Global ODM and EMS for Embedded Devices Market Size: Analysis By Type (EMS, ODM), By Application (Industrial, Medical, IT & Telecommunication, Consumer Electronics, Automotive & Transportation, Others): Global and Regional Demand Supply Trends and Forecast: 2025-2030

Market Outlook

The ODM and EMS for Embedded Devices market was valued at USD 1,050,000 Million in 2024 and is projected to grow to USD 1,359,000 Million by 2030, with a compound annual growth rate (CAGR) of 4.3% from 2025 to 2030. The global market for ODM (Original Design Manufacturer) and EMS (Electronics Manufacturing Services) related to embedded devices encompasses the industry where third-party manufacturers design and produce embedded hardware systems and electronics for original equipment manufacturers (OEMs).

These embedded devices include microcontrollers, sensors, processors, and communication modules, which are utilized in various applications such as automotive, consumer electronics, industrial automation, healthcare, and the Internet of Things (IoT). ODMs provide comprehensive design and manufacturing services, while EMS providers primarily focus on production, testing, and logistics. This partnership allows OEMs to reduce time-to-market and lower operational costs.

Key drivers of this market include the increasing demand for smart and connected devices, spurred by the rapid growth of IoT across different sectors. Companies are increasingly outsourcing their design and manufacturing processes to concentrate on their core competencies and foster innovation. Furthermore, the swift adoption of advanced technologies such as artificial intelligence (AI), 5G, and edge computing is elevating the need for sophisticated embedded systems, further promoting market expansion. Cost efficiency, scalability, and access to specialized expertise make partnerships with ODMs and EMS providers highly appealing for OEMs.

However, the market also faces challenges, including supply chain disruptions, geopolitical tensions, and component shortages, all of which can delay production and affect pricing. Concerns regarding intellectual property and the complexities of managing quality and compliance across multiple regions present additional risks. As devices become more advanced, ensuring compatibility, security, and integration across diverse platforms adds another layer of complexity. Despite these challenges, ongoing digital transformation and the rising demand for embedded intelligence continue to drive robust growth in the ODM and EMS market for embedded devices.

Key Insights

Asia Pacific accounted for the largest share of the ODM and EMS for Embedded Devices market at 74.32% in 2024. The Asia Pacific region dominates the global ODM and EMS market for embedded devices due to its strong manufacturing ecosystem, cost-effective labor, and rapid technological advancements. Countries like China, Taiwan, South Korea, and Japan serve as major hubs for electronics production, supported by well-established supply chains and favorable government policies. The region is home to leading ODM and EMS providers that cater to global demand across industries such as automotive, industrial, and consumer electronics. Additionally, growing investments in IoT and smart devices further drive regional market growth, making Asia Pacific a key contributor to the embedded device manufacturing landscape.

In terms of Type, the Electronics Manufacturing Services (EMS) segment for a major share of 53.86 %in 2024. The Electronics Manufacturing Services (EMS) segment leads the global market for Original Design Manufacturer (ODM) and EMS in embedded devices. This is due to its capability to provide comprehensive solutions, which include design, assembly, testing, and logistics. EMS providers serve a variety of industries, ensuring quicker time-to-market, cost efficiency, and high-quality manufacturing. Their extensive experience in managing large-scale production for embedded devices, coupled with effective supply chain management, further enhances their position in the market. Additionally, EMS companies are able to quickly adapt to technological advancements, making them appealing to businesses looking for reliable and scalable production solutions for embedded systems.

Market Dynamics

Drivers:

The increasing use of smart devices such as smartphones, wearables, and home automation boosts the need for embedded systems, driving market demand.

The growing popularity of smart devices like smartphones, wearables, and home automation systems is really pushing the embedded systems market forward. Both consumers and businesses are increasingly turning to more connected and intelligent technologies, which in turn has led to a surge in demand for embedded systems. These systems act as the brain behind devices such as smartphones, fitness trackers, smartwatches, and various home automation gadgets, handling everything from operations to processing power and connectivity.

The need for effective, low-power, and small embedded systems is greater than ever with the growth of the Internet of Things (IoT), which currently connects billions of objects. For example, embedded systems control the touch screens, cameras, wireless capabilities, and battery life of cellphones. These technologies are necessary for wearables to monitor health indicators, provide immediate feedback, and guarantee seamless interactions with other devices. Embedded systems are crucial in smart homes for functions like temperature control, lighting adjustment, and security enhancement.

