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The term “electronics and manufacturing system services” (EMS) refers to both a whole industry and a specific type of subcontractor or firm. The phrases “contract manufacturing (CM)” and “emergency medical services (EMS)” are commonly interchanged. EMS businesses, in brief, provide original equipment manufacturers (OEMs) with a wide range of value-added engineering and manufacturing outsourcing services, allowing them to boost operational efficiencies and focus on core operations like research and development (R&D).

The need for electronic components and outsourced manufacturing services is increasing in the electronics manufacturing services (EMS) business.

According to market research, between 2018 and 2024, the sector is expected to increase at a compound annual growth rate of 7.5 percent.

Manufacturers can take advantage of present prospects due to rising consumer electronics demand and new technology breakthroughs. Manufacturers may need to collaborate with solution providers who have industry expertise and experience to meet escalating client demands while also controlling costs.

We watch firsthand the evolution of the EMS sector and the crucial position we play in the electronics value chain as a global leader in high-mix low-volume manufacturing. You’ll learn about the driving reasons of EMS, applications, obstacles, and what to think about while outsourcing your product’s manufacture in this new guide.


Design, manufacture, testing, and distribution are at the heart of any electronics manufacturing service offering. These functions, which may include full system assembly for original equipment manufacturers, will be performed by an EMS supplier.

Offering systems integration or “box build” services, for example, allows manufacturers to combine printed circuit board assembly, wire harnesses, enclosure construction, testing, and other services.

Government (aerospace and defence), consumer (smartphones, PCs, etc.) and industrial products (robotics and automation), electronic components (connectors, semiconductors, etc.) and health care are all part of the electronics manufacturing business (medical devices). Four driving forces can be seen in the EMS business as it continues to grow.

Since the 1990s, the introduction of digital computers, as well as their subsequent advancement and absorption into the public, has played a significant role in popularising electronics use. Modern electronic devices have long outperformed their predecessors’ capabilities, becoming more affordable, accessible, and diverse over the last few decades.

In the coming years, as the complexity of component downsizing and electronic assembly grows, so will the penetration of the electronics manufacturing services (EMS) business. Electronic component design, assembly, production, and testing are all part of the EMS process for OEMs (original equipment manufacturers).

Electronics manufacturing services can be hired at any stage of the manufacturing process. EMS can provide firms with as simple as design files from customers prior to development, component sourcing, assembly, and testing of the product, or more complicated solutions such as design, manufacturing components, and an assembled prototype, depending on individual needs.

High demand for innovative electronic gadgets and equipment in the industrial sector has prompted governments throughout the world to implement policies that encourage electronics manufacture. In India, for example, various new programmes to boost electronics production have been implemented. The PIL (production linked incentive), which has been praised by many stakeholders, and the SPECs (Scheme for Promotion of Manufacturing of Components and Semiconductors), which aims to increase component manufacturing in the region, are two examples.


Components and circuits get smaller and smaller as technology advances. As a result of this shrinking, electronics manufacturing has become a more complex process, requiring increased component density, numerous layers, smaller pitches, fragile parts, and accurate placements, among other things.

Manufacturers are resorting to more inventive and sophisticated technical solutions to expedite their manufacturing processes as demand for fresh features and goods has increased in recent years. For example, smart technology is being used across the industrial spectrum, offering up numerous lucrative opportunities for electronics producers. Constant advances in the Internet of Things, dubbed a “technology renaissance,” have changed manufacturing processes and increased productivity.

The integration of automation or robots in the manufacturing environment is a prominent feature of this renaissance. According to some estimates, over 1.8 million robots were working in manufacturing roles by the end of 2016, with advanced robots accounting for 35 to 45 percent of production by 2030.

Because of their ability to accomplish jobs with more precision, sophisticated robots are gaining a lot of popularity in the electronics industry. Surface-mount technology (SMT) in EMS, for example, allows for seamless assembly of components by using automated machines to place them on the surface of boards.

ASM, a global leader in SMT production, has established an Integrated Smart SMT Factory to serve a global client and industry network in this regard. The company’s electronics manufacturing services include powerful, integrated software and hardware platforms. They’re made to help with virtual production, process optimization, material management, factory monitoring, factory integration, and other applications that require more flexibility, productivity, and quality.

Another transformational breakthrough in electronics manufacturing services is artificial intelligence (AI), which is radically changing the way machines function and communicate. By significantly cutting costs, offering unique features, and generating profitable revenue streams, AI has aided in the streamlining and automation of electronics manufacture.

Continental, for example, has integrated an AI-based simulation tool into its manufacturing process. It’s shown to be extremely effective in speeding up and advancing the testing of advanced driver assistance systems (ADAS) and other electronic systems in automotive applications, with the programme capable of producing over 5,000 miles of vehicle test data per hour.


As OEMs, EMS providers, original design manufacturers (ODMs), and other stakeholders seek to adapt to the rapid shifts occurring in the manufacturing arena, collaborations, mergers, partnerships, and other strategic initiatives are becoming more common. For example, Eaton’s eMobility business, a power-management company, said in 2019 that it had decided to partner with global manufacturing services firm Jabil. The partnership aims to increase PCB and electromechanical assembly manufacturing.

CalcuQuote, a provider of quoting and supply-chain software for EMS firms, teamed with Advanced Assembly, a leader in quick-turn PCB assembly, earlier this year to increase software capability and streamline manufacturing processes through digital advancements.

Electronics production is a fast-paced, ever-changing industry. Customers will continue to benefit from flexible solution suppliers who can keep up with rapid change. With a steady growth observed in the electronics systems manufacturing companies you might think of going into this sector to secure your future or are you still confused with what to choose? MyCareerGurukul is your one stop destination to explore all the career options you have and decide on the appropriate career choice for yourself. 

There will be expert counsellors and mentors to guide you throughout and explore your passion and skills. MyCareerGurukul is a one-of-a-kind platform that helps students discover the right career path at the right time, with the necessary coaching and mentorship to help them design their careers successfully. Its headquarters are at Vasai West, Mumbai North.

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