This research covers the World electronic manufacturing services provider markets in the aerospace and defense industry. Market dynamics delving into market challenges, drivers and restraints have also been investigated. Revenue forecasts and penetration rates for key medical devices are uncovered. This research also covers the competitive framework and market share analysis of the key industry participants is included in this analysis.

Demand for Sophisticated and Intelligent Systems Encourages EMS Participation in the Aerospace and Defense Industry.

With the steady escalation of defense threats and terrorism globally, new avenues have opened up for the world electronics manufacturing service (EMS) provider market in the aerospace and defense (A&D) industry. With traditional markets declining, EMS providers are diversifying into the non-traditional markets such as A&D, where opportunities are proliferating despite the current economic slump. Although yearly defense budgets are likely to witness minimal yet steady increments in the coming years, the focus on defense modernization and technologically advanced warfare will keep the prospects for EMS providers upbeat. There is a pressing need for upgrading conventional military systems and weaponry and the demand for increasingly agile, accurate, network-centric systems and also real-time communication capability is on the rise. 'The development and production of such systems and transformational electronics has provided a boost for OEM outsourcing in the A&D industry and OEMs are increasing reliance on EMS providers for printed circuit board (PCB) fabrication and sub system assembly,' notes the analyst of this research service. 'Moreover, as the trend progresses, they are expected to outsource increasing levels of product development and production processes.' Despite the potential goldmine of opportunities presented by the A&D industry, the overall contribution to the total EMS revenues is still 4.0 percent of the total market revenues. The strong barriers to entry and the challenging business environment had hitherto discouraged EMS growth at its true potential.

Transformational changes have swept across the aerospace and defense arena. The struggling industry, faltering commercial aerospace sector, and new budgetary priorities are changing the business environment for OEM and EMS providers alike. The current economic scenario has reiterated the need for cost effectiveness, encouraging OEMs to seek innovative, cost-saving outsourcing strategies and OEMs are on the lookout for EMS providers that possess similar or compatible internal culture and business models. An increasing number of previously reluctant A&D OEMs have begun to understand the added potential of involving EMS partners for expediting efficiency and flexibility throughout their operations. 'The nature of operating in the A&D industry is significantly different from other traditional and commercial EMS markets. EMS providers face complex manufacturing requirements, very high quality requirements and low to ultra low volume production demands,' says the analyst. 'Apart from this, EMS providers must also obtain comprehensive certifications and security clearances as well as maintain extensive documentation and traceability.' Growing complexity in product designs and supply chains will elevate EMS providers to the position of a strategic partner.

As new participants enter the fray, heightened competition will force others to expand their service and value propositions in order to remain competitive. The success of an EMS provider within the A&D industry will depend largely on performance and the ability to differentiate successfully from other competitors. EMS providers must strive toward creating a platform of open collaboration and integration not only with OEMs but also with their supplier network. EMS providers could potentially overcome the initial challenges by thoroughly researching the business environment. Some savvy EMS providers have established dedicated centers of excellence to solely focus on the demands of the A&D industry.

Market Sectors

Expert analysts thoroughly examine the following market sectors in this research:

- EMS
- Defense
- Commercial aerospace

Technologies

The following technologies are covered in this research:
- RoHS
- RFID

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY

- Overview
- - Introduction

2 ANALYSIS OF EMS PROVIDER OPPORTUNITIES

- Market Dynamics
- - Market Overview
- - Market Definitions
- - Market Engineering Measurements
- - Key Industry Challenges
- - Key Drivers Facilitating Growth of Outsourcing Potential
- - Key Restraints Restricting Potential Growth

- Revenue Forecasts and Trends
- - World EMS A&D Revenue Forecasts Analysis
- - North American Revenue Forecasts Analysis

- Strategic Issues and Industry Trends
- - Manufacturing Trends
- - Supply Chain Trends

- Demand and Opportunity Analysis
- - U.S Budgets and DoD Spending Trends
- - Product and Applications Trends
- - EMS Opportunities by Services
- - MRO Sector Opportunities Analysis
- - OEM Selection Criteria
- - Top A&D OEMs

- Competitive Analysis
- - Competitive Structure
- - Porter’s Five Forces Analysis- Competitive Landscape
- - Market Share Analysis

List of Figures

Chapter 2

EMS Provider Opportunities in the A&D Market: Impact of Top Industry Challenges (World), 2009-2015
EMS Provider Opportunities in the A&D Market: Market Drivers Ranked in Order of Impact (World), 2009-2015
EMS Provider Opportunities in the A&D Market: Market Restraints Ranked in Order of Impact (World), 2009-2015
EMS Provider Opportunities in the A&D Market: Revenue Forecasts (World), 2005-2015
EMS Provider Opportunities in the A&D Market: Revenue Forecasts (North America), 2005-2015
EMS Provider Opportunities in the A&D Market: Competitive Structure (World), 2008