DALLAS -- The EMS and ODM market will grow to $367.6 billion in 2015, up from 1% from 2013, according to a new report. ReportsnReports values the EMS/ODM market at $363.8 billion as of 2013.

The mobile phone market has the largest growth potential in the EMS and ODM industry over the next five year, the firm said. Growth in EMS and ODM manufacturing of communication terminals is expected to jump 14.3% from $30.8 billion in 2013 to $35.2 billion in 2017.

"The success of Xiaomi, which focuses on marketing and brand promotion while entirely outsourcing manufacturing to its contract vendors, propels EMS and ODM services. Xiaomi's remarkable achievement [will] stimulate a large number of mobile phone companies to follow suit, which opens a wide space for EMS and ODM vendors."

The firm also sees potential outsoucing ahead for major handheld OEMs such as Samsung and LG.