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27
October
2010

EMS market with growth prospects

Going forward, the EMS market is expected to grow, driven by both underlying demand and increased outsourcing rates.
After the slump of 2009, the worldwide electronics assembly market is expected to grow at an CAGR of 9% up until 2014, shows a new study Maximising your return from outsourced manufacturing and After Market Services from OC&C Strategy Consultants. Here, the segments Computer and Consumer (including mobile phones, but excluding computing hardware) will remain the largest segments for outsourcing activity. However, Medical seems to be the segment with the highest CAGR. (See chart below.)

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The interviews for the study also reveal interesting points of the EMS/OEM relationship. “Many segments are under-penetrated today so we expect fairly robust growth”, a TIER2-EMS is quoted. A corresponding OEM comment could be: “Our long term dream is to outsource everything...”

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Source: OC&C Consultancy
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