EMS industry sees decline and stagnation across Europe

According to the data presented, 219 legal entities representing 177 EMS companies across Europe participated in the survey. Together, these companies generated around EUR 4.5 billion in revenue during the first half of 2025. For comparison, respondents reported approximately EUR 11 billion for the full year 2024, with 2025 expected to end slightly lower at EUR 10.9 billion.

The study divided participants into two groups: companies with annual revenues above EUR 50 million and those below that threshold. Larger companies accounted for 27.4% of participants but generated 77.2% of total revenues, while smaller EMS firms contributed 22.8%. Both groups reported year-on-year declines for the first half of 2025, –6.6% for the larger firms and –12.7% for smaller ones.

Geographically, Germany accounted for roughly half of all reported revenues. Other notable markets included Central and Eastern Europe, France, Belgium, Switzerland, and Austria. The analysis showed a steep revenue drop between the first and second halves of 2024 (–10.8%), followed by a slight increase of 3.1% in early 2025 and a modest forecast of +0.9% for the second half of the year — suggesting a slow recovery but an overall flat trend.

Regional differences were pronounced, Solka explained. Germany saw a sharp decline and only a minor rebound, while Switzerland and France showed strong double-digit growth in early 2025. In Eastern Europe, results were weaker, as some Western European EMS firms relocated production back west.

“After a challenging 2024, we’re beginning to see light at the end of the tunnel in 2025. While Germany and Austria continue to decline overall, other countries — particularly Switzerland and the Netherlands — are showing strong growth.”

The order backlog across all companies fell by 1.7% in early 2025, with both large and small EMS firms seeing decreases. Meanwhile, inventory levels dropped by about 6.7%, which Solka described as a positive development after the high stock levels built up during supply chain shortages in previous years.

When asked about the current order situation, more than half of the respondents rated it as “satisfactory,” Dr Haas said from the stage. However, companies in Eastern Europe reported more difficult conditions — with 35% describing the situation as “bad” with no orders coming in and 9% as “very poor.” Haass explained that Western firms found it easier to scale down production in Eastern Europe.

“They moved some production and orders from Eastern Europe to Western Europe, using the facilities there. That’s why the situation in Eastern Europe is currently worse than in Western Europe.”

The Nordic EMS market accounts for about 5.9% of the total European market. It experienced a decline of around 6% in 2024, though the figure is slightly distorted due to a Danish company's relocation of production to Poland. Sweden saw a revenue decrease of 2.9% in euro terms, while the top 20 Swedish EMS firms accounted for roughly 90% of the country’s EMS revenues.

Between 2019 and mid-2025, the Nordic region recorded 43 M&A transactions, including 10 closures or insolvencies. Around 70% of all M&A activity came from the five largest public Nordic EMS firms.

Publicly listed EMS companies in the Nordic region reported significant revenue losses in 2024 compared to 2023. However, most saw improvement in early 2025. Compared with the broader European market, these companies “are in a better position,” as Haass noted, adding that sectors such as medical and military electronics have provided stability.

Looking ahead, the presenters noted positive outlooks for 2026. For the second half of 2025, survey participants expect a marginal 0.9% improvement compared to the first half, as stated earlier.. However, when combined with the earlier downturn, the industry overall is forecast to remain flat year-on-year. By contrast, survey participants remain optimistic about 2026, with double-digit growth projections in several markets, including Germany and Switzerland. 

On October 23, the discussion continues as Mareike Haass and Christoph Solka once again take the Evertiq Expo stage — this time in Warsaw — to share their thoughts on where the European EMS industry is heading. During their keynote, “EMS-Industry, thoughts about the future,” they are expected to present fresh data and insights that may offer a clearer picture of what lies ahead in 2026 — and which markets stand to benefit the most from a potential turnaround.