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Global EMS Market to See CAGR of 4% during 2018-2022
August 13, 2018 | Business WireEstimated reading time: 1 minute
The global electronics manufacturing services market 2018-2022 is expected to post a CAGR of close to 4% during the forecast period, according to the latest market research report by Technavio.
A key factor driving the growth of the market is an increase in the outsourcing by OEMs. EMS providers have been greatly benefited by the increase in the outsourcing by OEMs. With the rapid technological advances, the diversified portfolios, and the increasing price pressure in the market, OEMs are forced to focus on core competencies. Hence, they started outsourcing their manufacturing and assembling requirements to EMS providers. This will help them achieve cost-effectiveness, access latest design and engineering capabilities, and reduce the time to market.
Global Electronics Manufacturing Services Market: Industrial Automation
Industrial automation includes the use of control systems, such as computers and robots, and IT to handle various processes, which reduces the dependence on human labor. Industrial automation, also known as industry 4.0, which is an emerging trend in EMS. Industrial automation provides various benefits such as increased productivity, high flexibility, improved accuracy, and high quality.
“When there is high demand, companies need to increase their working hours by paying additional compensation to their employees. With automation in place, companies can easily manipulate their working hours depending on the demand, which leads to improved scalability and flexibility. Moreover, in case of the launch of new technology, the companies by implementing automation will only need to program machines in accordance with the latest technology, which reduces the training and development costs,” says a senior analyst at Technavio.
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
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