European EMS Market Grew to a Record Level in 2023 But May Experience Challenges in 2024
by Sanjay Huprikar, IPC President, Europe and South Asia Operations
Key Summary
• An in4ma survey sponsored by IPC (Now Global Electronics Association) Electronics Europe GmbH found European EMS PCBA revenues reached a record 57.3 billion Euros in 2023.
• The industry grew 11 percent year over year, with 81 percent of EMS companies reporting higher revenues.
• Employment rose by roughly 14,000 to more than 254,000 workers, an increase of 5.9 percent.
• Less than 4 percent of EMS companies generated more than 70 percent of total revenue, while excess raw material inventory reached 5.2 billion Euros.
• Despite strong performance in 2023, the European EMS market may contract by up to 1 percent in 2024 and continue to experience consolidation.
As revealed this week by an annual survey conducted by in4ma and sponsored by IPC Electronics Europe GmbH, 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.
Dieter Weiss, founder and president of in4ma, and lead architect of the survey, stated that 306 legal entities contributed data to this year’s survey, which represented a 50 percent 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 percent.
- EMS production of PCBAs represented only 43 percent 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 percent 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.
Weiss will share his findings at several live presentations over the next six months:
- IPC APEX EXPO – Anaheim, California, USA – April 8
- in4ma EMS & PCB Forum – Ulm, Germany – June 6
- IPC UK EMS Executives Meeting – London, UK – June 13
- IPC European EMS Executives Meeting – Gdansk, Poland – September 25
The full report, “Annual Survey of the European EMS Industry 2024,” authored by Dieter Weiss and Mareike Haass can be purchased directly from in4ma for 690 Euros. Contact Weiss at weiss@in4ma.de for additional information.
IPC fully champions the Pan-European EMS industry by focusing on standards, education, advocacy, solutions, industry intelligence, and networking events. You can learn more about how to participate in these initiatives by contacting Philippe Leonard, senior director, IPC Electronics Europe GmbH, at PhilippeLeonard@ipc.org.
According to the in4ma survey, the European EMS industry grew 11 percent in 2023 and reached record PCBA revenues of 57.3 billion Euros.
A total of 306 legal entities contributed data, representing a 50 percent increase in participants over three years and strengthening the survey’s insight into the market.
Eighty one percent of EMS companies reported higher revenues than the previous year, and industry employment grew by about 14,000 to more than 254,000 people.
Less than 4 percent of EMS companies accounted for over 70 percent of revenue, and excessive raw material inventory was estimated at 5.2 billion Euros.
The overall prognosis is that the market could contract by up to 1 percent in 2024 and continue to experience consolidation through merger and acquisition activity.