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EETE JUN 2014

Global electronic equipment production by region in 2012 (center) and 2017 (outer). Source: Decision Etudes Conseil. 2012, the three regions were down at 41 percent. But this will only creep down to 39 percent by 2017. China is set to lose 2 percentage points of market share while the Asia-Pacific region excluding China grows to hold one fifth of global production. The strong growth will come from the movement of plants from China to adjacent countries to take benefit from lower labour rates starting with low-end mass-market products such as entry-level mobile phones. Europe and North American can not only retain manufacturing at the higher value, lower volume professional end of the manufacturing spectrum but can also benefit from rising export demand for these industrial, automotive and medical products as spending power increases in the emerging economies of the world, Decision reckons. Decision forecasts CAGRs for Europe and North America of 1.7 and 1.9 percent, respectively. Electronic equipment production growth rates per year in Europe, North America and Japan. Source: Decision Etudes Conseil. The consumer, communication and computing markets represented 66 percent of the production of electronic equipment by value in 2012 and the enormous volumes, measured in billions of units per year will increase, but price erosion will see the value reduce to 61 percent in 2017, according to Decision. The process is exemplified by how personal computer production value had already been overtaken by the combined production of smartphones and tablet computers in 2012. Professional electronic production, comprising electronic equipment embedded into aircraft, defence and security systems, automotive, trains, ships, medical equipment and so in is expected to increase significantly in value, from €486 billion (about $670 billion) in 2012 to €656 billion (about $900 billion) in 2017. This represents growth to 40 percent of worldwide electronic production compared to 34 percent in 2012 The automotive sector will also benefit from the increased use of electronics for energy efficiency and electrification and increased penetration of the automobile into emerging markets. Electronic equipment production growth rates per year in China, Other Asia Pacific and ROW. Source: Decision Etudes Conseil. Global electronic equipment production by application sector in 2012 (center) and 2017 (outer). Source: Decision Etudes Conseil. www.electronics-eetimes.com Electronic Engineering Times Europe June 2014 7


EETE JUN 2014
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