Dublin, Sept. 21, 2026 (GLOBE NEWSWIRE) -- "United States Electronics Manufacturing Services - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The United States electronics manufacturing services market is projected to grow from USD 172.85 billion in 2025 and USD 185.30 billion in 2026 to USD 267.44 billion by 2031. The market is expected to register a compound annual growth rate of 7.61% from 2026 to 2031, supported by reshoring incentives, semiconductor investments, medical-device miniaturization, defense production requirements, and increased outsourcing by original equipment manufacturers.
Reshoring Incentives and CHIPS Act Funding Accelerate Domestic Manufacturing
Federal incentives are strengthening the business case for domestic electronics production. The Advanced Manufacturing Investment Credit lowered the after-tax cost of eligible surface-mount technology and optical-inspection equipment by approximately 25%, helping manufacturers advance previously marginal expansion projects.
Nearly all of the USD 39 billion CHIPS grant pool had been committed by late 2025. Major awards included USD 6.6 billion for TSMC, USD 7.86 billion for Intel, and USD 4.74 billion for Samsung. These investments are tied to semiconductor manufacturing and advanced packaging capacity that will require support from domestic electronics manufacturing services providers.
Reshoring activity is also creating opportunities across the United States EMS market. Approximately 244,000 U.S. manufacturing jobs were announced in 2024, with computer and electronics manufacturing representing 35% of the total. Locating electronics assembly closer to semiconductor production can shorten design-for-manufacturability cycles, improve supply-chain coordination, and reduce transportation times.
Medical-Device Miniaturization Drives Precision Manufacturing Demand
Demand for smaller and more sophisticated medical devices is encouraging electronics manufacturing services companies to invest in high-precision surface-mount technology. Implantable cardioverter defibrillators, insulin pumps, and portable ultrasound systems increasingly require compact components and highly accurate placement capabilities.
Compliance requirements are also reshaping medical electronics manufacturing. ISO 13485 audits increasingly demand traceability at the individual reel-lot level, prompting factories to adopt laser marking, automated data capture, and real-time electronic device history records. Providers with micro-laser welding, conformal coating, advanced inspection, and finishing capabilities are well positioned to secure low-volume, high-margin medical programs while helping customers reduce validation timelines.
Skilled-Labor Shortage Encourages Greater Automation
Labor availability remains a significant restraint on U.S. electronics assembly. In 2025, the sector recorded a 12% vacancy rate, while the median time required to fill IPC-A-610 Class 3 positions exceeded 90 days. Wage premiums increased by 18% year over year, reducing provider earnings before interest and taxes by an estimated 120 basis points.
These pressures are accelerating investment in collaborative robots, automated inspection systems, and digitally connected production lines. Community-college certification programs are expected to support workforce development, although their broader impact may not become evident until 2027. In the near term, the labor shortage is projected to reduce market growth by approximately 0.7%.
Additional factors influencing the United States electronics manufacturing services market include:
- Increased outsourcing of new product introduction programs by Tier 2 and Tier 3 OEMs seeking faster time to market
- Rising demand for secure, ITAR-compliant defense electronics production
- Margin pressure caused by fluctuations in commodity component prices
Electromechanical Assembly and Box Build Services Gain Momentum
Electromechanical assembly and box build revenue is forecast to grow at a CAGR of 8.65% through 2031. This expansion is expected to narrow the lead held by PCB assembly, which accounted for 48.29% of service revenue in 2025.
Growth is being supported by automotive manufacturers outsourcing battery-management systems and advanced driver-assistance system compute modules to domestic partners. EMS providers that combine enclosure fabrication, cable harness production, electronics assembly, and end-of-line functional testing can offer integrated manufacturing programs. Larger providers also benefit from purchasing scale for aluminum housings and high-current busbars while distributing tooling costs across multiple vehicle platforms.
PCB assembly remains essential for smartphones, networking equipment, industrial controllers, and emerging artificial intelligence hardware. Although longer consumer upgrade cycles are moderating unit volumes, prototype orders from AI hardware companies are generating demand for short-run, high-layer-count assemblies. Engineering, testing, logistics, and component-financing capabilities are becoming increasingly important in turnkey customer relationships.
