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Opportunity Analysis for Outsourcing in the Electronics Manufacturing Service (EMS) Design Market
Market |
Information Technology |
Report Type |
Market Research |
Country |
Global |
Published |
17 July 2012 |
Number of Pages |
31 |
1-3 hours, 24 hour max |
|
Publisher |
Frost and Sullivan |
File Format |
Increasing competitive rivalry has encouraged OEMs to view EMS providers as strategic partners. The electronics industry continues to evolve rapidly in terms of product and technology innovation. OEMs rely on their innovation capabilities to gain crucial competitive differentiation. This has increased OEM reliance on EMS partners for time-to-market strategy. This research service discusses the current OEM design outsourcing trends, revenue forecast analysis, geographical analysis, and vertical market analysis. The study also identifies new growth opportunities, products and services that can offer increased penetration into design services, and competitive environment.
Executive Summary
The electronics industry continues to remain at the forefront of transformative product design and functionality. Original equipment manufacturers (OEMs) find it challenging to balance the design cycle and the need for faster-time-to-market strategy. Launching innovative products ahead of competition is the only viable strategy that can define success of the product.
The level of quality and delivery times will remain the driving factors for increasing electronics manufacturing service (EMS) participation in design services. Other major factors driving the role of EMS in design are risk diversification, short product life cycle, obsolescence challenges, and flexibility to meet unreliable demand cycle. EMS providers are well known for their ability to mitigate challenges associated with short component lead times, inventory management, uncertain demand, and other cost considerations.
As with any outsourcing decision, the primary motivator for OEMs is cost saving. Deploying advancing technology with increasing scalability incurs significant and, more crucially, continuous investment from OEMs. EMS providers have the core competency and the exposure from different end-user vertical industries to efficiently keep in pace with evolving design, test, and manufacturing requirements. This has encouraged additional OEM outsourcing to EMS providers. EMS revenues from design are anticipated to grow from percent in 2011 to x.x percent in 2018. OEMs are expected to depend on their EMS providers to focus on product differentiation during the forecast period.
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