China heads Asian EMS/ODM market
Asia will maintain its dominance in the electronics manufacturing services/original design manufacturing (EMS/ODM) markets for at least the next several years according to a report from In-Stat.
China, with its low-cost advantage and burgeoning demand, will account for nearly 76% of the Asian EMS/ODM market in 2011, the high-tech market research firm says. Consumer electronics will experience the fastest growth rates, followed by the communications segment.
"OEMs continue to leverage the cost structure of EMS players and outsource their manufacturing to low-cost centres in Asia," says Mayank Jain, In-Stat analyst. "In key Asian markets, OEMs have persuaded EMS players to establish their local operations so they can capitalize on the domestic demand well."
Recent research by In-Stat found the following: The Asia Contract Electronics Manufacturing (CEM) market will grow from US$121.5 billion in 2006 to US$281.8 billion in 2011. Asia will capture 55.1% of the global EMS market in 2011, up from 45% in 2006. Though China will dominate the EMS/ODM market, India, Thailand, and Vietnam will emerge as new dominant players.
