A detailed analysis

The European EMS Industry

Many years of intensive analysis of assembly operators of electronic assemblies (OEM, ODM, EMS) for a German industry association and endless discussions about the size of the German and European market have led Weiss Engineering to re-establish the statistics of the EMS Industry.

Existing market reports defined the EMS market in Europe at around EUR 28 billion, with Eastern Europe accounting for 2/3 of the production volume. Twelve years of experience in working with the market figures made these figures absurd. Moreover, the growth statements were extremely influenced by the American market and not plausible. The Project E³MS (European Electronics Engineering & Manufacturing Services) was created.

In three years of work, Weiss Engineering identified more than 2160 EMS companies in Europe, as well as about 70 EMS companies in the Middle East, Israel and the Maghreb countries. In addition to contact details, sales and employee numbers, and in some cases other figures from the balance sheet and income statement were recorded. Revenues were recorded retroactively up to 2013, balance sheet data retroactively to 2014. The basis was on the one hand the country-specific company registers, on the other hand paid databases. This enabled more than 85% of the European production volume to be directly recorded. For smaller companies, other key figures had to be used as tools for calculating turnover. However, the possible error in this auxiliary invoice is minimal in terms of the total production volume.

The individual sales and other key figures were added up by more than 2160 EMS companies in order to reach the production volume in Europe. The division in Eastern and Western Europe thus refuted figures published so far in the press and market studies. For 2018, the production volume is EUR 43.5 billion, an increase of 8.6% to 2017. This growth was significantly influenced by product transfers from Foxconn, Wistron, Inventec, Flex and Jabil who transferred products to Eastern Europe. For EMEA (Europe, Middle East, Africa), figures of more than 2,220 EMS companies with a turnover of 45.2 billion euros are obtained.

Production turnover in Europe is currently expected to exceed EUR 45 billion in 2019, corresponding to eMEA of more than EUR 47 billion.

There are still many small EMS companies, over 1600 companies have less than 10 million euros in sales, many have no strategy and no future. About 18% of these companies make losses because they do not adhere to some of the basic rules of the business world. Since in4ma analyzed the figures and the balance sheets and pointed out the problems, we see a positive trend in Germany. In 2014, 23.6% of all EMS in Germany still made losses, in 2017 there were only 16.6%, in 2018 there were still 10.6%, of course also due to a good economic development during this period. In 2019, the large EMS > (EUR 50 million) still had sales growth, while the smaller companies already had a decline.

In 2020, the market will be completely remixed due to Corona. Initial surveys assume an average decrease in turnover of > 10%.

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EMS statistics

The 2020 annual statistics of in4ma

Every year we conduct a market survey on the European EMS market. The number of participants has increased steadily over the last six years and reached 155 participating EMS companies in 2020 for the analysis of the calendar year 2019. The questionnaires will be returned approximately 4 weeks after the end of the calendar year and each participating company will receive a full 40-page PDF report free of charge 6 weeks after the end of the calendar year.

The companies’ total turnover for 2019 amounts to 7.863 billion euros, an increase of 5.0% over 2018. These revenues account for about 17% of all European EMS revenues. For D-A-CH alone, it was EUR 5.951 billion, an increase of 4.0% percent, which corresponds to 59% of the total sales in D-A-CH. These are the indicators for calculating the 2019 annual growth rate for the whole of Europe. This calculation is only made if more data for 2019 are available in the state business registers (e.g. Federal Gazette).

We are working on future-oriented growth rates and developments, which is the most critical work a market analyst can do. On the Internet you will find many publications about future developments that are offered at high prices. Be careful how you spend your money. Some of these “experts” predict growth rates with two digits after the decimal point. If you look at the actual database, you realize that they do not even know the actual numbers. We base our forecasts on the retrograde developments of the countries, including known market changes and other details of the countries. Ultimately, our figures are only the sum of the turnover of each company and country in the database with an accuracy of about +/-1.0.

Please note that the actual revenues for 2013 to 2018 changed in 2019 when the subsidiary of an Asian ODM in the Czech Republic (Inventec) was discovered, which was not included in the in4ma database in the past. This was corrected at the end of 2019 and total sales for 2018 increased to EUR 43.5 billion.

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