European EMS market still falling – cautious recovery expected in 2026

At the Evertiq Expo in Warsaw on October 23, 2025, Mareike Haass from the analysis firm in4ma and Christoph Solka from the Global Electronics Association presented new figures showing that the European EMS industry is still grappling with the aftermath of a sharp post-pandemic correction. The latest analysis reveals a 7% revenue decline in the sector for 2024, with no growth expected in 2025, only continued weakness. The downturn follows years of unusual expansion driven by component shortages, inventory builds, and the bullwhip effect. The market remains highly concentrated, with significant job losses, particularly in Central and Eastern Europe. While demand remains weak, inventory levels are starting to normalize. Sectors like automotive are struggling, but aerospace and defense are growing. Despite the weak market, merger and acquisition activity remains high. Cautious optimism exists for a return to growth in 2026