Breakdown of electronics end markets served by top EMS providers

By Mark Zetter

Non-traditional EMS markets make up larger portion of business for smaller EMS providers such as Benchmark Electronics, Plexus. Automotive, medical electronics believed to be pivotal components to helping EMS market out of the recession. Growing penetration in non-traditional EMS markets could support 9% industry growth rate.

Electronics OEM executives with outsourcing mandates can reference this article when gathering information on which electronics manufacturing services (EMS) providers might be better suited to handle their specific OEM product programs marketed toward particular consuming end-markets.

An EMS industry report released by Citi Investment Research, an arm of investment bank Citigroup, reveals breakdown and insight into electronics end markets served and focused on by some of the top EMS providers in industry today. (See also: Top 10 EMS /  ODM providers)

For example, in looking at the pie charts below for Foxconn and Hon Hai, OEM decision-makers employed in consumer electronics OEMs may come to the understanding EMS providers Foxconn and Hon Hai have more experience and be better suited for their consumer products than, say, Sanmina-SCI. (Need help finding suitable EMS or ODM providers?)

While the EMS industry’s growth is still largely tied to the PC industry (the EMS sector will continue to see one-fifth of its revenues from PCs over the next couple of years), I believe alternative service providers are likely to pose a greater competitive threat to the EMS industry overall as non-traditional markets like medical electronics; industrial electronics, automotive and avionics / aerospace and military electronics attract more attention.

Currently, non-traditional EMS markets make up only a small portion of business (if any at all) for some of the top EMS providers.

The automotive and medical electronics segments are believed to be pivotal components to helping the EMS market out of the recession.


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Pie charts below reveal breakdowns for electronics end markets served and focus for EMS providers Foxconn; Hon Hai, Flextronics, Jabil Circuit, Celestica, Sanmina-SCI, Plexus, and Benchmark Electronics.

EMS end-market served by Foxconn

EMS end-markets served by Hon Hai

EMS end-markets served by Flextronics

EMS end-markets served by Jabil Circuit

EMS end-markets served by Celestica

EMS end-markets served by Sanmina-SCI

EMS end-markets served by Plexus

EMS end-markets served by Benchmark Electronics

As you can see above, non-traditional EMS markets make up a larger portion of business for some smaller EMS providers such as Benchmark Electronics and Plexus compared to most larger EMS players.

Longer term, I feel growing penetration in non-traditional EMS markets by the EMS sector could support industry growth rates in the 8% to 9% range.

Additional info: Read an EETimes article I wrote on the changing landscape of non-traditional EMS markets., August 2010

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