What Electronics Manufacturers Can Learn from the Global EMS and ODM Market Research

The electronics industry is a dynamic and rapidly evolving sector, driven by technological advancements, shifting consumer demands, and global economic trends. A comprehensive report from Data Bridge Market Research titled "Global Electronics Manufacturing Services (EMS) and Original Design Manufacturer (ODM) Market – Industry Trends and Forecast to 2028" offers valuable insights into this landscape. The report projects a robust market growth rate of 8.30% from 2021 to 2028, with the market expected to reach a staggering USD 1,410,323.49 million by 2028. For electronics manufacturers—whether they operate as EMS providers, ODMs, or original equipment manufacturers (OEMs)—this research provides a treasure trove of lessons. In this article, we’ll explore what manufacturers can glean from these findings, focusing on market drivers, challenges, regional dynamics, and strategic opportunities to stay competitive in an increasingly complex industry.

Understanding the Market: EMS vs. ODM

Before diving into the lessons, it’s worth clarifying the distinction between Electronics Manufacturing Services (EMS) and Original Design Manufacturers (ODM). EMS companies provide a range of services—including design, assembly, testing, and distribution—for electronic components and printed circuit boards (PCBs) on behalf of OEMs. They act as outsourced partners, enabling OEMs to focus on innovation and marketing. ODMs, on the other hand, take it a step further by designing and manufacturing products that are then branded and sold by OEMs. This distinction is critical because the strategies and challenges faced by EMS and ODM providers differ, yet both are integral to the electronics supply chain.

The projected growth to USD 1.41 trillion by 2028 underscores the increasing reliance on these services. As consumer electronics, servers, networking equipment, and other applications proliferate, manufacturers must adapt to meet rising demand. Let’s break down the key takeaways from the report and how they can guide electronics manufacturers.

Lesson 1: Capitalize on Industry-Wide Demand Growth

The report identifies a significant driver of market growth: the widespread adoption of electronic components across industries. From smart home gadgets to industrial automation, electronics are becoming ubiquitous. For manufacturers, this presents an opportunity to expand their service offerings and target high-growth sectors.

Consumer Electronics Boom

Consumer electronics remain a cornerstone of demand. The rise of smartphones, wearables, and IoT-enabled devices has fueled the need for efficient, scalable manufacturing solutions. Manufacturers can learn to prioritize flexibility in their production lines to accommodate rapid product cycles and customization demands. For instance, EMS providers could invest in modular assembly systems that allow quick reconfiguration for different product types, ensuring they remain agile in a fast-paced market.

Emerging Applications

Beyond consumer goods, the report highlights growth in servers, storage, and networking equipment. The shift toward cloud computing and 5G infrastructure is driving demand for high-performance electronics. Manufacturers should consider specializing in these areas, developing expertise in high-density PCBs and advanced thermal management—key requirements for data center hardware. By aligning their capabilities with emerging technologies, they can secure long-term contracts with tech giants and telecom providers.

Actionable Takeaway

To capitalize on this demand, manufacturers should conduct market research to identify niche opportunities within their expertise. Investing in R&D to support cutting-edge applications—such as AI-enabled devices or renewable energy systems—can position them as leaders in high-growth segments.

Lesson 2: Navigate the Complex Global Supply Chain

One of the report’s key insights is the challenge posed by the complex global supply chain. Electronics manufacturing relies on a web of suppliers, often spanning multiple continents, which introduces risks like delays, shortages, and geopolitical disruptions. The COVID-19 pandemic exposed these vulnerabilities, and manufacturers must learn to build resilience.

Supply Chain Optimization

The report notes that uncertain demand and sustainability concerns can obstruct growth. Manufacturers can mitigate these risks by diversifying their supplier base and adopting just-in-time inventory practices. For example, establishing regional hubs for critical components—like semiconductors—can reduce dependency on single-source suppliers in Asia. Additionally, leveraging digital tools such as supply chain analytics can improve forecasting and reduce waste.

Sustainability as a Priority

Sustainability is no longer optional; it’s a market expectation. The report suggests that concerns about product sustainability could hinder growth if not addressed. Manufacturers should integrate eco-friendly practices, such as using recyclable materials or reducing energy consumption in production. EMS providers could also offer end-of-life management services, such as recycling programs, to appeal to environmentally conscious OEMs.

Actionable Takeaway

Invest in supply chain visibility tools and sustainable manufacturing processes. Building partnerships with local suppliers and adopting circular economy principles can enhance resilience and brand reputation, giving manufacturers a competitive edge.

Lesson 3: Leverage Regional Strengths

The report provides a detailed breakdown of regional dynamics, offering manufacturers a roadmap to tailor their strategies based on geographic strengths.

North America: Innovation and Smart Homes

North America dominates the EMS and ODM market, driven by the adoption of smart home gadgets. The region’s strength lies in its innovation ecosystem, supported by tech hubs like Silicon Valley. Manufacturers here can learn to prioritize R&D and collaboration with startups to develop next-generation products. For instance, partnering with IoT companies to produce smart thermostats or security systems could tap into this growing market.

