EMS Sector Sees Surge in Demand Amid Rising EV and IoT Production
- By Lipika Agarwal
- 03 Jun 2025
- Business
Electronic Manufacturing Services (EMS) providers are currently experiencing exponential growth due to an upsurge in demand for electric vehicles and Internet of Things devices that utilise advanced electronic components, leading Original Equipment Manufacturers (OEMs) to outsource production to specialised EMS providers.
Growth Drivers
- Electric Vehicles (EVs): As global mobility shifts towards electric, the production of EVs has experienced a surge. Electric cars use complex electronic systems such as battery management systems, power electronics, motor controllers and advanced driver-assistance systems (ADAS) – components manufactured by EMS providers are essential to meeting industry quality and safety standards. Gminsights provides more insights.
- Internet of Things (IoT): As more IoT devices enter sectors like healthcare, agriculture, and smart homes, demand for electronic components has skyrocketed. Electronic component providers supply their sensors and connectivity modules in support of this evolving IoT ecosystem.
Market Outlook
The Electronic Maintenance Services (EMS) market is estimated to reach USD 895.90 billion by 2032, expanding at a compound annual growth rate (CAGR) of 5.55% between 2024 and 2032, according to GlobeNewswire. This projected expansion can be attributed to the rising adoption of electric vehicles (EVs) and IoT devices, which require sophisticated electronic components and systems.
Regional Developments
India is fast emerging as an important player in the Electronic Manufacturing Services (EMS) industry, thanks to government initiatives such as Production-Linked Incentive (PLI). Nidec recently inaugurated a Rs 600 crore manufacturing plant focused on electric motors and electronic drives in Dharwad, Karnataka, making use of PLI incentives.
Conclusion
The Electronic Manufacturing Services (EMS) sector is poised for significant expansion, thanks to the expanding EV and IoT markets. As these industries mature further, demand for specialty electronic components will drive further advancements within EMS capabilities - positioning this sector as a vital link in the global electronics supply chain.
