Asia will maintain its dominance in the electronics manufacturing services/original design manufacturing markets for at least the next several years, according to high-tech market research firm In-Stat. The Asia CEM market will grow from $121.5 billion in 2006 to $281.8 billion in 2011, with a CAGR of 18.4%. Asia痴 contribution to the global EMS/ODM market will reach 65.7% by 2011. China, with its low-cost advantage and burgeoning demand, will account for nearly 76% of the Asian EMS/ODM market in 2011. Though China will dominate the EMS/ODM market, India, Thailand, and Vietnam will emerge as new dominant players. The important factors in the exploding EMS/ODM market in China and India have been the burgeoning domestic demand for consumer electronics and the rapid growth of mobile communication.
In key Asian markets, OEMs have persuaded EMS players to establish their local operations so they can capitalize on the domestic demand as well.