Asia-Pacific: Scale and Consumer Electronics

Asia-Pacific is poised for significant growth due to rising demand for consumer electronics. Countries like China, Japan, and South Korea benefit from established manufacturing infrastructure and a skilled workforce. Manufacturers in this region should focus on scaling production efficiently while maintaining cost competitiveness. However, with labor costs rising in some areas, automation and AI-driven manufacturing could be key to sustaining growth.

Europe and Beyond

Europe’s focus on industrial applications and regulatory compliance offers lessons in quality control and precision manufacturing. Meanwhile, emerging markets in South America and the Middle East present untapped potential. Manufacturers can explore these regions for cost-effective production or to serve local demand, but they must adapt to varying regulatory landscapes.

Actionable Takeaway

Tailor strategies to regional strengths: innovate in North America, scale in Asia-Pacific, and prioritize quality in Europe. Conduct feasibility studies to enter emerging markets, balancing cost savings with logistical challenges.

Lesson 4: Address Competitive Pressures

The report’s competitive landscape analysis highlights major players like Sanmina Corporation, Jabil Inc., and Foxconn. These companies thrive by offering end-to-end solutions and investing in technology. Smaller manufacturers can learn from their success while carving out their own niches.

Differentiation Through Value-Added Services

Large EMS and ODM providers often dominate through scale, but smaller firms can compete by offering specialized services. For example, providing design optimization or rapid prototyping can attract OEMs seeking agility. The report emphasizes the importance of value chain optimization—manufacturers should focus on streamlining processes to deliver faster turnaround times without sacrificing quality.

Technological Investment

The success of industry leaders underscores the need for technological investment. Automation, AI, and Industry 4.0 principles are transforming manufacturing. Smaller players can adopt these technologies incrementally, starting with automated testing or predictive maintenance, to boost efficiency and reduce costs.

Actionable Takeaway

Differentiate through niche expertise or superior customer service, and gradually integrate advanced technologies to stay competitive. Benchmarking against industry leaders can guide investment decisions.

Lesson 5: Prepare for Market Challenges

While the outlook is optimistic, the report identifies obstacles that manufacturers must address to sustain growth.

Uncertain Demand

Cyclical demand patterns can disrupt production planning. Manufacturers should adopt flexible capacity models, such as contract manufacturing agreements that allow scaling up or down based on demand. Scenario planning and predictive analytics can also help anticipate market shifts.

Regulatory Compliance

Complex regulations—especially in Europe and North America—require manufacturers to stay updated on standards like RoHS (Restriction of Hazardous Substances) and AS9100 (aerospace quality). Investing in compliance training and certification can prevent costly penalties and build trust with OEMs.

Actionable Takeaway

Build flexibility into operations and prioritize regulatory compliance. Partnering with legal or consulting firms can ensure adherence to global standards while freeing up resources for core activities.

Strategic Opportunities for the Future

The report’s forecast to 2028 offers a glimpse into future opportunities that manufacturers can seize.

Embrace Digital Transformation

Digital tools like IoT, AI, and blockchain are revolutionizing manufacturing. IoT-enabled equipment can provide real-time performance data, while blockchain can enhance supply chain transparency. Manufacturers should pilot these technologies to identify high-impact use cases, such as predictive maintenance or secure component tracking.

Focus on Emerging Markets

As mature markets saturate, emerging regions like Africa and Latin America offer growth potential. Manufacturers can establish footholds by partnering with local firms or offering tailored solutions for these markets’ unique needs, such as affordable consumer electronics.

Innovate for Sustainability

The push for greener products opens doors for innovation. Developing energy-efficient manufacturing processes or recyclable electronics can attract eco-conscious clients and align with global sustainability goals.

Actionable Takeaway

Start small with digital pilots, explore partnerships in emerging markets, and prioritize sustainability in product design. These steps can future-proof operations and unlock new revenue streams.

Conclusion: A Roadmap for Success

The Data Bridge Market Research report on the global EMS and ODM market is more than a forecast—it’s a strategic guide for electronics manufacturers. By capitalizing on industry demand, optimizing supply chains, leveraging regional strengths, addressing competition, and preparing for challenges, manufacturers can thrive in this USD 1.41 trillion market by 2028. The key lies in agility, innovation, and a customer-centric approach.

For EMS providers, the lesson is clear: evolve beyond traditional manufacturing to offer end-to-end solutions that add value for OEMs. For ODMs, it’s about balancing design innovation with scalable production. And for all manufacturers, it’s about embracing change—whether through technology, sustainability, or global expansion—to stay ahead in a crowded field.

As the electronics industry continues to shape the modern world, those who learn from this research will be best positioned to lead it. The question for manufacturers isn’t whether to adapt, but how quickly they can turn these insights into action. The clock is ticking—by 2028, the leaders will be those who acted decisively today.