Europe ODM & EMS for Embedded Devices Market

Curious About Europe’s IoT Edge? How ODMs and EMS Firms Are Redefining Embedded Systems

“The Europe ODM (Original Design Manufacturer) and EMS (Electronics Manufacturing Services) market for embedded devices is undergoing a notable transformation, fueled by increased demand for industrial automation, smart healthcare solutions, and next-generation connectivity applications. Companies are increasingly outsourcing design and manufacturing to specialized partners to reduce costs, accelerate time to market, and gain access to advanced technological expertise. The rising integration of IoT capabilities into embedded systems has driven OEMs to seek partners with deep domain knowledge and flexible production capabilities.

The region's strong industrial base, especially in Germany and Nordic countries, supports robust demand for customized and application-specific embedded systems across sectors like automotive, energy, and defense. Moreover, there is a shift toward value-added services such as design validation, prototyping, and full-lifecycle support. Regulatory standards and data security concerns in the EU are also influencing product development and compliance-driven design processes. With a push towards energy-efficient and AI-enabled embedded devices, European ODM and EMS providers are positioning themselves as strategic innovation enablers in a competitive global market. "

The Europe ODM and EMS for Embedded Devices market was valued at USD 91,980 Million in 2024 and is projected to reach USD 116,607 Million by 2030, with a compound annual growth rate (CAGR) of 3.4% from 2025 to 2030.

The automotive sector is also seeing a surge in demand for embedded electronics due to the growing adoption of electric vehicles and advanced driver-assistance systems (ADAS). Furthermore, government support for innovation and green technologies is further enhancing market expansion. Key players in the industry are investing in regional research and development (R&D) and manufacturing facilities to align with sustainability goals and strengthen supply chains. As a result, Europe is experiencing significant growth in both ODM and EMS services tailored for embedded applications across various high-tech industries.

The demand for energy-efficient embedded devices in applications such as smart grids and renewable energy systems is driven by EU environmental targets.

Sustainability has become a cornerstone of European Union policy, highlighted by initiatives like the European Green Deal and the 2030 Climate Target Plan. These efforts set ambitious goals for reducing carbon emissions across the region. One of the key players in this transition is embedded systems, which help manage energy more efficiently. They’re essential for everything from monitoring energy usage to operating renewable energy sources such as solar panels and wind turbines.

As Europe moves toward decentralized and digital energy grids, the need for embedded devices—like smart meters, electric vehicle chargers, home automation systems, and building energy controls—is on the rise. Many of these systems require customized electronics that can operate in real time, stay connected, and consume low power.

To achieve these specialized systems, Original Equipment Manufacturers (OEMs) often collaborate with Original Design Manufacturers (ODMs) and Electronics Manufacturing Services (EMS) partners. These manufacturing partners play a crucial role in not just meeting performance expectations but also ensuring compliance with EU regulations like RoHS (which restricts harmful substances) and REACH.

Moreover, with a growing emphasis on circular economy principles, manufacturers are being encouraged to design embedded systems that are repairable and upgradeable. This focus on modular and sustainable design is pushing innovation and outsourcing in the embedded electronics supply chain throughout Europe. Ultimately, sustainability is driving significant change in how these technologies are developed and produced.

Europe’s leadership in Industry and smart manufacturing boosts demand for embedded systems produced by ODM and EMS providers.

Europe is a global leader in industrial automation and the implementation of Industry technologies. Countries like Germany, France, and Italy boast advanced manufacturing sectors that heavily rely on embedded systems to operate machinery, monitor production lines, and enable predictive maintenance. The adoption of the Industrial Internet of Things (IIoT) in these economies fuels the demand for robust, custom-designed embedded devices. As companies pursue digital transformation, there is a growing need for hardware that supports real-time data acquisition, edge analytics, and secure communication.

Many European original equipment manufacturers (OEMs) partner with original design manufacturers (ODMs) and electronics manufacturing services (EMS) firms to quickly and cost-effectively meet these hardware requirements. These partnerships enable industrial firms to scale their operations without the need to invest in internal production capabilities. Moreover, Europe’s commitment to digital twins and smart factories accelerates the adoption of embedded technologies. With manufacturing deeply embedded in European identity and the economy, the region's demand for specialized, high-reliability embedded electronics remains strong, positioning Europe as both a consumer and a significant contributor in the global ODM and EMS embedded devices market.

