in4ma Releases Annual Analysis of European EMS Industry

Mar 01, 2021

Key Summary

• European EMS revenue declined 5.4 percent in 2020 according to in4ma’s latest report
• 69% of surveyed EMS companies experienced revenue declines, with automotive exposure playing a major role
• Large EMS firms saw a faster V-shaped recovery, while small and mid-sized firms experienced a slower U-shaped recovery
• EMS revenue in Europe is projected to rebound with 6.5 percent growth in 2021
• in4ma’s full report offers detailed country and market-segment analysis for nearly 200 EMS companies

in4ma’s 2020 European EMS industry report, published last week, shows that EMS revenue in Europe decreased by 5.4 percent in 2020. The survey and subsequent report, led by in4ma CEO Dieter Weiss, includes detailed information from nearly 200 EMS companies, a 20 percent increase in participation from 2019.

On an annual basis, EMS companies in Europe report their numbers into in4ma’s market survey. Evaluations are done by country as well as by market segment. In addition to EMS revenue decreasing in Europe, key takeaways from the report include:

  • 69% of EMS companies surveyed experienced a revenue decrease from 2019 to 2020
  • EMS revenue loss was correlated with exposure to the auto industry supply chain, though some companies with high auto industry exposure did see revenue increases
  • Larger EMS companies experienced a V-shaped recovery in the second half of 2020, whereas medium and small EMS companies experienced a U-shaped recovery (see note below on the definitions of recovery)  
  • EMS revenue in Europe is forecasted to increase by 6.5% in 2021

The full report can be purchased directly from in4ma. Please contact Mr. Weiss at weiss@in4ma.de for additional information.

IPC fully supports Europe’s EMS industry by focusing on standards, education, advocacy, solutions, industry intelligence, and networking events. Learn more about how to participate in these initiatives by contacting Philippe Leonard, IPC director, Europe at PhilippeLeonard@ipc.org.

Note: V-shaped is defined as a sharp decline, short bottoming out period at about minus 4.5%, and a sharp increase, in general, over a shorter period of time. U-shaped is defined as a slower decline, but deeper bottoming out period of more than 9%, lasting longer, and a slower increase. In general, the U-shaped cycle is twice as long as the V-shaped cycle.

Q:
What is the main finding of the 2020 in4ma European EMS report?
A:

The report shows that EMS revenue in Europe fell by 4 percent in 2020, reflecting widespread pandemic-related disruptions across the electronics manufacturing sector.
 

Q:
Why did so many EMS companies see revenue declines?
A:

About 69 percent of surveyed companies reported declines, with the steepest impacts tied to supply chain disruptions and dependence on the automotive sector, which experienced significant volatility.
 

Q:
How did recovery patterns differ among EMS companies?
A:

Large EMS firms recovered more quickly in a V-shaped pattern, while small and medium-sized companies saw deeper, slower U-shaped recoveries that lasted longer.
 

Q:
Is the European EMS industry expected to rebound?
A:

Yes. The report forecasts a 6.5 percent increase in EMS revenue in 2021 as demand stabilizes and supply chains strengthen.
 

Q:
How can companies access the detailed in4ma analysis?
A:

The full report is available for purchase directly from in4ma by contacting Dieter Weiss at weiss@in4ma.de