As people continue to seek out smarter, feature-packed, and energy-efficient devices, the demand for sophisticated embedded systems that can effectively take on complex tasks is only expected to grow. This booming need is opening up new opportunities for companies that design and manufacture these technologies, especially Original Design Manufacturers (ODMs) and Electronic Manufacturing Services (EMS) providers.

Global supply chain issues, such as semiconductor shortages, delay production and increase costs for ODM and EMS providers.

Global supply chain issues, particularly semiconductor shortages, have significantly affected Original Design Manufacturers (ODMs) and Electronics Manufacturing Services (EMS) providers, leading to production delays and increased costs. Semiconductors are vital components in embedded systems, powering a wide range of products from smartphones and wearables to automotive electronics and industrial devices.

The COVID-19 pandemic, geopolitical tensions, and a surge in demand for electronics have disrupted the semiconductor supply chain, resulting in shortages that impede the timely manufacturing of embedded devices. These shortages lead to extended lead times, as manufacturers struggle to secure the necessary components, causing production delays. Furthermore, the rising demand for semiconductors has driven up prices, increasing costs for ODMs and EMS providers reliant on these chips for their products. Consequently, companies face the dual challenge of managing longer wait times for parts and higher production costs, which affects their ability to meet market demand efficiently and maintain profitability.

Segmental Analysis

Based on Type, ODM and EMS for Embedded Devices market is segmented into EMS, ODM.

In the world of embedded devices, the Electronics Manufacturing Services (EMS) segment is clearly taking the lead. This is largely due to the growing trend of companies outsourcing their manufacturing needs. EMS providers offer a full range of services from design and manufacturing to testing, distribution, and after-sales support. This allows Original Equipment Manufacturers (OEMs) to concentrate on what they do best, like branding and innovating new products, while leaving the complex manufacturing process to experts in the field.

As embedded systems become more sophisticated thanks to advances in areas like the Internet of Things (IoT), automotive electronics, industrial automation, and smart technology OEMs are increasingly looking for production models that are both scalable and cost-effective. EMS partners can deliver on these expectations by utilizing their large-scale manufacturing capabilities, advanced technologies, global supply chains, and strict quality control measures.

Another reason for the EMS segment's growth is the demand for quick product development and faster time-to-market. EMS companies excel in high-volume production and rapid prototyping, which allows them to deliver products swiftly while ensuring they meet international quality standards. Many EMS providers are also investing in smart factories, robotics, and Industry 4.0 practices, which enhance efficiency and further attract tech-focused OEMs.

The demand for EMS is particularly strong in industries like telecommunications, healthcare devices, automotive electronic control units (ECUs), and consumer electronics, all of which heavily rely on embedded components. As a result, EMS is steadily increasing its market share, solidifying its role as a crucial player in the modern embedded device landscape.

Regional Landscape

In the context of regional analysis, the ODM and EMS for Embedded Devices market includes North America, Europe, Asia Pacific, South America, and the Middle East and Africa.

The market size of the Asia Pacific was valued at USD 779,205.00 Million in 2024 and is expected to reach USD 1,008,513 Million by 2030, with a CAGR of 74.21% during the forecast period. The Asia Pacific region is at the forefront of the global market for Original Design Manufacturing (ODM) and Electronics Manufacturing Services (EMS), particularly when it comes to embedded devices. This leadership stems from a strong manufacturing infrastructure, efficient supply chain networks, and an increasing demand for smart electronics across various industries. Countries such as China, Japan, South Korea, and Taiwan have established themselves as key manufacturing hubs for electronics and semiconductors, creating an ideal environment for producing embedded devices.

China is leading the way with its vast manufacturing capabilities and significant investments in advanced technologies like artificial intelligence, the Internet of Things, and 5G technologies that heavily depend on embedded systems. Taiwan and South Korea also play crucial roles with their specialized knowledge in high-precision components and system integration.

Major players in the ODM and EMS sectors, like Foxconn, Pegatron, and Wistron, are based in the Asia Pacific, giving the region a competitive edge in producing high-quality products at lower costs. Furthermore, the growing markets for consumer electronics, innovations in the automotive sector, and advancements in industrial automation contribute to an increasing need for embedded devices. This has led many companies to focus on localizing production and research and development efforts.

Government initiatives, such as "Make in India" and "Made in China," are further supporting local manufacturing and promoting the growth of homegrown technologies. Additionally, the region boasts a large pool of skilled engineers and a fast-growing IT and telecom industry, which fuels innovation in the design and integration of embedded systems.

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.