Worldwide Electronics Manufacturing Services Will Continue to Grow, But at a Slower Pace
Following two years of double-digit revenue growth - 20% in 2006 and 16% in 2007 - it is expected the worldwide electronics manufacturing services (EMS) industry (including ODMs) will end 2008 with growth of 9.3%, reaching $291 billion in revenues. In 2009, it is expected the EMS industry to grow by just 7.8%, assuming demand for electronics does not fall farther than expected.
Montreal, Canada, December 24, 2008 --(PR.com)-- Electronics.ca Publications, the electronics industry market research and knowledge network, announces the availability of a new report entitled "EMS Industry Forecast, 2008-2012".
Following two years of double-digit revenue growth - 20% in 2006 and 16% in 2007 - it is expected the worldwide electronics manufacturing services (EMS) industry (including ODMs) will end 2008 with growth of 9.3%, reaching $291 billion in revenues. In 2009, it is expected the EMS industry to grow by just 7.8%, assuming demand for electronics does not fall farther than expected.
The slower growth rate is the result of decreased computer demand and weakened consumer device segment, according to the new report available at Electronics.ca Publications. While other segments should also slow significantly, opportunities exist for EMS firms in the industrial sector where OEMs are expected to increase their use of contract manufacturers.
The EMS industry in 2009 will experience a significant slowdown in end-markets, endangering the prospects of several EMS/ODMs which are facing overcapacity, competition from new entrants into specific market segments, and larger internal issues with their business models and value propositions. Additionally, the EMS industry will feel the impact of OEMs' risk aversion and attempts to reduce costs by "in-sourcing" design to differentiate products. While increased outsourcing, especially in the industrial segment presents some upside, these new opportunities will unlikely materialize before 2010. In the meantime, emerging products such as netbooks and MIDs in the computer and consumer device areas will not be enough to offset increasingly weak demand for electronics.
The industry should achieve an 8.1% CAGR in 2012 driven by increased outsourcing in the industrial, automotive, and medical device segments, and recovering end-market demand for networking equipment starting in 2010. The computing and consumer device segments will not likely return to the double-digit revenue growth rates that fueled the EMS industry's recovery from the dotcom meltdown.
Details of the new report, table of contents and ordering information can be found on Electronics.ca Publications' web site. View the report: http://www.electronics.ca/reports/electronics_manufacturing/services_forecast.html
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Following two years of double-digit revenue growth - 20% in 2006 and 16% in 2007 - it is expected the worldwide electronics manufacturing services (EMS) industry (including ODMs) will end 2008 with growth of 9.3%, reaching $291 billion in revenues. In 2009, it is expected the EMS industry to grow by just 7.8%, assuming demand for electronics does not fall farther than expected.
The slower growth rate is the result of decreased computer demand and weakened consumer device segment, according to the new report available at Electronics.ca Publications. While other segments should also slow significantly, opportunities exist for EMS firms in the industrial sector where OEMs are expected to increase their use of contract manufacturers.
The EMS industry in 2009 will experience a significant slowdown in end-markets, endangering the prospects of several EMS/ODMs which are facing overcapacity, competition from new entrants into specific market segments, and larger internal issues with their business models and value propositions. Additionally, the EMS industry will feel the impact of OEMs' risk aversion and attempts to reduce costs by "in-sourcing" design to differentiate products. While increased outsourcing, especially in the industrial segment presents some upside, these new opportunities will unlikely materialize before 2010. In the meantime, emerging products such as netbooks and MIDs in the computer and consumer device areas will not be enough to offset increasingly weak demand for electronics.
The industry should achieve an 8.1% CAGR in 2012 driven by increased outsourcing in the industrial, automotive, and medical device segments, and recovering end-market demand for networking equipment starting in 2010. The computing and consumer device segments will not likely return to the double-digit revenue growth rates that fueled the EMS industry's recovery from the dotcom meltdown.
Details of the new report, table of contents and ordering information can be found on Electronics.ca Publications' web site. View the report: http://www.electronics.ca/reports/electronics_manufacturing/services_forecast.html
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Electronics.ca Publications
Chiaki Sadanaga
+1 514 429 1520
http://www.electronics.ca
Chiaki Sadanaga
+1 514 429 1520
http://www.electronics.ca
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