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Electronics Production | September 18, 2012

EMS design market set to grow by billions

New analysis from Frost & Sullivan indicates that the EMS design market is set to grow significantly in the next six years.
The report by Frost & Sullivan called Opportunity Analysis for Outsourcing in the Electronics Manufacturing Service (EMS) Design Market, finds that the global EMS design market earned revenues of 11.93 billion USD in 2011 and is expected to grow to 29.62 billion USD in 2018 with a CAGR of 8.9%.

“Technology innovation, rapid product lifecycles and fluctuating consumer demand are rampant and abundant within the electronics industry, which causes a need for OEMs to showcase their thought leadership and idea generation capabilities,” notes Frost & Sullivan Research Analyst Lavanya Rammohan. “EMS providers have the knowledge needed to enhance their customers’ design and innovation capabilities, and possess a clear understanding of the associated cost, supply chain, testing and manufacturing flexibility required to ensure a successful product launch for OEMs.”

Frost & Sullivan reports that some OEMs in niche industries are still reluctant to outsource design however, particularly in medical, aerospace and defense.

“OEMs prefer to partner with trusted EMS providers for design and engineering support. Effective branding and permanent support in innovation will be imperative for their survival and growth throughout the forecast period,” continues Rammohan. “In addition, EMS providers face the challenge of maintaining market shares amid stringent competition from original design manufacturers (ODMs) and, to a certain extent, pure play design companies.”

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