The worldwide electronic manufacturing services (EMS) industry grew at the annual rate of 17% in 2007, generating $268.1 billion in revenues, according to new research from IDC. While the original design manufacturer (ODM) sector continued to grow at the higher rate of 23% in 2007, the EMS sector still accounted for more than 60% of the industry. The two largest product segments remained computers and consumer devices, generating 36% and 29% of the EMS industry revenue respectively in 2007.
The regional revenue mix was also fairly stable in 2007 due the realignments U.S. EMS firms undertook to shift their geographic footprints offshore.”While computing remains the largest single sector, followed by consumer devices, the industrial segment experienced constant solid growth for EMS firms and displaced servers and storage as the third largest product segment for the industry,” said Michael Palma, senior research analyst for IDC’s Semiconductor group. “ODMs need to evaluate current product and customer portfolios, and look beyond notebooks and mobile phones for future growth. EMS and ODM firms should also take steps to mitigate effects from a likely U.S. recession.”
IDC’s ranking of the top three EMS/ODM firms worldwide in 2007, based on revenue, is as follows:
- Foxconn maintained its lead in the market, with 16% of all industry revenues, growing by 46% from 2006.
- Flextronics grew to 12% market share as it acquired Solectron.
- Quanta enjoyed the strongest annual growth of 57%, based on its success in the notebook segment winning business from Apple and Dell.
IDC’s study, Worldwide Quarterly Electronics Manufacturing Services Vendor Shares and Market Update Briefing, 4Q07 and Full-Year 2007 (IDC #212127) presents vendor share analysis and updated market sizing for the EMS industry by sectors (EMS and ODM), nine product segments, and three regions. For further data on IDC’s EMS industry forecast, refer to the study entitled Worldwide IDC Electronics Manufacturing Services Market Forecast, 2008–2012 (IDC #211094).
To purchase this document, call IDC’s sales hotline at 508-988-7988.
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company.