New Delhi, June 8 (IANS) India’s electronics manufacturing services (EMS) market could exceed $150 billion by FY30, and is at a critical inflection point, a report said on Monday.

A report by KPMG in India showed that the EMS market has grown rapidly from roughly $10–12 billion in FY20 to $40–45 billion in FY25.

The sector’s rapid expansion was driven by domestic demand, policy support and China+1 strategies, it said.

However, it now faces a “scale without depth” paradox that limits value capture.

“Amid a once-in-a-generation rewiring of global electronics supply chains, driven by geopolitics, resilience priorities and rising technological complexity, India’s EMS market is at a critical inflection point—where scale has been built, but value chain depth remains limited,” the business consultancy said.

While India leads in high-volume assembly, particularly in mobile and consumer electronics, its presence in higher-value areas such as design, components and IP ownership remains limited.

It estimated the global EMS market at $640–650 billion in 2025 and could exceed $1 trillion by the early 2030s, driven by connectivity, electrification and OEM outsourcing.

India currently accounts for roughly 5–6 per cent of global EMS manufacturing, and hence holds huge room for expansion.

Analysts said that India should increase value creation focusing on deeper integration—from assembly to design-led and system-level capabilities—making capability building across engineering, supply chains and product development a strategic priority.

The report also highlighted persistent structural constraints, noting import dependency of about 80–95 per cent across critical components, limiting domestic value addition and margins. Addressing these gaps will be critical as policy incentives taper.

“India’s EMS sector has reached a pivotal moment with firm foundations of scale, but the next phase of growth will be defined by depth. Realising India’s potential will require sustained investment in component ecosystems, engineering depth, and supply chain sophistication to unlock higher value participation in global electronics manufacturing,” said Rohan Rao, Partner, Automotive & Lead, Electric Mobility, KPMG in India.

Policy incentives have helped India’s rise in the sector with roughly $19.5 billion in cumulative incentives.

“The next five to ten years will be decisive. Realising this potential will require coordinated action across government, EMS players and global OEMs—focused on building component ecosystems, strengthening workforce capabilities, investing in engineering and design, and deepening integration across the value chain,” the report noted.

—IANS

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