ODM and EMS Networking Hardware Market to Set Phenomenal Growth From 2025 to 2034

The global ODM and EMS networking hardware market reached a valuation of USD 28.92 billion in 2024, with expectations to grow to USD 53.37 billion by 2034, at a CAGR of 6.4% during 2025-2034.

ODMs and EMS providers deliver scalable design and manufacturing solutions for networking hardware components such as routers, switches, access points, network appliances, and optical transport equipment. These firms support major OEMs, cloud hyperscalers, and telecom providers by offering both custom and standardized platforms - often white-labeled for brand resale.

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The market's acceleration is fueled by rising internet penetration, 5G expansion, edge computing demands, and cloud-first enterprise architectures that require next-generation networking infrastructure.

Key Market Drivers
a. Explosive Growth of Cloud and Edge Computing
Global data traffic continues to surge, with enterprise applications and content delivery shifting to the cloud. Hyperscalers are increasingly working with ODMs and EMS providers to source white-box switches, servers, and fabric interconnects at optimized costs.
b. Shift Toward Disaggregated and Open Networking
Open Compute Project (OCP) standards and white-box networking have accelerated adoption of ODM-built platforms that allow customers to separate hardware and software, enabling faster upgrades and flexibility.
c. Telecom and 5G Infrastructure Expansion
As telcos expand fiber networks and deploy 5G, the need for base station routers, optical transport equipment, and programmable hardware increases - opening new revenue channels for networking ODMs and EMS vendors.
d. OEM Outsourcing of Design and Assembly
OEMs increasingly outsource design and manufacturing to ODM/EMS partners to reduce time-to-market and focus on software, services, and customer experience. This has led to a steady increase in strategic partnerships with design-focused EMS vendors.

Key Restraints and Challenges
a. Supply Chain Complexity
Global chip shortages, component sourcing issues, and geopolitical risks (e.g., US-China trade tensions) pose significant challenges to timely manufacturing and delivery.
b. Price Pressure and Margin Constraints
ODM and EMS companies operate on high-volume, low-margin models. Intense price competition, particularly in Asia, can affect profitability unless offset by innovation or scale.
c. Design Intellectual Property (IP) Conflicts
Collaborating with multiple OEMs on similar products raises concerns around IP leakage, requiring stringent contractual agreements and data security protocols.
d. Fragmentation in Open Networking Adoption
While white-box and open-source models are growing, many enterprises still prefer proprietary systems, which could slow the transition for conservative markets.

Opportunities & Trends
a. 400G/800G and AI Networking
Next-gen networks, particularly those supporting AI/ML workloads and hyperscale cloud, require high-throughput, low-latency switching. ODMs and EMS firms are now delivering custom 400G/800G platforms compatible with NVIDIA, AMD, and Intel architectures.
b. Customization-as-a-Service (CaaS)
Clients are demanding tailored networking gear for specific workloads or regulatory needs. ODMs offering high degrees of customization - including power optimization, thermal management, and security - gain a competitive edge.
c. Regionalization of Production
To reduce supply chain dependency on China, many EMS firms are building or expanding facilities in Vietnam, India, Mexico, and Eastern Europe, fostering geographically diversified fulfillment.
d. Expansion into AI & IoT-Driven Networks
The growing adoption of AI-based traffic routing, software-defined networking (SDN), and network function virtualization (NFV) is driving demand for programmable, flexible, ODM-designed hardware at the network edge.

Market Segmentation
By Service Type
• Original Design Manufacturing (ODM)
• Electronics Manufacturing Services (EMS)
• Joint Design Manufacturing (JDM)
ODM dominates due to its ability to provide end-to-end design and delivery, especially in the data center segment.

By Product Type
• Routers and Switches
• Access Points and Gateways
• Network Interface Cards (NICs)
• Network Appliances (Firewalls, Load Balancers)
• Optical and Transport Equipment
Routers and switches account for the largest revenue share, particularly for hyperscaler and telecom-grade deployments.

By Application
• Data Centers (Hyperscale & Colocation)
• Telecom Infrastructure
• Enterprise Networks
• Industrial IoT Networks
• Residential/Consumer Access Networks
Data centers lead the market, driven by aggressive cloud expansion and decentralization through edge compute nodes.

