Included in the April 2021 issue of MMI:
Top 50 Surpasses $388 Billion
In 2020, for the fifteenth time in the past 18 years, combined revenue for the top 25 contract manufacturers (EMS providers and ODMs) grew. Last year, top 25 revenue totaled $485 billion, up 11.4% from 2019 (Chart 1). Because the top 25 group accounts for 80–90% of revenue in the outsourcing space, this upward tick in revenue serves as an approximate indicator of how the contract manufacturing market behaved in 2020.
Perhaps more encouraging than the increase in growth was the realization that the top 25 performed well and increased more than the global economy, which contracted for 2020 at –3.5 percent, according to the International Monetary Fund. Longer-term industry attractiveness is raised by a plethora of near-term catalysts. This suggests that expectations have modestly risen, while the fundamental outlook could become more positive due to rapid growth in key end markets such as telecom infrastructure, computing, consumer/smart phones, and semi-cap equipment. In addition, M&A activity has remained robust, and the primary driver of the consistent transaction activity was the favorable EMS industry tailwinds in 2020, despite the challenges COVID-19 created in the M&A environment. M&A opportunities have remained strong as companies perform well due to the “electronics super-cycle.”
Other articles in MMI
- The MMI Top 50 EMS Providers in 2020
- Company News
- COVID–19 Compendium