Total Electronics Assembly will grow to $1.7 Trillion
10 December, 2017
The demand for contract manufacturing is expected to grow approximately at a 5.3% from $425 billion in 2016 to $551 billion in 2021
The worldwide electronics manufacturing services (EMS) market is now accounts for almost 40% of all assembly, according to The Worldwide Electronics Manufacturing Services Market Research, made by New Venture Research and published by Research and Markets. Outsourcing represents the most desired manufacturing model for the assembly of advanced electronics products. The EMS (Electronics Manufacturing Services) industry declined approximately 1.1% in 2016 as a result of the slowing of sales for PCs, the demand for contract manufacturing is expected to grow approximately at a 5.3% from $425 billion in 2016 to $551 billion in 2021.
The research estimates that the total electronics assembly value was $1.4 trillion in 2016, It is expected to grow to approximately $1.7 trillion in 2021. The report specify 916 manufacturing sites and 63 individual product segments, including for the first time, The Internet of Things. NVR says that the EMS market is thrived by the strong demand for smartphones. Although orders for tablets declined by 7.5% and by 4.5% in 2021, the researchers believe there will be growth of 3.3% in notebooks. Desktops, however continue to decline, up to negative 3.9% in 2021.
Foxconn is by far the biggest contract manufacturer: During 2016 it accounted for more than half of all revenues made by the industry, and reached annual sales of $144 billion and profits of $4.6 billion. Pegatron, who ranked second, announced annual revenues of approximately $36 billion and $600 million profits. Quanta Computer reached annual sales of about $30 billion ($562 million profits). Flex reported $23.9 billion sales and $444 million profits. Delta Electronics finished 2016 with $7.2 billion and $399 profits, and Compal Electronics, ranked number 6 in the world, achieved $25.5 billion sales in 2016, and $239 million profits.
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