Contract Manufacturing Leads as ODM and Hybrid Models Expand
Contract manufacturing represented 71.93% of United States EMS market revenue in 2025. However, the original design manufacturing segment is projected to advance at a CAGR of 9.97% as OEMs seek integrated agreements covering materials, manufacturing, testing, and regulatory documentation.
Turnkey providers can manage component sourcing, buffer inventory, and supplier performance, making these arrangements particularly attractive to medical-device start-ups working toward regulatory submission deadlines. Hybrid contracts are also gaining traction by allowing customers to retain ownership of firmware, algorithms, and other critical intellectual property while outsourcing PCB layout, test-fixture design, and production. Continued supply-chain uncertainty, faster engineering change cycles, and demand for consolidated supplier relationships are expected to support the long-term growth of the United States electronics manufacturing services market.
Key Topics Covered:
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET LANDSCAPE
4.1 Market Overview
4.2 Market Drivers
4.2.1 Accelerating Reshoring Incentives and CHIPS Act Subsidies
4.2.2 Generative-AI Hardware Boom Requiring High-Mix, High-Speed Assembly
4.2.3 Automotive Electronics Pivot to EV Powertrains and ADAS
4.2.4 Rising Demand for Secure, ITAR-Compliant Defense Production
4.2.5 Medical-Device Miniaturization Driving Precision SMT Adoption
4.2.6 Tier-2/3 OEMs Outsourcing NPI for Time-to-Market Gains
4.3 Market Restraints
4.3.1 Persistent Skilled-Labor Shortage in U.S. Electronics Assembly
4.3.2 Margin Compression from Commodity Component Price Swings
4.3.3 Fragile PCB Supply Chain for Advanced Substrates
4.3.4 Cyber-Security and IP Leakage Concerns Limiting Cloud-Based Collaboration
4.4 Industry Value-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Impact of Macroeconomic Factors on the Market
4.8 Porter's Five Forces Analysis
4.8.1 Threat of New Entrants
4.8.2 Bargaining Power of Suppliers
4.8.3 Bargaining Power of Buyers
4.8.4 Threat of Substitutes
4.8.5 Intensity of Competitive Rivalry
5 MARKET SIZE AND GROWTH FORECASTS (VALUE)
5.1 By Service Type
5.1.1 Electronic Manufacturing Services
5.1.1.1 PCB Assembly
5.1.1.2 Electromechanical Assembly/Box Build
5.1.1.3 Prototyping
5.1.1.4 Other Electronic Manufacturing Services
5.1.2 Engineering Services
5.1.3 Test and Development Implementation Services
5.1.4 Logistics Services
5.1.5 Other Service Types
5.2 By Business Model
5.2.1 Contract Manufacturing (CM)
5.2.2 Original Design Manufacturing (ODM)
5.2.3 Hybrid / Turnkey / Other Business Models
5.3 By Manufacturing Process
5.3.1 Surface Mount Technology (SMT)
5.3.2 Through-Hole Technology (THT)
5.3.3 Advanced Packaging / Hybrid Processes
5.4 By End-user
5.4.1 Mobile Devices (Smartphones and Tablets)
5.4.2 Consumer Electronics
5.4.3 Computer (PCs/Desktop/Laptops)
5.4.4 Industrial
5.4.5 Automotive
5.4.6 Communication
5.4.7 Lighting
5.4.8 Medical
5.4.9 Other End-users
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
6.4.1 Jabil Inc.
6.4.2 Flex Ltd.
6.4.3 Sanmina Corporation
6.4.4 Celestica Inc.
6.4.5 Plexus Corp.
6.4.6 Benchmark Electronics Inc.
6.4.7 Kimball Electronics Inc.
6.4.8 Key Tronic Corporation
6.4.9 SigmaTron International Inc.
6.4.10 Creation Technologies LP
6.4.11 IEC Electronics Corp.
6.4.12 TT Electronics plc
6.4.13 Vexos Corporation
6.4.14 Nortech Systems Inc.
6.4.15 Sparton Corporation
6.4.16 Zollner Elektronik AG
6.4.17 Fabrinet USA
6.4.18 OnCore Manufacturing Services LLC
6.4.19 MC Assembly LLC
6.4.20 Computrol Inc.
7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK
7.1 White-space and Unmet-Need Assessment
For more information about this report visit https://www.researchandmarkets.com/r/ke6wlp
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