By Region
• Asia Pacific
• North America
• Europe
• Latin America
• Middle East & Africa

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Regional Insights
Asia Pacific - Epicenter of Manufacturing
Asia Pacific dominates the ODM and EMS networking hardware landscape, especially with major hubs in China, Taiwan, Vietnam, and India. Companies like Foxconn, Quanta, Wistron, and Pegatron manufacture the bulk of global networking equipment, both for OEMs and direct cloud operators.
North America - R&D and Hyperscale Demand
The U.S. is home to AWS, Google, Meta, Microsoft, and other hyperscalers who increasingly rely on ODM-designed gear. This creates sustained demand for high-performance, AI-ready networking hardware, often customized in partnership with EMS players.
Europe
European telecom modernization, 5G rollout, and secure data infrastructure investments are fueling demand for locally compliant networking equipment. Many ODMs are expanding presence via regional partnerships.
Latin America and MEA
These regions offer emerging opportunities as digitization picks up pace. ODM/EMS firms with flexible production models are targeting telecom infrastructure projects and government-driven broadband programs.

Competitive Landscape
The market is highly competitive, with Asia-based ODMs and global EMS players offering a range of services from bare-metal hardware to full turnkey assembly.

Key Players:
• Foxconn (Hon Hai Precision) - The largest EMS player globally, Foxconn provides networking equipment assembly for top global OEMs and cloud companies.
• Jabil - Offers advanced design and manufacturing for networking equipment, particularly in North America and Europe.
• Celestica - Known for tailored EMS solutions for data center and telecom networks, including systems integration.
• Inventec - Taiwan-based firm known for ODM routers and switches for hyperscale cloud and Tier-1 OEMs.
• Quanta Computer - Major contributor to OCP hardware designs and supplier of white-box switches to cloud and telecom clients.
• Wistron - Provides server, storage, and networking hardware through ODM partnerships with global technology leaders.
• Delta Electronics - Supplies power-optimized networking gear and cooling-integrated platforms for AI workloads.
• Accton Technology - A leading ODM specializing in open networking gear, including 1G to 400G Ethernet switches.
• Pegatron - Offers complete design-to-delivery EMS and JDM models for custom networking gear and 5G devices.
• USI (Universal Scientific Industrial) - Focused on integrated modules and high-speed interconnect components for next-gen networks.

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Recent Developments
Quanta Computer - May 2025
Introduced a new line of 800G data center switches with integrated telemetry for real-time monitoring of AI inference traffic, targeting Meta's new hyperscale facility.
Foxconn - April 2025
Announced a $500 million expansion of its Vietnam manufacturing plant to meet growing white-box networking hardware demand from global OEMs.
Jabil - March 2025
Launched a Design Acceleration Program (DAP) aimed at enabling startups and Tier-2 OEMs to bring custom networking appliances to market within 6 months.
Inventec - February 2025
Partnered with NVIDIA to co-develop AI-optimized edge routers for enterprise-grade inferencing at remote locations.
Accton Technology - January 2025
Released its new Open Compute Project (OCP)-compliant 400G TOR switches, reducing total cost per rack and simplifying cloud fabric integration.

Events and Implications
a. OCP and Open Networking Acceleration
The proliferation of open standards is shifting procurement toward ODM-designed, disaggregated platforms. This democratizes hardware access and encourages price transparency.
b. Software-Hardware Convergence
Networking hardware is increasingly bundled with SDN controllers, AI-accelerated packet inspection, and orchestration frameworks - creating scope for EMS players to offer value-added assembly and software integration services.
c. Diversification of Global Supply Chains
To mitigate geopolitical risks and pandemic-induced bottlenecks, OEMs are pushing ODMs and EMS providers to localize production - reshaping global manufacturing hubs.
d. Sustainability and Energy Optimization
With data centers consuming more power, energy-efficient networking hardware - including low-power ASICs and thermally managed switchboards - is a growing priority for ODM design strategies.

Conclusion
The ODM and EMS networking hardware market is on a high-growth trajectory, set to expand from USD 28.92 billion in 2024 to USD 53.37 billion by 2034, at a CAGR of 6.4%. With the proliferation of cloud infrastructure, AI workloads, and edge computing, demand for flexible, scalable, and cost-effective networking gear continues to surge.

Asia-Pacific remains the production powerhouse, while North America and Europe are emerging as key R&D and demand centers. Innovation in programmable switches, AI-based network control, and open hardware will shape the next decade of ODM/EMS partnerships.

Market leaders like Foxconn, Quanta, Jabil, and Accton are evolving from pure assemblers to end-to-end solution providers, adding software capabilities and design IP to better serve hyperscalers, OEMs, and telecom giants.

This report is also available in the following languages : Japanese (ODMおよびEMSネットワークハードウェア市場), Korean (ODM 및 EMS 네트워킹 하드웨어 시장), Chinese (ODM和EMS网络硬件市场), French (Marché du matériel réseau ODM et EMS), German (ODM- und EMS-Netzwerkhardwaremarkt), and Italian (Mercato dell'hardware di rete ODM ed EMS), etc.

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