Record 2023 growth for European EMS market

In this article, IPC Electronics Europe presents purchasing professionals with the key takeaways from in4ma’s Annual Survey of the European EMS Industry 2024.

As revealed by an annual survey conducted by in4ma and sponsored by IPC Electronics Europe, the European electronics manufacturing services (EMS) industry experienced a robust 11 percent growth last year.

Printed circuit board assembly (PCBA) production by EMS companies achieved record revenues of 57.3 billion Euros in 2023, underscoring electronics manufacturing’s vital role in the European economy and industrial base.

The survey’s lead architect and in4ma’s founder and president, Dieter Weiss, stated that 306 legal entities contributed data to this year’s survey, which represented a 50 per cent expansion in participants in just three years.

Key year-over-year industry takeaways from the survey data included:

• Eighty-one percent of EMS companies had higher revenues than the previous year

• Employment in the EMS industry increased by approximately 14,000 to just over 254,000 total, which represented employment growth of 5.9 per cent

• EMS production of PCBAs represented only 43 per cent of the total market of European PCBA production in Europe, so long-term growth potential still exists

• The market remained very top heavy: Less than four percent of the total EMS companies in Europe represented over 70 per cent of revenue

• Excessive raw materials in inventory were calculated to be 5.2 billion Euros

• Market consolidation will continue in 2024 as witnessed by 12 merger and acquisition (M&A) deals completed just in the first two months of the new year

• Overall prognosis for 2024 is that the European EMS market could contract by up to one percent

The full report titled Annual Survey of the European EMS Industry 2024 authored by Dieter Weiss and Mareike Haass can be purchased directly from in4ma.