In the context of the global electronics industry East Europe, at US$57.3 billion, accounted for 3% of electronics output in 2014 and held a 4.5% share of the global market at US$81.2 billion. To the east Russia and the Ukraine accounted for 12 % and 34% of production and the market, respectively in 2014. The current conflict in the region has impacted both production and the market and is expected to continue to subdue demand over the short-term. In the longer-term and assuming the current situation is resolved the market will gradually rebound and in turn lead to an upturn in foreign investment.
The electronics industry in the remainder of Eastern Europe accounted for 88% of electronics production and 66% of the market in 2014. The region’s position as an emerging market, the close proximity to Western Europe and lower manufacturing costs has resulted in significant foreign investment by some of the world’s leading electronics groups, with the focus on computing, communications and consumer electronics. Production within the core 3C segment is focused on the Czech Republic, Hungary, Poland and Slovakia. In 2014, the share of 3C accounted for of overall production ranged from 60% in Hungary, to 81% in the Czech Republic, 83% in Slovakia and 84% in Poland.
However, with volume manufacturing in the hands of a relatively few companies the region has been vulnerable to decisions made by individual companies as they look to align production to demand and utilise their global manufacturing operations to reduce costs. In the case of TV manufacturing production has fallen from a peak of 41.0 million in 2010 to a forecasted 32.1 million in 2015.
The production of computer related equipment peaked in 2010 and although output edged up in 2014 on the back of stronger demand output is expected to have declined by 7.6% between 2010 and 2015. The decline in the communications segment has been more pronounced primarily due to the sharp decline in the production of mobile phones. Between 2010 and 2015, output has declined by 32.2%.
The decline in 3C production will be partially offset by an increase in output of industrial and high-end communications equipment. This will be led by foreign investment as companies look to move production from higher cost West European locations or in the case of non-European companies look to establish a low-cost manufacturing base to serve the European market.
Details of the East European Electronics Industry Report, table of contents and ordering information can be found on Electronics.ca Publications’ web site. View the report: Yearbook of World Electronics Data Volume 4 2015/2016 East Europe & World.