© Reed Electronics Research
Analysis | January 15, 2019
EMEA EMS industry set to exceed €35 billion by 2022
According to Reed Electronics Research’s latest analysis, revenues for the EMS industry in Europe, Middle East & Africa (EMEA) are forecast to reach Euro 35’616 million in 2022 up from Euro 30’564 million in 2017.
CEE still remains the largest region, due to the dominant position held by the leading global EMS providers and most notably Foxconn, which accounted for an estimated 40.4% of the Euro 15’948 million in EMS revenues generated in the region in 2017. Revenues from EMS manufacturing operations in Western Europe amounted to Euro 12’608 million in 2017, 41.3% of the European total, with the remainder from facilities in the Middle East and Africa.
With the rise of initiatives in Industry 4.0, more complex assembly of devices connected through the Internet of Things (IoT) and increases in vehicle electronics, the total value of Western European EMS revenues has begun to rise modestly and continues to grow. A decline in revenues in Italy and negative growth in euros in the UK, however impacted the EMS industry in the region during 2017. A marked fall in sales at two of the leading EMS providers in Germany also subdued growth in the region’s most important market.
Over the period to 2022, constant pressures on price and the transfer of production from Western European plants to manufacturing facilities in CEE/MENA will continue. EMS will also be under pressure from their global OEM customers to offer local manufacturing in other world regions and this will temper growth in some areas of Western Europe. In 2022, RER forecasts that EMS revenues generated in Western Europe will reach Euro 14’453 million with growth accelerating in the later part of the forecast.
In 2017, the Aerospace & Defence, Automotive, Medical, Control & Industrial and Telecoms (ADAMCIT) segments accounted for 70% of West European EMS revenues with the percentage forecast to increase to 72.2% in 2022. In the CEE and other low-cost countries, the focus remains on the Computer, Consumer and Communication (3C) sectors but with continuing and increasing transfer of production of low and medium volume/high mix electronic assembly from Western European EMS. In 2022, the ADAMCIT segments in the CEE are forecast to account for 17.0% of revenues and compared to 16.0% in 2017.
As we enter 2019 however, there are a number of potential headwinds which could subdue shortterm demand. Lower growth in the world economy, an escalation in the trade conflict between the US and China and the uncertainties surrounding Brexit could all dampen growth.
For more information on the analysis, visit Reed Electronics Research, or register for Evertiq Expo in Gothenburg (January 23, 2019) where Peter Brent from RER will go through the data as well as issues and trends. For more information and registration to the event follow this link.
For more information on the analysis, visit Reed Electronics Research, or register for Evertiq Expo in Gothenburg (January 23, 2019) where Peter Brent from RER will go through the data as well as issues and trends. For more information and registration to the event follow this link.
dSPACE adds West Coast office
Simulation and validation specialist dSPACE has opened a Silicon Valley office in San Jose, California as part of its strategic realignment.
Cogiscan, BasiCAE form strategic partnership
Quebec-based Cogiscan Inc. has announced a partnership with China’s BasiCAE Technology, a provider of traditional shop control systems and software customization services.
Korea hits new record of industrial robots in operation
The World Robotics report presented by the International Federation of Robotics (IFR) shows a new record stock of about 300,000 operational industrial robots in the Republic of Korea in 2018 (+10%).
Keytronic starts production at its new Vietnam facility
Keytronic Corporation says it has started shipping product from its new Da Nang, Vietnam manufacturing facility.
USI's looking to accelerate expansion - acquires Asteelflash
It looks like we’re ending 2019 with a bang. One of the worlds biggest EMS providers wants to acquire one of Europe’s largest electronics manufacturers.
Devon manufacturer adds capabilities in Dorset via acqusition
Devon-based PCB manufacturer, EuroTech Group, is acquiring PCB manufacturer Lyncolec, based in Poole, Dorset.
Kyocera and TactoTek collaborate on IMSE solution
Kyocera and TactoTek has singed a marketing agreement which aims to bring IMSE solutions to several new market segments, including industrial and automotive components, electronic devices, and more.
IPC: Unanimous approval of USMCA needed
IPC issued a statement this week expressing support of the recently bi-partisan approval of the United States-Mexico-Canada Agreement (USMCA), and a strong desire for legislative approval by Canada, Mexico, and the U.S.
Nordson's CFO to retire in 2020 after 30 years with the company
Nordson's Executive Vice President and Chief Financial Officer, Gregory A. Thaxton, plans to retire in 2020 after thirty successful years with the company, with the last 12 years as CFO.
KUKA restructures subdivision due to economic uncertainty
KUKA is restructuring a subdivision in the Robotics segment that is responsible for automated manufacturing solutions such as cells and special machines.
PCB industry recovers slightly in Q3
PCB manufacturers in the D/A/CH region were able to increase sales sequentially in the third quarter of 2019 by 1.1%. However, sales figures are 11% lower than those recorded for the third quarter of 2018, reports the industry association ZVEI PCB and Electronic Systems.
Garz & Fricke moves into new HQ in Hamburg-Harburg
Garz & Fricke GmbH continues to expand. As of late October, the business operations of the HMI and Panel PC specialist will be transferring to the new headquarters in in Hamburg-Harburg.
TF Massif Technologies taps new CEO
British Columbia-based TF Massif Technologies has announced the appointment of Tom Peregoodoff as the company’s new chief executive officer.
DoJ: Google, Fitbit deal under review
The U.S. Justice Department is looking into anti-trust issues concerning Google's bid to buy Fitbit Inc.
L3Harris Tech secures U.S. Marine Corps order
L3Harris Technologies received a USD 50 million follow-on delivery order for Falcon III AN/PRC-160 HF radios and related equipment from the U.S. Marine Corps .
Metair completes Romanian lithium-Ion battery cell factory
South African energy storage company, Metair Investments, says that its Romanian units Prime Batteries and Rombat have completed the installation of the group's first Lithium-Ion battery cell manufacturing and assembly facility in Bucharest, Romania.
£5m award marks ‘topping out’ of Cardiff research powerhouse
An GBP 80 million Cardiff University powerhouse for Welsh scientific research has been ‘topped out’ by Bouygues UK – backed by over GBP5 million support from Welsh Government and industrial partners.
Advanced Energy expands with new lab near Frankfurt
Advanced Energy Industries, Inc. has opened its Advanced Materials Processing (AMP) Showcase Lab near Frankfurt, Germany.
TTM Technologies unveils NY engineering center
On the heels of its acquisition of manufacturing and IP assets from i3 Electronics Inc., TTM Technologies has announced the opening of a new engineering center in Binghamton, NY.
EU Commission to support pan-European battery development
Seven member states will provide, in the coming years, up to EUR 3.2 billion in funding to support research and innovation in the common European priority area of batteries.
The pulse of the electronics industry
Growth is slowing worldwide and the industry’s outlook is less optimistic than in previous quarters, although it is still generally positive, according to the results of IPC’s fourth-quarter 2019 Pulse of the Electronics Industry survey.
Teradyne delivers J750 semiconductor test system to Ardentec
Teradyne has hit a milestone with the 6,000th shipment of the J750 family of semiconductor testers.
Season Group names new SvP for global business development
Season Group has appointed Stephen Tsao as the company's new Senior Vice President, Global Business Development.
Zestron appoints new sales director Europe
Mr. Adam Meinert recently joined ZESTRON as the Sales Director of Europe.
Load more news