-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueWhat's Your Sweet Spot?
Are you in a niche that’s growing or shrinking? Is it time to reassess and refocus? We spotlight companies thriving by redefining or reinforcing their niche. What are their insights?
Moving Forward With Confidence
In this issue, we focus on sales and quoting, workforce training, new IPC leadership in the U.S. and Canada, the effects of tariffs, CFX standards, and much more—all designed to provide perspective as you move through the cloud bank of today's shifting economic market.
Intelligent Test and Inspection
Are you ready to explore the cutting-edge advancements shaping the electronics manufacturing industry? The May 2025 issue of SMT007 Magazine is packed with insights, innovations, and expert perspectives that you won’t want to miss.
- Articles
- Columns
- Links
- Media kit
||| MENU - smt007 Magazine
Positive Outlook for European EMS Industry
December 22, 2017 | Reed Electronics ResearchEstimated reading time: 2 minutes
After a few years of no, or at best, very slow growth, the mood in the European EMS industry is more buoyant in 2017 and the prospects for further growth are good. According to the latest figures from Reed Electronics Research, the European EMS industry is forecast to reach €32 billion by 2021, continuing the last three years of consecutive growth.
EMS revenues in Western Europe grew for the second year running to an estimated €11.2 billion and are forecast to grow over the next five years at a compound average annual rate of 2.8%, with good growth expected from aerospace and defense, automotive, medical, control and industrial and telecom (ADAMCIT) sectors of the market.
There are however, constant pressures on price and the transfer of production from Western European plants to manufacturing facilities in CEE/MENA will continue. EMS will also be under pressure from their global OEM customers to offer local manufacturing in other world regions and this will temper growth in some areas of Western Europe.
Figure 1: EMS revenues for Western Europe and CEE/MENA 2016-2021 (Source: Reed Electronics Research)
The CEE region will continue to be focused on higher volume products in the consumer, computing and communications (3C) sectors with production undertaken by a small number of Group 1 companies. Foxconn, which accounted for 25% of overall European EMS revenues in 2016, Flex and Jabil combined accounted for 44% of the total with an estimated 89% undertaken in their low cost sites in CEE.
European-owned EMS providers in general are focused on serving the ADAMCIT sectors of the market and for the majority, in particular the smaller companies, focused on serving their domestic market. Recent high profile acquisitions, including Scanfil’s purchase of PartnerTech and Neways' takeover over BuS Elektronik, have created larger companies capable of competing across European markets as well as globally.
These larger European Groups are not only competing with fellow European companies but also the Group 1 companies Flex, Jabil, Sanmina, Celestica and Zollner. With the exception of Zollner, the other 4 Group 1 companies have significantly scaled back their activities in Western Europe and are increasingly utilising their low-cost facilities in the region to support the requirements for European manufacturing.
In addition, the US companies Kimball Electronics, Plexus and Benchmark and more recently the Asian companies Integrated Micro-Electronics, Fabrinet and SVI have either strengthened their position or entered the European EMS market.
Over the period to 2021, high volume manufacturing in 3C segment of the EMS industry will continue to be served by a limited number of companies with growth dependent on market demand with the constant threat that through cost pressures, European manufacturing will be lost to lower costs locations in Asia. In contrast, the ADAMCIT segment will drive developments in the European EMS industry and will change the overall landscape, with an increasing proportion of manufacturing undertaken in CEE/MENA and further acquisitions and consolidation among the Group 2 and 3 companies.
Suggested Items
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
06/27/2025 | Nolan Johnson, I-Connect007While news outside our industry keeps our attention occupied, the big news inside the industry is the rechristening of IPC as the Global Electronics Association. My must-reads begins with Marcy LaRont’s exclusive and informative interview with Dr. John Mitchell, president and CEO of the Global Electronics Association. For designers, have we finally reached the point in time where autorouters will fulfill their potential?
Knocking Down the Bone Pile: Tin Whisker Mitigation in Aerospace Applications, Part 3
06/25/2025 | Nash Bell -- Column: Knocking Down the Bone PileTin whiskers are slender, hair-like metallic growths that can develop on the surface of tin-plated electronic components. Typically measuring a few micrometers in diameter and growing several millimeters in length, they form through an electrochemical process influenced by environmental factors such as temperature variations, mechanical or compressive stress, and the aging of solder alloys.
RTX, the Singapore Economic Development Board Sign MOU Outlining 10-year Growth Roadmap
06/20/2025 | RTXRTX and the Singapore Economic Development Board (EDB) have signed a Memorandum of Understanding (MoU) which outlines a 10-year roadmap to further long-term strategic collaboration in Singapore.
Indra Signs Agreement with AXISCADES to Boost Production of Cutting-Edge Systems in India
06/18/2025 | PRNewswireParis Air Show -- Indra and the Indian technology company AXISCADES have signed an agreement to collaborate on the production of solutions for the aerospace and defense markets.
GKN Aerospace Delivers First High Voltage EWIS System for Clean Aviation’s SWITCH Project
06/16/2025 | GKN AerospaceGKN Aerospace has completed and delivered the first high voltage Electrical Wiring Interconnection System (EWIS) for the Clean Aviation SWITCH project.