Global EMS Market to See CAGR of 4% during 2018-2022


Reading time ( words)

The global electronics manufacturing services market 2018-2022 is expected to post a CAGR of close to 4% during the forecast period, according to the latest market research report by Technavio.

A key factor driving the growth of the market is an increase in the outsourcing by OEMs. EMS providers have been greatly benefited by the increase in the outsourcing by OEMs. With the rapid technological advances, the diversified portfolios, and the increasing price pressure in the market, OEMs are forced to focus on core competencies. Hence, they started outsourcing their manufacturing and assembling requirements to EMS providers. This will help them achieve cost-effectiveness, access latest design and engineering capabilities, and reduce the time to market.

Global Electronics Manufacturing Services Market: Industrial Automation

Industrial automation includes the use of control systems, such as computers and robots, and IT to handle various processes, which reduces the dependence on human labor. Industrial automation, also known as industry 4.0, which is an emerging trend in EMS. Industrial automation provides various benefits such as increased productivity, high flexibility, improved accuracy, and high quality.

“When there is high demand, companies need to increase their working hours by paying additional compensation to their employees. With automation in place, companies can easily manipulate their working hours depending on the demand, which leads to improved scalability and flexibility. Moreover, in case of the launch of new technology, the companies by implementing automation will only need to program machines in accordance with the latest technology, which reduces the training and development costs,” says a senior analyst at Technavio.

About Technavio 

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

Share


Suggested Items

Seeing Clearly: XR Headsets and Flex’s Reference Design at AWE

06/26/2018 | Dan Feinberg, Technology Editor, I-Connect007
At this year’s CES, they announced the launch of an extended reality (XR) reference design for the next generation of XR headsets. As the “sketch-to-scale” solutions provider, as they describe themselves, that designs and builds “intelligent products for a connected world,” they have now introduced an augmented reality (AR or, as we now call it, XR) reference design to reduce time to market for companies wishing to make and market XR devices.

RTW IPC APEX EXPO: Kimball Electronics Discusses New Opportunities in the Medical Market

03/15/2018 | Real Time with...IPC
Tom Ferris, business development director for Kimball Electronics' medical industry solutions business, discusses the latest opportunities in the medical market and new requirements from customers.

Surprising European EMS Market Numbers

10/27/2017 | Dieter G. Weiss, Weiss Engineering
If you think market analysis is always correct and predict the future exactly, you are mistaken. The latest annual reports from EMS companies with manufacturing sites in Europe have changed the picture on the European EMS industry quite a bit and caught us by surprise. Yes, you read that correctly: SURPRISE.



Copyright © 2018 I-Connect007. All rights reserved.