Rising use of medical electronics and wearable health devices in Europe fuels demand for specialized embedded manufacturing services.

Europe's healthcare and medical device sectors are undergoing rapid technological advancements, particularly due to aging populations and the growing demand for remote and personalized care. Embedded systems play a crucial role in many modern medical technologies, including wearable health monitors, diagnostic imaging equipment, portable testing kits, and remote patient monitoring devices. These applications require compact, low-power embedded systems that are highly reliable and compliant with regulatory standards.

European medtech companies often collaborate with Original Design Manufacturers (ODMs) and Electronics Manufacturing Services (EMS) providers to design and manufacture these systems. The development and production of medical-grade electronics require significant expertise and certification. Additionally, the European healthcare market’s focus on patient safety, data security, and device interoperability complicates embedded system development.

By outsourcing to experienced ODM and EMS partners, medtech Original Equipment Manufacturers (OEMs) can concentrate on innovation and clinical functionality while ensuring compliant high-volume manufacturing. The COVID-19 pandemic has further accelerated the digital transformation of healthcare in Europe, leading to a rise in the deployment of embedded systems in connected devices. This trend continues to grow, supported by EU investments in digital health infrastructure and cross-border health data exchange platforms, reinforcing the demand for advanced embedded device manufacturing across the continent.

The region’s strong automotive industry accelerates adoption of embedded systems in electric and connected vehicles.

Europe is home to some of the world’s leading automotive original equipment manufacturers (OEMs) and Tier 1 suppliers, including BMW, Mercedes-Benz, Volkswagen, Renault, and Stellantis. These companies are at the forefront of innovation in electric vehicles (EVs), connected cars, and autonomous driving technologies. All these advancements heavily rely on sophisticated embedded systems.

Embedded electronics play a critical role in modern vehicle architecture, encompassing battery management systems, advanced driver assistance systems (ADAS), in-vehicle infotainment, and smart sensors. As automotive technology becomes increasingly complex, there is a growing demand for flexible, scalable, and high-quality manufacturing of these embedded components. Original design manufacturers (ODM) and electronic manufacturing services (EMS) providers are essential in helping automotive OEMs keep pace with rapid technological changes while ensuring quality and regulatory compliance, such as ISO/TS standards.

Furthermore, the shift toward mobility-as-a-service (MaaS) and the establishment of vehicle-to-everything (V2X) communication infrastructure in smart cities across Europe further expand the use cases for embedded devices. Europe’s commitment to sustainable transportation, particularly regarding electric and hybrid vehicles, also contributes to the increasing need for embedded control units (ECUs) and power electronics, making it a key player in the embedded device supply chain.

Europe’s deep engineering expertise supports the development of complex embedded designs later produced by ODM and EMS partners.

Europe is home to a thriving ecosystem of engineering talent, featuring top-notch universities, research institutions, and industrial R&D centers that are at the forefront of innovation in embedded technologies. Countries like Germany, the Netherlands, Sweden, and Finland are particularly notable for their significant investments in STEM education and applied research. This commitment ensures a continuous flow of skilled engineers and designers into the workforce.

The environment in these regions is conducive to developing cutting-edge embedded systems across various sectors, including aerospace, automotive, healthcare, and industrial automation. While many of these innovations are developed internally, production frequently gets outsourced to Original Design Manufacturers (ODM) and Electronics Manufacturing Services (EMS) partners. These partners help scale up manufacturing while keeping the original design intact.

Moreover, there's a strong collaboration between universities, startups, and large corporations, which speeds up product development cycles. Initiatives like Horizon Europe and regional innovation clusters—such as Silicon Saxony in Germany—are instrumental in promoting partnerships between the public and private sectors and providing R&D funding.

European companies typically maintain ownership of the design and intellectual property for embedded systems while utilizing ODMs for refining designs and EMS partners for manufacturing and global distribution. This combination of local innovation and outsourced production solidifies Europe’s important position in the global embedded systems market, with ODMs and EMS providers playing vital roles in driving commercial success.

Competitive Landscape

Some of the major companies operating within the ODM and EMS for Embedded Devices market are: Hon Hai Technology, Pegatron, Compal Electronics, Quanta, Wistron, Jabil, Flex, Inventec and Others.