Included in the June 2021 issue of MMI:
CM Market Grows by 7.1 Percent in 2020
NVR, the parent company of MMI, recently finished its annual report on the worldwide EMS industry, The Worldwide Electronics Manufacturing Services Market – 2021 Edition. We are highlighting some of the key research findings of the report in this issue. See https://newventureresearch.com/wpcontent/uploads/ems2021-RS.pdf/ for more details.
The worldwide contract manufacturing (CM) market experienced an excellent increase in revenue—an estimated 7.1 percent in 2020 based on NVR’s field research and worldwide survey—which is far in excess of the annual worldwide GDP rate of –3.2% established by the International Monetary Fund in 2020. The industry reached an all-time high of $595 billion in 2020, mainly led by top 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 supplier types benefited from the rising tide of sales of PCs and feature phones.
There were individual winners and losers among EMS and ODM companies in 2020, mainly in the Tier 1 segment, as CM production of commodities is dominated by them. In 2020, there were at least twenty-two players that posted double-digit growth, compared to seventeen companies in 2019. In contrast, fifteen leading companies experienced a double-digit decline in revenue from 2019 to 2020, compared to only four companies in 2019. EMS firms like GPV Group grew at 28.7%, followed by USI at 20.2%. Other high-ranking companies for growth included Accton Technology (18.9%) and Fabrinet (16.2%).
Some of the fastest growing companies in 2020, such as GPV Group, expanded by acquisition, but the majority of the top 10 companies grew their sales organically and thus gradually. All of the companies in the top ten for revenue growth achieved double-digit sales growth and many of them had appeared on the top ten list the previous year also, including GPV Group, Fabrinet, Fideltronik, and USI.
Other articles in MMI
- Robust 1Q Growth for European Group
- Company News
- NOTE Acquires iPro in UK, Extends Green Tech Thrust