This research analyzes the evolving role of EMS providers and ODMs in the dynamic electronics industry. It includes revenue forecasts, drivers and restraints, regional forecast and analysis, vertical market forecast and analysis and competitive structure. The study also discusses mega trends that will impact both EMS and ODM landscape as well as identifies which vertical markets have greater potential in terms of OEM outsourcing. Best practices, profitability, success factors and competitive analysis is also included in the research. This study also aims to identify new growth opportunities and create strategies for exceptional performance in the EMS and ODM market.

The next five years will witness a significant change in original equipment manufacturers’ (OEMs’) perception of their contract manufacturers. The market is expected to witness increasing impetus from OEMs to create a meaningful partnership with electronics manufacturing service (EMS) providers and original design manufacturers (ODMs). Increased collaboration, visibility, and open communication will be key to creating greater synergy between OEM - contract manufacturer partnership.

• The rapidly changing business environment - economic changes, globalization, diminishing product cycles will lead to unprecedented increase in responsibilities for EMS providers and ODMs. This will include increasing ownership of design support, complete manufacturing and supply chain operations, and consulting services.

• With technology and product innovation becoming vital for success, OEMs will be burdened with decreasing barriers to entry and increasing competition. This will increase OEM reliance on contract manufacturers.

• Cost effectiveness and return on investment (ROI) will continue to remain the primary drivers for outsourcing. However, OEM perception will evolve from a single-minded focus on pricing to a well-rounded analysis on total cost of ownership in all end verticals.

• Technology partnerships that cater to emerging high-tech product innovation will be on the rise. Product innovations will propel EMS and ODM growth in consumer electronics, telecom, and computing.

• Product design will remain crucial for OEM differentiation. As a result, the EMS role in design for manufacture (DFM) and test support is expected to leapfrog in the next 10 years.

• EMS providers and ODMs are striving more for collaborative partnerships to develop new products. Being a trusted partner will allow contract manufacturers to be more integrated with their clients and a true extension of the customers’ operations, thus improving ROI, manufacturing, and new product designs.

• EMS providers and ODMs alike will transform their business operations to respond effectively to change (in terms of demand fluctuations, product innovations, etc.). The evolving business model will be transparent, agile, and responsive to proactively adhere to demands of dynamic business environment.

• On product opportunities:

- Increasing virtualization and mobile applications, real-time communication, diagnostics and monitoring
- Activity monitoring, better materials semiconductors, substrates, material choices, blurring lines between human and machine interface (robotics in medical, etc)
- Blurring lines between consumer and automotive electronics

TABLE OF CONTENTS

  Introduction

  Executive Summary
      Market Overview

  Global Trends Analysis
      Global Trends

  Key Vertical Market Trends
      Vertical Market Analysis

  Future Trends Impacting EMS and ODM Industry
      Strategy Perspectives and Defining Trends

  Global EMS Industry Analysis
      Overview

  Global ODM Industry Analysis
      Overview

  Conclusion
      Conclusion