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Global EMS, ODM Market to Reach $958.6 Billion by 2026
May 31, 2022 | Globe NewswireEstimated reading time: 1 minute
Amid the COVID-19 crisis, the global market for EMS and ODM estimated at US$588.7 Billion in the year 2020, is projected to reach a revised size of US$958.6 Billion by 2026, growing at a CAGR of 8.5% over the analysis period. EMS, one of the segments analyzed in the report, is projected to grow at a 9% CAGR to reach US$759.8 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the ODM segment is readjusted to a revised 7.5% CAGR for the next 7-year period. This segment currently accounts for a 29.2% share of the global EMS and ODM market. The EMS model is gaining momentum supported by the ability of contract manufacturers to offer production-related economies of scale, procurement of raw materials, industrial design expertise, and resource pooling, in addition to providing value added services such as repairs and warranty. The ODM segment has gained popularity in mobile phones and personal computers sector, mainly due to increasing commoditization.
The U.S. Market is Estimated at $58.5 Billion in 2021, While China is Forecast to Reach $366.7 Billion by 2026
The EMS and ODM market in the U.S. is estimated at US$58.5 Billion in the year 2021. The country currently accounts for a 9.3% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$366.7 Billion in the year 2026 trailing a CAGR of 9.5% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 6% and 7.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.3% CAGR while Rest of European market (as defined in the study) will reach US$402.1 Billion by the end of the analysis period. Asia Pacific represents a key market and growth is being driven by the labor-intensive economies in the region. China, with availability of raw material in abundance and low-cost labor, leads Asia Pacific`s electronic contract manufacturing services market. North America`s EMS market growth would be driven by the presence of a large number of medical institutions and extensive research and development activities in the region.
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