVICES: KEY TRENDS & INSIGHTS
1. The Electronic Manufacturing Services (EMS) industry is undergoing a major transformation, driven by supply chain regionalization, rapid advancements in AI and Industry 4.0, and increasing demand for high-performance computing, electric vehicles, and 5G infrastructure.
2. As OEMs accelerate outsourcing and geopolitical tensions reshape production strategies, EMS providers are poised to capture a larger share of the electronics value chain.
IMPACT OF GENERATIVE AI
1. The impact of generative AI on the Electronic Manufacturing Services (EMS) industry is multifaceted, bridging improvements in design, manufacturing, and market dynamics. When integrated with a focus on human needs and decisions based on data, advanced manufacturing technologies can enhance productivity, environmental efficiency, flexibility, resilience in the supply chain, speed of market entry, and a focus on customers.
2. Achieving success will accelerate the use of these cutting-edge technologies to gain additional advantages. A recent study by an industry expert shows that AI-driven approaches can speed up the discovery of new materials by 30-40% compared to traditional methods.
INCREASING DEMAND FOR CONSUMER ELECTRONICS DRIVES MARKET GROWTH
1. EMS providers deliver affordable manufacturing options by utilizing economies of scale and streamlined production techniques. By outsourcing manufacturing to EMS providers, consumer electronics firms reduce their total production expenses.
2. Moreover, technology advancements have encouraged consumers to seek more sophisticated products, further increasing the demand for high-quality EMS providers. To meet these evolving needs, OEMs are increasingly outsourcing their production processes, contributing to the global electronic manufacturing services (EMS) market growth.
MARKET OPPORTUNITIES
1. The increasing demand for electronics in emerging technologies, such as Electric Vehicles (EVs), renewable energy, and 5G networks, is creating significant growth opportunities for the EMS market.
2. These sectors require advanced electronic components and systems, which presents EMS providers with the chance to expand their service offerings and capitalize on new growth areas. As these industries continue to gain traction globally, the demand for high-quality manufacturing solutions is expected to rise, making it an important time for EMS companies to align their capabilities with these technologies.
Source:
https://evertiq.com/news/2025-09-23-ems-market-faces-downturn-but-cautious-optimism-for-2026
https://www.cfraresearch.com/insights/key-trends-in-electronic-manufacturing-services-ems/
https://www.fortunebusinessinsights.com/electronic-manufacturing-services-ems-market-105519
