European EMS Market Grew to a Record Level in 2023 But May Experience Challenges in 2024

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As revealed this week by an annual survey conducted by in4ma and sponsored by IPC Electronics Europe GmbH, the European electronics manufacturing services (EMS) industry experienced a robust 11 percent growth last year. Printed circuit board assembly (PCBA) production by EMS companies achieved record revenues of 57.3 billion Euros in 2023, underscoring electronics manufacturing’s vital role in the European economy and industrial base.

Dieter Weiss, founder and president of in4ma, and lead architect of the survey, stated that 306 legal entities contributed data to this year’s survey, which represented a 50 percent expansion in participants in just three years.

Key year-over-year industry takeaways from the survey data included:

• Eighty-one percent of EMS companies had higher revenues than the previous year.
• Employment in the EMS industry increased by approximately 14,000 to just over 254,000 total, which represented employment growth of 5.9 percent.
• EMS production of PCBAs represented only 43 percent of the total market of European PCBA production in Europe, so long-term growth potential still exists.
• The market remained very top heavy: Less than four percent of the total EMS companies in Europe represented over 70 percent of revenue.
• Excessive raw materials in inventory were calculated to be 5.2 billion Euros.
• Market consolidation will continue in 2024 as witnessed by 12 merger and acquisition (M&A) deals completed just in the first two months of the new year.
• Overall prognosis for 2024 is that the European EMS market could contract by up to one percent.

Weiss will share his findings at several live presentations over the next six months:

• IPC APEX EXPO – Anaheim, California, USA – April 8
• in4ma EMS & PCB Forum – Ulm, Germany – June 6
• IPC UK EMS Executives Meeting – London, UK – June 13
• IPC European EMS Executives Meeting – Gdansk, Poland – September 25

The full report, “Annual Survey of the European EMS Industry 2024,” authored by Dieter Weiss and Mareike Haass can be purchased directly from in4ma for 690 Euros. Contact Weiss at weiss@in4ma.de for additional information.

IPC fully champions the Pan-European EMS industry by focusing on standards, education, advocacy, solutions, industry intelligence, and networking events. You can learn more about how to participate in these initiatives by contacting Philippe Leonard, senior director, IPC Electronics Europe GmbH, at PhilippeLeonard@ipc.org.