2018-2023 Global EMS and ODM (EMS & ODM) Market Report - ResearchByMarkets.com
In 2016, thanks to a surge in shipments of mobile phone vendors such as Apple, Huawei, and Xiaomi, the EMS/ODM market rose by 5.17%. In 2016, the growth in mobile phone offset the drop in notebook computer market. In 2015, mobile phone will still have strong growth potential, but with the growth rate dwarfed by that in 2015. The 4G construction of Radio Access Networks reached the peak in 2015 and 2016. It is projected that the RAN market will be on the decline in 2017-2022. Moreover, the data size of mobile Internet surged, data center or cloud computing services market grew robustly.
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However, the European and US EMS/ODM vendors are dedicated to improving profitability by reducing the revenue proportion of telecom and communication infrastructure, and intensifying the expansion to industrial, medical, and automotive sectors. Meanwhile, they have also strengthened the weakness in components, and ventured into the upstream sector of industrial chains. But compared with the Taiwanese vendors, the European and US EMS/ODM peers lagged far behind in the field of components.
When there is a long-lasting trend for OEMs to outsource their manufacturing function either partly or entirely to contract manufacturers (CMs), otherwise called as manufacturing service providers, OEMs have different priorities in choosing their service providers. Among the CMs, while Electronic Manufacturing Services (EMS) providers involve only in assembling/testing and production of a product/sub-system, Original Design Manufacturing (ODM) providers move ahead in the front-end of the value chain to also involve in designing the product in addition to assembling, testing and mass production. ODMs are evolving faster in more matured sectors such as telecommunications and consumer electronics compared to specialised sectors such as automotive, industrial and defence. OEMs are less likely to choose ODMs compared to EMS for their CM activity due to some reasons such as OEMs having less control over IP rights, designs of PCBs, control boards, etc. ODMs are expected to mainly become potential competitors to OEMs.
Over the next five years, this report projects that EMS and ODM (EMS & ODM) will register a 4.3% CAGR in terms of revenue, reach US$ 654500 million by 2023, from US$ 508600 million in 2017.
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This report presents a comprehensive overview, market shares and growth opportunities of EMS and ODM (EMS & ODM) market by product type, application, key companies and key regions.
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