If 2024 and 2025 felt turbulent inside your factory walls, the data now confirms it: Europe’s electronics manufacturing sector has entered a period of significant transition. At productronica, the Global Electronics Association’s industry intelligence team presented an overview of the European EMS industry, and what emerged was more than a portrait of a market cycling down. It was the story of an industry base being reshaped, from the physics of AI servers, the geopolitics of defense electronics, the collapse of consumer demand, and the relentless march of consolidation.
A Market Downturn With Lasting Consequences
The team, led by Christoph Solka, with Anastasia Ederer and Dieter Weiss, reported that across the continent, EMS revenues fell from €57.45 billion in 2023 to €55.42 billion in 2024, a 3.5% decline that translated swiftly into severe human impact. More than 6,800 jobs were lost industry-wide, marking the steepest workforce reduction in Europe in over a decade. Central and Eastern Europe absorbed most of these cuts, with Poland, Romania, Bulgaria, and the Czech Republic experiencing the sharpest drops as global OEMs retrenched. Solka said a bullwhip effect—fueled by the post-pandemic chip crisis—has continued to reverberate across orders, creating inventory distortions that many EMS leaders hoped had already washed through the system.
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