Top 4 Electronic Manufacturing services market trends and its challenges

electronic manufacturing

Electronic manufacturing services (EMS) market has seen a rapid expansion in recent years due to increased consumer demands in both developed as well as developing nations. The electronic manufacturing services market was valued at $430 billion in the year 2015 is predicted to reach $650 billion by 2022.

This industry continues to see seismic changes as the technology evolves. As we enter the year 2019, let’s have a look at the top 4 upcoming trends which are likely to shoot the revenues of this sector and the adoption challenges it might face.

1.  The Age of ‘Smart’ Manufacturing

In times when competition is fierce, EMS companies are shifting to smarter and efficient manufacturing solutions, most of which are based on the Internet of Things or IoT. Starting from asset tracking to product delivery EMS providers can now gather, store as well as view data related to the complete product lifecycle in real time. This, in turn, tends to help the businesses dedicate their resources towards innovation as well as improved customer services, while at the same time saving them from the risks of human error.

The technology has also made the concept of ‘Smart’ factories a reality, where combining IoT with Big Data, demand can be forecasted, and necessary parts and components can be made available in advance.

Possible Challenge

The EMS providers will face some challenges in dealing with surplus information available and being generated regularly. They need to work in synergy with technology experts who can help them devise solutions which can streamline the data flow as well as can help analyze it.

   2.  Medical Industry Sees A Radical Shift

The medical industry has seen a rapid transformation as far as the devices and gadgets used are concerned. The demand for devices focussed towards prevention has increased significantly compared to the devices used for treating or operating a particular problem. Sensor-enabled devices are now allowing the users to keep track of their health and combined with IoT these can send real-time updates and information to the doctor, who can diagnose the issues and offer assistance in real-time.

These devices further tend to get smaller in size, and the manufacturers by using and embedding the latest technologies are producing these devices (example Fitbit etc.) at high speed.

Possible Challenge

As the scales have tipped from provider to patients end, the EMS providers need to ensure that they can produce devices which not only are affordable but carry the same level of sturdiness and durability found in provider-led equipment. They further need to control the costs of development and ensure they can provide the user devices which reflect value.

3. Value Added Services Are Now Being Added

EMS companies are facing fierce competition amongst themselves on all fronts starting from manufacturing, all the way to delivery. Value Added Services are thus what most industries are adopting to get an edge over their competition. Starting from helping business owners with product realization to assisting them with each step of product or solution launch, EMS companies are rapidly expanding the extent of their services.

Possible Challenge

One of the most significant challenges which EMS providers in developing nations like India may face is that developed nations have access to finance at much lower cost and hence it becomes an unfair playing field for developing countries. Further challenges such as low skilled labor and infrastructure bottlenecks are some of the critical factors to look out for EMS service providers who are willing to change and broaden the scope of their deliverables.

4. Greener Solutions Are Now In Demand

With an increase in the demand as well as the production of electronic equipment, there is a dire need to switch to recyclable manufacturing items. With the end users becoming aware of the environment and trying their best to make an impact, they expect the manufacturers to follow suit. However, with the size of devices and gadgets decreasing it is becoming tough for the EMS providers to re-use and recycle the parts.

Possible Challenge

Governments have started imposing stringent regulations with regards to environmental pollution and damage. Manufacturers who wish to stay and make it big in the market need to abide by these rules while at the same time complying with GDPR. Manufacturers will be required to invest heavily in adopting greener manufacturing practices, while at the same time implementing cost-effective solutions which in turn will help them save energy costs in the long run.

Surviving in the growing market demands progressive thinking along with an excellent decision-making ability to embrace changes as they come along. Business owners who can demonstrate forward thinking and are ready to challenge the status quo are the ones pushing their electronic manufacturing companies forward.


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