The worldwide contract manufacturing (CM) market experienced an excellent increase in revenue—an estimated 7.1 percent based on our field research and worldwide survey—which is far in excess of the annual worldwide GDP rate of –3.2% as established by the International Monetary Fund in 2020. The industry reached an all-time high of $595 billion in 2020, mainly led by top third-tier EMS companies performing at a higher level of growth since 2019. EMS companies averaged the highest growth over the last five years, exhibiting a 7.5 percent CAGR, whereas ODMs experienced a somewhat lower growth of 3.7 percent. Both suppliers were lifted by the rising tide of sales of PCs and feature phones.


Figure 1 The Worldwide CM Market ($M), 2015–2020

Source: New Venture Research


The CM market was sustained by the strong demand for notebooks, servers, and smart phones, and capital spending in wireless infrastructure and enterprise LANs was driven by the building of various 5G wireless networks. Computer notebook growth was still increasing and the computer industry as a whole (which includes servers and workstations) will see above-average growth as growth in computer replacement and upgrades expand. Additional high growth rates for electronics assembly products were found in the medical and industrial markets. Unfortunately, the COVID pandemic negatively affected the transportation sector (automotive and aerospace), as well as certain consumer electronics products, due to the fear of travel and a decline in disposal income.

The impact of COVID-19 on the contract manufacturing services market caused declines in mainly the first and 2nd quarters with regard to orders. The transportation industry was negatively hurt as air travel and vehicle commuting almost come to a halt and it will take at least another year to fully recover presuming the vaccines proves successful. In 2021, the retail sector is expected to rebound as demand for consumer electronics (TVs, wearables, smart home devices) spending increases over the next five years.

For the eleventh year in a row, the industry was profitable, at $11.4 billion (for 35 EMS public companies and 15 ODM public companies). Foxconn accounted for a little over one-third of all the money made by the EMS industry in 2020, down from approximately half of earnings over the last several years. Luxshare Precision ranked second in total earnings ($1.3 billion), followed by Delta Electronics ($1.1 billion), Quanta Computer ($614 million), and Wistron ($491 million). Figure 2 presents the total available market (TAM) for electronics assembly in 2019 by segment.


Figure 2 The Worldwide Market for Electronic Products Assembly by Market Segment, 2020 ($1.4T)

Source: New Venture Research


The COVID pandemic initially depressed the EMS industry starting in the 1Q20 with work slowdowns and the implementation of new organization protocols for virus safety. In early 2Q20, orders were being cancelled or postponed as industries like automotive were having trouble obtaining parts. But it was the 4Q20 that the downturn experienced a recovery and the total CM market recorded a positive gain.

In 2021, the NVR report profiled 104 large CM companies ($100 million+ in revenue) dominated by the computer, communications, and consumer market segments, while medium-sized and small CM companies excelled in the automotive, industrial, medical, and military/defense/other transportation industries.

The Worldwide Electronics Manufacturing Services Market – 2021 Edition is over 600+ pages in length, and examines the leading EMS and ODM suppliers across 51 countries, 46 product industries, and more than 900 manufacturing locations. For more information, contact Karen Williams at New Venture Research at 408‐888‐5667 ( or visit for more details.